Govt acts to revive textile industry
Published On August 2, 2016 » 3308 Views» By Bennet Simbeye » Business, Columns
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NamutoweZAMBIA’S textile and garment sub sector has the capacity to contribute immeasurably to the economic development of the country if well harnessed.
Being labour intensive, it has the potential to greatly contribute to employment and wealth creation at all stages of its value chain.
During the Import Substitution Industrialisation (ISI) of the 1960s through to the 80s, the sub sector received substantial Government support enabling it to become the biggest contributor to the country’s Gross Domestic Product (GDP).
In this period, Ndola and Livingstone together hosted more than 130 textiles and garment manufacturing companies.
Further, companies like Serioes International in Luanshya, Mulungushi Textiles in Kabwe and Kafue Textiles of Zambia (KTZ) in Kafue were household names.
They used to contribute massively to the country’s cotton value addition programme and job creation.
But with the fall in copper earnings and the oil shock of 1975, the import substitution policy proved to be costly to the Government and the sub sector started to experience underutilisation of capacity.
This was partly due to the nature of the investment in the industry and the scarcity of foreign exchange for imported inputs and spare parts.
Government is putting up deliberate measures to support the growth of the sector.
After many years of underperformance, Government decided to come up with Commercial, Trade and Industrial (CTI) Policy 2009 to 2014 and the Strategy Paper on Industrialisation and Job Creation to revive textile industries.
The policy was launched in 2013, identified textile and garment industries as one of the priority sectors for Zambia’s industrialisation and economic development.
According to the industrialisation and job creation strategy, the textile and garment manufacturing sector is capable of creating 4,100  new jobs in the next five years.
As a way of promoting the textile industry, Government will ensure that all public institutions like the Zambia Correctional Service, Zambia National Service (ZNS), and Zambia Police purchases 20 per cent of their garments from the local manufacturers like Unity Garments.
This will boost the textile and garment industry.
There is need therefore to revive the textile and garment sub sector in an effort to place the company to a position  where it will be able to produce garments locally for both local and international market.
The textile and garment industries need to diversify and go into manufacturing of quality clothes which can compete with those from the rest of the regional and international markets.
It is against this backdrop that President Edgar Lungu reopened Mulungushi Textile Industries which ceased operations as Zambia China Mulungushi Textile in 2007 as a result of financial difficulties.
The textile company is now under the Industrial Development Corporation (IDC) whose chairperson is President Lungu.
The Head of State pledged to create more than 20,000 jobs in the next five years, saying that the strategy is to work toward the operationalisation of all the sections.
The IDC and its partners would mobilise and invest an initial US$15 million in cutting edge technology and rehabilitation of the textile plant which was closed 10 years ago.
The revival of the textile industry will also increase the value chain
and expand exports to boost the country’s economy. Apart from investing the $15 million, the company would also establish cotton out grower scheme of more than 10,000 farmers in Kabwe, Kapiri Mposhi, Chibombo, Chisamba and Ngabwe districts.
“The rationale for my Government’s decision to revive operations at Mulungushi Textile Industries is there for all to see.
“It is not a secret that the reopening of this textile company provides the most significant opportunity for small-scale farmers to engage in cash crops in line with our industrialisation agenda,” he said.
The company has already employed about 300 people in the garment section and those doing preliminary work although the number is expected to reach more than 2,000 by December this year.
Mr Lungu pledged to resuscitate the cotton industry in Zambia as it provided employment to many people in the country.
It is important for Mulungushi Textile to collaborate with the Cotton Association of Zambia, the Cotton Development Trust and Seed Control and Certification Institute for quality seed production to be offered on the market.
In Zambia, cotton is the second most important crop after maize.
“To the people of Kabwe, the gallant men and women who have undergone 10 gruelling years of suffering when this company closed in 2007, my Government will stand to support and expand the economic activities within the district,” Mr Lungu said
IDC chief executive officer Andrew Chipwende described President Lungu’s decision to reopen Mulungushi Textile industries as fulfilment of his promise to the people of Kabwe.
Mr Chipwende said following Zambia’s liberalisation of the economy in 1991 the company was heavily affected.
If properly managed, the textile industry has the potential to significantly contribute to the national Growth Domestic Product (GDP).
The Textile and Garment industries in Zambia have a huge potential to contribute to the Zambia’s quest to create jobs and wealth for the citizens.

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