18 January 2018
LATEST: Bennett in fatal chopper crash?
Discipline politically unruly chiefs: group
Polls in '4 to 5' months: Mnangagwa
$430k cocaine woman blames Brazil firm
Tobva tadii paya trio bailed after 3mths
Businessman fleeces clinic of $27,000
Soldiers deployed all over rural Zim: MDC-T
MDC-T’s Mudzuri begs ZCTU for support
Bond notes here to stay, says Chinamasa
South Koreans in $70m Zim agro-project
Hubby bashes Star FM anchor in love row
$18/yr subscr too much for musicians
Zimbabwe beat Sri Lanka in thriller
Caps bid to rehire star forward Nhivi
A view beyond the Zimbabwe coup
'Shit-hole': Just Take moral high ground
Economy: the need for a paradigm shift
Trump rage ignores truth: A response

CZI wants tax breaks for capital equipment imports

26/10/2017 00:00:00
by Source.co.zw

THE Confederation of Zimbabwe Industries (CZI) has called the government to offer tax breaks on importation of capital equipment, to enable local industry to retool. 

CZI chief economist, Daphne Mazambani said 40 percent of the manufacturing sector has equipment older than 20 years leading to uncompetitiveness in terms of quality and pricing.

The manufacturing sector survey report shows that the proportion of larger firms with equipment older than 20 years is higher compared to small and medium sized companies.

“60 percent of large firms use machinery older than 20 years compared to 36 percent for medium sized firms and 31 percent for small firms. As a country if we want to compete at a global level we should take deliberate actions to lead towards refurbishing , and this can only be done after a certain level at which point the equipment should be decommissioned ,”said Mazambani.

Mazambani said that CZI had signed a memorandum of understanding with Turkey who is their supplier of equipment although the initiative is slow their machinery is available for industry at concessionary prices.

“Some of the equipment is actually 5years old if you compare it to 20 year old equipment it would be old to take but it’s probably new to our local manufacturers,”said Mazambani.

Results from the manufacturers survey show that companies using machinery which is 5 years or less are operating at an average capacity of 51,6 percent ,while companies using machinery older than 16 years are operating at an average capacity of 43,3 percent.

“47 percent turns out to be investment of which some of the investment is going into the replacement components expansion on capacity,”she said.

Companies using newer machinery are operating at a higher capacity than companies using older machinery.


Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it






Face Book



comments powered by Disqus
RSS NewsTicker