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The Clothing Industry in Mozambique
BY Stephen Timm
Mozambique
03 April 2020
R 14 400.00 (ZAR)  
estimated $ 867.79 (USD) *
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The Clothing Industry in Mozambique


Mozambique presents mixed opportunities for those looking to enter the clothing sector. While the outlook for clothing retailers over the next decade or more looks promising, given expected economic growth on the back of new gas finds, things are less certain for clothing manufacturers struggling to compete against a flood of imports of new and second-hand clothing as well as challenges such as expensive electricity and a challenging labour environment. While the country has a large number of retailers the informal and formal sector, there are only a handful of manufacturers, most of whom use imported textiles to produce finished products.


High Cost


The sector faces a number of challenges including rising wages, electricity, water and transport costs and long delivery times. Manufacturers rely on imported textiles because of the shortage of quality local cotton. Challenges to retailers are lack of disposable income and competition from second-hand clothing and illegal clothing imports. A significant amount of used clothing is sold informally in markets. A key challenge in the clothing sector is the exclusion of small- and medium-sized manufacturers as well as the informal sector.


Government Support


Mozambique has significant trade imbalance when it comes to clothing and textiles. In a bid to revitalise clothing manufacturing, the government has proposed creating the special economic zone of Chimoio, in Manica province, and South African companies linked to the textile sector have shown some interest.


Report Coverage


This report focuses on the Clothing Sector in Mozambique and includes country information and research into major players, the state of the industry and the factors that influence it. There are profiles of nine companies including South African companies operating in Mozambique such as Mr Price, Woolworths and Pepkor, major local manufacturers such as Moztex and Mozambique Holdings, and retailer Grupo Intermoda.


Page
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 2
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 4
4. SIZE OF THE INDUSTRY 4
5. STATE OF THE INDUSTRY 7
5.1. Local 7
5.1.2 Regulations 9
5.2. Continental 9
5.3. International 13
6. INFLUENCING FACTORS 14
6.1. Government support 14
6.2. Economic environment 15
6.3. Technology, Research and Development (R&D) and Innovation 16
6.4. Labour 16
6.5. Illegal clothing imports 17
6.6. Marketing 17
7. COMPETITION 18
7.1. Barriers to Entry 18
8. SWOT ANALYSIS 18
9. OUTLOOK 19
10. INDUSTRY ASSOCIATIONS 19
11. REFERENCES 19
11.1. Publications 19
11.2. Websites 20
APPENDIX 1 21
Summary of Notable Players 21
COMPANY PROFILES 23
EDCON LTD 23
GRUPO INTERMODA LTDA 27
JUDY'S PRIDE FASHIONS (PTY) LTD 29
MOZAMBIQUE HOLDINGS LTDA 32
MOZTEX S.A. 35
MR PRICE GROUP LTD 37
NOVA TEXMOQUE LTDA 42
PEPKOR HOLDINGS LTD 44
WOOLWORTHS (PTY) LTD 49