More than a hundred bakeries have closed down in Zimbabwe as the country continues to face economic challenges despite efforts by the government in reviving the economy.
National Bakers Association of Zimbabwe (NBAZ) President Ngoni Mazango said that the quite a number of their members had folded.
“About 150 companies have folded owing to challenges being faced in the industry and the most affected have been small bakeries in provincial towns and cities.” said Mazango in the Herald.
The Zimbabwean government has been trying to revive the industrial sector and of recent is the 100 days easy of doing business and the forming of a competition committee to help the struggling industrial sector.
The closing of the 150 out of 250 bakeries have been due to lack of work capital;, high production costs and antiquated equipment making it increasingly difficult for the business.
According to the survey by NBAZ, small to medium bakeries, which are the most affected have their greatest obstacle from the outdated and aging equipment they are using.
MORE than 20 companies in the baking industry have closed shop since the beginning of the year due to a tough economic environment last year according to Newsday and this has left 100 bakeries under production in the country.
There has been an increase in a number of industries closing down in the country with hundreds closing down as of last year. Bakeries industry has an installed capacity of 1.8 million loaves per day and is operating between 50- 55 percent. The most vibrant bakeries in the country include Lobels, Bakers Inn and Proton, controlling about 95 per cent of the market in the country.