Edgars lists on VFEX, set ambitious production targets

Edgars Stores Limited, which is targeting to ramp up production from about 35 000 units to 100 000 per month aided by the acquisition of new manufacturing equipment, on Friday completed its migration to the Victoria Falls Stock Exchange (VFEX).

Edgars became the first clothing business to list on the fast-expanding VFEX after shareholders overwhelmingly approved the delisting from the Zimbabwe Stock Exchange (ZSE) recently.

The giant group becomes the 15th counter on VFEX.

Edgars engages in the retail of clothing, footwear, textiles and accessories in Zimbabwe, and the company operates through six segments; Edgars Stores Retail, Jet Stores Retail, Manufacturing Carousel, Micro Finance Club Plus, Corporate Head Office and Financial Services.

In addition, it provides microfinance loans to the lower to middle-income customer group.

VFEX was launched in October 2020, and is a subsidiary of the ZSE.

It was established to kick-start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls.

The retail group joins African Sun Limited, Axia Corporation Limited, Bindura Nickel Corporation Limited, Caledonia Mining Corporation, First Capital Bank, Innscor Africa, KARO Mining Holdings, National Foods Limited, Nedbank Group Limited, Padenga Holdings, Seedco International and Simbisa Brands Limited that have listed since the launch of VFEX.

The Group is working on installing new equipment at its Carousel factory to ramp up garment production from 35 000 units per month to 100 000 units per month before the end of the year.

Carousel is producing 35 000 units of garments per month from 7 000 they previously produced and the figure is set to increase to 100 000 units per month by the end of the year when the envisaged new equipment is installed.

The group board chair, Mr Themba Sibanda, said the desire to access the offshore capital market inspired the migration.

Director of Commerce and Consumer Affairs in the Ministry of Industry and Commerce, Mrs Netai Loice Magade, representing Minister Nqobizitha Mangaliso Ndlovu, said the migration to the VFEX is a manifestation of the diligent planning and dedicated work that the group has implemented over the years.

“I am delighted to be witnessing the listing of this 15th counter on the Victoria Falls Stock Exchange. The migration to this counter is indeed a show of confidence in the policies of the Second Republic and dovetails with Government trajectory to attract the much needed capital.

“This listing of the retail outlet will have numerous benefits to the economy which include creation of new jobs and enhance the market value,” said Minister Ndlovu.

He said nationally the commerce sector has experienced robust growth over the last few years and indications are that it will continue to grow.

Minister Ndlovu challenged the retail sector to strengthen its linkages with the productive sectors of the economy to promote a culture of manufacturing in Zimbabwe for local consumption and ensure that consumers get quality goods that meet international standards.

The textile and clothing sectors are facing a myriad of challenges among them price escalation, exchange rate instability, power outages, subdued consumer demand and competition from illegally imported second-hand clothes.

He said the Government had however intervened with a raft of measures like a tight monetary policy and increased power generation aimed at bringing normalcy in the market place.

“The Government also notes the unfair competition from the informal sector is threatening some retail businesses including the clothing retail sector which is also negatively affected by illegal imports of second hand clothing.

“As you may be aware the ministry is currently reviewing the Cotton-to-Clothing Strategy with a view to further strengthening that whole value chain which covers the clothing and fashion industry. Government put in place SI 122 of 2017 to regulate the importation of second-hand clothes although we still face challenges posed by porous borders and efforts are underway to come up with technology-driven surveillance aimed at curbing smuggling,” he said.

ZSE board chair Mrs Caroline Sandura said VFEX has witnessed diversified counters spanning the hospitality, real estate, retail, distribution, financial services, mining and manufacturing sectors.

“We hope this milestone is just the beginning of a brighter and prosperous future for your company. As you embark on this positive journey on the VFEX, we are confident that you will continue to see the value of listing on the USD-denominated exchange and take advantage of the several incentives available on VFEX,” she said.