DT Correspondent
Harare, Zimbabwe – The mining and manufacturing sectors in Zimbabwe continue to face significant hurdles to production, including electricity challenges, capital constraints, and an uncertain economic environment, according to a survey conducted by the Zimbabwe Statistics Agency (Zimstat).
The Business Tendency Survey for the third quarter of 2023, focusing on the manufacturing and mining sectors, highlights the major constraints experienced by businesses.
Zimstat’s Industrial Statistics Manager, Ms Kuda Chiguma, revealed that respondents in the survey identified power shortages, cash flow challenges, and uncertainty about the economic environment as the primary obstacles to production.
“Shortage of power, cash flow challenges, and uncertainty about the economic environment were the three major constraints to production cited by respondents in both the manufacturing and mining sectors,” explained Ms Chiguma.
The survey also revealed a decline in the Mining Confidence Index, which dropped from 12.7 in the second quarter of 2023 to 4 in the third quarter.
This decrease reflects the growing concerns and uncertainties faced by mining industry professionals.
Regarding capacity utilisation in the mining sector, Chiguma stated that it had increased to 52.6 percent in the third quarter, up from 51.1 percent in the preceding quarter.
On the topic of production, mining industry respondents expressed mixed views.
Over 20 percent believed that production had increased during the quarter, while 30.4 percent believed it had decreased.
Meanwhile, 45.7 percent of respondents felt that production levels had remained relatively stable compared to the previous quarter.
Highlighting a glimmer of optimism, Chiguma mentioned that 23.9 percent of mining professionals surveyed expressed optimism about the general business climate in the third quarter, compared to the preceding quarter.
The persistent challenges of power shortages, cash flow constraints, and an uncertain economic environment continue to impede the productivity and growth of Zimbabwe’s mining and manufacturing sectors.
Efforts to address these constraints and create a more conducive business environment will be crucial for the industries to thrive and contribute to the country’s economic development.
Pictures – Creator: PHILIMON BULAWAYO | Credit: REUTERS
