Industry laments porous borders
INDUSTRY executives say the continued smuggling of cheap products into the country is frustrating viability of local companies despite adoption of protectionist measures.
While the Government has put in place measures including Statutory Instrument 64 of 2016 to protect local firms from unfair competition and allow domestic growth, some of the controlled products are still finding their way into the country through the porous ports of entry.
General manager for Sino Zimbabwe Cement Company, Mr Derrick Moyo, said cheap cement imports from South Africa and Mozambique, for instance, were finding their way illegally into Zimbabwe despite restriction. He said this was having a negative effect on viability of local producers.
“Something should be done about these porous borders because we are losing a lot of business from foreign products, which are coming into the country illegally. There is a need for a holistic approach from all players if we are to curb the illegal imports into the country,” he said.
Bata managing director, Mr Ehsan Zaman, said there was a need to punish those found selling products illegally brought into the country.
“There is a need to come up with mechanisms to make those found selling products on the pavements produce receipts of where they bought their goods so that appropriate action is taken against those importing goods illegally,” he said.
“We in the footwear industry have been the most affected by the influx of these cheap products.”
Recently, the Zimbabwe Revenue Authority (Zimra) announced the move to enforce post importation audit crackdown on shops and companies suspected of selling smuggled goods.
The move is part of strategies the state revenue collector is implementing to curb smuggling, which has prejudiced the State of millions of dollars.
Meanwhile, Zimbabwean manufacturers have called on Government to support local firms to enable them to produce quality products and sell them at competitive prices. Mr Zaman said
Government should complement S I 64 by giving local firms rebates.
He also said local raw material suppliers should offer prices that are competitive so that manufacturers’ products are competitive and profitable.
Mr Zaman said the high cost of production in the country was making local products uncompetitive despite adoption of the Special Economic Zones model.