Govt tightens import rules to boost local industry

Business Reporter

THE Government’s newly introduced import regulatory controls are expected to protect local manufacturers and strengthen economic sovereignty, according to an analysis by local firm Lucent Consultancy.

Lucent Consultancy said the regulations, issued under Statutory Instrument (SI) 59 of 2026 — Control of Goods Act — come at a transformative moment for Zimbabwe’s trade and industrial policy framework.

SI 59 of 2026 is designed to protect local industry, curb foreign currency outflows and ensure product quality by tightening import controls on key products such as cement, steel, footwear and selected food items.

The instrument also bans the importation of second hand underwear, while regulating other categories of used clothing.

By placing products such as cement clinker, footwear, textbooks, noodles and toiletries under an import licensing regime, the legislation seeks to promote consumption of locally produced goods and revitalise the domestic textile and garment industry.

The SI further consolidates 16 previously fragmented import regulations into a single regulatory framework, aimed at strengthening formal retail channels and ensuring all imported goods comply with national quality and safety standards.

In a statement issued last week, the Ministry of Industry and Commerce said the new regulations marked a significant milestone in Zimbabwe’s regulatory reform agenda.

Historically, the ministry said, the regulation of imports and exports had been dispersed across 16 separate Statutory Instruments.

“This fragmented approach often resulted in administrative inefficiencies, confusion among stakeholders, and difficulties in identifying the precise regulations applicable to specific goods. Such complexity posed unnecessary bottlenecks to trade and industry compliance.”

The measures form part of Government’s broader strategy to accelerate import substitution, safeguard foreign currency reserves and support domestic production.

This comes as Zimbabwe advances its medium term development agenda under the National Development Strategy 2 (NDS 2, 2026–2030) and its Vision 2030 objective of achieving upper middle income status.

Lucent Consultancy said the policy stance reflects a decisive shift away from earlier trade liberalisation policies toward a more strategic and managed trade environment.

“Statutory Instrument 59 of 2026 represents a definitive and bold reclamation of Zimbabwe’s economic sovereignty,” Lucent said in its policy analysis. By meticulously managing the flow of goods across its borders, the Government has created a framework where industrial growth is not left to chance but is fostered through strategic protection.”

The regulations amend the long standing Control of Goods (Import and Export) Regulations of 1974, modernising a framework that had remained largely unchanged for decades.

Lucent Consultancy said the revised framework introduces targeted interventions aimed at addressing contemporary economic challenges, including the preservation of foreign currency reserves, revival of domestic manufacturing and mitigation of environmental risks associated with older imported goods.

“The issuance of Statutory Instrument 59 of 2026 marks a transformative juncture in the trade and industrial policy of Zimbabwe. This regulatory framework represents a strategic pivot toward aggressive import substitution, industrial protectionism and the formalisation of a historically fragmented trade environment,” the firm said.

According to the analysis, the new policy framework reflects a deliberate effort to align trade policy with national development priorities.

“By amending the principal regulations established in 1974, the Government has signalled a departure from the liberalised trade paradigms of the past,” Lucent Consultancy said.

It added that the framework now “aligns directly with the National Development Strategy 2 and the overarching Vision 2030 objective of attaining upper middle income status.”

One of the most significant changes under the new regulations is the discretionary authority granted to the permanent secretary for Industry and Commerce in the import and export licensing process.

The provision allows the designated official to reject licence applications under clearly defined conditions.

“The introduction of Section 5A grants the secretary for industry and commerce unprecedented discretionary power to reject applications,” Lucent Consultancy said.

However, the firm stressed that the discretionary powers are anchored in objective criteria rather than arbitrary decision making.

“This discretion is tethered to three specific criteria: the failure of goods to meet national quality or safety standards, the determination that a trade activity is prejudicial to the economic interests of Zimbabwe, or a history of regulatory non compliance by the applicant,” the consultancy said.

According to Lucent Consultancy, the mechanism serves as an effective quality control system for goods entering the domestic market.

“This mechanism functions as a qualitative filter, ensuring that the domestic market is not used as a dumping ground for substandard products while prioritising the growth of local industries that have demonstrated the capacity to meet domestic demand,” the firm said.

A central pillar of the new regulatory regime is the restriction of imports that directly compete with domestic production.

Lucent Consultancy said the comprehensive list of restricted products — particularly second hand vehicles and textiles — targets both environmental sustainability and industrial recovery.

“The exhaustive list of prohibited second hand vehicles and textiles addresses the twin crises of environmental degradation and industrial decline,” the firm said.

At the same time, the introduction of licensing regimes in strategic sectors such as agriculture, construction materials and pharmaceuticals is intended to stabilise demand for local producers.

“The licensing regime ensures that domestic manufacturers, from the Bindura Alum plant to the Harare pharmaceutical labs, have a stable and predictable market,” Lucent Consultancy said.

While acknowledging that tighter import controls may initially push up consumer prices, the consultancy argued that long term benefits could outweigh short term disruptions.

“For the individual, the transition is marked by a dual narrative: the immediate challenge of rising costs for cheap imports and the long term promise of higher quality, safer roads, and increased formal employment opportunities,” Lucent Consultancy said.

The firm also pointed to complementary economic reforms that could support the transition, including reduced business fees and improved macroeconomic stability.

“The ‘Growth First’ strategy, supported by the massive reduction in business fees and the stability of the gold backed ZiG currency, provides the necessary cushion for this transition,” the consultancy said.

Lucent Consultancy cautioned that the policy’s success will hinge on effective implementation and the ability of domestic industries to meet higher demand.

“As Zimbabwe moves toward its 2026 targets, the successful implementation of SI 59 will depend on institutional transparency, the efficiency of the ZimConnect digital platform and the ability of the manufacturing sector to meet the quality and volume requirements of the domestic market,” the firm said.

The ZimConnect Portal is Government’s official electronic services platform, developed under Zimbabwe’s e-government initiative.

The portal is designed to provide a centralised digital interface for public services, enabling citizens, non citizens and businesses to access statutory documents and Government services online.

It allows users to apply for licences and approvals electronically without visiting physical offices.

“If executed with consistency, these regulations could indeed be the engine room that transforms Zimbabwe into an upper middle income society by 2030.”