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Oliver Kazunga, Senior Business Reporter
THE Confederation of Zimbabwe Industries (CZI) says the local food industry has registered improved capacity utilisation levels ranging between 50 percent and 70 percent since the beginning of the year.

CZI vice president Sifelani Jabangwe said this was due to a number of policy interventions on imported products by the government.

He said improved capacity utilisation levels were being observed in the bakery, oil expressers, dairy, beverages, and poultry processing firms.

“We’re using the shelf space as a barometer to measure the performance of local food processing companies,” said Jabangwe.

“Since January this year, we’re now having them (local food processing firms) occupying more shelf space and this is largely attributed to a number of sector-specific interventions by the government together with the industry players.”

In the 2016 national budget, the government introduced a 15 percent Value Added Tax on close to 40 imported basic goods that include cooking oil, bath and laundry soap, margarine, milk and poultry products to facilitate the recovery of distressed local food manufacturers.

“As a result of the sector-specific interventions, some of the companies in the food industry are now operating at levels between 50 percent and 70 percent and because of such production levels, they’re occupying more shelf space.

“Some of the firms have taken advantage of the import duty hike to improve on their operations. The most important thing now is to say how this can be replicated on other value chains such as the pharmaceuticals,” he said.

Jabangwe said sector-specific interventions were anchored on evidence-based approach on certain local industries.

“The interventions were made taking into account the evidence-based approach on local consumption and capacity at which industry can produce,” he said.

Early this month, the government fully implemented the Consignment Based Conformity Assessment (CBCA) programme aimed at curbing the continuous influx of sub-standard goods into the country.

The government has engaged a French-based firm Bureau Veritas to provide pre-shipment services of listed products in the country of export and issuance of certificates of conformity based on the national and international quality, safety, health and environment standards.

The programme was officially launched by the government on July 27 last year.