Edgars moves to ramp up production
LIVINGSTONE MARUFU
Edgars Stores Limited, Zimbabwe’s largest publicly listed clothing retailer, plans to increase production by 275% this year from 400,000 units last year to 1.5m units.
The company’s Group CEO, Sevious Mushosho, attributes this target to the Reserve Bank of Zimbabwe’s Targeted Finance Facility (TFF) and an improved operating environment.
The formal fashion sector continues to face pressure from informal traders selling cheap second-hand clothing and from multiple taxes still under review.
“If I just give you numbers, in 2022, we produced about 58,000 units of clothes but last year, we produced 400,000. So obviously, that’s a significant jump. This year, we’re focused on producing 1.5m. So that’s another big jump. So there’s a momentum that is going on, and we’re excited about that. We believe Africa will be able to produce our own fashion.”
“Many times, when our customers walk into our stores, they are enjoying what we’re producing now… It shows that if government policy supports local production, supports us, we’re able to actually measure how we get started out there. So if you walk into our factory today, it’s as good as it is in China or anywhere else.”
Mushosho noted that past regulations banning malls and boutiques from selling second-hand clothes helped formal retailers.
“I must also thank the government, particularly the President, who visited our business last year. He saw what we were doing, and supported us… We are one of the businesses that benefited from the Targeted Finance Facility, which is also the right policy in terms of supporting production.”
The company has invested in automated technology, including a cutting solution, to boost productivity. From 33 factory employees in early 2023, Edgars now employs over 700 at its plant. Store numbers have also risen to over 160 from less than 100 in recent years.
Mushosho called for flexible import rules, arguing that current local textile production is too limited in range and quality to meet industry needs.
“Actually, if you look at the textile manufacturers in this country, there is a player that mainly produces a narrow range in terms of actual 100% cotton growth and wants other players to buy from it… The world is moving and advancing. We’ve got now a fabric out of bamboo and a fabric out of corn. So these things are not available locally.”
He warned that high import duties could undermine regional competitiveness.
“So if duty on fabric goes up to 40% plus $2.50 per kg of weight… it goes up to 100%. So it means we won’t be able to compete regionally… The company is only supplying poor quality fabrics, which are expensive. Even if we pay the duty, we still lend cheaper.”
Mushosho emphasized the need for detailed, consultative policy-making through bodies like the National Competitiveness Commission to support the entire clothing value chain—a sector he called “the low-hanging fruit in terms of creating employment and growing GDP.”
Edgars works with over 100 manufacturers and requires a diverse range of materials to supply its stores.
