BY FIDELITY MHLANGA
Henry Ruzvidzo has been elected president of the country’s largest business member organisation, the Confederation of Zimbabwe Industries (CZI), taking over from Sifelani Jabangwe. Ruzvidzo, who is the managing director of Richmond Furniture, previously served as Jabangwe’s deputy.
In his acceptance speech at the CZI annual general meeting in Harare yesterday, Ruzvidzo acknowledged the need for a collaborative effort in order to contribute towards shaping the country’s economic environment.
“I accept this honour to lead CZI in the next 12 months. I wish to thank the outgoing president for his support. I had subtle encouragement from previous presidents. I look forward with trepidation. It will require wide consultation, and work by all of us. I am certain we cannot be bystanders as our fate is written. I, therefore, call on all members to play their part to shape the environment so that our businesses survive,” he said.
The CZI, like many other of Zimbabwe’s lobby groups, has been criticised for being weak and failing to confront government over its failure to deal with the deteriorating business climate.
Jabangwe said it was important for all stakeholders to come to the party in order to improve the country’s business environment.
He said government needed to smoothen foreign currency availability cycle to ensure that business viability was not threatened.
Ruzvidzo comes in at a time when industry is heavily constrained with foreign currency shortages to import raw materials and spares, including limited lines of credit to recapitalise and retool.
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The sector’s capacity utilisation increased slightly to 48% in 2018 from 2017, but industry insiders warn that the sector could contract to as low as 30% if the country’s foreign currency shortages persist.
A survey by CZI, which polled 290 companies, showed that capacity utilisation dropped in the last quarter of 2018 as foreign currency shortages intensified.
According to the survey, the major constraints to capacity utilisation were high production costs and a shortage of raw materials.
Respondents to the survey also said antiquated machinery was another constraint to utilising installed capacity.
Industry has been facing constant breakdowns and downtime because of a lack of foreign currency to import spares.
Between 2013 and 2016, the biggest constraint to industry was low demand because of stiff competition from imports.
