Manufacturing sector first quarter volumes decrease
MANUFACTURING sector volumes for the first quarter of the year slightly declined compared to the same period last year and last 2022 quarter a development attributed to electricity shortages which slowed production in different sub-sectors, the national statistics agency ZimStat has revealed.
According to industrialists, the shortage of power affects production as it increases the cost of doing business as well as affecting the production cycle for different products.
Since the commencement of the year, the nation has been facing some power challenges.
However, following the coming into the shape of Hwange Units 7 and 8, the power supply has since been stabilised, which has seen industry representatives applauding the development.
Presenting the volume of the manufacturing index for the first quarter, ZimStat director-general Mr Taguma Mahonde said most of the manufacturing sub-sectors have experienced a year-on-year and month-on-month decline.
The report was conducted using 2019 as the base year and ZimStat revealed that the second quarter of 2019 experienced the lowest volume on the manufacturing index due to fuel, foreign currency, and electricity shortages.
Also, the 2020 second quarter recorded a decline in manufacturing volumes mainly due to Covid-19-induced lockdowns.
However, the clothing sector recorded growth due to increased production of personal protective equipment (PPEs).
“The Volume of Manufacturing Index (VMI) for the first quarter of 2023 was 289,5 percent reflecting a year-on-year percentage decrease of 14,8 percent when compared to 339,6 percent recorded in the first quarter of 2022.
“The quarter-on-quarter comparison shows a 42,5 percent decrease in the index from 503,7 recorded in fourth quarter 2022 to 289,5 in 1st quarter 2023,” said Mr Mahonde.
Out of nine sub-sectors, only three sectors, that is paper, printing and packaging, clothing and footwear and chemicals and petroleum products recorded an increase in manufacturing volume during the period under review.
Mr Taguma Mahonde
This was attributed to the rebate of duty for raw materials and machinery on the manufacturing of pharmaceuticals and fertiliser.
The clothing and footwear sub-sectors were 437,4 percent translating to a year-on-year percentage increase of 434,7.
The quarter-on-quarter output index recorded a percentage decrease of 13,8 percent when comparing the first quarter of 2023 to the fourth quarter of 2022.
Other sectors include food stuff manufacturing which recorded a year-on-year increase of 5,3 percent to 390,3 compared to 370.8 for the first quarter of 2022 and a 37,6 percent decrease in the index from 625,2 in the fourth quarter of 2022 to 390,3 in the first quarter of 2023.
“The drinks, beverages, and tobacco production index for the first quarter of 2023 was 221,8 percent. The year-on-year index decreased by 62,4 percent from 590,5 recorded in the first quarter of 2022.
“Quarter-on-quarter analysis shows a 60,3 percent decrease in the index from 558,6 recorded in fourth quarter 2022,” said Mr Mahonde.
Metals and metal production, transport and transport equipment as well as non-metallic mineral products also recorded a decline in manufacturing volumes during the first quarter of 2023.
According to ZimStat, the fourth quarter usually experiences an increase in manufacturing volumes due to the agricultural and festive season therefore, resulting in a quarter-on-quarter decline in manufacturing volumes when compared to the first quarter of the year, which also has a short period as many companies start operations mid-January after festive holidays.-chronicles
