Categories: Stories

Clothing and textile sectors headed for further slump

Although capacity utilisation in the manufacturing sector improved from 43.7 percent in the first half of 2010 to 57.2 percent during the same period this year, the clothing, textile and printing sectors have remained poor and are expected to decline next year.

These sectors were major employers especially in industrial hubs like Bulawayo.

According to figures released by Finance Minister Tendai Biti, capacity utilisation in the clothing sector declined from 30 percent in 2010 to 25 percent this year and is expected to remain static at 25 percent next year.

The textile sector is heading for a further slump with capacity utilisation down from 23 percent last year to 20 percent his year and 19 percent next year.

Paper printing and publishing will be down to 25 percent last year having stood at 32 percent last year.

Biti said the major factors constraining these sectors was low product demand, obsolete machinery susceptible to frequent breakdowns, lack of working capital and raw materials.

Here is Biti’s budget statement for 2012

(30 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024