Harare - Zimbabwe is digging in over import restrictions it has introduced on various goods and commodities, despite South Africa’s efforts to seek a reversal of the new measures that sparked protests that disrupted border services at Beitbridge last week.
Imports into Zimbabwe come mostly from South Africa, Botswana, Zambia and China as the country’s economy continues to slow down. A 2015 manufacturing sector survey by the Confederation of Zimbabwe Industries showed industry and manufacturing companies operating below 40 percent.
President Robert Mugabe has, however, gone on to restrict imports of basic goods and products and this has prompted Trade and Industry Minister Rob Davies to seek dialogue with Zimbabwe over the restrictions. “The minister is engaging through SADC structures and in his capacity with his counterparts.
“Engagements are still at an early stage. We hope that an amicable solution will be found,” Bloomberg quoted Sidwell Medupe, a Department of Trade and Industry spokesman, as saying yesterday.
However, Zimbabwe said it had sufficient capacity in some categories such as cooking oil and creamers.
The country’s industry minister, Mike Bimha, however, said yesterday that the import restrictions would be reviewed, although at the moment “there is no room for reversing” the new measures.
Supports
“It will take long to valuate the impact of the new measures; we still have to give time to roll out. The private sector has been calling for this for a long time and how can you have a rethink when you have come up with a policy that supports your industry,” Bimha said.
But Zimbabwe has softened on the new regulations. Bimha said the Zimbabwe Revenue Authority had lifted the restrictions on some products such as soap, washing powder, skin care products, canned fruits and vegetables, as well as dairy products, among others.
Other products not on the list should be imported using a specific licence issued by the government. The government has also said in the past week that there are no restrictions for imports brought into the country for personal use.
Economists and protest organisers in Zimbabwe say the new import policy will lead to shortages in the country. They also argue that local products are more expensive compared to those imported from countries such as South Africa.
Companies such as Impala Platinum, Sibanye Gold, Anglo Platinum, Tiger Wheel and Tyre, Pick n Pay and Tongaat Hulett are among South African companies with operations in Zimbabwe, whose economy has been hit by a cash crunch in the past few months that has seen banks run out of money.
The banking sector has had to rely on foreign banks such as Standard Bank’s Stanbic, Nedbank-owned MBCA, Standard Chartered, Ecobank and Barclays Zimbabwe that were able to get liquidity support from their parent companies, said a banking industry executive.
BUSINESS REPORT