- Published on 06 April 2017
Zimbabwe’s clothing and textiles manufacturing sector has experienced a growth trajectory over the past five years, with exports growing 165% to $8,2 million in 2016 from 2012 figures, a latest report has shown.
Information gathered from ZimTrade, the country’s export promotion body, revealed that despite a plethora of challenges affecting the clothing and textile industry, the sector was still bringing in foreign currency through exports. To capacitate players in the clothing and textile sector, ZimTrade recently conducted the Marketing and Branding for International Competitiveness Training Programme for 12 companies in the sector. (Newsday)
Despite the 165% growth, there is need to address challenges weighing on the cotton to clothing value chain so as to realise full potential:
- Cost drivers: energy, water and transport form significant proportions of cost drivers when they are available. Service provision of some of these is irregular, unreliable, costly and risky hence businesses become price uncompetitive on both domestic and foreign markets.
- Cash flow problems: liquidity constraints on the market result in difficulties with raising working capital for businesses and accessing long term loans from banks for recapitalization purposes, or to access cheap lines of credit.