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Manufacturing is vital to the country’s initiatives to export to markets in America, Europe, Africa and the Far East.
Zimbabwe exports ferro-alloys, clothing, metal products, chemicals, plastics and cotton-lint. Since the year 2001, Zimbabwe has been adversely affected by illegal sanctions imposed on the country by the USA an the European Union.
As a result of the illegal sanctions, capacity utilisation in the manufacturing sector on average fell to below 30 percent. Rising unemployment and shortages of basic commodities and other critical industrial inputs became a hallmark of the whole economy as the manufacturing sector shrunk under sanctions imposed by the West.
Efforts are currently underway to revive the sector under the Short Term Emergency Recovery Programme (STERP) inaugurated by the Inclusive Government in March 2009. Measures directed at revitalising the sector under STERP include the establishment of an external credit facility for the importation of raw materials, equipment, among other necessities for all manufacturing entities and the creation of a conducive environment for investors.
The targeted companies include agro-input manufacturing industries, food processing, beverages, textile and ginning, clothing and footwear, fertiliser, pharmaceuticals, motor industries, packaging, paper printing and publishing, chemical and petroleum products and non-metallic mineral products among others. The generally sound and intact production infrastructure, coupled with the availability of an experienced labour force as well as the existing idle capacity are expected to guarantee the quick recovery of the sector and turn–around of the whole economy. Before the slump of the past eight years, the manufacturing sector contributed 8% to GDP.
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