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There has been a sharp increase in the trade of second-hand clothing in Mutare, especially nowadays during weekends, when the Meikles Park flea market in the central business district is open to all traders.
Second-hand clothing, often hand-outs donated by various developed nations to the less-privileged in Africa, has over the years been channelled for profit across the border into Zimbabwe by some Mozambican entrepreneurs.
Post Business talked to flea market traders that sell second-hand clothes who said that business was booming.
Ms Idah Kamuti said second-hand clothes from Mozambique were currently in high demand because of the relatively cheap prices compared to new clothes.
Fairly new, original clothing labels for women can go for as little as $2 or even $1 for two if one goes down further to the Sakubva flea market where demand is high.
“People do not have money but everyone wants to look smart and trendy. Mabhero (second-hand clothes) are so cheap. You can sometimes even come across trendy designers, especially for women’s clothing,” said Ms Kamuti.
Another trader, Ms Letina Mabhiza, who sells shoes and ranges of purses from leather, patent styles and even designer purses, said she gets many orders from as far as Harare and even Bulawayo sometimes.
She said she buys her purses for as little as $2 to $3 in Mozambique and sells some designer labels for $10 in Mutare and $15 to $20 in Harare.
“The brand-new designer purses are expensive for most people so second-hand purses from Mozambique are now popular. They will still be fairly new in most cases so they sell like hot cakes,” said Ms Mabhiza.
However, those with daily flea markets selling brand-new imported clothing from South Africa and Botswana are not taking the competition kindly.
A trader at Meikles Park flea market, Mr Tendai Sachiti, said the competition encouraged smuggling of second-hand bales from Mozambique.
“This is a recipe for disaster.
“This will further encourage the smuggling of second-hand bales of clothes from Mozambique. Most of the clothing comes in duty-free after being smuggled.
“I understand people want to earn a living because of the unavailability of jobs in the country, but sanity should be maintained for a win-win situation. We pay duty for our products and contribute to the fiscus,” said Mr Sachiti.
Mutare City Council Town Clerk Mr Obert Muzawazi said people were being allowed to sell their wares at the Meikles Park flea market on weekends as a local economic development initiative.
He said the weekend traders pay a fee of $1 to council just like the daily flea market traders.
“This is an effort to help people with livelihood projects. This is, however, not an open ticket to encourage smuggling of second-hand clothes.
“People should bring in goods from Mozambique legally and pay Zimra (Zimbabwe Revenue Authority) what is due to it. That is the only way we can build our economy doing things by the book,” said Mr Muzawazi.
Mutare Mayor Councillor Tatenda Nhamarare said discipline was essential to maintain sanity in the city.
“I know currently there are some undisciplined people who are continuing to sell their wares on the streets during the week when only allowed on weekends.
“I, however, want to caution them because they will be shooting themselves in the foot.
‘‘Discipline is needed to maintain sanity in our beautiful city,” said Clr Nhamarare.
Labour economist Mr Prosper Chitambara said there was need for Government to regulate the free-market system or ultimately face an uncontrollable black market economy, leading to empty office spaces in the CBD and hardly any formal businesses.
The Minister of Small and Medium Enterprises and Co-operatives Development, Cde Sithembiso Nyoni, is on record saying more than $7,4 billion of money not benefiting the fiscus was circulating in the informal sector.
Mr Chitambara said the rise in SMEs in the country was due to the massive retrenchment and dearth of the country’s manufacturing sector, which currently requires a huge capital boost to revamp operations.
Car boot sales are also on the increase as clothing traders in boutiques seek alternatives to escape the high rental charges in most of the up-market buildings.
Last year in July a survey around the CBD in Mutare showed that several up-market boutiques were closing shop.
The survey also revealed that consumers have adapted to penny-pinching, characterised by a preference for lower-priced products, rather than value, due to the nail biting liquidity crisis in the country.
A trader’s licence fee is $500 per year, while rentals for most boutiques in the Central Business District are averaging between $800 and $1 500, of which boutique owners said it was now unprofitable given that almost everyone is selling clothes informally to make ends meet.
Last year in May Cabinet tabled and approved the Second MSME Policy Framework (2014-2018) expected to introduce comprehensive measures to support the sector.
Among such measures are tax holidays for financiers that provide funds to the sector, whilst registered MSMEs will also be given a lengthy tax-free grace period to cushion them as they regularise their operations.
Under the framework Government also plans to review customs duty and tariff regimes to assist players in the sector to access affordable raw materials.
Online Reporter