Retailers have rejected a proposal by the Confederation of Zimbabwe Industries (CZI) to introduce an import and export licence regime for textiles and clothing, warning it could cripple the sector and push more trade into the informal economy.
The CZI submitted the proposal to the Ministry of Industry and Commerce on 20 May arguing it was necessary to protect local textile manufacturers.
But the Confederation of Zimbabwe Retailers (CZR) says the plan will drive up costs, slow supply chains, and undermine the government’s ease of doing business agenda.
Denford Mutashu, president of the CZR said the industry was “shocked” that retailers had been excluded from the discussions that led to the proposal.
“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,” 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,” Mutashu said.
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.
Instead, the retailers are calling for broader consultations involving all stakeholders in the clothing value chain, including retailers, fiscal incentives to attract investment and support innovation and partnerships between manufacturers retailers, and investors to align production with market needs.
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 African Continental Free Trade Area (AfCFTA) opening new opportunities for regional trade, CZR says Zimbabwe must strengthen the entire cotton-to-clothing value chain rather than fragmenting it.
“We fully support the government’s vision to make Zimbabwe a middle-income economy by 2030, but this requires inclusive engagement and policies that promote—not stifle—business growth,” Dr Mutashu said.
