‘We are trending towards de-industrialisation’: Kuvarika

Confederation of Zimbabwe Industries (CZI) chief executive officer Sekai Kuvarika says the country is gravitating towards de-industrialisation as the manufacturing sector’s capacity utilisation remains stagnant.

De-industrialisation is defined as the reduction of industrial activity or capacity in a region or economy, often because of a country or region shifting its economic focus away from manufacturing towards service-based industries.

In Zimbabwe’s case, the major reasons for capacity utilisation stagnation are the high cost of production, obsolete technology, lack of funding, policy inconsistencies, high taxes (compliance costs), electricity shortages, currency volatility, reduced export retention, and competition from the informal sector.

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