adminHe said the increase in flea markets had seen an influx of foreign manufactured goods as most flea market owners doubled as cross-border traders who imported their merchandise.
“The textile and clothing industries are facing stiff competition since goods being imported from China and Dubai are cheap in comparison to locally produced goods,” said Mr Sileya.
He said the textile and clothing industries were facing stiff competition from the ever increasing number of cross-border traders importing clothes from neighbouring South Africa and Botswana.
“We appreciated the availability of cheap imported Asian clothes in 2007 and 2008 during the economic meltdown, but since the country is now on a recovery path, there is need for locally produced goods in the market so as to create employment, boast revenue and conservation of foreign currency,” said Mr Sileya.
“The closure of Bulawayo industries could be attributed to the influx of foreign produced goods which were worsening the viability of local industries rendering them uncompetitive in the face of stiff competition,” he said.
Economic analyst Dr Eric Bloch said relevant authorities should come up with measures to curb the illegal importation of clothes since they were mainly being sold at much cheaper prices than locally produced products, thereby bringing the clothing industry to bankruptcy.
“The Government has a role to play in protecting industries and it should charge duty on these cheap imports which are crowding the market. The imposition of import duty will create a level playing field in the market between foreign and local manufacturers,” said Mr Bloch.
About 70 companies in the clothing sector have folded with close to 4 000 workers being made redundant due to the combined impact of smuggling, particularly of cheap Asian goods, policy structure and mounting labour costs in the textile and clothing industry.
CZI president Mr Kumbirai Katsande said the influx of foreign manufactured goods was a result of the economic collapse since there were shortages of locally produced goods and the country was forced to rely on foreign manufactured goods.
“Foreign manufactured goods in the country are not the major problem but a symptom of the crises being faced by industry. We need to identify and address the causes of the situation through formulation and implementing policies to eradicate the causes of the influx of foreign goods,” said Mr Katsande.
Online Reporter