COMMENT: Smuggling crackdown boosts local businesses

MORE than 200 people have been prosecuted while 269 compliance notices have been issued against culprits as the Government intensifies its anti-smuggling blitz which started late last year. The blitz is being co-ordinated by the Ministry of Industry and Commerce in partnership with the Zimbabwe Revenue Authority (Zimra), the Consumer Protection Commission and other key stakeholders such as the Zimbabwe Republic Police (ZRP).

The multi-agency operation is targeting importers and cross-border transporters involved in smuggling of goods. Smuggling is undermining local industries and threatening consumer welfare.

The Ministry of Industry and Commerce said as of April 29, 203 people were prosecuted and 269 compliance notices were issued against individuals and companies involved in smuggling of goods.

In January this year Zimra impounded goods valued at about US$2,4 million from individuals and transporters involved in smuggling of goods.

Local businesses have been complaining about cheap imports which they say are flooding the local market and most of these imports are smuggled into the country through undesignated entry points hence the ongoing anti-smuggling blitz.

The captains of commerce and industry have appealed to Government to do more to protect their businesses from the cheap imports.

According to the industrialists, many of the products being imported are being produced locally hence the need to put in place measures to discourage the importation of such products.

Government has been encouraging citizens to buy locally manufactured products to support the manufacturing sector which is in the process of retooling in order to increase capacity utilisation.

The challenge on the manufacturing sector is to ensure they increase the range of locally produced products which in most cases are of high quality compared to most imports. The producers of local products should however ensure that their products remain affordable to the majority of consumers.

The Reserve Bank of Zimbabwe on its part, has been prioritising the manufacturing companies when it comes to allocation of foreign currency hence the need for these companies to reciprocate by making their products affordable.

There is an urgent need to address the country’s pricing model which at times defies logic. We expect locally produced products to be affordable more so when the raw materials to produce the products are sourced locally.

Government should do more to protect local companies because we need these companies to create jobs but this should not be at the expense of the consumers.

The local companies, as already stated, have an obligation to ensure whatever they produce remains affordable to the majority of consumers.

What is encouraging is that as a result of the ongoing anti-smuggling blitz, some companies are now enjoying increased demand for their locally produced goods and some have correspondingly increased capacity utilisation.

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