The Sunday News
THE Government has given a temporary reprieve to raw hides companies to resume exports so that those with stockpiles can ship their consignments that have been held up following a ban early this year.
The Government effected the ban on the export of raw hides in a bid to promote value addition and beneficiation as well as to capacitate local tanneries.
Industry and Commerce Minister Mike Bimha confirmed the waiver on the export of raw hides but said the value addition and beneficiation policy was still in place.
“I can confirm that there has been a temporary reprieve on the exportation of raw hides for a stipulated period and it has been put into effect to address the issue of disposal of certain hides that were already ordered. However, the policy of value addition and beneficiation is still there but the waiver has only been put in place taking into consideration of some people who still had commitments,” he said.
Before the ban, raw hides and crocodile, buffalo, hippo and other wildlife skins were exported to different markets mainly to Europe where they are sought after by fashion houses.
The chairman of the Leather Institute of Zimbabwe who is also the general manager of Wet Blue Industries, Mr Nicho Mpofu, said the reprieve was likely to affect tanneries.
“The lifting of the ban is going to have a negative impact on tanneries as individuals will prefer exporting raw hides instead of incurring costs of having the hides processed before export,” said Mr Mpofu.
Wet Blue industries, a subsidiary of the Cold Storage Company, which has been operating for the past two years only to resume minimum business a couple of weeks ago is likely to be affected by the lifting of the ban on raw hides exports which has over the years led to its demise.
Wet Blue Industries is one of the biggest tannery companies in Zimbabwe, processing between 20 and 30 tonnes of leather per month for export.
“We did some samples last week and our clients were satisfied by the quality and we are assured of getting orders soon. However, most of the equipment used is now old as it has been around for 40 to 50 years and therefore needs to be refurbished.
“On the technology front there hasn’t been much change. We used to have a staff complement of 150 but only 58 are now employed and we have a salary backlog dating back two years,” said Mr Mpofu.
He said the company needs about $2 million for recapitalisation of which most of it would go towards refurbishment of equipment and working capital.
The company was recently placed under provisional judicial management.
