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COMESA grant for leather, clothing sectors in Zimbabwe
14
Jan '18
COMESA grant for leather, clothing sectors in Zimbabwe
The Government of Zimbabwe last month sealed a $2,6-million grant with the Common Market for Eastern and Southern Africa (COMESA) to support the country’s leather and clothing sectors. The sectors have been in the doldrums since long and badly needed cash injections for a turnaround. Raw material shortages have badly hit the country’s leather industry.

The grant is going to facilitate the hides-to-leather value chain, in which the government plans to set up three to four hubs, and the cotton-to-clothing chain, a newspaper in Zimbabwe quoted deputy minister of finance and economic planning Terrence Mukupe as saying.

The leather industry is operating below half of its capacity due to a gamut of challenges, primarily cash shortage, resulting in waning demand for leather products.

According to the Abattoirs Association of Zimbabwe, the leather sector has not recovered since the government introduced a levy on exports of raw hides to encourage value addition in 2014.

Since 2012, the country’s exports of leather products have been plunging. In 2014, Zimbabwe exported leather products worth $374,000, down from $591,000 in 2012. (DS)

Fibre2Fashion News Desk – India


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