National Blankets operations remain on halt
BULAWAYO-based textile company National Blankets operations remain on halt following a delay in accessing funding, which has seen the company spending the first quarter of the year without production.
The textile company resumed operations in early 2021 after managing to dodge liquidation having come out of judicial management after shareholders paid all the creditors their dues, which ran into millions of dollars.
The company had temporarily ceased production in late 2021 after being denied a tax clearance by the tax authority over an estimated $800 000 debt, which was later on settled.
As a textile industry, National Blankets is one of the companies which are supposed to benefit from the Special Drawing Rights (SDRs) meant for the industry retooling and capitalisation.
Zimbabwe was allocated SDR677 million (US$958 million equivalent) by the International Monetary Fund (IMF), which is part of the SDR’s General allocation of US$650 billion that was released last year to all IMF member countries.
It is from these resources that the Treasury channelled part of the funds towards supporting key economic sectors such as horticulture, industry retooling, tourism, and smallholder farming irrigation systems.
A total of US$80 million has been set aside for productive sector funding and the Government has been calling upon industries to start applying.
National Blankets business development manager Mr Shepherd Nyambirai said the company is still yet to access the funding, which has seen them not producing.
He said they are still facing some challenges in applying for the SDRs.
“We are in the process of applying for the SDRs. The banks had not given us green light hence the delays,” said Mr Nyambirai.
The revival of the textile industry has been affected by an influx of cheap imports and the players keep on calling for the Government to put measures, which will promote the sector’s growth.
Access to cotton lint has also been a problem as producers prefer the export market to sell to local players.
At its peak, National Blankets used to be one of the top employers in the city and contributed to exports.
Hopes are high that the company’s revival would amplify Bulawayo’s re-industrialisation and absorb more workers. – chronicle
