adminThe measure was announced in the 2012 national budget.
About 64 companies in the clothing sector have closed shop and close to 4 000 jobs were lost last year as the combined impact of smuggling, especially of cheap Asian goods, policy structure and mounting labour costs took their toll on the manufacturing sector.
Figures from the Zimbabwe Clothing Manufacturers’ Association indicate that as of August 2010, there were 12 506 people employed in 195 companies compared with 35 000 people that the industry used to employ.
In an interviewed Dr Bloch said the move by the Ministry of Finance was likely to revive the local industry.
“Local companies have been competing unfairly because importers have not been paying duty hence they were bringing cheap clothing at the disadvantage of the local dealers and manufacturers.
“This is a desirable move and they should intensify it so as to stop the smuggling of cheap clothing into the country,” he said.
The public relations officer of Fort Eleven Flea Market, Mr Ndumiso Dube, said the issue of duty on clothes was a sensitive issue as it affected them directly.
“For us, this is going to be a blow because we heavily rely on imported products because there is an acute shortage of industries in the country at the moment.
“Insertion of duty on clothes will mean that it will become expensive for us to order clothes from abroad like we used to do,” he said.
Mr Dube said this was a way to do away with informal traders even though it was their source of livelihood.
“We support the growth of local companies but we need to see the Government doing more to revive the local industries because the issue of duty cannot help when the industry is still heavily reliant on imports,” he said.
Meanwhile, one of the major suppliers of clothes to the Edgar’s retail chain, Top Quality Clothing, is on course to recovery after a difficult 2011 which saw the company lay off 15 contract workers due to a shortage of orders.
In an interview, the managing director, Mr Ephraim Dube, said 2012 looked promising as they had secured orders.
“At the moment we have already received some orders for next year which we will start working on now.
“We are looking forward to a brighter 2012 as we are working hard to try and be innovative by coming up with new products on the market.
“Competition out there is very stiff so to remain in this business we have to be emphasise on quality,” he said.
He said as soon as they got a stable market, the company was going to re-engage some of the employees that were retrenched.
“As a company we want to help this city by easing out employment problems so we will try and re-hire contract workers that were retrenched last year as soon as demand picks up.
“It will be pointless to employ many people when we are not operating at full capacity because we will end up failing to pay them.”
The clothing industry has been facing challenges of over trading which saw some companies closing in the process.
Most companies in this sector were complaining of low profit margins due to stiff competition from cheap Asian goods.
“We source some of our raw materials from countries like Indonesia where there are high quality fabrics since there is a shortage of high quality raw materials in the country, so our prices will be a bit higher hence it’s difficult to compete with cheap products on the market,” said Mr Dube.
Top Quality Clothing has got branches in Sanyati, Gokwe as well as some outlets in Bulawayo.
“We are planning to expand by opening some more branches nationwide in a bid to support the local industries.
Mr Dube said lack of funding was affecting most businesses in Zimbabwe resulting in some businesses collapsing or remaining stagnant.
Online Reporter