One of Zimbabwe’s former big textile industries, David Whitehead (DW) is set to re-open next year after securing a US$2 million loan from the Reserve Bank of Zimbabwe.
DW’s judicial manager Knowledge Hofisi said that the former textile giant which stopped operations nearly 2 years ago is doing preparatory works before production resumes in January according to the Business Weekly.
“We have already started drawing down on the facility and the funds have been directed towards procurement of raw materials and repair of machines,” told Hofisi to the Business Weekly.
In December last year, Hofisi said that around US$50 million is required to fully operate the company according to the Financial Gazette. Resumption of operations for the DW is projected to create employment and help lift former workers from the scourge of poverty.
The company’s closure had left over 2 000 of its employees in destitute as jobs are now scarce in Zimbabwe. DW operated in Gweru, Chegutu and Kadoma employing over 3 thousand workers.
About US$13 million is owed by the company to creditors and workers arrears. Zimbabwe’s textile industry has witnessed companies closing down sending thousands into the unemployment arena. Less than 10percentt of the textile products has been for exporting in the past years according to analysis.