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Tendai Gukutikwa
Post Reporter
SMALL-SCALE cross-border traders are being encouraged to formally register their businesses and pay their taxes so that they enjoy the benefits that come with the Common Market of Eastern and Southern Africa (COMESA) Simplified Trade Regime (STR) when trading between member states.
The STR is a mechanism that facilitates trade among COMESA countries by simplifying customs procedures and reducing tariffs.
In an interview with Post Business on the sidelines of a training workshop on the facility hosted by the Ministry of Women Affairs, Community, Small to Medium Enterprises in partnership with COMESA recently, Manicaland provincial development officer, Mr Gabriel Jaji said trade numbers will continue growing if traders register their businesses to enjoy low rebates that come with the facility.
“We have a lot of cross-border traders operating unregistered businesses. Because of their failure to formalise their businesses, they are being affected by high costs of rebate at our borders. This is why we are sensitising cross-border traders about the COMESA STR guidelines. We are educating them on the importance of taking advantage of the facility and register their businesses so that they enjoy the countless benefits. Zimbabwe is a member state and if local traders are not benefiting from the facility, it means that our competitors outside the country will benefit more,” he said.
The COMESA STR intends to overcome challenges faced by cross-border traders by simplifying the whole process of clearing goods for small-scale cross-border traders.
Mr Jaji said the STR was introduced to address challenges being faced by small-scale cross-border traders such as lack of knowledge and information on the benefits of trading with other COMESA countries, complex documents and complicated processes of completing the current forms and increased clearance costs.
“The facility intends to overcome the above challenges and it has proved to be successful as cross-borders have been registering their businesses. It is a very simple process where traders follow some COMESA guidelines while importing or exporting between member states and there are also help desks at most border facilities.
“We are pleased to say that some of our cross-border traders are already taking advantage of that and enjoying less rebates or duty at our inland borders or airports, while contributing to the country’s Gross Domestic Product (GDP),” he said.
Mr Jaji said to enjoy the COMESA STR, traders need to have a certificate of origin for the product.
Traders should also be importing or exporting goods on countries listed on the COMESA list.
He also said there is need to push cross-border traders to formalise their businesses as the COMESA STR can only be enjoyed by formalised cross-border traders.
Cross-border traders from across the province who were in attendance embraced the facility and applauded Government for helping to boost their trading.
For Mrs Tendai Mapira, one of the challenges she faced while crossing the border was the complexity of documents.
“We have learnt that once you register your business, COMESA STR chips in with easier forms to complete as well as cheaper clearance costs. That is why I want to have my operations registered,” she said.
Another trader who has been using the STR facility for some years, Ms Nyasha Mandeya said delays at the border are now a thing of the past with the facility.
“The COMESA STR is a scheme that facilitates trade among member states by reducing tariffs and simplifying customs procedures for small-scale cross-border traders like us.
“To benefit from this scheme, traders need to register their businesses formally and pay their taxes regularly. This enables us to access preferential rates, avoid penalties and delays, and enhance our competitiveness on the regional market. I have never looked back ever since I started using it,” she said.
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