Andrew
Business Reporter
The new David Whitehead Textile Limited (DWTL) shareholder plans to fully reopen the textile giant next year, a development that could be transformative for Chegutu district in Mashonaland West.
The revival of DWTL, which was once the country’s largest textile company, will lead to job creation and production of fabric for the clothing industry.
Industry and Commerce Minister, Dr Sekai Nzenza, recently represented President Mnangagwa, when she presided over the official launch of the firm’s US$20 million resuscitation programme, which will be implemented in two phases.
The programme involves modernising the Chegutu and Kadoma factories to world-class standards.
According to the new shareholder, Agri Value Chain Zimbabwe (AVCZ), a subsidiary of ETG Parrogate Group, the revival of the company will see it initially producing 10 million metres of fabric per year.
“Our investment in David Whitehead will see the company becoming an integrated cotton value chain corporate in line with the Government’s vision of value addition and job creation, with a presence across all the facets of the value chain, from farming right up to the ultimate value addition,” said ETG Parrogate chief executive officer, Mr Birju Patel.
Following the collapse of the textile industry over the last two decades, Zimbabwe only uses 30 percent of locally grown cotton, while 70 percent is exported as cotton lint.
The current spinning capacity cannot absorb the 30 percent of lint earmarked for the local industry because of limited capacity for further value addition along the textile value chain.
Prior to its closure, DWTL was a critical part of the country’s industrial base, operating spinning and weaving facilities that produced fabric grades for next-tier industries.
Having initially acquired 51 percent of David Whitehead in 2019, Agri Value Chain bought out various minorities and now owns about 80 percent stake in the company.
“There is a lot of progress in terms of preparing the plant for installation of new equipment,” said Mr Thomas Mangozho, the plant engineer at the Kadoma spinning facility.
“We have acquired new machines because the old equipment had become too old and outdated.
“A lot of work is happening; we have three contractors performing different tasks and our own employees also doing other works.”
Mr Mangozho, who joined DWTL in 1983 as an apprentice, said what was happening at David Whitehead was a good sign “of better things coming”.
“There are investors who may be doubting investing in Zimbabwe, but what is happening should provide comfort to others. It has been nearly two decades of closure, but we are ticking now.”
The Ministry of Industry and Commerce is currently working on the Cotton-to-Clothing Strategy, which is expected to be finalised and launched this year, according to Dr Nzenza.
This is in line with the National Development Strategy 1 thrust on moving the economy up the value chain.
“A vibrant textile industry will insulate cotton producers when global prices crash,” said Mr Caos Nzenze, of the Cotton Ginners Association, a lobby group of private cotton players.
“When we sell on the international market, we are given the price, but when you sell locally, you can always find a pricing model that works.”
At the turn of the millennium, Zimbabwe’s textile and garment production went through a challenging period that led to the closure of companies and job losses.
Cheap imports flooded the market, crippling the once flourishing sector.
David Whitehead used to supply most of the country’s fabric before it was forced to close.
Online Reporter