Manufacturing sector growth goes down

Manufacturing sector growth goes down
Published: 02 November 2013
The Ministry of Industry and Commerce says growth in the manufacturing sector has been slowing down since 2011.

In her presentation during the pre-budget seminar under way in Victoria Falls, the Deputy Minister for Industry and Commerce, Chiratidzo Mabuwa said the manufacturing sector recorded 14.4 percent growth in 2011 and 2.3 percent last year.

Mabuwa said the growth of this sector is projected to slow down to 1.5 percent this year if there is no capital injection for industry.

She said some of the challenges that result in low capacity utilisation include working capital constraints, which include liquidity challenges, high costs of borrowing and unavailability of long time finance as well as competition from cheap imports that in most cases enter the country illegally.

Mabuwa said as a ministry, they would like to see the budget assisting in projects that are prioritised under the ZIM-ASSET document which include the establishment of special economic zones, restructuring and capitalisation of the Industrial Development Corporation.
- zbc
Tags: Manufacturing,


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