Published: 2 hours ago

The Confederation of Zimbabwe Retailers (CZR) has raised strong objections to the government's proposed import licensing regime for textile and clothing items, warning that it could increase costs, disrupt supply chains, and undermine the competitiveness of formal traders.

CZR president Denford Mutashu said the proposal, introduced by the Industry and Commerce ministry in May, comes at a time when formal clothing retailers are already struggling, as many consumers opt for cheaper second-hand garments.

"We strongly oppose the proposed import permit intervention as it will increase costs and undermine the competitiveness of our products," Mutashu said. "This contradicts the government's ease of doing business agenda, introducing bureaucratic hurdles that do not promote business growth."

He added that the licensing system could give informal traders an unfair advantage, while formal businesses face additional administrative burdens. "This will result in prolonged ordering cycles due to the added hurdle of applying for the import licence," he said.

CZR also criticised the government for not consulting all key stakeholders before the May 20 position paper on the licensing regime was issued. "Several suppliers and retailers, including clothing retailers, were not involved despite their history of constructive engagement. Yet a key decision affecting the viability of the industry was made," Mutashu said.

The organisation highlighted ongoing challenges in the sector, including declining employment, rampant smuggling, high production costs, shrinking formal trade, and limited capacity in local textile manufacturing.

CZR research shows that clothing manufacturers already face high taxes on cotton products, including a 40% duty plus a weight-based surcharge. "There is no need to introduce another cumbersome import process that will hinder business, increase costs to consumers, and delay fabric acquisition, especially as local manufacturing is being revived," Mutashu said.

He called for closer collaboration between the Zimbabwe Textile Manufacturers Association, Zimbabwe Clothing Manufacturers Association, and retailers to align production with market demand and share critical market information.

Mutashu also urged the government to continue supporting the entire value chain through fiscal incentives and partnerships between local and foreign investors. "Multi-sectorial engagements should be encouraged, but they must involve all key players in the clothing value chain, including retailers," he said, suggesting such meetings be held quarterly, bi-annually, or annually.
- Newsday

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