The
Zimbabwe Textile Manufacturers’ Association has appealed to the government to
prioritise the textile industry by timeously disbursing foreign currency to
ensure members meet their obligations and remain in business.As
the current liquidity crisis continues to bite, the government undertook to
assist some struggling companies so that they access foreign currency with
ease.
People have resorted to buying foreign currency on the black market at exorbitant
rates, thereby distorting prices on the market. Others were hoarding cash for
speculative purposes.Zimbabwe Textile Manufacturer’s Association
secretary-general Raymond Huni yesterday said the textile industry needed
urgent intervention to avert a total collapse.
“The Zimbabwe Textile Manufacturers’ Association is receiving complaints on a
daily basis from textile companies regarding accessibility of foreign currency.
We need the government to allocate them foreign currency just like what is
happening in other sectors,” Huni said.We have a situation where the biggest
blanket and linen manufacturer is struggling to get foreign currency to remain
in business. The company supplies blankets to the army, hospitals, hotels and
schools and is obligated to the nation for the supply of blankets and bedding
accessories.
“The company has a staff complement of 800 people who are at risk of losing
their jobs if the company fails to get money to purchase raw materials.”Huni
said there were similar complaints from hosiery manufacturers and that the
situation was getting out of hand and expressed fear that should nothing be
done immediately they would be faced with a disaster as the matter required the
immediate intervention of government.
“As the textile industry we are appealing to the Reserve Bank of Zimbabwe,
Ministry of Finance and that of Industry to consider allocating forex to
genuine manufacturers for raw materials that are not available locally,” he
said.“Once there is easy access to foreign currency, our industry will start
exporting and earn the much-needed foreign currency.”The association said the
government should also consider raising the export incentive from 5% to 25%.
Source: New Zimbabwe, Zimbabwe Wednesday, 04 October 2017