Agoa exclusion hurts Zimbabwe’s textile exports

JOY ORLEK
ZIMBABWE’S EXCLUSION from the Africa Growth and Opportunity Act (AGOA) combined with stiff competition from Asia have contributed to a significant decline in its textile exports.
Zimbabwe was the only southern African nation excluded from AGOA because of its alleged bad human rights record.
The industry, which used to employ more than 22 000 workers, now employs only 12 000, with 85% being employed by the eight large firms within the sector.
According to the Zimbabwe Textile Manufacturers Association (ZTMA), the current overall structure of the textiles industry in Zimbabwe consists of eight large companies, four medium sized ones, 11 smaller companies and 100 marginal businesses.
The eight large firms, which account for 83% of textile capacity, are operating at less than 45% of capacity, ZTMA said.
“The anchor of the textile industry is at present the local market which has increasingly come under serious threat from unfair imports,” ZTMA said.