The women of the fashion sector pay a high price for the strengthening of the lek

2024-03-09 22:08:00, Ekonomi CNA

The women of the fashion sector pay a high price for the strengthening of the

Nazmia has been working in the textile sector since 2017, first in the coastal city of Durrës and then in Tirana, producing clothes for export. However, over the past month, the 58-year-old and her colleagues have been told on several occasions not to go to work, as there is nothing to do.

"I came back on Monday, but I don't know how it's going to go," she says.

For Albanian women like Nazmia, the fashion industry is an important employer, but hit by the increase in the value of the Albanian currency, the Lek. In 2016, one euro was worth 140 ALL; in January of this year it was worth 117 ALL, while this week it went down to the record of 104 ALL.

Some critics say that the strengthening of the lek is a consequence of large amounts of dirty euro money being laundered in Albania, where much of the economic growth is driven by the construction and real estate sectors, which are highly prone to for money laundering.

The governor of the Bank of Albania, Gent Sejko, ruled out the possibility of intervention to stop the increase of the lek, while the government told BIRN that it was "in the process of negotiations" with the banks for the issuance of a sovereign guarantee of 4 billion lek to support the financial companies. who need credit.

Meanwhile, women employed in the textile industry are paying a high price.

"Women working in the fashion sector are often exposed to the risk of poverty," says Xhuljane Uku from the Institute of Critique and Social Emancipation, ICSE, which will publish a study on the phenomenon on March 8, International Women's Day.

"Work stoppages and reduced working hours can cause problems in the ability to cover basic living expenses," she added to BIRN.

"This can worsen their economic situation, bringing financial discord and insecurity to women and their families, and putting them in a cycle from which they are unlikely to get out again."

For women in small towns, the difficulty is even greater.

"The closure of factories or the reduction of the number of employees in the peripheral areas means that these employees may find it difficult to find another job compared to big cities such as Tirana, Durrës, Vlora or Shkodra, which offer more diversity in the market of work," added Uka.

Unsustainable industry

According to government data, the fashion sector employs about 43 thousand people. But PROEKSPORT ALBANIA, which represents about 700 companies producing clothes and shoes, estimates that the number is about 70 thousand.

This year alone, 4,000 of them lost their jobs, Edvin Prençe, head of the organization, told BIRN.

"The clothing and footwear manufacturing sector is facing a difficult time and reduced orders, as with increased costs it has already lost competitiveness compared to other manufacturing countries," he said.

"I think that a responsible government, in normal times, creates economic policies to support and give the necessary impetus to the exporting sectors," added Prençe.

"What is needed is the easing of fiscal policies, liquidity support for the renewal of production plants, liquidity for the purchase of raw materials, product certification and promotion at international fairs."

Asked about the social impact, Prençe said that rural areas are the most affected because employment depends on the fashion sector.

"Most affected are workers on the verge of retirement with low productivity and professional skills, and most of these factories are in rural areas, where there are no other opportunities for economic development," he said.

In the absence of state intervention, the social impact will worsen, Prençe warned, while calling for the issue to be seen as a "national problem and not as a sectoral problem".

Exporters of textile products have made continuous calls for government support. In February, the government revised the budget to approve a sovereign guarantee of 4 billion lek, about 38.5 million euros, for bank loans requested by the fashion sector.

"The government's offer is not enough," said Zef Preçi, director of the Albanian Center for Economic Research, a think tank based in Tirana.

"The measures introduced by the government are not only insufficient, but also out of context, since the textile industry is not a developed industry, but a survival industry," said Preçi, while adding that the government should develop policies to help what to produce the raw material in the country as well as in the qualification of the workforce./ Reporter.al