TRUWORTHS chief executive officer and executive director Bekithemba Ndebele has painted a gloomy picture of the country’s clothing industry. According to him, the nation has become a landfill for used apparel.
“What you see is dumping of second-hand clothing at ridiculous prices. We are actually talking about goods being sold in this market at below the cost of manufacturing,” Ndebele tells us elsewhere in this issue.
“You find a pair of shoes selling for US$2,50. The minimum duty on a pair of shoes is US$2 per pair plus 40%. So how do you sell it for US$2 or US$2,50? It does not make sense.
Kids’ tracksuits selling for US$5. The local manufacturer of tracksuits cannot produce a tracksuit for less than US$11. If he squeezes it and drops the fabric, it is US$$8. So, it is this dumping of goods that is a serious threat to formal clothing retailers. Now we are left in this country with only one formal trouser and one suit manufacturer.”
Ndebele says the future of the sector is gloomy “unless there is an immediate shift of government policy. This will be for them to enforce the duties and to end this dumping of goods into this market.
“At the moment, the government is losing a lot of revenue because these people do not pay duties. How would you have paid duty when you are selling a shoe for US$2 when the duty is US$2 plus 40%. It is very clear they do not pay duty.”
He said more than 90% of the formal manufacturers in the country had left, along with large factories and shoes. They have ceased to exist.
There is now only one maker of women's clothing in Zimbabwe. The rest, according to Ndebele, are just small cottages with people having sewing machines.
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“If I want Denim today, I have to import it. If I want a men's shirt today, I have to import it. If I want a men's trousers, I have to import it. If I want the men's suit, I have to import it. We have actually broken the whole value chain,” Ndebele said.
What a disturbing disclosure.
The fact that the Zimbabwe Revenue Authority (Zimra) and other law enforcement officers are there when the used clothes are dumped is even more heinous. Zimra must do its work.
Customs duties specify exactly what needs to be done.
It is important to also note that the country banned the importation of second-hand clothing.
Why do they still manage to go to the market?
It demonstrates the government's lack of motivation to address this issue, which encourages severe deindustrialisation. As a nation, we can do better.
We hope Finance minister Mthuli Ncube will address these issues when he unveils the 2024 national budget this month.
Otherwise, we will not be talking about the clothing industry in the next few years to come.
