Edgars to resume exports

Edgars to resume exports
Published: 05 June 2018 (1483 Views)
GIANT clothing manufacturer and retailer, Edgars Group, says it will soon resume garments and clothing exports into the region.

In an interview after the ZimTrade/Zimra stakeholder engagement seminar held in Bulawayo last week, Edgars Carousel managing director, Mr Menfree Tanyanyiwa, said:

"We are looking at resuming exports into the region and we are waiting for the go ahead from our parent company Edgars South Africa.

"We ceased exports at the height of the hyper inflation in 2008 and we are re-penetrating the export market to South Africa having increased our throughput at our factory."

Carousel is Edgars' factory division, which at the moment employs 400 people. Mr Tanyanyiwa, who earlier in his presentation during the engagement seminar had told participants that they would in the next two months resume exports into the region, said his company was going into the export market to grow the business and to raise foreign currency.

Towards the end of last year, the Reserve Bank of Zimbabwe increased the export incentive from five percent to 12 percent and above for top exporters as part of efforts to boost foreign exchange generation in the economy.

The move by the Central Bank is meant to bolster liquidity on the back of biting cash shortages and depleted nostro reserves, which have induced a strain on the viability of local manufacturers resulting in a weakening of the supply of major consumer goods on the market.

"We are expecting that in the next two months we will be resuming exports," Mr Tanyanyiwa told the participants.

Before suspending the exports, the Zimbabwe-Stock Exchange-listed firm exported into the region as well as European markets to countries such as Germany. In the 2017 annual report, Edgars Group chairman Mr Themba Sibanda said his organisation registered improvements in merchandise assortments, customer service, promotions, and revamps during the period under review.

He said the new political dispensation together with utilisation of excess Real Time Gross Settlements balances resulted in improved consumer confidence, which contributed to stronger second half sales.

"Sales of merchandise for the year at $62,9 million were 25 percent above 2016 ($50,3 million).

"Group margins were maintained at 43 percent while credit management and debt collection costs continued to be well controlled and resulted in savings of $3m on last year (55 percent)," said Mr Sibanda.

He indicated that other operating income and expenses were impacted by increases in software and computer costs, bonus payments and a reduction in commission and other income.

"The decrease in finance income is due to the reduced debtors book and arrears levels," Mr Sibanda said.

On the outlook, Mr Sibanda said limited allocation of foreign currency to the clothing sector was of grave concern to the board and management.

"Numerous measures are being pursued to mitigate this risk, which will dampen growth prospects.

"We are currently adequately stocked in most departments and the sales and profit performance in 2018 is ahead of last year. Much focus will be given to development of our staff in 2018," he said.

- chronicle

Tags: Edgars, Resume, Exports,

You May Like These Videos


There are no comments.

Latest stories

How to win at slots? Top slot tips & tricks

by Staff Reporter | 17 January 2019 | 41 Views

Stay away: A manifestation of the MDC's violence DNA

by Nobleman Runyanga | 17 January 2019 | 63 Views

Kirsty Coventry has not resigned from ministry

by Mandla Ndlovu | 17 January 2019 | 76 Views

Mnangagwa and Gen Chiwenga responsible for lootings, shootings and terrorism

by Dr Nkululeko Sibanda (Presidential Spokesperson) | 17 January 2019 | 87 Views

A tale of a school teacher

by Virimayi Chidembo | 17 January 2019 | 69 Views

My encounter with the rowdy protestors

by Betty Gatsi | 17 January 2019 | 44 Views

Price of bread now $6

by Mandla Ndlovu | 17 January 2019 | 84 Views

The unleashing of army to descend on demonstrators was uncalled for

by Leonard Koni | 17 January 2019 | 42 Views

How Facebook and Whatsapp fuelled chaos and confusion in Zimbabwe

by Dr Masimba Mavaza | 17 January 2019 | 44 Views

Mnangagwa pleased with Putin meeting

by Staff reporter | 17 January 2019 | 120 Views

Mnangagwa opens consulate in Belarus

by Staff reporter | 17 January 2019 | 135 Views

MDC perpetrating violence, violating human rights

by Anesu Pedzisayi | 17 January 2019 | 127 Views

3 Religious Sites to Visit When in Israel

by Staff Reporter | 17 January 2019 | 83 Views

BREAKING: Evan Mawarire charged with treason

by Mandla Ndlovu | 17 January 2019 | 221 Views

'100 men abaducted in Matabeland during protests'

by Mandla Ndlovu | 17 January 2019 | 131 Views

Army continues terror as Bulawayo is shutdown

by Mandla Ndlovu | 17 January 2019 | 287 Views

Here's what motorists are paying for fuel around the world

by wheels24 | 17 January 2019 | 222 Views

Bond notes and their possible long-term legacy

by Staff reporter | 17 January 2019 | 148 Views

Govt should nip MDC, NGOs

by Jasper Hloka | 17 January 2019 | 157 Views

Mnangagwa says 'monumental task' to fix economy

by AFP | 17 January 2019 | 113 Views

REVEALED: ZANU PF fingered in violent protests and looting

by Mandla Ndlovu | 17 January 2019 | 155 Views

Linda Masarira opens up on protests and army killings

by Linda Masarira | 17 January 2019 | 184 Views

The Hard Truth About The Fuel Price Increase

by Faith Hope | 17 January 2019 | 117 Views

ZANU PF Youth leader with 4 guns arrested during protests

by Mandla Ndlovu | 17 January 2019 | 259 Views

US Embassy condemns Zim government

by Mandla Ndlovu | 17 January 2019 | 108 Views

Churches condemn shooting of civilians

by Staff reporter | 17 January 2019 | 173 Views

Mnangagwa's pronouncement was not the whole truth

by Staff reporter | 17 January 2019 | 235 Views

Zimbabwe doctor group reports 68 gunshot wounds

by AFP | 17 January 2019 | 127 Views

Tendai 'Beast' Mtawarira named Sharks vice-captain

by Staff reporter | 17 January 2019 | 109 Views

'Zimbabwe to have another GNU as fuel price drops'

by Mandla Ndlovu | 17 January 2019 | 401 Views

Kirst Coventry resigns?

by Mandla Ndlovu | 17 January 2019 | 397 Views

ZSE charms investors

by Staff reporter | 17 January 2019 | 84 Views

MDC denies hand in mayhem

by Staff reporter | 17 January 2019 | 112 Views

Court frustrates lawyers representing Zanu-PF youths

by Staff reporter | 17 January 2019 | 125 Views

Zanu-PF behind acts of violence, says Court

by Staff reporter | 17 January 2019 | 142 Views

Hundreds arrested in violent crackdown

by Staff reporter | 17 January 2019 | 60 Views