Textile industry grows

Textile industry grows
Reserve Bank of Zimbabwe governor John Mangudya

Reserve Bank of Zimbabwe governor John Mangudya

CAPACITY utilisation in Zimbabwe’s textile industry’s has increased, adding 1 000 jobs this year alone, Reserve Bank of Zimbabwe governor, John Mangudya, has said.
Mangudya made the remark at a Confederation of Zimbabwe Industries (CZI)-organised meeting to discuss recent challenges in the economy last week, where he said despite the foreign currency shortages and a widening budget deficit, the economy was rebounding contrary to concerns that it was in recession.
“It is sad that Zimbabweans want to spend more time on the negative than positives. I can tell you that a lot of sectors have improved since the beginning of the year and that export incentives are working. For example, the textile industry used to employ about 5 000 by the end of last year. Now it employs about 6 000 as of last month,” Mangudya said.
Mangudya said the economy should be driven by the performance of business not sentiment.
“I know forex is a critical factor for the growth of the country’s economy, but at times, as Zimbabweans, we have a tendency to exaggerate issues. There is a mismatch in the economy, there is a huge appetite for forex but not all the demand is good,” he said.
Mangudya said Zimbabwe had generated $4 billion in foreign currency receipts between January and September this year.
Early this year, the Zimbabwe Textile Manufacturers’ Association appealed to government to prioritise the textile industry by timeously disbursing foreign currency to ensure members meet their obligations and remain in business.
Second hand clothing, which had flooded the market, had taken a toll on the clothing industry, leaving local manufacturers teetering on the brink of collapse.
Zimbabwe’s clothing and textiles manufacturing sector has experienced growth over the past five years, with exports growing from $3,1 million in 2012 to $8,2 million in 2016, according to export promotion body, ZimTrade.
ZimTrade said Zimbabwe’s major export destination for clothing and textiles was South Africa with a share of 80 percent. The rest of the Southern African Development Community had a 16 percent share of exports.

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