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Factmore Dzobo Senior Reporter
BULAWAYO company Shoepack, trading as Pathfinder, one of the few remaining thriving shoe manufacturing companies in the city, hopes to expand into the regional market once recapitalisation funds have been secured. Thembinkosi Wena, who worked for the now defunct G&D shoe company for 23 years, told Business Chronicle that competition had been intense due to an influx of cheap imports,
Wena took over Salelane Enterprise (Pvt) Ltd, then owned by foreigners, in 1998 before rebranding it.
The company, which supplies Edgars, Meikles Stores among other retail shops in Bulawayo, took part at this year’s Zimbabwe International Trade Fair.
“The challenge with the shoe industry is working capital and raw materials are very expensive and in short supply.
“We purchase a square foot of processed hide at $3 and to complete one shoe you need a square metre depending on the size,” said Wena.
“If we add the cost of other raw materials to make one shoe and labour cost, it amounts to over $25 to produce one shoe.”
He said the shoe manufacturing company requires funds for recapitalisation and hopes the government through the Ministry of Industry and Commerce will be able to support the leather sector by availing funds.
“We are looking forward to the government to assist us with finance for recapitalisation and hope relations between the government and India will boost our production and enable us to penetrate the regional markets,” said Wena.
India has pledged to transform and grow the country’s economy, provided the country guarantees a conducive business environment.
Last year the government launched the Zimbabwe Leather Sector Development Strategy expected to make the country’s leather sector a vibrant and internationally competitive industry.
The major objectives of the leather strategy inter alia include improved access to finance throughout the value chain so as to buttress the sector players’ cash flows, improved market intelligence of all enterprises and stakeholders and improve quality and collection of hides and skins.
Wena, however, bemoaned the cost of raw materials and lack of working capital that he said continued to weigh down efforts to boost production to meet the rising local demand.
He said the cost of manufacturing shoes was not viable as most people preferred to buy cheap imported ones despite the low quality.
Wena added that business people should grab opportunities and capitalise on what would be on offer.
“Take the lead, assert your wishes, honour your talents and abilities and be willing to take risk,” he added. And the bigger your dreams, the tougher your challenge, the more ambitious your goals, the more likely it is that you will face difficulties on your way towards it,” he said.
Online Reporter