The Sunday Mail
LOCAL clothing concern Paramount Garments, which recently acquired Archer Clothing, a Bulawayo-based manufacturer of quality casual and formal wear, is likely to inject more than US$5 million into the business in the next two years to make the business fully operational, underlying the salient recovery of the clothing industry.
The sector, which is gradually emerging from a five-year siege from international competition, is beginning to show signs of recovery especially after the industry struck a progressive wage settlement and increased both export orders and local investment.
Paramount Garments is part of a locally owned clothing and textile group that has been operating since 1948 and has workwear and casualwear brands such as Javlin, Fit for the Job, Chef Attire, Troutbeck, Lee Cooper and KlevaKidz.
It is widely expected that the investment in Archer will help save 850 jobs that had been on the line since the company was placed under provisional liquidation last year.
Part of the funds to be injected into the business will be used for retooling.
In a recent interview, Paramount group finance director Mr Jeremy Youmans said the plans to roll out an elaborate revival project are presently being frustrated by one of the 45 creditors.
“We are very excited about the opportunity to revive Archer. Unfortunately, the process has been severely delayed by the legal process and frustrations caused by the one creditor who has not supported our attempts to get the company going again.
“Out of 45 creditors, only one is not voting for the scheme and we are still retarded in our ability to fully resource Archer, until the process is complete.
“In the meantime, workers sit at home penniless, export orders are missed and the economy is denied the value addition that this employment would generate.
“Something needs to be done about this as this is the sort of thing that deters investors, both locally and internationally.
“We are hoping to have 205 people re-employed at Archer by the end of this month, in spite of the impediments being placed to frustrate the deal, but it could be so much more, and should be.”
Restarting production at the Bulawayo firm will see the return and availability of Archer and Salty branded goods — casual, formal and safari wear.
Mr Youmans, who is also the chairman of the Zimbabwe Clothing Manufacturers’ Association (ZCMA), indicated that concerted efforts by stakeholders to ward off mounting challenges has helped to unlock the sector’s potential.
“After a lot of hard work, the opportunities in our sector are becoming more evident.
“We recently finalised a wage settlement that provided increased security to our employees, motivation to increase employment and commitments which enable companies to forecast with some level of certainty and plan accordingly. Whilst this deal included an arbitration process, it is generally supported as one of the keys to unlocking the potential of our sector,” explained Mr Youmans.
Some local authorities and organisations are also beginning to switch from sourcing their products from foreign companies to those produced locally.
As part of deliberate efforts to raise the profile of the local clothing industry to all local customers, Government, parastatals, municipalities, retailers and consumers, ZMCA will be holding another clothing indaba in Bulawayo on 26 September, 2014.
The event will also include the official launch of the recently completed Zimbabwe Cotton Strategy, a project led by the Ministry of Industry and Commerce with technical support from International Trade Centre (ITC), Comesa (Common Market for Eastern and Southern Africa), and funded by the EU.
Detailed investigation and development of the strategy involved all stakeholders, including farmers, ginners, oil expressors, textile and clothing.
Experts say the strategy is the most progressive work that has been done on the cotton chain in this country.
The clothing and textile sectors are already identified as priority sectors in the Industrial Development Policy ( 2012-2016).
Zim-Asset, the economic blueprint that is expected to guide local economic develop until 2018, identifies value addition and beneficiation as a key component of the country’s economic revival efforts.
Added Mr Youmans: “We know we can rebuild not only this industry but the whole economy, but we need to work together on this for the common national interest. We need to continue to tighten up the controls at our borders to ensure that we are operating on a level playing field and rid ourselves of the rampant amount of corruption still prevalent in procurement.
“This is not only in Government but also local municipalities and private sector.
“Everyone is complaining about the high cost of living and of doing business in Zimbabwe, but built into many of the costs are excess payments to do with corruption and fraud.
“If we can eradicate these, everyone will be wealthier and business will be more competitive. Managers need to interrogate purchases further and not take all facts presented at face value.
“These extra costs are a millstone around the neck of manufacturing in its attempts to regain competitiveness.”
