‘VFEX move positions Edgars for regional fame’
CLOTHING manufacturer and retailer, Edgars Stores Limited, says the move to list on the Victoria Falls Stock Exchange (VFEX) positions it for greater regional prominence and opportunities.
The group listed on the forex-only bourse on Friday last week, becoming the 15th counter.
“The move to the VFEX represents a new chapter in our journey, one that promises enhanced shareholder value, reduced taxation costs and increased access to foreign capital to support our expansion plans,” board chairperson Thembinkosi Sibanda said during the listing ceremony in Victoria Falls.
“It also positions us for greater regional prominence and opportunities. Our journey, marked by milestones such as going public in 1974 and now listing on the prestigious VFEX, is a testament to our resilience and innovation.”
Sibanda said the group had always embraced change and agility to stay ahead of the curve.
“Whether it was hedging against risks, acquiring strategic assets like Carousel Clothing factory or introducing new retail brands like Express and Jet Stores, we have continuously adapted to meet the evolving needs of our customers and shareholders,” he noted.
“Beyond retail, our commitment to local manufacturing through Carousel and providing micro-finance solutions via Club Plus underscores our dedication to empowering communities and driving economic growth.”
Industry and Commerce minister Mangaliso Ndlovu, who was the guest speaker, said the migration to the VFEX was a manifestation of the diligent planning and hard work that the group had implemented over the years.
He said the government was aware of the challenges faced by the formal retail sector, including price escalations, exchange rate instability, power outages and subdued consumer demand.
Government has, however, intervened with a raft of measures aimed at bringing normalcy in the market place. Some of these interventions include a tight monetary policy intended to curb inflation and the commissioning of Hwange Unit 7 and 8 in order to increase power generation, power being a big economic enabler.
“Government also notes that unfair competition from the informal sector is threatening some retail businesses, including the clothing retail sector, which is also negatively affected by illegal imports of second-hand clothing,” Ndlovu said.
Government legislated a Statutory Instrument 122 of 2017, to regulate the importation of second-hand clothing.
“However, we still have challenges posed by our porous borders. Suffice it to say that the government is seized with these issues and efforts are under way to come up with technology- based surveillance systems aimed at curbing smuggling of second-hand clothing,” Ndlovu said.
“Government will also continue to come up with interventions to level the playing field between formal and informal businesses.”
The ministry, Ndlovu noted, promotes ethical business conduct and supports both established and small-to-medium enterprises in their endeavour to grow and play a meaningful role in the economy.
The Edgars group, comprising Edgars Stores, Jet, Carousel and Club-Plus, had witnessed tremendous growth over the last few years, the company said.
Carousel currently produces 35 000 units of garments per month, from the 7 000 units that they previously produced.
The figure is set to increase to 100 000 units per month by end of year 2024, when the group installs new equipment at the firm.-newsday
