Clothing industry to engage Zimra on cheap imports

Business
THE clothing industry wants to engage the Zimbabwe Revenue Authority (Zimra) to ensure that correct duty is paid on products at border posts.

THE clothing industry wants to engage the Zimbabwe Revenue Authority (Zimra) to ensure that correct duty is paid on products at border posts.

BY MUSA DUBE

The move comes at a time when cheap imports especially from Asia are entering the country duty free impacting on the local manufacturers.

Zimbabwe Clothing Manufacturers Association (ZCMA) president Jeremy Youmans said local manufacturers needed protection from cheap imports.

“We have problems at the border posts where correct duty is not paid on imported clothing goods.

“As ZCMA we are keen to work with Zimra to help them identify goods that should pay duty and how much duty should also be paid on those goods,” Youmans said. Youmans said currently the clothing industry was operating at 50% capacity weighed down by cheap imports.

“The machines and workers are still there but unemployed. If we get more orders we will employ and start working again. That capacity can go quicker than any other industry in the country,” Youmans said.

Production in the clothing industry, Youmans said, was low as the locals had an insatiable appetite for imported products.

“The problem is that people still believe that imported goods are better but as the clothing industry we are capable of producing quality goods. We are very positive that we can compete not on everything but in other areas,” the ZCMA boss said.

More than 27 000 jobs have been lost in the clothing and textile industry in the last decade due to economic challenges besetting the sector.

The industry used to employ about 35 000 at its peak but many of the companies have closed especially in Bulawayo.

A number of clothing companies that closed shop in recent years in Bulawayo include Suntosha Leisure Wear, Luncaster, Harren Manufacturing, Ascot, Belmor Fashions, Cinderalla, Rusglen Fashions, True Value and Label Fashion, among others due to working capital constraints.

The few remaining companies such as Archer Clothing are reportedly operating far below capacity.