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warns of more job cuts
October 04, 2013
in capacity utilisation levels is a sad development for companies
as it is likely to result in more job cuts, Zimbabwe
Congress of Trade Unions president George Nkiwane has said.
Nkiwane said the 39,6%
decline in capacity utilisation recorded by the manufacturing sector
this year from 44% in 2012 showed that poverty levels would increase
as more people would not have incomes.
“There is need
for government, business and labour to come together to formulate
policies. There is a lot of policy inconsistencies in this country,
but if the stakeholders sit down, then the policies would be clear
to everyone,” Nkiwane said.
the indigenisation policy is not clear on whether the assets will
be paid for or they will just be taken. We are always as a country
coming up with new blueprints which scare away investors as they
do not have the confidence whether the policies in place will stay.”
Local economist Daniel
Ndlela said the financial services sector should play a positive
role to enable companies to access funding that would assist them
in purchasing raw materials.
is the key issue for the manufacturing sector,” he said.
Ndlela said government
should invest taxes collected from companies into industries than
channelling them elsewhere.
He added that there was
a lot of interest for investment in the economy as the expected
returns on investments were generally high compared to other markets.
In 2009, capacity utilisation
rose to 30% from 10% in 2008 before rising to 43,7% in 2010 and
57,2% in 2011.
The manufacturing sector
is faced with lack of working capital, high utility bills and old
Confederation of Zimbabwe
Industries chief economist Lorraine Chikanya on Wednesday said from
the 250 respondents surveyed, only 35,7% recorded capacity utilisation
of above 50%.
The manufacturing sector,
since 2009, has been growing, but it is expected to decline this
year by 1,5% from 2,3% last year.
The growth projections
of the economy were revised downwards to 3,4% due to reduced revenues
to the fiscus.
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