Textile Industry In Zimbabwe Sends SOS For Economic Reforms

Economy

Textile Industry In Zimbabwe Sends SOS For Economic Reforms

Zimbabwe’s textile and garment industry is facing rough weather due to heavy taxation and is on the verge of witnessing thousands of job losses and several shop closures as a result of the government policy.

The news came to the fore when two of the locally authorized garment and fabric suppliers were unable to meet the monthly demand of 300,000 meters of garment and managed to dole out only 50,000 meters. The demand was forthcoming from 450 retail stores in the country informed Mian Sahail, Chairperson of the Trade Union Harare Chapter. Another official termed the situation as serious and requiring of urgent intervention to resolve the crisis.

The importers in the country are now appealing to the government for a level playing field that can enable them to stay competitive with their neighbors in the region. This calls for liberalization of tax laws that govern the import of fabric and garment.

The current tax slabs of up to 60 percent will drive all the traders and industrialists out of business soon as it is unsustainable and uncompetitive in nature, complained an official from the trading body. The official pointed out that this will result in thousands of people earning their livelihoods in this sector to lose their jobs.

Earlier, the Zimbabwean president, Emmerson Mnangagwa’s had sent across a clear message that his focus was on improving the economy and engaging in business with global players. Against the backdrop of this announcement, the industrialists and traders in the garment and fabric sector hope to receive some reprieve in the near future.