Critical for sustainable growth is the development of industrial sectors which have been viewed as a sure way to allow full participation of African countries in global trade. Most African countries are yet to take off in economic development, going by the traditional measures of development such as Walt Rostow’s development model. One critical sector that could spark initial economic development is the textiles, clothing and garments sector. The sector has proven to be a typical starter industry for countries engaged in export-oriented industrialisation, and for us in the manufacturing sector we perceive it as one of the most strategic industries to spearhead the early stages of the development process in Zambia. Several demonstrations can be made, the sector played a central role in the industrial revolution in the West, and more recently in Newly Industrialised Countries (NICs) industrialisation process.
Historically, Zambia’s textiles and clothing industry has had an important role in the country’s development. It grew considerably between 1964 and the 1980s, during the period of implementing Import Substitution Industrialisation (ISI). Cardinal to its growth was substantial government support through an incentive system that favoured the entire manufacturing sector. At the time, the manufacturing sector grew in Zambia, with the textiles, wearing apparel and leather contribution to total manufacturing value added rising from 10.1% in 1964 to 18.4% in 1980. However, during the implementation of the Structural Adjustment Programmes (SAPs) in the 1990s, the economy was liberalized subjecting the economy to increased competition from countries with more developed production sectors, producing their goods at higher economies of scale. Additionally, secondhand clothing, imported duty free at the time, was extremely cheaper than locally manufactured goods, aiding the collapse of the sector.
Just like other manufacturing sub-sectors, the textiles and clothing sub-sector is affected by macroeconomic instability, limited access to finance, limited market access in the domestic market, high costs of business, and energy constraints. More specific to the textiles and clothing industry is the unavailability of raw materials in the domestic economy. The country used to have over 10 cotton ginning factories which have since been closed. Additionally, the closure of Kafue Textiles which used to produce fabric from the ginned cotton, means that producers of textiles and clothing have had to import fabric material from countries such as India, China, and Malaysia. Moreover, the influx of secondhand clothing and cheaply imported garments from the far East still torment the sector.
Regrettably, the outbreak of the Corona Virus Disease (Covid-19) pandemic and consequent economic lockdowns, threaten the sector even more. Accessing the raw material is now harder and shipments take longer to arrive. Further, the depreciated exchange rate makes the acquisition of raw materials more expensive. Finished product price have as a result drastically increased, ultimately making locally produced garments uncompetitive compared to imports.
Clearly, something must be done. The first is a call to remove customs duty on raw materials on textiles and yarn in the short term, whilst relooking to revamp the garments value chain. Kafue and Mulungushi Textiles have proven to be effective suppliers for the textiles and clothing sub-sector, yet the absence of cotton ginneries makes their production extremely difficult. Thus, investment into this value chain is needed to ensure that all levels of the supply chain are sufficiently covered.
The pandemic on the other hand also creates an opportunity to increase production in garments. For instance, face masks and protective clothing have seen increased demand as these have become essential goods regarded as mandatory by public authorities. The increased demand, therefore, provides a huge opportunity for growth of the sector. ZAM has engaged the Zambia Federation of Associations of Women in Business (ZFAWIB) to make strides in the textiles sector. ZAM is happy that opportunities to make facemasks continue to be presented to ZFAWIB and hope for innovations such as the movement from pulp and paper milling into cellular technology as happened with Nokia. Further, the market for the textiles sector extends beyond the domestic market, with a number of countries in the Southern African Development Community (SADC) region such as Zimbabwe and Botswana consuming most of the finished products.
Saving the sector from going extinct requires several measures include reducing the cost of inputs. Trims such as buttons, beads and threads used in the production of clothing all require lower duties even though finished in nature. Transportation costs also require reduction so VAT charged on diesel should be removed. Moreover, duties on finished garments need to be increased to the highest bound as the sector has been stunted in its infancy. In the long term, there is need to attract investment in the production of raw materials including cotton ginning and production of yarn.
