Notwithstanding insecurity concerns limiting access to raw materials locally, as well as foreign exchange challenges, local manufacturers have expressed commitment towards intensifying utilization of local alternatives. Though the manufacturers decried the prevalent scarcity of foreign exchange, exchange rate depreciation and high inflationary pressures, which posed severe impediment to their businesses in 2021, they noted that backward integration will be intensified. Consequently, even though the macroeconomic variables (exchange rate, lending rate and inflation rate) are still very much unfavourable, businesses are able to maintain operation, particularly at the level it was in 2019 before COVID-19 came. According to her, segments of manufacturing with high levels of backward integration had lesser degrees of shocks from foreign exchange crises in the economy. Current Business Condition scored 50.8 points in second quarter of the year as against 46.7 points recorded in the preceding quarter, thus, indicating 4.1 points increase over the quarters.

Source: The Guardian January 12, 2022 04:36 UTC