THE Confederation of Zimbabwe Industries (CZI) surprised us weeks ago with fresh statistics that projected that capacity utilisation will rise to 61% this year. This comes after industrial capacity grew last year despite the advent of COVID-19 which kept sections of the economy shut down for a significant part of the year. Despite reported company closures necessitated by the need to curb the spread of coronavirus, the CZI’s 2020 manufacturing sector survey said capacity utilisation, which measures how much of the combined factory capacity was being utilised, increased to 47% last year from 36,4% in 2019. For Zimbabwe’s economy, this development is a pleasant surprise because many thought that after the blanket closures there was bloodbath in industry. Perhaps, the CZI’s survey focused on the big players whose operations were largely unaffected by lockdowns. All the same, the statistics demonstrate that with the right controls in place to limit the influx of imports, domestic firms can be bolstered by higher demand from the local market. The next thing is for government to balance between the demands of an Africa that is progressively opening up its borders to intra-regional trade and the requirements of its home-grown producers. It is a tricky balancing act, but one that can be done given that we won’t be reinventing the wheel as this has already been achieved in trading blocs like the European Union. What the CZI survey indicates is a recovery of sorts for the economy given that even the industry body has been downbeat on Zimbabwean prospects since the pandemic broke out at the beginning of last year. What is important is for government to come to the party and address the concerns raised by industry. We hope government will support the efforts by the industry body with policies that are predictable, sensitive to the needs of the industry and labour. Stable, predictable policies are also essential to attract fresh investment as this allows for long-term planning. The year 2021 must be the year Zimbabwe opens a new path towards recovery and take huge strides towards President Emmerson Mnangagwa’s cherished dream of a middle class economy by 2030. It is attainable, so long government realises that we all have different parts to play in support of the country. Investors support our dreams, while we help them unlock value on their investments.
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