Third quarter sees growth rate in value added products
THE third quarter of 2023 recorded a growth rate in value added products of 1,3 percent from the second quarter 2023, said the national statistics agency, ZimStats.
The country has been recording growth in the production of value-added products, which is being witnessed by the availability of local products occupying more than 80 percent shelf space in local shops.
Also, according to the Ministry of Industry and Commerce, the manufacturing sector’s capacity utilisation has consistently grown in the past three years.
Capacity utilisation in the manufacturing sector is forecast to reach 70 percent this year, with production expected to increase with more investment flowing into factories.
In a presentation for the 2023 third-quarter gross domestic product (GDP) estimates, ZimStats said the manufacturing sector is among the top five contributors to the GDP contributing about 9,3 percent.
Wholesale and retail trade is the major contributor with 18,3 percent followed by mining and quarrying, 13,8 percent followed by agriculture, 10,7 percent and finance and insurance, 8,9 percent.
“The quarter-on-quarter growth rate is the change in value-added products for succeeding quarters. The third quarter of 2023 recorded a growth rate in value added of 1,3 percent from the second quarter 2023,” said ZimStats.
“The quarterly GDP estimate for the third quarter of 2023 is estimated at $58,3 billion. The quarterly GDP estimates for the third quarter of 2022 was $58,7 billion.”
On a year-on-year basis, ZimStats said industries that recorded significant growth in the third quarter of 2023 were information and communication, 19 percent, electricity, 7,4 percent, finance and insurance, 14,8 percent, transport, 14,5 percent, accommodation and food services, 5,9 percent, and wholesale and retail trade, 4,1 percent.
To promote growth in value-added products, the Ministry of Industry and Commerce revealed that in 2024, the focus will be on robust implementation of the Zimbabwe National Industrial Development Policy (ZNIDP), implementation of the US$8 billion manufacturing and commercial sector roadmap, facilitating the availability of affordable working capital and long-term financing, and continue implementation of the Local Content Strategy (2019-2023 and align with Africa Continental Free Trade Area (AFCFTA) rules of origin for 35 percent local content. — -chronile
