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Oliver Kazunga, Senior Business Reporter
ARCHER Clothing says plans are underway to install a US$100 000 washing plant as well as expand the leather unit at its factory in Belmont, Bulawayo.
The giant manufacturing firm has invested close to US$5 million in capital expenditure after creditors in 2015 approved its takeover by Paramount Garments, and now employs about 1 000 people from 200 in 2016.
The takeover deal also saved the company from liquidation, which was imminent at the time.
Managing director, Mr Jeremy Youmans, told Business Chronicle yesterday that they had also acquired new electric transformers that will allow them to open the company’s training school.
“We are looking forward to growing the business further through the installation of a washing plant and expanding the leather plant soon,” he said.
“The electric transformers that we have acquired, we want to open the training school. As long as we get the orders, we can improve our employment figure.”
Archer Clothing is operating at above 50 percent capacity utilisation. Mr Youmans said the major constraints facing his organisation were largely to do with power supply, access to foreign currency and the conclusion of issues pertaining to Bilateral Trade Agreement between Zimbabwe and South Africa.
“One of the big battles that we have is getting access to the South Africa market where we need the Government to conclude on the Bilateral Trade Agreement with South Africa,” said Mr Youmans who is also the chairman of the Zimbabwe Clothing Manufacturers’ Association.
In November 2017, South Africa gave Zimbabwe a year’s notice of its intention to terminate the 1964 trading agreement opting for the Sadc Protocol on Trade.
The termination of the trading pact means that Zimbabwe, which in 2016 imposed a ban on a wide range of South African imports under Statutory Instrument 64 was now losing its preferential access to South Africa.
Previously, the bilateral arrangement between the two neighbouring countries favoured Zimbabwean exports of clothing and textiles due to relaxed Rules of Origin of “single transformation” compared to “double transformation” under the Sadc Trade Protocol on Trade.
The prior arrangement also allowed Zimbabwean clothing manufacturers to procure fabrics from foreign markets, especially Asian suppliers India and China, to produce finished clothing items, and then export to South Africa under favourable terms and conditions. — @okazunga
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