The Sunday Mail
The Zimbabwe Textile Manufacturers Association (ZITMA) has said the industry needs cheap capital for textile companies to return to the glory days.
Association chair Mr Admire Masenda told The Sunday Mail Business that top players such as National Blankets, Merspin, Irazim, Travan Blankets and David Whitehead remained under judicial management, indicating that the industry had “a long way to go in terms of getting where we want”.
“We continue to lobby Government so that we get access to working capital that is affordable. Working capital remains the major problem because when you give me money at 18 percent, you are setting me to fail. I will not be able to repay the loan and the interest charged. If we can get interest rates of below 12 percent, then we are talking,” said Mr Masenda.
Travan Blankets and Irazim Textiles Limited judicial manager Mr Reggie Saruchera could not be reached for comment last week.
Last year Mr Saruchera said he was assessing the two firms’ capital needs.
Irazim and Travan Blankets were subsidiaries of Modzone Enterprises, which closed in 2012 due to viability concerns.
At its peak around 2000 and 2001, Irazim was producing close to one million metres of fabric per month.
Karina Textiles is failing to attract investors to resume operations.
However, Mr Masenda said there was hope as some companies under judicial management, like Merspin, were on the verge of getting investors.
Merspin’s judicial manager is Mr Cecil Madondo.
Mr Masenda said ZITMA was advising members to reduce overheads and to find sustainable markets such as those presented by production of polycotton.
ZITMA is also assisting members access export markets and will take some products to South Africa for a June exhibition.
Last year, the organisation took some of the industry’s products to Kenya for a similar expo.
