‘No risk of empty shelves’ as Harare’s import curbs loom
THE operations of retail giants in Zimbabwe are “safe and sound”, despite indications that the country is set to tighten the screws on imported goods from this week.
Authorities said the restrictions — possibly in place from Friday — were intended to promote the revival of local industry, which is operating at about a third of its capacity.
OK Zimbabwe is the largest retail operator in Zimbabwe and is closely followed by Pick n Pay.
JSE-listed Choppies has also been making inroads into the country’s retail market, which is largely dominated by imports from South Africa and Botswana.
The protectionist measures, set to be introduced through a statutory instrument published last week, will affect South Africa most. South Africa is the major source of imports into Zimbabwe and a weak rand against the US dollar has made the price of South African products cheaper than those produced in Zimbabwe.
Denford Mutashu, the president of the Confederation of Zimbabwe Retailers, said this week that the retail sector was fully committed to ensuring that there were enough supplies in the local market. He ruled out the possibility of food shortages.
“The retail sector is safe and sound in Zimbabwe. If we face any challenges in restocking we can approach the government to assist us, as these policies came from manufacturers and retailers themselves.”
Mutashu said it was foolhardy to imagine that the Ministry of Industry and Commerce had adopted the policy without due consideration. “The correct position is that the measure came about after the ministry had made marathon consultations with various industry bodies. The ministry does not wake up one day to take a certain policy direction . . . It now has work cut out for itself to play a balancing act, to ensure there is no unavailability of products on the market.”
He said policy consultations by the ministry had even been done in the “region”, and dismissed concerns that South Africa would retaliate and block goods from Zimbabwe.
“South Africa is fine with the two economies supporting each other,” he said.
But in fact tensions have been simmering for some time between Pretoria and Harare over what the former sees as an increase in protectionist policies by President Robert Mugabe’s administration and a possible violation of trade agreements. The two countries are members of the Southern African Development Community protocol on trade, which establishes a free trade area for the 15-member regional bloc.
In September 2014 MAQ, the South African maker of a washing powder that was popular in Zimbabwe, stopped exports to that country after the government introduced a 40% surtax without notice.
Earlier this year, Mike Bimha, the minister of industry and commerce, said his South African counterpart, Minister of Trade and Industry Rob Davies, had expressed the displeasure coming from South African manufacturers over the increase in protectionist policies by Zimbabwe.
Bimha said Davies had been asked by South African manufacturers to “implement similar measures against our own products”. The issue was raised in March on the sidelines of an SADC council of ministers meeting in Botswana.
The South African D epartment of Trade and Industry did not respond to questions about its position on the new policy.
An executive at Lobels Bread, one of the three largest bread-makers in Zimbabwe (who spoke on condition of anonymity) expressed reservations about the restrictions.
“We are importing absolutely everything from South Africa and China; from the wheat to make flour . . . our premix, preservatives, right up to the raw material used for the packaging for the bread,” he said.