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According to the latest Manufacturing Sector Survey by the Confederation of Zimbabwe Industries (CZI), Zimbabwe’s industrial sector is under increasing strain, with capacity utilisation dropping to 52.3% in 2024 from 53.2% in 2023.
The report links the decline to a highly regulated business climate, currency volatility, limited access to credit, continuous foreign currency shortages, power outages, and exchange rate fluctuation, all of which have rendered local manufacturing more uncompetitive.
By Gamuchirai Mapako
The decrease is the second straight year of decline, highlighting the ongoing strain on the country’s industrial base.
The CZI study is based on a sample of 402 firms selected from an estimated 4,552 manufacturing companies with at least 10 employees.
The sector’s contribution to GDP has already slipped below 10%, from 14.8% in 2018.
Manufacturing contributed an average of 23% to GDP between 1980 and 1989, indicating a considerable drop from previous decades.
While presenting the findings of the 2024 survey in Harare, CZI chief economist Dr. Cornelius Dube warned that the declining trend would continue unless urgent policy initiatives were implemented.
“Capacity utilisation falls to 52.3% in 2024 from 53.2% in 2023. “The 2023 capacity utilisation level was down from 56.1% in 2022 and 56.3% in 2021,” Dr. Dube stated.
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