Boost for cotton to clothing value chain

Edgar Vhera

Specialist Writer – Agribusiness

Government has increased customs duty on selected imported polyester staple fibres with dyed woven fabrics of cotton by 300 percent to support local production and strengthen the cotton-to-clothing value chain.

Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, revealed this on Thursday while presenting the 2026 National Budget in Harare.

“Cognisant of the significant investment and improvement in the local production of cotton and polyester-based fabric, it has become necessary to align the tariff regime on competing imports, also taking into consideration the current misclassification of products, on account of differential duty levels,” he said.

“Notably, production of polyester and cotton fabrics has significantly increased to an installed capacity of 15 million and 25 million metres, respectively.”

In support of local production, Professor Ncube proposed to review and align the customs duty rate on selected polyester staple fibres with dyed woven fabrics of cotton from the current rate of 10 percent to 40 percent plus US$2.50 per kilogramme.

“I, further propose to review materials benefitting from the clothing manufacturers’ rebate to exclude the above-mentioned fabrics, subject to quality and competitive pricing from local manufacturers. These measures take effect from January 1, 2026.”

 

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