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Oliver Kazunga, Senior Business Reporter
THE Confederation of Zimbabwe Industries (CZI) says the manufacturing sector has recorded losses running into millions of dollars due to the adverse effects of the Covid-19 pandemic.

According to a survey carried out by the largest industry grouping on May 30, 2020, a total of 122 firms across the country indicated that they had made massive losses due to Covid-19, which has also affected capacity utilisation.

“Out of 480, a total of 122 firms with total employment of 32 265 employees responded to the survey,” said CZI.

It said 69 percent of the respondents were from Harare, Bulawayo (6 percent), Manicaland (6 percent), Midlands (4 percent) and the remaining 15 percent were from the other provinces.

CZI also indicated that there is a trade-off between containment measures and economic development and this is on account that the containment measures affect operations of the productive sector through supply chain disruptions, reduced demand, and logistical bottlenecks, among others.

“The national lockdown has dictated high overheads operating environment for the productive sector.

“Closure of source and destination markets as many countries implemented varying degrees of lockdowns in response to the outbreak of the pandemic,” reads the CZI survey report.

It said disruptions at source markets were damaging local operations since most industries rely on imported raw materials including agricultural raw materials where the country used to enjoy a competitive advantage.

The industry lobby group said there was need for a home-grown policy thrust as Covid-19 has brought about “a forced policy review date” for all economic sector policies in scope, scale and speed of implementation due to this unprecedented disruption.

CZI said it could not afford to allow the persistence of high cost of doing business environment in light of the devastating impact engendered by Covid-19.

“While the pandemic is out of anyone’s control, and external financial support is not forthcoming and local financing facilities are constrained, swiftly crafting a competitive and easy business regulatory environment is within reach and urgent.”

CZI said the productive sector was also suffering from the effects of the the lockdowns as export markets were closed leading to supply chain disruptions.

“This will have negative effects on the country’s capacity to generate foreign currency revenue, which is needed for critical imports.

“Due to the need to fulfil public health policy measures, some companies have ceased operations while others are partially operating leading to a high-cost environment emanating from high overheads,” said the industry group.

“Collapsed demand for goods and services also implies loss of revenue for the business, in the process of destroying working capital.” — @okazunga