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According to the Confederation of Zimbabwe Industries (CZI) 2011 Manufacturing Sector Survey, export levels remain sluggish despite an increase in capacity utilisation now standing at over 50 percent.
Capacity utilisation, which refers to the extent or level to which the productive capacity of a plant, firm, or country is being used in generation of goods and services, has in the past two years hovered between 30 and 40 percent.

“The percentage of companies operating at levels of 50 percent and above has increased average capacity utilisation, as at the end of the first half of 2011 stood at 57,2 percent,” said CZI.
The confederation, however, said the increase in production levels did not translate into increased exports.

“Most companies are still producing for the domestic market. Export levels remain depressed due to challenges related to lack of working capital to meet orders and unavailability of raw materials.”
The CZI said high operational costs had made local products expensive compared to other regional and international goods.
“The products are not competitive on the international market both in terms of cost and quality and this is largely a result of high production costs and lack of modern technology.”

The survey shows that currently exports are confined to Africa.
“In terms of export destination, our markets are still confined to Africa, with only two percent exporting to East Africa and two percent to Europe,” revealed the survey.

Zambia is the leading export market gobbling 29 percent of local products followed by Malawi and South Africa at 16 percent respectively.
Mozambique and other nations are consuming 11 percent.

The survey showed that two percent of companies in the manufacturing sector were exporting to Europe.
CZI stresses that the economic embargo slapped on the country by the West continues to hamper efforts to boost industrial output.

For instance, the Zimbabwe Democracy and Economic Recovery Act (ZIDERA), an act passed by the United States Congress, continues to block economic recovery in a bid to effect regime change in the country.
CZI president Dr Joseph Kanyekanye is on record saying the existence of ZIDERA continues to hurt industry. — New Ziana.