New Textile Import Licenses Meet Resistance from Retailers
ZIMBABWE’s retailers are resisting a plan by the Confederation of Zimbabwe Industries (CZI) to introduce import and export licences for textiles, warning it would cripple the sector and fuel the informal economy.
On May 20, CZI lodged the proposal with the Ministry of Industry and Commerce, citing the need to safeguard local textile producers.
However, the Confederation of Zimbabwe Retailers (CZR) counters that the plan would inflate costs, bog down supply chains, and contradict the government’s efforts to improve the business climate.
According to Dr Denford Mutashu, CZR president, the industry was caught off guard by the proposal, particularly since retailers weren’t consulted.
“This decision affects the viability of the clothing and textile industry, yet key suppliers and retailers were not even invited to the engagement. Such unilateral moves risk destroying one facet of the value chain to assist another, instead of finding common ground to grow the sector,” Dr Mutashu said
The retailers argue that new import licences would add bureaucratic hurdles and delay shipments of key fabrics that are not yet manufactured in Zimbabwe. Currently, 98% of fabrics sold by major retailers such as lycra t-shirting, stretch denim, twills with spandex, and fashion-finished poplins are sourced abroad.
CZR also warned that the move would give an unfair advantage to informal traders, who often smuggle goods without paying tax.
“Formal businesses will be encumbered by red tape while informal players continue smuggling freely. This will only weaken the formal sector and reduce government revenue,” Dr Mutashu added.
While welcoming new investments in the textile industry, such as the David Whitehead plants in Kadoma and Chegutu retailers say local producers still lack the capacity to meet fashion industry demands.
They argue that support should be directed towards product development and innovation rather than restricting imports.
CZR also dismissed claims that the proposed licence regime was necessary for data collection pointing out that detailed import records are already available through ZIMRA and the banking system.
Alternatively, retailers advocate for inclusive consultations with all stakeholders, fiscal incentives to drive investment, and partnerships to align production with market demands.
The debate comes as Zimbabwe seeks to revitalise its textile sector, once a key employer, amid rampant smuggling, declining formal sector jobs, and high production costs.
With the AfCFTA presenting new trade prospects, CZR believes Zimbabwe must fortify its cotton-to-clothing sector holistically, rather than in isolation.
Dr Mutashu emphasized that they support the government’s goal to reach middle-income status by 2030, but this demands inclusive policies that foster, rather than hinder, business growth.
