Government of Zimbabwe, in its mid-year fiscal policy review, has announced that the Government will make concerted efforts to boost the country’s textile sector. The move has come as blanket imports to Zimbabwe have plunged by 98 per cent, from US $ 500,000 worth of products to US $ 11,000 since the removal of the commodity (blankets) from the open general import license in July this year. The Government has also proposed to introduce ‘manufacturers’ rebate duty’ on critical inputs imported by approved textile manufacturers covering spare parts, yarns and unbleached fabrics, among others. The new measure forms part of extensive interventions that the Government is taking to grow the economy.
Freedom Dube, Vice President, Zimbabwe Textile Manufacturers Association (ZITMA) says, “The textile sector was grateful to the Government for coming up with a pro-active fiscal position. Capital Sourcing to increase the production capacity for textile manufacturers is a bit tricky as of now but we are looking out for finance’s to increase the production capacity so that we may be able to sustain the market that has been created.”
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Patrick Chinamasa, Minister of Finance and Economic Development opines, “Textile industry is one the low hanging fruits whose turnaround can be realised within a shorter period of time.”
Zimbabwe’s textile and leather industries, since ‘dollarization’, have been under siege from the influx of imports, especially finished second hand clothes, shoes and leather products. All these have forced some of them to close down hence there was a need for the Government of Zimbabwe to fast-track the gazetting of a Statutory Instrument that prohibits import of blankets.
