ZIMBABWE’S clothing manufacturers are no longer certain about their future because banks are said to be allocating foreign currency for the importation of finished garments.
BY MTHANDAZO NYONI
In the meantime, manufacturers are unable to get forex applications to import raw materials approved, an industry official has revealed.
Zimbabwe Clothing Manufacturers’ Association (ZCMA) chairperson, Jeremy Youmans told Standardbusiness last week that banks were not prioritising the importation of raw materials but were providing money for the importation of finished products.
“Obviously, there is a serious problem with importation at the moment. There is insufficient export proceeds to meet the demand for imports. We have many manufacturers complaining that they cannot get applications for foreign currency to import raw materials processed through the banks,” Youmans said.
“It is apparent that monies are being allocated for the importation of finished garments, while the manufacturers are unable to get their raw material applications approved.”
He said the central bank needed to investigate this practice as that was not what they understood to be the intention of the priority based allocation of foreign currency by the RBZ to assist the revival of the economy. Efforts to obtain comment from the Bankers’ Association of Zimbabwe were fruitless. The association’s chairperson, Charity Jinya, had not yet responded to questions sent to her via email by the time of going to print.
Reserve Bank of Zimbabwe governor, John Mangudya, was not picking calls.
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Youmans said the clothing industry remained relatively static during 2016 as policy interventions made by the government failed to kick-start the industry.
“It had been expected that some of the interventions introduced last year would incentivise more local procurement of clothing but this has not been evident yet, which suggests the implementation of these interventions has not been effective. Some companies have not opened in 2017,” he said.
Like many businesses in Zimbabwe, the clothing sector faces many hurdles and several manufacturers are no longer confident about their future unless there is significant change to the economic environment, Youmans said. “One of the biggest issues we face is lack of clothing fabric, which should be available from our own textile sector. Clothing requires a large range of fabrics,” he said.
These, Youmans said, could be classified generically as 100% natural fibres (including cotton), 100% polyester fibres, blends of the two, for example a blend of polyester and cotton fibres called poly-cotton fabric, and other fabrics made from other man-made fibres, he said.
“Fabrics made from man-made fibres have never been produced here for clothing and have always been imported. Hundred percent polyester fabrics were produced at some stage in the 1990s but only on a small scale, and since then, have had to be imported,” Youmans said.
He said poly-cotton fabrics were made in Zimbabwe up until about 10 years ago, but now that also had to be imported. Over the past 10 years the only fabrics for clothing the local textile sector has been producing have been a small range of 100% cotton fabrics, in limited constructions, limited colours and finishes, he said. “For example, no 100% shirting suitable for a business shirt is made locally and no denim is made in Zimbabwe, even though denim is made from 100% cotton. Consequently, all the other fabrics that are required to service the full range of clothing demand have to be imported as the local textile sector is unable to, or does not want to make them,” he said.
Youmans said the world continued to change and evolve and there was a general increase in the use of man-made fibres and materials while there was a decrease in the use of natural material.
He said plastics and other man-made materials were often better substitutes for natural materials.
“There is still sufficient demand for 100% cotton products to require substantial textile production in Zimbabwe. However, this needs to be based on what the consumer demands and not on what the manufacturer wants to produce,” Youmans said.
Youmans said whilst there had been substantial reduction in demand for 100% cotton fabrics worldwide, there had been a big increase in demand for garments made from poly-cotton fabrics.
These fabrics used to be produced in Zimbabwe and should be produced again, he said.
Youmans said the main competition for the clothing sector was imported clothing. He said most of this came into the country duty free. This is despite the fact that government came up with a number of interventions to curtail importation of cheap imports into the country, especially by banning the importation of second-hand clothing.
“Therefore, any increase in cost to the local manufacturer, including duty on fabric either imported directly or via the wholesaler, will simply make our clothing products less competitive and will incentivise imports of finished clothing products,” he said.
“The textile sector is facing many challenges themselves and, as we speak, there is no fabric being woven or spun in the country at all.”
