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Garment, clothing makers clash over import duty

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The Zimbabwe Textile Manufacturers Association (ZTMA) has dismissed some industry claims that the new textile duties will trigger a 40 percent hike in garment prices.

ZTMA argued that the concerns raised by clothing manufacturers ignore the reality that the tariffs are strategically designed to nurture newly created local capacity.

To drive import substitution and promote investment, the Government introduced textile duties of up to 300 percent to shield the domestic industry from foreign competition.

According to the Zimbabwe Clothing Manufacturers Association (ZCMA), a tariff increase of more than 100 percent would force garment prices up by 40 percent, severely impacting the final cost of clothing.

The manufacturers also challenged the new tariff regime, citing concerns that local textile mills cannot meet the industry’s quality and volume requirements.

In their submission to authorities, the garment makers argued the local capacity remains too low to support the entire sector, warning that a forced shift to domestic sourcing could lead to a US$15 million loss in export revenue.

Responding to the claims in a position paper to the Ministry of Industry and Commerce permanent secretary Dr Thomas Ushe, ZTMA clarified that the combined duty structure, which includes both percentage-based and weight-based charges, does not create a flat 100 percent tax as critics suggest.

Instead, effective rates for common materials like poly-cotton are significantly lower, ZTMA argues.

Furthermore, it notes that because fabric is only one part of a garment’s production costs, changes at the material level do not necessarily result in a direct, linear increase in retail prices.

The association also points out an apparent double standard in the sector.

Clothing manufacturers currently benefit from high protection, including a 40 percent plus US$3 per kilogramme duty on imported finished garments, yet they continue to oppose similar safeguards for local textile mills.

Traditionally, US dollar inflation in Zimbabwe (12,39 percent in December) was largely a result of exchange rate distortions, fuelled by the regulatory requirement to use the official exchange rate in pricing. It was only in April 2025 that this regulation was repealed. Thus, it is expected that the full impact of the distortions caused by this regulation will only be eliminated in May 2026, which could see the US dollar annual inflation rate at single-digit levels

ZTMA believes the industrial recovery requires a “unified value chain” rather than one-sided protection.

It observes that lower fabric costs do not always benefit the public, as evidence shows that even when garment makers import cheap materials under tax-free rebates, consumer prices often remain high.

The association maintains that the new duties are essential to break the cycle of import dependence and ensure that local “cotton-to-clothing” industries can finally scale and compete.

“Uncontrolled imports of cheap fabrics often undervalued, dumped, or benefiting from foreign state subsidies have crowded out local textile manufacturing, suppressing demand certainty and preventing economies of scale from being realised,” says ZTMA.

“Maintaining an import regime designed for a period of industrial collapse is incompatible with industrial recovery.

“The status quo is not neutral; it actively disadvantages local production by allowing imported fabrics, often under-invoiced, smuggled, or produced under conditions Zimbabwe cannot replicate to dominate the domestic market.

“Without corrective alignment, newly revived mills face the same fate as their predecessors. Low-capacity utilisation in Zimbabwean textile mills is not evidence of a lack of potential, but rather evidence of policy-induced demand suppression.

“No capital-intensive textile operation can scale, invest in dyeing and finishing, or expand product ranges in an environment where imports face little to no strategic restraint,” ZTMA adds.

The ZTMA also strongly rejects a recent draft study by the Competition and Tariff Commission (CTC) and the National Competitiveness Commission (NCC), calling its data on textile imports “unsound” and “misleading.”

The association said that following significant fresh investments, Zimbabwe’s installed textile capacity now stands at 36 million meters per year.

The ZTMA argues the study’s claim of a 136,6-million-meter import gap is based on inflated and “irrelevant data.”

According to ZTMA, the report includes materials like jute, flax and woven grain bags not used for clothing.

By lumping the industrial fibres in with apparel fabrics, the ZTMA says the CTC and the NCC have created a flawed statistical foundation that overstates the country’s reliance on foreign fabric.

Countering claims that local mills have only bought “a few pieces of equipment,” the ZTMA highlighted massive investments in state-of-the-art machinery.

This includes a world-class “process house” capable of large-scale dyeing, printing, and finishing.

The new facility owned by David Whitehead Textiles features advanced technology such as continuous processing, mercerising, and eight-colour printing, investments that far exceed any others currently found in the Cotton-to-Clothing value chain.

The association maintains that capacity is not static and that local mills are already producing the cotton and poly-cotton fabrics needed for workwear, uniforms and basic apparel.

“The notion that Zimbabwe must permanently depend on imports for basic textiles is fundamentally flawed,” the ZTMA said, further emphasising that current policy must now support these new investments to prevent further industrial erosion and allow the sector to scale.

In terms of quality, the ZTMA has strongly defended the standards of local production, dismissing claims of ” inferior quality” from garment makers as “overstated.”

It argues that critics often conflate unlike products – such as comparing high-quality, 100 percent cotton heavy drill produced locally with low-grade, imported poly-cotton blends – to create a false narrative of local inferiority.

According to ZTMA, the recent multi-million-dollar investments have transformed the sector’s technical capabilities.

Furthermore, ZTMA points out that quality issues are often tied to poor coordination within the supply chain.

Garment manufacturers frequently take up to four weeks to approve quality specifications, yet they do not account for these delays when criticising textile mill delivery times.

To ensure consistent quality and supply, ZTMA is calling for better alignment where clothing firms provide clear quarterly or annual requirements, allowing local mills to respond with the precision these modern, high-tech machines were designed to deliver.

“ZITMA’s position is clear; measured, accountable support for domestic textile production is essential to restoring the cotton-to-clothing value chain.

“The evidence demonstrates that capacity is returning, quality is improving and competitiveness is achievable if policy aligns with reality.

“We, therefore, urge the Government to proceed with the proposed interventions.

“Our policymakers, industry leaders and stakeholders should look beyond short-term convenience and commit, collectively, to rebuilding Zimbabwe’s industrial foundation and bring back Zimbabwe’s Cotton to Clothing Value Chain to its yesteryear stellar performance,” the ZTMA said.

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