Bata decries smuggling

Lovemore Zigara Midlands Correspondent
THE country’s biggest shoe manufacturer, Bata Shoe Company, says the continued smuggling of cheap footwear products at the country’s ports of entry is responsible for the demise of the leather industry.

According to a report issued by the Zimbabwe Revenue Authority last year the country is losing at close to $10 million monthly due to illegal imports at the country’s borders.

Goods entering into Zimbabwe from other countries must be declared at ports of entry but this is not happening due to leakages.

Bata managing director, Ronjoy Sengupta says porous borders have a negative effect on domestic competitiveness.

“As for the Chinese products the problem is that the borders are porous. There’ll be Chinese shoes whether legally or illegally. I don’t know whether there are legal Chinese shoes available. Legally whatever is available in the country will always be there,” he said.

The Gweru based firm last year increased capacity utilisation to 83 percent following the purchase of new equipment.

The company’s tannery section was also refurbished resulting in 100 percent output growth and recruitment of additional 200 workers bringing total staff complement to about 1,400.

Bata’s viability has been under threat since the turn of the millennium following an economic recession, which resulted in the closure of many industries.