The Confederation of Zimbabwe Retailers has strongly opposed a proposal by the Confederation of Zimbabwe Industries to introduce import and export licence requirements for textiles and clothing, warning that the move would raise costs and undermine the competitiveness of the sector.
In a statement dated September 30, CZR president Dr. Denford Mutashu said the proposal, submitted by CZI to the Ministry of Industry and Commerce in May, excluded key stakeholders such as fabric retailers and wholesalers. “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,” Mutashu said.
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CZR argued that the proposed licence regime would contradict the government’s ease of doing business agenda by adding bureaucratic hurdles, prolonging ordering cycles, and giving informal traders an unfair advantage through continued smuggling. “This proposal… introduces a bureaucratic hurdle which does not really promote business growth,” Mutashu added.
The retailers acknowledged investments made by David Whitehead Textiles in Kadoma and Chegutu but stressed that local manufacturers are not yet producing the wide range of fashion fabrics required by the market. Imported varieties such as lycra t-shirting, stretch denim and poplins make up “98% of various retailers’ product offerings,” according to the CZR.
Instead of imposing licences, the organisation called for fiscal incentives, stronger partnerships across the value chain, and duty reductions on fabrics unavailable locally. “We urge the government and the other stakeholders not to destroy one facet of the value chain to assist another, instead there should be a common ground that helps the growth of the sector,” said Mutashu.
The CZR also pointed out that import data is already available through ZIMRA and the banking system, dismissing claims that licences were needed for information-gathering.
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