The Confederation of Zimbabwe Industries (CZI) has projected that capacity utilisation will increase to 61% this year underpinned by consistent policy process, currency stability to address, exchange rate stability, inflation reduction, export promotion, buying local and an aggressive vaccination program.
In 2020, capacity utilisation rose by 11 percentage points to 47% from 36.4% in 2019 on improved foreign currency availability, increased sales and retooling, according to CZI. CZI chief economist Tafadzwa Bandama said manufacturers need to develop strong industrial linkages and value chains. Also said: “Focus on the domestic market penetration then exports.”
Previously experts said if there is no drastic change in the policy environment capacity utilisation levels will remain subdued. However, the government chipped in and introduced the foreign exchange auction market which managed to bring certainty and predictability in the economy.
At Thursday’s close, the mainstream All Share Index gained 0.75% to 4,518.48 points with the Top 10 Index adding 0.83% to 2,716.72 points.
The Small Cap Index gained the most with 1.59% to 32,717.04pts. Tyre distributor and retailer NTS led today’s gainers with 19.88% to 2.0200c. Fidelity was up 16.78% to 4.2778c. In the red was Medtech which lost 8.84% to 0.0701c.
Nampak, RTG and African Sun recovered 18.02%, 15.29% and 10.41% to 8.2430c, 1.9000c and 2.0970c respectively. Resultantly the Medium Cap Index rose 0.58% to 10,276.73pts.
Partially offsetting the gains were Proplastics, First Capital and Masimba which eased 13.04%, 9.05% and 5.88% to settle at 20.0000c, 1.6517c and 16.0000c in that order.
Turnover for the day reached ZWL$111.76 million after 13.41mln shares traded – Harare