An Evaluation of the Accuracy of Aggregate Performance Indicators Used in the Measurement of the Performance of Zimbabwe’s Manufacturing Sector.

Abstract

Developing viable industrial policies and operational strategies depends on the availability of accurate information. A number of aggregate performance indicators are currently in use to measure the aggregate performance of Zimbabwe’s manufacturing sector; supplying information for decision making. The continued poor performance of the manufacturing sector despite the adoption of a succession of industrial and economic policies to promote the development of the sector brings into question the informational base used to develop, monitor and evaluate these policies. This research evaluated the accuracy of aggregate performance indicators used to measure the performance of Zimbabwe’s manufacturing sector, namely capacity utilisation, employment statistics and the contribution of manufacturing to Gross Domestic Product .The research finds that the metrics used to measure the performance of Zimbabwe’s manufacturing sector are not representative of the performance of the manufacturing sector in Zimbabwe.

Key words: Zimbabwe, Manufacturing, Aggregate Performance Measurement, Capacity Utilisation, Gross Domestic Product, Employment statistics