Local products manufacturing output up by 12,2%

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LOCAL products manufacturing output increased by 12,2% in 2023 in a development likely to see the country’s import bill declining if the trend is sustained going forward, Zimbabwe National Statistics Agency (Zimstat) has revealed.

The developments come on the back of the implementation of the Zimbabwe National Industrial Development Plan (ZNIDP 1) 2019 to 2023 which was credited for spurring capacity utilisation from 47% to 56,1% between 2020 and 2022.

The shelf-space occupancy of locally produced products also increased from 55% in 2021 to over 80% in 2022 with exports of manufactured products also increasing by 12,9% from US$324 million in 2021 to US$366 million in 2022.

Notably, the country is currently working on plans to introduce the second five-year-long ZNIDP driven by the objective to spur productivity.

In a recent report, Zimstat pointed out that the Volume of Manufacturing Index (VMI) for the Fourth Quarter of 2023 increased by 12,2% when compared to 127,5% recorded in the fourth quarter of 2022.

“The Fourth quarter 2023 Volume of Manufacturing Index was 143.15, reflecting a year-on-year percentage increase of 12.26 when compared to 127.51 recorded in 4th quarter 2022 Quarter-on-quarter analysis reflects a 4.81 percent increase from 136,58% in 3rd quarter 2023,” the statistics agency said.

The average output index for the Food Stuffs Sub-sector for the 4th quarter of 2023 was 132.47, reflecting 7,86% in production when compared to 122.82 recorded in the 4th quarter of 2022.

The quarter-on-quarter analysis shows an increase of 1,57% from 130.42 in the third quarter 2023.

“On a sectoral basis, the Drinks, Beverages and Tobacco Subsector production index for 4th quarter 2023 was 188,58. The year-on-year index increased by 32,15% from 142.71 recorded in 4th quarter 2022.

“Quarter-on-quarter analysis reflects an increase of 16.78 percent from 161.48 in third quarter 2023,” the report said.

The Textiles and Ginning Subsector recorded an output index of 62.13 during the period compared to 97.76 in the fourth quarter of 2022, resulting in a year-on-year percentage decrease in the index of 36.44.

The quarter-on-quarter comparison shows a 34.31 percentage decrease from 94.58 in the 3rd quarter of 2023.

The Fourth quarter 2023 output index for the Clothing and Footwear subsector was 119.08, translating to a year-on-year percentage increase of 12.08 from 106.24 recorded during the period.

An upward trajectory was maintained throughout the subsectors signifying some degree of improvement across the economy.

Source: Newzim