By Staff Reporter
Harare – Zimbabwe’s manufacturing sector is heavily reliant on imported raw materials, with 52% of raw materials used in manufacturing goods being imported highlighting challenges that the country faces in trying to bridge the trade deficit.
This is contained in the confederation of Zimbabwe Industries (CZI) manufacturing report for 2023.
With Agriculture being the mainstay of most raw materials used by local industries, the report highlights the need for Zimbabwe to increase its agricultural production and diversify its crop types to reduce reliance on imports.
What makes the situation worse in terms reducing the trade deficit is, only 20% of the locally manufactured goods are finding their way into the export market.
The pharmaceutical sector is a notable exception, with 87% of raw materials being imported. However, this sector is also one of Zimbabwe’s top three exports, with value added through local manufacturing.
Also contained in the report is the clarion call for mono currency as it highlights challenges faced by the manufacturing sector due to the use of the US dollar. According to CZI, the country’s use of the Greenback makes Zimbabwean products uncompetitive on the global market as they are expensively produced.