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Zimbabwe’s Manufacturing Capacity in Crisis, Confederation Says

Zimbabwe’s manufacturing capacity declined to less than 50 percent this year as a shortage of electricity and affordable loans hamper recovery in the southern African nation.

Production volumes fell to 44.2 percent from about 57.2 percent a year earlier, said Lorraine Chikanya, chief economist at the Confederation of Zimbabwe Industries, which represents most medium and large industries other than mining.

“The manufacturing sector is in crisis and to some extent this has resulted in company closures,” she said today in the capital, Harare.

Zimbabwe’s economy shrank by about a third between 1998 and 2008, according to the United Nations.

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