Delay by the Zimbabwean government in announcing a new policy on import duty for apparel and textile material for manufacturers can put the feasibility of already sick clothing sector in jeopardy. Secretary General of the National Union of the Clothing Industry, Joseph Tanyanyiwa, believes the Ministry of Finance and Economic Development should not delay the issue of clothing manufacturers rebate. The buzz is that most players in the clothing industry are contemplating sending their workers on forced leave. Many others have reportedly failed to resume operations as their materials were being held at bonded warehouses.
Tanyanyiwa further said that most companies have failed to clear their clothing and textiles imports since December 2014. Currently the clothing sector is operating at below 30 per cent from a peak of between 40 and 45 per cent in 2010-11. In his 2015 budget statement, Finance minister Patrick Chinamasa had proposed to extend the clothing manufacturers rebate facility by another 12 months as the rebate had attracted investment and generated additional employment in the clothing industry. Last year, government in partnership with the private sector launched the cotton-to-clothing strategy as a part of efforts to revive the sector. Materials eligible for rebate include: cotton sewing thread containing 85 per cent or more by weight of cotton; cotton sewing thread, denim, plain weave weighing more than 100g per sq. mt.; sewing thread of man-made staple fibres; woven fabrics of polyester staple fibres, chenille fabrics, tulles and other net fabrics.
Due to a number of problems afflicting the industry the employment figure in textile and clothing industry has plunged to about 8.000 now from 35,000 when at its peak.