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Business Reporter

Capacity utilisation within local industry is expected to increase from 54 percent in June to at least 60 percent by year-end as output and growth continue to rise in light of initiatives by Government.

Industry and Commerce Minister Dr Sekai Nzenza, in a paper presented at the Parliament’s pre-budget seminar that ends in Victoria Falls today, said capacity utilisation had been on the rise because of increased availability of foreign currency through the auction system, a good agriculture season experienced last year and the local content policy, among others.

By the end of last year, industry operated at 47 percent capacity which rose to 54 percent as at June.

“The target for the year is 61 percent and we are on course to achieve this mark,” she said.

The rise in capacity utilisation is also reflected in the availability of local brands on shelves of most supermarkets and other shops.

While two Chinese investors are now pushing ahead with their investments to create a large steel industry in Zimbabwe, Minister Nzenza said the resuscitation of Ziscosteel was on course, with the Zimbabwe Investment and Development Authority expected to complete its evaluation of the four successful bidders who have expressed interest to revive the company.

The evaluation is expected to be completed by end of this month and recommendations submitted to the Ziscosteel board. Around US$360 million is required for the company to resume operations.

Ziscosteel’s closure has affected downstream industry that were reliant on it for provision of raw materials. 

Its successful re-opening could save the country up to US$1 billion annually in imports for iron and steel. The country has at least 422 players in the iron and steel sector. Minister Nzenza said her ministry would continue working with other ministries under the whole of Government approach to find local solutions for local industries.

“We need to find local solutions for local problems and the Industrial Development Corporation will be funding re-tooling of industries that will be adopting new technologies,” she said.