Online Reporter
Judith Phiri, Zimpapers Business Hub
THE Government, through the Ministry of Industry and Commerce, says more impromptu business inspections will be carried out to ensure operators comply with regulations while curbing 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, Ministry of Industry and Commerce communications and advocacy deputy director, Mr Coline Dzavakwa said the spontaneous inspections were part of the national crackdown against 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 the influx of counterfeit goods that threatened the viability of the local industry while posing harm to consumers, health-wise.
Zimbabwean businesses face several regulatory compliance challenges, including high tax rates, complex tax administration, and corruption, and this is most prevalent among micro, small and medium enterprises.
“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 have been inspected, 419 prosecutions finalised, 402 compliance notices issued and 4 816 goods were seized.”
He said the statistics demonstrate the need for prosecution of offenders exploiting consumers through unfair practices, such as selling counterfeit products, underweight goods and multi-tier pricing, poor labelling, among a host of other unfair dealings.
Mr Dzavakwa 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 added.
“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 contact 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 the Zimbabwean economy, with 76 percent of businesses being informal.
This was a significant finding from their Economic Census 2023, according to ZimStat.
The census also revealed that only 23,9 percent of businesses were formal, a scenario that contributes to the incidence of non-compliance with regulations.
This means the majority of businesses operate outside the formal registration system, not being taxed or monitored by the Government. This widespread informality has significant implications for the country’s 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, chaired by the Ministry of Industry and Commerce, which was established last year in November following a Cabinet directive.
National Chamber of Commerce (ZNCC) Matabeleland regional manager, Mr Mduduzi Ncube, said there was a proliferation of errant business malpractices, which was alarming not only in Bulawayo but countrywide.
“The taskforce has been key to nipping errant business malpractices that include currency manipulation, use of fraudulent scales, underweight and unlabelled goods, counterfeit and smuggled goods in Bulawayo and across the country that have significant effects on both businesses and the economy.”
Bulawayo Chamber of Small to Medium Enterprises (SMEs) vice-chairperson, Ms Sithabile Bhebhe, said more needed to be done to ensure SMEs in manufacturing and retail do 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 it’s more losses,” she said.
