The CZI has just released its latest report on how Zimbabwe’s manufacturing sector performed in 2021.
The Good News
Capacity utilisation rose to 56.25%. This is the highest level since 2012. Manufacturers produced 30% more goods than they did in 2020, selling 32% more units.
Of those surveyed, 37.8% invested in increasing production capacity. In total, manufacturers invested US$147.1 million into their businesses. A total of 56% of the surveyed companies increased output in 2021.
Some 53.5% of industries said they created new jobs in 2021, or 19% of all jobs. However, 16% said they had to lay off workers last year.
The Bad News
38% of those asked said they expect the economy to get worse this year, 34% were optimistic about growth, while 28% expect it to remain the same.
Among industry’s key worries are old problems still to be resolved. These include access to forex, policy inconsistency and surrender requirements under which exporters must sell 40% of their export earnings in local currency at official rates. It was taking RBZ up to 50 days to supply companies with the forex they would have secured at the auction.