LOCAL textile and clothing manufacturers have cried foul over the alleged abuse of the Sadc and Common Market for Southern Africa (Comesa) trading certificates by countries outside the region.
BY MTHANDAZO NYONI
The certificates were agreed upon by 15 States in the Sadc region as a way of liberalising intra-regional trade in goods and services, ensuring efficient production, contributing towards the improvement of the climate for domestic, cross-border and foreign investment; and enhancing economic development, diversification and industrialisation of the region.
However, in an interview with Southern Eye on the sidelines of the just-ended Zimbabwe International Trade Fair, Zimbabwe Textile Manufacturers’ Association (ZTMA) secretary-general Raymond Huni said Sadc and Comesa certificates were now being abused by countries outside the region and urged member States to safeguard them so they are not abused by other players.
“There is abuse of Sadc and Comesa certificates.
Products come from outside countries and put within Sadc region where they are being relabelled before being imported by countries such as Zimbabwe. This is because Sadc allows products to come in duty-free,” Huni said.
“What is worrying is that those products are substandard and people get shortchanged.”
He said, as a result, the country was now flooded with cheap imports at the expense of local textile companies.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Recently, ZTMA vice-president Freedom Dube revealed that the textile sector required at least $20 million to revive the industry currently reeling under low capitalisation levels and an influx of cheap imports.
He said the sector was in the intensive care unit and the government should create an enabling environment to save it from total collapse.
Thousands of jobs have been lost in the clothing and textile industry in the last decade due to the economic crisis.
Karina Textiles, David Whitehead Textiles Limited, Merlin, Travan Textiles and National Blankets, which were some of the largest players in the industry, are under judicial management while scores of clothing firms have trimmed jobs as the economy continues to be blighted by unrelenting economic turmoil.
Lasker Brothers (Pvt) Ltd, a Bulawayo-based textile company, was placed under liquidation after failing to settle debts of more than $6 million.
The firms that are currently operational have downsized.
Several firms such as Merlin and National Blankets, which employed around 2 000 workers at their peak, currently operate at below 20% capacity.
The $40 million Distressed Industries and Marginalised Areas Fund, which was created in 2010 to help companies retool, largely failed to turn them around.
