Clothing imports: Cheap is expensive!

IN a positive investment story we carried in yesterday’s issue, retail clothing group, Edgars Stores Limited, acquired modern machinery to rejuvenate its Bulawayo manufacturing division, Carousel factory, where it now derives positive fruit through increased production and more job opportunities.

Part of the new machinery has already been delivered and installed at the factory to ramp up garment production from 35 000 units per month to 100 000 units per month before the end of the year.

As our story explained, the Victoria Falls Stock Exchange-listed firm is actively addressing competition through innovative approaches, which include cost-effective production processes and localising production, which will see the company having competitive pricing.

Cheap imports have had a significant impact on Bulawayo’s clothing industry, which was once the manufacturing hub of the country. The continuous growth of the second-hand clothing market and illegal imports from within the SADC region and beyond have posed major challenges, especially for smaller companies.

This influx of cheap imports has led to a decline in local apparel production, with used clothing imports explaining roughly 40 percent of the decline in Africa’s apparel production.

Some of the challenges brought by these cheap imports include increased competition, the decline in local production, job losses and economic imbalance.
Cheap clothes have flooded the market, making it difficult for local manufacturers to compete, while the availability of cheap imports has reduced the demand for locally produced clothing, leading to a decline in production.

The decline in local production has resulted in job losses, affecting the livelihoods of workers in the industry. Zimbabwe’s trade deficit with neighbouring countries, such as South Africa, has nearly trebled, further exacerbating the economic imbalance.

To mitigate these challenges, policymakers and industry leaders must work together to develop strategies that promote local production, improve competitiveness and protect the industry from unfair trade practices.

The investment by Edgars Stores Limited buttresses the Government’s drive to re-industrialise the economy with clothing and textile sub-sectors being part of critical value chains. Our team visited the factory last week and was shown the already installed new equipment, which includes sewing machines, garment printing press, sand dusting and reaping machines and pocket inserting machines, amongst other accessories.

Although the company recently relocated its headquarters to Harare citing strategic marketing interests, its manufacturing division remains in Bulawayo, and the factory was a hive of activity with different teams producing various merchandise for different age groups.

However, the Government must protect local companies like Edgars that are still protecting and creating jobs. While cheap imports go a long way in assisting the poor, they are a cancer to the national economy.