Mthuli: Duties on Textiles Part of Plan to Protect Local Industry

Mthuli: Duties on Textiles Part of Plan to Protect Local Industry

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Finance Minister Mthuli Ncube has defended the introduction of duties on selected textile products, describing the move as a strategic measure to support domestic production and encourage investment.

In the 2026 National Budget, the Treasury imposed a 300 per cent duty on certain textile items to boost local manufacturing.

Some players in the clothing sector have criticised the move, arguing that local textile firms currently lack the capacity to produce enough fabric to meet domestic demand.

Speaking at the Post-Budget Breakfast Meeting on Monday, co-hosted by Zimpapers and the Confederation of Zimbabwe Industries, Zimbabwe Clothing Manufacturers Association (ZCMA) chairman Jeremy Youmans said the proposed 40 per cent duty should apply only to finished goods, not fabric, which is a key raw material for clothing manufacturers and intermediate goods for home textile producers.

In response, Ncube said the measures aim to create a favourable environment for local producers to thrive and improve the competitiveness of their products. He said:

“The duties we have imposed… we are being driven by the need to support local production and local investments.

“So, this is an incentive to invest locally and create jobs.

“It is not an incentive to punish (other players) or anything like that. There is a need to drive domestic investment.”

Since the turn of the millennium, Zimbabwe’s textiles industry has largely been inactive, following the closure of several major companies, including David Whitehead, Merlin and Kadoma Textiles.

The decline was caused by a combination of factors, including hyperinflation, an influx of cheap imports and second-hand clothing that undermined local competitiveness, limited investment, and a lack of financing for modernising operations.

More: The Herald

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