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Edgar Vhera, Specialist Writer – Agribusiness
COTTON-TO-CLOTHING value chain stakeholders have urged the Government to temporarily shelve the proposed increase in customs duty on selected polyester staple fibres with dyed woven fabrics of cotton until the completion of the ongoing study.
The Competition and Tariff Commission (CTC) and the National Competitiveness Commission (NCC), at the instigation of the Ministry of Industry and Commerce, are conducting a study to gain a better understanding of capacities across the entire value chain and the challenges limiting linkages between its stages.
The Government recently announced a 300 percent increase in customs duty on selected imported polyester staple fibres with dyed woven fabrics of cotton to support local production and strengthen the cotton-to-clothing value chain.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, disclosed this when presenting the 2026 National Budget in Harare.
“In support of local production, I propose 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 (300 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.”
Zimbabwe Clothing Manufacturers Association (ZCMA) chairman, Mr Jeremy Youmans, said it was premature to implement these measures as the study results are yet to be released.
“We request that the Ministry of Industry make the Ministry of Finance aware of the ongoing study being done by CTC and NCC. We believe only after the final study recommendation and full value chain stakeholder agreement, can proper support measures be crafted,” he said.
Mr Youmans emphasised that support measures should benefit all stages of the value chain, as it is the interaction and synergy between these stages that form the basis of value chain development.
“The intended duty of 40 percent should only apply to finished goods, not fabric, which is a raw material for the clothing industry and an intermediate good for home textile manufacturers. The additional US$2,50 per kg can make the duty rate rise to between 60 and 90 percent depending on the weight of the fabric,” he said.
Edgars Stores group chief executive officer, Mr Sevious Mushosho, concurred, warning that the development would not benefit the cotton-to-clothing industry but would result in higher clothing prices and encourage smuggling of both fabrics and finished garments.
“Local fabric manufacturers have no capacity to produce the range of fabrics required in fashion and what they produce only suits a narrow range. We are already buying what they are producing and augmenting with imports to meet our customers’ ever-changing fashion needs,” he said.
Mr Mushosho added that the quality of local fabrics does not yet match international standards, is more expensive and covers a limited range, which makes no difference to clothing manufacturers.
“We recommend that the Government defer this policy to allow further consultations to happen within the value chain after the research being done by CTC and NCC is completed. Clothing manufacturing is the biggest player and employer in the cotton-to-clothing value chain and such a move will have a significant negative impact on employment and growth in the sector, as informal traders will be the winners,” he said.
Agricultural expert Dr Reneth Mano agreed that the new policy measures appear to be prematurely increasing the cost of imported fabric at a time when the domestic cotton textile industry is not yet operating at full capacity.
“Zimbabwe must emulate the best policies from countries that have succeeded in establishing a globally competitive textile and clothing industry. Almost all of these successful countries have liberalised imports to reduce the landed cost of different types of fabrics in order to complement domestic supplies of locally produced cotton fabric, all of which are raw materials for a vibrant domestic clothing manufacturing industry,” he said.
Dr Mano stressed that to be vibrant and competitive, a domestic textile and clothing industry must have the capacity to produce a wide range of articles of clothing tailored from different types of cloth – cotton, polyester, nylon, wool – at globally competitive prices to satisfy diverse consumer tastes and preferences in both domestic and export markets.
“The resuscitation of the domestic cotton lint spinning and weaving textile industry has enjoyed direct fiscal policy support in the form of standard tax breaks and duty rebates on imports of textile machinery and spare parts.
“These are the most effective policy measures that the Government ought to double or treble in order to ensure that new factory investments in the textile industry kick off and take off on the basis of having globally comparable cost structures to produce Proudly Zimbabwean cotton cloth at globally competitive free-on-board (FOB) prices,” he said.
Dr Mano commended the good intentions of the budget but warned that these latest border policy proclamations risk undermining rather than advancing the overall objectives of National Development Strategy 2 (NDS2) with respect to growth and development of the textile and clothing industry beyond the narrow vested interests of one or two companies.
Meanwhile, Zimbabwe Textile Manufacturers Association (Zitma) chairperson, Mr Admire Masenda, applauded the Government’s move but said more still needs to be done.
“As Zitma we see these as steps in the right direction in protecting our sector; however, more still needs to be done. The issue of second-hand clothing must be dealt with decisively as it continues to play havoc with the market,” he said.
Mr Masenda also called for tighter control on the import of ready-made garments, noting that garment manufacturing is critical to the growth of the textile sector.
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