Zimbabwe: Cheap Imports Collapse Troubled Textile Industry

Harare — ZIMBABWE'S textile workers this week appealed for government's intervention to halt the mass importation of textiles after results of a recent survey revealed that 5 231 jobs had been lost in eight months as the industry responded to increased foreign competition by cutting jobs.

The importation of textiles, which started taking its toll on the once vibrant industry in the early 1990s when cheap fabric from Mozambique flooded the local market, has accelerated since the liberalisation of the country's economy in February. Most industry players are now on the brink of collapse after failing to withstand the heat from cheap imports.

Last month, the Zimbabwe Textile Workers Union (ZTWU) warned, in a letter to Industry and Commerce Minister Welshman Ncube, that further job cuts were imminent if government does not take swift action to minimise the influx of cheap fabric into the country.

The ZTWU membership has declined from 11 523 workers in September 2008 to 6 292 at the end of April.

"The industry is in intensive care," ZTWU secretary general Silas Kuveya wrote.

"Our statistics reveal that from September 2008 to April 2009, the textile industry in Zimbabwe lost about 5 231 jobs and if the issue is not addressed as a matter of urgency, the textile sector will loose more jobs.

"The above only refers to the textile industry and we believe that the clothing industry is also affected in the same manner and this affects our economy as well," added Kuveya.

Recent statistics by the National Union for the Clothing Industry indicate that 16 000 workers remained in the industry in 2006 from about 24 000 in 2000 as the effects of hyperinflation, power and foreign currency shortages combined to subdue production.

Two years ago, industry leader David Whitehead Textiles Limited escaped from the jaws of closure as a result of the harsh economic terrain worsened by the effects of imported textiles.

In the 1990s, another industry giant, Cone Textiles, now operating as Modzone Enterprises, had to be rescued from collapse after serious viability concerns triggered by the increased competition from imports and input shortages.

Several other small textile companies have closed shop due to the hostile operating environment.

The ZTWU said it has particularly been enraged by the sale of two-in-one blankets in Chinese and Nigerian shops weighing only 3,5 kg instead of the recommended 5kg.

The union said while it appreciates the need for competition on the domestic market, it noted with concern that there is "unfair" competition emanating from some blanket manufacturers.

"The union has discovered that there is a sub-standard two-in-one blanket being purported to be imported from South Africa and sold in local Chinese and Nigerian shops.

"In actual fact, it seems this blanket is made in China and its packaging and distribution is done in Zimbabwe while the bag is written 'Made in South Africa' and the blanket label is written in Chinese," Kuveya said.


Copyright © 2009 Financial Gazette. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica aggregates and indexes content from over 130 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.

Comments Post a comment