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Brighton Gumbo Business Reporter
BLANKET imports to Zimbabwe have dropped by about 98 percent from $500,000 worth of products to $11,000 since removal of the commodity from the open general import licence in July this year. Announcing the move in his mid-year fiscal policy review, Finance and Economic Development Minister Patrick Chinamasa said the textile industry was one of the low hanging fruits whose turnaround could be realised within a short period, given adequate support.

The minister, instead, proposed to introduce a manufacturers’ rebate duty on critical inputs imported by approved textile manufacturers covering spare parts, yarn and unbleached fabric, among others.

Zimbabwe Textile Manufacturers Association (ZITMA) vice president, Freedom Dube, yesterday said the textile sector was grateful to the government for coming up with a pro-active fiscal position. He said changes were witnessed in the early months after the minister’s announcement when imports clocked $3,000 worth of products from $500,000.

“As of October blanket imports were slightly higher, recording around $11,000 worth of products from $3,000 recorded in August and September this year after Finance Minister, Patrick Chinamasa removed them from the open general import licence for two years,” said Dube.

“The onus is upon us as textile manufacturers to move in quickly by financing our production capacity so that we can be able to sustain the market that has been created.” He said at the moment change has not been significant as capital sourcing for production capacity was a bit tricky.

“We expect to see much of a change to our local industry come 2016. As of now we’re still negotiating with financiers for some loans to boost our production capacity so as to match the demand,” said Dube.

He said there was a need for the government to fast-track the gazetting of a Statutory Instrument that forbids importation of blankets. Zimbabwe’s textile and leather industries have, since dollarisation, been under siege from the influx of imports, especially finished second hand clothes, shoes and leather products that have forced some of them to close down.

Thousands of jobs have been lost in the clothing and textile industry in the last decade due to the economic crisis. Companies such as 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 as the economic situation continues to worsen.

The new measure forms part of extensive interventions the government is taking to grow the economy, with the economic growth rate revised down from 3.2 percent to 1.5 percent due to a poor agricultural season.