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Business Reporter
THE clothing industry is showing signs of recovery and has created 600 new jobs this year, chairman of the Zimbabwe Clothing Manufacturers Association, Mr Jeremy Youmans, has said.
However, he said job levels in the industry at 6 600 – were still way below the 35 000 people employed at its peak in 2000.
Mr Youmans said capacity utilisation in the clothing sector at 50 percent, had dropped from last year’s 57 percent but still remained above the national average for the manufacturing sector.
According to results of a recently released Confederation of Zimbabwe Industries manufacturing survey, capacity utilisation in the manufacturing sector had fallen from 47 percent last year to about 39 percent.
Mr Youmans said capacity utilisation in the sector could be further increased if Government departments and parastatals bought staff uniforms from local companies.
He said at present, most parastatals and government departments were sourcing their uniforms from outside.
Mr Youmans said while imports were having an adverse effect on the local clothing industry, the association did not believe in protectionism but wanted a level playing field.
He said outside clothing manufacturers should not bring sub-standard goods and should be made to pay the correct duty.
“We don’t believe in protectionism but they should not be bringing sub-standard goods and the correct duty should be paid,” he said in an interview recently.
At the CZI annual congress held earlier this month, delegates expressed concern that some imported clothing was finding its way in the country without paying the appropriate duty, thus posing unfair competition to local goods.
Mr Youmans said Zimbabweans were now realising that although some imports were cheaper, they did not last long and the clothes had to be replaced faster, unlike locally manufactured clothing which was of a better quality.
Meanwhile, another Bulawayo clothing company, Ascot Clothing, has been placed under provisional liquidation.
If the provisional liquidation, granted in chambers by Justice Makonese, is confirmed, the company will be liquidated.
Ascot Clothing joins the growing number of Bulawayo clothing and textile companies which are facing operational challenges and are placed under liquidation as creditors try to recover their debts.
Bulawayo companies which at one time or the other were placed under judicial management or provisional liquidation include National Blankets, Archer Clothing, Cotton Printers and Security Mills.
Thousands of workers in the clothing and textile workers have lost their jobs over the past few years.
Justice Makonese’s provisional order followed an application by Plaudit Enterprises Works Council against the company’s owners.
Ascot Clothing’s woes mounted last year when its machinery was attached by a messenger of court after failing to pay $55 000 owed to the Clothing Industry Pension Fund. However, the auction failed to take place as no buyers turned up.
The company employs 105 workers.
In terms of the order granted by Justice Makonese, Mr Philip Ndlovu was appointed provisional judicial liquidator.
A hearing will be held at the High Court on 7 November to decide whether to confirm the provisional liquidation.
“Pending the return date, this order shall operate as a provisional order of winding up,” read part of the order.
Online Reporter