Almot Maqolo, Staff Writer 
A CRITICAL shortage of skilled engineers in Zimbabwe is threatening to undermine economic recovery and infrastructure development, according to a report by the Engineering, Iron and Steel Association of Zimbabwe (EISAZ).
The report reveals a staggering 93,6 percent skills gap in the engineering sector, potentially derailing efforts to modernise and industrialise the nation.
This shortage encompasses over 90 000 positions across various disciplines, including civil, mechanical, electrical, and chemical engineering.
The sector employs between 12 400 to 13 800 individuals. As of March 2024, the sector had 407 registered companies employing 13 020 people, predominantly males.
While the sector contributes over US$1,45 billion in exports and plays a vital role in bolstering foreign exchange reserves, it is currently facing significant headwinds.
These challenges include regulatory burdens, power outages, and a difficult business environment, as evidenced by the deregistration of 158 companies in 2023 – a 5 166,67 percent increase from the previous year. However, there is also a glimmer of hope, with 15 new companies entering the sector in the same period.
Despite these difficulties, the sector has demonstrated resilience, particularly during the Covid-19 crisis, with exports increasing significantly in 2020-2021. However, EISAZ emphasises the need to address the skills shortage and other challenges to unlock the sector’s full potential.
The year 2023 saw the highest number of company deregistrations in the sector since 2020, indicative of a challenging business environment. Despite this, 15 new companies entered the sector in 2023, as stated in the state of the industry report.
In comparison, 13 and three companies in the EIS sector deregistered in 2021 and 2020, respectively.
The sector employs between 12 400 to 13 800 individuals. As of March 2024, the sector had 407 registered companies employing 13 020 people, predominantly males.
The EISAZ report underscores the need to address the sector’s challenges to enhance its competitiveness, growth, and contribution to the economy.
The sector’s the highest contribution to exports of US$1,61 billion was made in 2021.
The sector’s resilience is evident in its export performance during crises such as Covid-19, with exports increasing significantly in 2020-2021.
On average, the sector has contributed 22 percent to total exports in the country between 2005 and 2023.
In 2007, the sector recorded the highest share in total export of 39,6 percent, at a time when the overall economy was grappling with a hyperinflation crisis, further highlighting the sector’s resilience.
The EIS sector primarily exports raw materials and goods with limited value addition and beneficiation. Experts believe there is potential for moving up the value chain towards the production of high-value end products or final products, aligning with the National Development Strategy.
According to the report, a conducive environment for competitive production and market expansion for local enterprises is crucial for the Africa Continental Free Trade Area (AFCFTA) to yield favourable outcomes for Zimbabwe.
