Manufacturing sector targets 6% growth rate next year

Zimbabwe’s manufacturing sector is targeting a growth rate of five to six percent next year due to tax incentives that have been put in place to increase production, economic growth, and employment creation.

Preliminary findings of a study carried out this year shows that the manufacturing sector has registered growth in the beverages, cooking oil, milling and sugar industries although experiencing a slowdown in the clothing, fertilisers, chemicals, furniture, metal products, and electrical machinery, among others.

Although the official findings of the 2019 survey will be released in January next year, the Confederation of Zimbabwe Industries president Mr. Henry Ruzvidzo says the beverages sector has dominated production with tax incentives expected to increase overall growth.

“There are a lot of development that took place however we are expecting a modest growth next year,”

Indian billionaire and Pepsi International franchise holder Ravi Jaipuria, who is the owner of Varun Beverages in Zimbabwe, said he does not regret injecting more than 50 million US Dollars in the country as the current economic climate is in a transition mode which provides the best opportunities for investments that will in the near future yield more returns.

“Growth opportunities are there for all to see and we anticipate a lot otherwise this is the right time to do business projects,”

Treasury has introduced fresh incentives aimed at reducing production costs for manufacturing companies with effect from January next year. – ZBC