Online Reporter
Michael Tome
Business Reporter
Government will suspend customs duty on several key production inputs from January 1, 2026, to lower production costs, boost manufacturing output and strengthen the country’s export competitiveness.
Presenting the 2026 National Budget, the Minister of Finance, Economic and Investment Promotion Minister, Professor Mthuli Ncube, said the existing customs and excise legislation imposed import duties of between 5 percent and 25 percent on some raw materials, intermediate goods and capital equipment.
While the tariffs are meant to protect local manufacturers, they have, in certain cases, raised the cost of production for firms that rely on imported inputs that are either unavailable or insufficient locally.
The high cost of inputs has weighed down industrial output, weakened export competitiveness and slowed progress in value addition and beneficiation, particularly in sectors with extensive supply chain linkages.
The Government will roll out a structured and time-bound suspension of customs duty for eligible industries, with initial focus on iron and steel production and covering inputs used in smelting, rolling and fabrication as well as agro-processing, particularly edible oils and food-processing additives.
In addition, surtax on selected steel bars and iron rods not produced locally will also be removed to ease the cost of production.
“Under the customs and excise legislation, some raw materials, intermediate goods and capital equipment attract import duties ranging from five percent to 25 percent.
“Whilst these duties serve to protect domestic industries, they have, in some instances, increased production costs, particularly for manufacturers reliant on imported inputs not locally available in sufficient quantity or quality.
“I, therefore, propose to introduce a structured and time-bound suspension of import duties on critical production inputs for eligible industries targeting the following sectors, among others, with significant backward and forward linkages. Iron and steel production, particularly inputs used in smelting, rolling, fabrication, agro-processing, including edible oils and food processing additives,” said Minister Ncube.
He noted that the targeted duty relief will help manufacturers scale up production and reduce pricing distortions, while positioning Zimbabwean products to better compete under the African Continental Free Trade Area (AfCFTA).
According to Minister Ncube, he expects the interventions to support firms in meeting regional quality and price standards, thereby enhancing export potential and strengthening the country’s broader industrialisation agenda.
