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Ngonidzashe Chiutsi Business Correspondent
AT least 400 jobs have been lost in the clothing industry from April last year to date due to the economic challenges besetting the sector according to statistics revealed by the National Employment Council for the clothing industry. In an interview with Sunday Business, NEC general secretary, Mr Justice Mashinti, said the situation in the clothing industry is still dire as more companies continue to shut down.
“The situation is not improving. In April we had 105 companies operating now we have 98 and we have also lost a number of workers as during that same period we had 5 803 employees in the sector down to 5403,” said Mr Mashinti.
He said the manufacture’s rebate of duty on imported inputs introduced by the Government has failed to make a great impact as only three out of 12 companies have benefited from the facility.
“Only three companies got assisted from that facility and we don’t know the reason. May be you can go to the Zimbabwe Revenue Authority (ZIMRA) and ask why,” said Mr Mashinti.
Mr Mashinti said many clothing companies in the country were facing operational constraints and a shortage of working capital.
He said the clothing companies in Bulawayo failed to access the Distressed Industries and Marginalised Areas Fund (DIMAF) which was meant to be the panacea to some of the challenges facing local companies.
“Not even one company from Bulawayo benefitted from DIMAF yet the money was meant for distressed Bulawayo companies,” he said.
In 2006 the NEC had 25 560 workers and at least 19 400 workers have been made redundant.
Mr Mashinti said the challenges affecting the sector are numerous and range from shortage of working capital to high utility bills as well as high labour costs.
Recently the Zimbabwe Clothing Manufacturers Association (ZCMA) president, Mr Jeremy Youmans, said the flooding of cheap imports was a major challenge to the viability of the clothing sector.
He also highlighted that production in the clothing sector was low as the locals had insatiable appetite for imported products.
Cheap and sub-standard goods from Asian countries are also reportedly being dumped here and affecting the local industry.
Online Reporter