Nqobizwe Thebe
The Confederation of Zimbabwe Retailers (CZR) has raised concerns over the proposal by the Confederation of Zimbabwe Industries (CZI) to introduce an import and export license regime for textile and clothing products.
In a statement dated September 30, CZR president Dr Denford Mutashu said the move, if approved by the Ministry of Industry and Commerce, would have “serious implications” for the country’s clothing and textile sector.
The retailers body argued that CZI’s position paper, submitted to government on May 20, excluded key players in the value chain. “We are shocked that clothing retailers were not even invited to this engagement, yet a key decision which was made affects the viability of the industry,” Dr Mutashu said. He added that decisions of this magnitude should be “a collective effort by all key stakeholders.”
While acknowledging challenges such as high production costs, rampant smuggling, shrinking formal sector participation, and limited local textile manufacturing capacity, CZR warned that imposing an import permit system would worsen conditions. According to Dr Mutashu, the proposed system would “increase costs and undermine the competitiveness of our products,” contradicting the government’s ease of doing business agenda by creating “a bureaucratic hurdle which does not really promote business growth.”
The retailers also cautioned that international brands could face unnecessary delays, while informal traders would continue smuggling goods and benefitting from unfair advantages. “This will result in prolonged ordering cycles due to the added administrative hurdle of applying for the import license,” the statement noted.
CZR acknowledged recent investments by David Whitehead Textiles in Kadoma and Chegutu and expressed willingness to support them by redirecting fabric needs to their factories. However, the organisation stressed that local capacity remains limited in producing essential fabrics such as lycra t-shirting, stretch denim, and fashion finishes. “These fashion fabrics currently contribute 98% of various retailers’ product offerings in the market,” Dr Mutashu said, calling for product development to align with market demand.
The statement also pointed out that data on fabric imports is already accessible through the Ministry of Finance and ZIMRA, making an import licensing system unnecessary. “We therefore find no justification whatsoever for imposing the import license requirements on players as a means of ‘data collection’ because that data has been availed to them,” CZR argued.
As an alternative, the retailers proposed regular multi-sectoral engagements involving all stakeholders in the value chain, promotion of partnerships between manufacturers and retailers, and fiscal incentives to attract investment. Dr Mutashu said such measures would help prepare the industry for opportunities under the African Continental Free Trade Area while supporting Zimbabwe’s ambition to become a middle-income economy by 2030.
