Business
CZR Hits Back at CZI Over Import Licence Push
The Confederation of Zimbabwe Retailers (CZR) has strongly opposed a proposal by the Confederation of Zimbabwe Industries (CZI) to introduce an import and export licensing regime for clothing and textile products, warning it would raise costs, disrupt supply chains and undermine competitiveness in the sector.
CZR president Dr. Denford Mutashu said the industry body was “shocked” that retailers were excluded from consultations that informed CZI’s May 20 position paper to the Ministry of Industry and Commerce. The document called for the imposition of import and export controls, a move CZR says would tilt the playing field unfairly.
“We are concerned that several key suppliers and retailers were not involved in the May 15 discussions which produced that paper. Retailers, who form a critical link in the value chain, were not invited despite the fact that the decision directly affects their viability,” said Mutashu.
While acknowledging challenges facing the sector — such as rampant smuggling, high production costs, limited local capacity and shrinking formal employment — CZR stressed that introducing import permits would worsen rather than solve the problems.
According to the retailers, licensing would lengthen ordering cycles, discourage international brands, and give smugglers and informal traders an advantage, while formal businesses struggle with “another bureaucratic hurdle.”
CZR also questioned the justification of using import licences as a data-collection tool, saying information on fabric imports is already available through the Ministry of Finance and ZIMRA records.
The retailers reaffirmed support for David Whitehead Textiles’ investments in Kadoma and Chegutu but noted that local producers are not yet able to meet the quality and variety demands of fashion retail. “Over 98 percent of fabrics used in fashion production, such as lycra t-shirting, twill with spandex, poplins and denim, are still being imported,” CZR said.
Instead of permits, the organisation recommended: regular multi-stakeholder engagements that include retailers, closer collaboration between textile manufacturers and retailers to align to market needs, and fiscal incentives to strengthen the entire cotton-to-clothing value chain.
CZR added that such measures would help the sector prepare for competition under the African Continental Free Trade Area and align with the government’s Vision 2030 of transforming Zimbabwe into a middle-income economy.