Opinion / Columnist
David Whitehead Resuscitation of operations Noble
14 Nov 2014 at 09:48hrs | Views
Zimbabwe used to have burgeoning textile industries with companies like David Whitehead, Julie White and Fashion Enterprises, most of who have gone out of business. Therefore, there is an opportunity to re-equip the plants and spring-up production of clothing for exportation. We should give applause to David Whitehead Textiles for resuming operations following a number of years of inactivity.
The company used to produce at least 20 million meters of fabric per year while directly employing 3000 workers and thousands in down and upstream industries. It also used to be the largest textile company in the country. This week the company hit the headlines by recalling some former workers to resuscitate operations.
The company has re-engaged most of their trained, skilled and experienced manpower for a good kick start. The company's vision and business plan has made it a reality, and it has now found takers.
Working capital it is utilizing was raised from the disposal of non-core assets in conformity with recommendations set out in the business rescue plan. This comes as a lesson to parastatals like the National Railways of Zimbabwe, which are operating below capacity while it has a lot of properties lying idle. Some of the properties are in the United Kingdom which includes buildings.
Parastatals and companies which are struggling should copy from David Whitehead and start mobilizing for funds from local financial institutions managing the Distressed Industries and Marginalized Areas Fund (DIMAF). The basic infrastructure is more or less intact and we have a well educated workforce. Thus there are many factors that make Zimbabwe an excellent investment destination so we need to work on the image issue.
Recently Zimbabwe launched the Cotton-to-Clothing Export Strategy as a way of boosting sustainable development in tandem with the country's economic blue print, ZIM ASSET. The strategy aims to revive the country's cotton and textile industry, which plays a significant role in Zimbabwe's economic growth and development. This will certainly have positive spin-offs on the economy which is crucial for oiling ZIM ASSET.
The strategy is meant to promote the clothing industry in eastern and southern Africa, and it is intends to increase cotton lint production. It also aims to increase exports of textiles and garments. David Whitehead has put in place initiatives to revive the collapsing clothing and textile industry, which in recent years has gone through significant decline. There is need to restore the clothing and textile industry to its glory days when Zimbabwe exported products in vast amounts to the European Union, SADC and the United States.
All in all parastatals and companies which used to be highly productive should wake up from their slumber and brace for the future as it looks brighter. Together we can make ZIM ASSET a dream come true.
Source - Stewart Murewa
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