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*Industry Capacity Utilisation Falls To 53.2% - CZI*

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Capacity utilisation in Zimbabwe’s manufacturing sector fell by 2.9%, to 53.2% in 2023 from 56.1% in 2022.

According to a report by the Confederation of Zimbabwe Industries (CZI), this development is attributable to forex shortages, crippling power crisis, exchange rate volatility and currency crisis, among other factors.

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Presenting the 2023 CZI Manufacturing Sector Survey on Friday in the capital Harare, CZI chief economist, Cornelius Dube, said (via Business Times):

> Capacity utilisation, which measures roughly how productive a factory is, is down to 53.2% in 2023 from 56.1% in 2022 and 56.3% in 2021.

Dube further revealed that the manufacturing sector’s contribution to GDP fell to 9% in 2023 from 14.8% in 2018. He said:

> In 2018, the manufacturing sector’s contribution to GDP was 14.8%. It has since fallen to just 9% in 2023.

> This is about half of what manufacturing was contributing to GDP in the 1980s and 1990s. Between 1980 and 1989, manufacturing contributed 23% to GDP on average.

Zimbabwe’s manufacturing industry includes sectors such as food processing, textiles, and metal production among others.

According to the CZI survey, 47% of manufacturers thought that the economy would improve between 2023 and 2024, while 30% thought that it would deteriorate.

More: Pindula News

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