Textile industry in Zimbabwe requests govt for forex

10 Oct '17

1 min read

The Zimbabwe Textile Manufacturers’ Association (ZCMA) has appealed to the government to timely disburse foreign currency to its members to ensure they meet their obligations and remain in business in times of liquidity crisis. ZCMA secretary-general Raymond Huni recently said the textile industry needed urgent intervention to avoid a total collapse.

As the current liquidity crisis continues, the government assisted a few struggling companies to easily access foreign currency. People have resorted to buying foreign currency in the black market at exorbitant rates, thereby distorting market prices. Some are hoarding cash, according to a report in a newspaper in Zimbabwe.

ZCMA appealed to the Reserve Bank of Zimbabwe, and the ministries of finance and industry to consider allocating forex to genuine manufacturers for raw materials that are not available locally.

Zimbabwe’s biggest blanket and linen manufacturer that supplies to the army, hospitals, hotels and schools, and hosiery manufacturers are struggling to get foreign currency to continue in business. This will lead to thousands losing jobs, said Huni.

The government should also consider raising the export incentive from 5 per cent to 25 per cent, according to ZCMA. (DS)

Fibre2Fashion News Desk – India

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