Manufacturing industry capacity: Analysts predict further improvements

Analysts are predicting further improvements in manufacturing capacity on the basis of an improving economic environment.

The Reserve Bank of Zimbabwe last week released its monetary policy review which showed that the economy continues to fire from several fronts.

Analysts agree that a cocktail of policy positive measures are attributable to the magnificent recovery and expect manufacturing capacity which had nosedived to its lowest ebbs of around 30 percent to increase to over 70 percent.

Denford Mutashu -President-Confederation of Zimbabwe Retailers :

It is now a sigh of relief for most retailers who used to toil for forex to import and fill their shelves but that is now a thing of the past as industry capacity is soaring on account of the conducive economic environment.

Local supermarkets are now largely filled with locally produced merchandise, owing to the removal of many bottlenecks such as foreign currency shortages which constrained smooth manufacturing processes.

Titus Makove -Economist : The truth is that we have witnessed a lot of improvements in terms of capacity owing to companies retooling on the basis of increasing availability of foreign currency. One can only confirm this by just the increasing availability of local products on the supermarkets shelves.

RBZ also notes that since its inception in June last year, the foreign currency auction system has so far pumped in over 1,7 billion United States dollars, which has benefited both large scale companies and small to medium enterprices.