Zimbabwe imposes duties on textile imports

The imposition of duties on selected textile products is a strategic move to support domestic production and encourage investment, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said. Speaking at the Post-Budget Breakfast Meeting co-hosted by Zimpapers and the Confederation of Zimbabwe Industries on Monday, Minister Ncube explained that the measures aim to create an enabling environment for local producers to thrive and enhance the competitiveness of homegrown products.

In the 2026 National Budget, the Treasury announced a 300 percent duty on selected textile products as part of efforts to revive the local industry. The move aligns with the objectives of the National Development Strategy 2 (NDS2), which seeks to drive economic development and job creation through industrialisation.

Despite the government's rationale, some stakeholders in the clothing sector have voiced concerns that local textile firms currently lack the capacity to meet domestic demand. "The industry that has been revived in the country produces about 1 percent of fabrics needed by the country," noted one delegate at the meeting. Zimbabwe Clothing Manufacturers Association (ZCMA) chairman Jeremy Youmans argued that the intended 40 percent duty should only apply to finished goods, not fabric, which serves as a raw material for clothing manufacturers.

Responding to these concerns, Minister Ncube emphasised that the duties are designed to support local production and investment, rather than to punish industry players. "This is an incentive to invest locally and create jobs," he said. "It is not an incentive to punish anyone… it is a need to drive domestic investment."

The textile sector is on the cusp of revival, with significant investments over the past few years and the return of traditional players such as David Whitehead Textiles expected to anchor the resurgence. For over two decades, the industry had struggled after key companies like David Whitehead, Merlin, and Kadoma Textiles folded due to economic challenges, cheap imports, second-hand clothing, insufficient investment, and limited access to financing for retooling.

Minister Ncube underscored the government's balanced approach, highlighting its willingness to work with the private sector to expand local production without completely closing the market to imports. "We are happy to engage you to see how we can transition to have more local production, less imports, but without cutting off imports completely," he said.

Economic analysts note that while the transition from imports to locally produced goods may create short-term challenges for some businesses, it is necessary to build a strong industrial base. Companies that adapt by investing in local production and expanding capacity are expected to benefit in the long term.

The government is also operationalising the Local Content Strategy under NDS2 to deepen industrial linkages and optimise value chains. By leveraging public procurement, the state will prioritise domestic products and introduce mandatory local content thresholds in strategic sectors. This is intended to foster a "Buy Zimbabwe" culture, increase the use of local raw materials and services, and support the growth of local enterprises.

NDS2 interventions aim to stimulate demand for domestically produced products, create decent jobs, and move the economy up the value chain towards inclusive and sustainable industrialisation. The post-budget breakfast meeting provided a platform for government and industry stakeholders to discuss these strategies and chart a path forward for Zimbabwe's industrial revival.