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"Reducing Import Tariffs On Basic Commodities Will Kill Local Industry"

Local manufacturers have criticised Government’s decision to reduce import duty on basic commodities to enable citizens with free funds to import groceries to meet their personal needs.

On Saturday, Finance and Economic Development Minister Mthuli Ncube said that import tariffs on basic commodities will be slashed to enable citizens to access affordable basic commodities from other countries.

The move is expected to force local manufacturers to reduce their prices due to competition.

However, Confederation of Zimbabwe Industries president Kurai Matsheza told NewsDay that the measures had the capacity to cripple the economy. Said Matsheza:

It doesn’t sound like a good policy because if there was a problem, what they should do is reduce duties on raw materials.

That move alone means the local manufacturers will not be able to manufacture the goods.

The imported goods will be on our shelves. So the productive sector out there will be very busy filling our shelves here.

So if you look at the value chains that are involved, they are killing our economy. So I don’t think that helps at all.

Market analyst Maxwell Saungweme said that the statement by Ncube shows that the Government has run out of ideas on how to deal with ongoing economic challenges. Saungweme said:

This statement is an admission by the government that it has failed and it is also an admission of cluelessness, policy inconsistencies and contradictions which are tell-tale signs of people who have run out of ideas.

Last week, the President issued a statement that seemed to be discouraging the use of foreign currency. So this is an admission of hopelessness.

Meanwhile, Zimbabwe National Chamber of Commerce (ZNCC) chief executive Christopher Mugaga said the Government has done the right thing by reducing import duty on basic commodities. He said:

Ncube simply opened the floodgates for realism. If we look at our local production, look at the contribution of factories, gross domestic product and all, it has been going down.

Now with the current issue, it will determine whether we will be able to satisfy this market. So I think Ncube just did the right thing.

That statement is the reality, we need to liberalise a bit in terms of product accessibility for our consumers which is important to a certain extent.

There is certainly no shocker; I’m surprised when people are surprised by that statement. I’m not sure what they expected.

In the statement issued on Saturday, Ncube also said grain farmers will be paid 30 per cent of their proceeds in US dollars when they deliver grain to the Grain Marketing Board.

More: NewsDay

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Kopo 1 month ago

Tit for Tat ,,President Mnangagwa knows hw to deal with economic saboteours ..This is a great move ,,they were warned since 2019 bt alas they worked against the people,,,We have a listening President

Jah🇿🇼Tsvarie-07 1 month ago

So industry will collapse it they dont make us suffer? good move Mthuli vanodhuurisa vachamama.
Even if duty is reduced for industry it make no difference coz they will still charge more...

Mmmm 1 month ago

Zanupf is good at destroying and causing hardships for the people.

Smokin on top5 1 month ago

Let these local companies crumble

Tkt 1 month ago

The Terraces,

😂😂😂😂😂 haa yaaa. Kuroora kwakanaka nhasi ndiwe waku sasa mazwi aya, kkkkkkkkk

Zuze 1 month ago

I find it very difficult to sympathise with business.
Last week they refused to join citizens in the#ShutdownZimbabwe citing that it would hurt businesses. Now that citizens are given the freedom to chose local or imported goods, they cry foul.

Selfishness is the downfall of business. We know the common enemy. Nhasi zviri kwenyuwo. Taste the bitter pill.


Kkkkkk 1 month ago

Repeating the same old tricks that has failed several times before hoping this time it will work. Ndanyara stereki.

The Terraces 1 month ago

Ukaona mubereki oti vana nyangwe mukabva nechingwa from Next Door handibvunze uye musaviga henyu ziva kuti Baba vapererwa manje.

John Demus 1 month ago

the vagaries of policy inconsistency...
dejavu 2008?

tani 1 month ago

ngaapinde zvke mukomana

Tani 1 month ago

kujaira kudya profit yakawanda ndoska varkurwadziva

icho 1 month ago

get used to it
its either you lower your prices or close shop
msking 100% profit is not business

e.g john chibadura 1 month ago

Like @arenel.sweets&biscuits they pay their workers sh it 🥜 yet they export their products for forex

Tentin 1 month ago

These local manufacturers are paying slave wages, at the same time imposing prices which are beyond the reach of many. If our economic policies negates the needs of general citizenry, the poor and marginalised, then we are going no where.

All this hype about roads etc, caters for the elite who owns vehicles.

We do not eat roads; this is a bread and butter issue.

Tendai 1 month ago

@Tentin my brother all things wake out for good these are supplimentary in relationship yes to you road is not a priority u want bread and butter how can you acess groceries to Shops if they is no accesible road network
u get sick u will use transport to get to a nearby health facility ,my friend you die if u cant get good road linkage from A to B
Even if it wont have enough rainfall u cant get milk,meat cause poor grazing lands will limit feeding of thise farm animals which will end up in the butchery
apana chisina basa Yes good roads are for politicians but u need to see things differently iam teling you

SLAVE 1 month ago

Like @arenel.sweets&biscuits they pay their workers sh it 🥜 yet they export their products for forex

Tkt 1 month ago

I stand by those calling for the liberization of the supply of basic commodities
It doesnt make any sense to subsidise someone by giving them cheap forex & tgey go and bite the backs of those doing them favors!

Ho. Minister let foreign products flood the market kuti vana ka.tsi vemuno vapepuke
2ltrs C.oil 7usd 105R fu.tsek
10kg upfu 7.50usd
2kg sugar 3.50usd
1kg 2.20usd
2kg rice 3.75usd
Total in RTGS 10777.5 + TAX + swipe charges = 11542.70

That is nonsense kudya kwe1 wk uko plus handina kuisa usavi ipapo nerent ye one week zvodarika more than half of masalaries evanhu izvo

Haaa nxaaaaa

SWAT 1 month ago

2008 loading...

Asalif 1 month ago

it was a good move local products should be way too cheap local manufacturing industry should face stiff competition in Beit bridge they eat south African bread

𝔼𝕣𝕚𝕔 1 month ago

Yeah they shld learn to nt increase prices of basic commodities . If kuyenza faka 0% on all grocery items siyothenga outside banye . Hw can cooking oil be $7 i2litres ? Thats ridiculous

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