Power, cash-flow challenges major constrains to production in Q4 2023

Harare, (New Ziana) -Power shortages, cash-flow challenges and general uncertainty about the economic environment were the major constraints to production in both the mining and manufacturing sectors during the 4th quarter of last year, the Zimbabwe National Statistical Agency (ZimStat) has said.

Zimstats said this in tits Volume Manufacturing Index (VMI) which its manager responsible for industrial statistics Kuda Chiguma released on Friday.

Chiguma said the 4th quarter 2023 VMI was 143.15, reflecting a year-on-year percentage increase of 12.26 when compared to 127.51 recorded in the same period in 2022.

He said quarter-on-quarter analysis reflects a 4.81 percent increase from 136.58 recorded in the 3rd quarter of last year.

The average output index for the Food Stuffs sub-sector during the period under review was 132.47, reflecting a 7.86 percent increase in production when compared to 122.82 recorded in the 4th quarter 2022, whilst the quarter-on-quarter analysis shows an increase of 1.57 percent from 130.42 during the same period.

The drinks, beverages and tobacco subsector production index was 188.58 with the year-on-year index increasing by 32.15 percent from 142.71 recorded in the 4th quarter of 2022, said Chiguma, adding that quarter-on-quarter analysis reflected an increase of 16.78 percent from 161.48 in 3rd quarter 2023.

Capacity utilisation for large manufacturing companies was 56.8 percent, reflecting no increase from the third quarter value and for small and medium companies in the sector, capacity utilization remained at 44.4 percent, he said.

“For the mining sector, capacity utilization was 50.0 percent, down from 52.6 percent recorded in third quarter 2023, The combined capacity utilization for manufacturing sector in fourth quarter 2023 was 46.1 percent down from 56.8 percent in third quarter 2023,” said Chiguma.

New Ziana