Online Reporter
Judith Phiri
Zimpapers Business Hub
THE Ministry of Industry and Commerce says more impromptu business inspections will be carried out to ensure operators comply with regulations, as part of efforts to curb the growing problem of smuggling.
The inspections are a crucial part of maintaining a well-regulated environment and safeguarding public interests, identifying potential challenges and ultimately fostering a thriving and competitive business sector.
In an interview, the ministry’s communications and advocacy deputy director, Mr Coline Dzavakwa, said the inspections were part of the national crackdown on the growing scourge of smuggling.
Already, over 3 000 businesses have been inspected since the blitz started.
Late last year, the Government launched the anti-smuggling drive to protect the domestic industry against an influx of counterfeit goods. The situation threatened the viability of the local industry while posing harm to consumers, health-wise.
Zimbabwean businesses face several regulatory compliance challenges.
“The Ministry of Industry and Commerce in Zimbabwe, in collaboration with other Government agencies, continues to take significant steps to combat business malpractice in a bid to ensure consumers are protected and fair trade practices are promoted,” he said.
“To date, a cumulative total of 3 779 businesses has been inspected, 419 prosecutions finalised, 402 compliance notices issued and 4 816 goods were seized.”
Mr Dzavakwa said the statistics demonstrated the need for prosecution of offenders exploiting consumers through unfair practices such as selling counterfeit products and underweight goods, multi-tier pricing and poor labelling.
He said those found guilty face legal action and some have already been taken to court.
“This is a warning to those found on the wrong side of the law.
“The ministry is enforcing the Consumer Protection Act (2019), which safeguards consumers’ rights and ensures businesses adhere to fair and ethical business practices,” he said.
“These are some of the measures implemented to protect local businesses under the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP), which runs from October 2024 to December 2025.”
The ZIGRP is a transitional plan, crafted to bridge the gap between the Zimbabwe National Industrial Development Policy 1 (ZNIDP1), which expired in December 2023, and the upcoming ZNIDP2 (2026 to 2030).
He called on consumers who feel short-changed to report culprits using hotlines of the Consumer Protection Commission (CPC) and the Consumer Council of Zimbabwe (CCZ).
CPC is a statutory body established through an Act of Parliament, the Consumer Protection Act (Chapter 14: 44), while the CCZ has its origins deeply rooted in the great and noble cause of protecting and empowering consumers.
According to the Zimbabwe National Statistics Agency (ZimStat), the informal sector dominates Zimbabwe’s economy, with 76 percent of businesses being informal.
This was a significant finding from their Economic Census 2023, according to ZimStat.
The census revealed that only 23,9 percent of businesses were formal, a scenario that contributes to the high incidence of non-compliance with regulations.
This means the majority of businesses operate outside the formal registration system, which is not taxed.
This widespread informality has significant implications on the economy and social structure.
Various factors contribute to the prevalence of informal businesses, including the complex processes of formal registration and taxation.
The Government is, however, actively working to formalise the country’s large informal sector, aiming to streamline business operations and enhance revenue collection.
This initiative involves simplified registration processes, mandatory licensing through reforms to the Shop Licensing Act, and the use of point-of-sale machines to encourage electronic transactions.
Meanwhile, industry continues to laud the inter-ministerial task force established to combat business malpractices. The team, chaired by the Ministry of Industry and Commerce, was set up in November last year following a Cabinet directive.
National Chamber of Commerce Matabeleland regional manager Mr Mduduzi Ncube said there was an alarming proliferation of business malpractices countrywide.
“The task force has been key to nipping business malpractices that include currency manipulation, use of fraudulent scales, underweight and unlabelled goods, counterfeits and smuggled goods in Bulawayo and across the country, which have significant effects on both businesses and the economy,” he said.
Bulawayo Chamber of Small and Medium Enterprises (SMEs) vice chairperson Ms Sithabile Bhebhe said more was needed to ensure SMEs in manufacturing and retail did not go out of business because of smuggled and counterfeit products.
“We have SMEs that are into manufacturing and producing most products locally, but these are slowly dying because of the cheap, smuggled and counterfeit products that we are seeing on the market.
“Some of the SMEs are also forced to lower their prices, but in the process, they are not making any profits, but incurring more losses,” she said.
