- 88% of surveyed companies are failing to access source and export markets
- Companies are failing to meet local demand for some products
- 81% of surveyed firms are experiencing supply chain disruptions
Harare – COVID-19 has been leaving a trail of destruction in its wake as it continues to spread and affect global economies.
The local industries have not been spared and in an effort to assess the impact of the virus on the manufacturing sector, Confederation of Zimbabwe Industries (CZI) has started carrying out weekly snap surveys of the local industry.
According to CZI, the virus has resulted in major market disruptions for the local industry with 88% of the companies surveyed being affected as they are failing to access both source and export markets.
The limited access to international markets has been due lockdowns effected by governments in most countries including in Zimbabwe.
These have restricted movement of both people and goods that are not essential in the fight against the coronavirus that has affected more than one million people across the globe.
The coronavirus has also resulted in failure of companies to meet local demand because of shortage of raw materials since source markets are closed while demand for some products has also declined resulting in negative impacts on revenue streams.
However, 12% of the surveyed industries said they are yet to experience any negative impact from the deadly virus on their operations.
Supply chains have also been disrupted by the COVID-19 pandemic as countries are closing their borders and going into national lockdowns in a bid to try and contain the virus.
The CZI snap survey indicates that in Zimbabwe, 81% of the surveyed firms experienced supply chain disruptions which has affected raw materials supply which is needed to keep rolling.
Local and international supply chains have seen a sudden increase in local and external demand for pharmaceuticals which has affected efficiency of supply chains.
In addition, the local industries have also been affected by the South African lockdown in terms of raw material supply as that is where some of the materials for the manufacturing industry are sourced from.
CZI’s survey covered the period between 25 March 2020 to 30 March 2020 and responses were from sectors that include Foodstuffs, Clothing and Footwear, Metal and Metal Products, Insurance, Beverages and Tobacco, Chemical and Chemical Products as well as the Paper Printing and Publishing industry.
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