The strong US dollar adopted in 2009 and the depreciation of the South African rand in recent years has made local products 25 percent more expensive and less competitive compared to imported goods, the
"Because we are using foreign currency we are not able to devalue the currency; we do not have the (monetary) instruments. Use of the US dollar has resulted in products being over priced by about 25 percent. This is a huge impediment,"
He said at a time when labour laws were inflexible for companies that wanted to cut the head count to rein in costs; the current wage bill was a binder for industry and the economy. This assertion was also confirmed by an
While manufacturing capacity utilisation rebounded to around 58 percent at dollarisation, it has been falling gradually since 2012 when it dropped to 47 percent and further down to 39,6 percent as of the last manufacturing study carried out by CZI last year.
Poor industrial production, productivity and competitiveness have resulted in the country having to rely on imports with the import bill reaching an ominous
High country risk profile has constrained access to line of credit and stymied foreign direct inflows while weak export performance has resulted in little liquidity inflows, negatively affecting the capacity of banks to and companies needed to mobilise liquidity.
According to the
When available locally, funding has either been limited, punitively expensive or both.
The interdependence was established before independence in 1980 when industry was focused on import substitution at a time when the then-Rhodesia was under global sanctions.
The manufacturing sector used to account for as much as 25 percent of national gross domestic product, but its contribution had fallen to just about 13 percent due to the myriad of challenges it faces.
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