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Ngonidzashe Chiutsi Business Correspondent
MORE than 19 000 jobs across the country have been lost in clothing companies registered under National Employment Council for Clothing Industry since 2006, an official has said.In an interview last week, NEC for Clothing Industry general secretary Mr Justice Mashinti said as of 30 April only 5 803 were still employed in the sector down from 25 560 that were employed in 2006.
“There are several challenges that are still haunting the local clothing industry where many of them continue to close down. In Harare the number of companies that were still operating as of 30 April are 65 employing about 3 660. In Bulawayo there about 41 companies employing about 2 143 workers in the same period,” said Mr Mashinti.
He said judging by the latest figures, the situation in the clothing sector was getting worse.
“These figures tell you that the situation is getting worse. Imagine in 2006 we had 25 560 workers and now we have 5 803. We have lost about 19 000 workers so far,” said Mr Mashinti.
He said the situation was worse in Bulawayo where about 28 companies closed down since last year.
“The situation is bad in Bulawayo where for example companies like Archer had 1 120 workers now it has about 110 workers only. We had Belmor that used to employ about 960 workers but closed down in August last year leaving all the workers jobless,” said Mr Mashinti.
He said the major challenges affecting the sector were numerous, ranging from shortage of working capital, high utility bills and high labour costs.
“The utility bills are too high and this is affecting most industries. Most companies are wasting a lot of productive time doing nothing when there is no electricity,” said Mr Mashinti.
He said many companies were owed huge sums of money by Government institutions that were not paying cash for goods delivered.
“The other problem is that when Government departments buy our goods they don’t pay in time but when they import they pay cash upfront. Again the Dimaf only benefited about two companies here in Bulawayo,” said the NEC secretary general.
“The minimum wage is about $166 but you find that many companies are failing to pay workers because workers spend most of their time seated doing nothing because there are no orders.”
He said given enough capital, the clothing sector had the potential to rise again and employ many people.
“We are a labour intensive sector and once we get the required capital we can employ all the people that we have lost in the past years,” said the official.
“The sector is capable of producing quality goods and given a fair, level playing field we are able to compete with countries like China. Currently, there are a lot of sub-standard goods that are being dumped here and affecting the local industry.”
Zimbabwe Clothing Manufacturers Association (ZCMA) president, Mr Jeremy Youmans echoed the same sentiments adding that flooding of cheap imports was a major challenge.
“On average we are operating at about 50 percent capacity because of these challenges. If we get more orders we will employ more people and start working again. That capacity can grow quicker than any other industry in the country,” said Mr Youmans.
He also highlighted that production in the clothing sector was low as the local people had developed an insatiable appetite for imported products.
Online Reporter