By SILUMESI MALUMO
HIGH cost of production is hindering the growth of the manufacturing sector, says Private Sector Development chairperson Yusuf Dodia.
Mr Dodia said in an interview that the high cost of production was not allowing the manufacturers to maximise their potential.
He said that this was also impacting the economy negatively because the country was not exporting as expected.
Mr Dodia said the economy which was dwindling can only survive when the country was exporting more thereby earning enough foreign exchange.
He noted that if the trend continued then the economy would negatively be impacted, and the cost of living would continue rising.
Mr Dodia explained that the materials which were being used to manufacture goods and services had become expensive unlike in the past.
He said it had become very difficult for companies involved in manufacturing to meet their production quotas because of what was prevailing on the market.
This, has made the companies to manufacture less goods and services to carter for the country and for exportation which is not yielding any results.
“So when the manufacturers produce less the end result is that only few goods and services would be exported and the country cannot earn enough revenue.
These are the things which are costing the economy. If there was a turnaround then things will change in the economy because the manufacturers will be exporting more,” Mr Dodia said.