ZIMBABWE'S ailing industry requires at least US$900 million to raise capacity utilisation to about 80%, the latest government economic recovery plan shows.

Currently industrial capacity stands at 10% after most companies closed and others scaled down operations extensively in response to the stunning economic collapse.

According to the yet to be released Proposed Economic Stabilisation and Recovery Programme for Zimbabwe document compiled in October last year, the government has identified critical industrial sub sectors "which will anchor and support the necessary overall economic supply response by overcoming the industrial output gap."

The gap has led to the importation of almost everything that the country has capacity to produce and generate foreign currency, the document says.

Compiled by all Permanent Secretaries, the document notes the shortage of foreign currency for refurbishment of obsolete plant and importation of raw materials and spare parts had knocked down capacity utilisation.

"In this regard, support to industry in the form of lines of credit, export credit guarantees and other facilities amounting to US$900 million for an initial twelve-month period would raise capacity utilisation to about 80%," the document said.

The plan was drafted a month after the historic signing of the Global Political Agreement (GPA) between the country's three political parties, Zanu PF, MDC-T and MDC.

It said the GPA "offers opportunity for an internal cohesive approach to the implementation of national economic recovery measures, necessary for unleashing the country's vast potential".

But almost five months after the agreement was signed, the GPA is yet to be consummated as the parties haggle over distribution of ministries. There is hope the deal could be saved from collapse.

South African President Kgalema Motlanthe, his Mozambican counterpart, Armando Guebuza and former South African President Thabo Mbeki will travel to Harare tomorrow to revive the inter-party talks.

On raw materials shortages, the recovery plan said critical support will focus on key sub sectors, "prioritising resource requirements towards support for improved access to raw materials and spares, both local and imported as well as foreign exchange for re-tooling and re-equipping".

"In order to support government efforts to turnaround the economy, additional foreign exchange resources are, however, required to enhance capacity utilisation in the economy's broad sectors," it said.

The country's industries are battling for survival after years of price controls. The introduction of forex shops is projected to boost capacity utilisation in the sector.