Let’s enforce dumping laws

the economic challenges over the past decade will no doubt agree with me that it is imperative that we preserve it for ourselves but, most importantly, for future generations.
While almost every country in the world has anti-dumping laws which regulate their imports, this still is a grey area for Zimbabwe.
Countries such as the United States of America enforce anti-dumping laws within the dictates of the World Trade Organisation.
It would seem, however, that Zimbabwe seems to be afraid to jump onto the bandwagon of fighting dumping.
My hope is that we are not falling victim to corrupt elements who choose to play the “protectionism” card and hide behind trade protocols which are clear about dumping practices.
According to a discussion paper WTO anti-dumping measures by Mr Anselmo Nhara, the director of the Competition and Tariff Commission, “dumping is assumed to refer to the conduct of individual firms that see some advantage in discriminatory pricing arrangements and that finance these from their own resources”.
In simple terms, dumping occurs when a product has an export price which is lower than the price at which a like product is sold for consumption in the exporting country.
I have heard that the cost of importing D’lite cooking oil from South Africa is much higher than the cost at which the product is being sold in our shops.
In Zimbabwe, we have had a lot of cases where industries are being crippled due to dumping and the refrigeration sector is one of them.
A local refrigerator manufacturer, Capri, that is producing 5 000 units per month and employing 250 employees has fallen victim to dangerous dumping practices.
South African refrigerators are being sold in the country at a lower price than what they cost in the home market.
Zimbabwe is the only market within the region that has its own pricing structure for South African brands such as Defy and Kelvinator compared to other countries such as Zambia, Botswana and Mozambique.
For instance, a unit that cost US$650 in Zimbabwe is selling for US$800 or thereabouts in South Africa, Zambia and Mozambique.
This might sound like value for money for the Zimbabwean consumer but there is a very simple reason for this.
There is a deliberate attempt by the South Africans to destroy and rebuild our refrigeration cluster, like all the other industries that they want to crumble and take over.
Sadly, we also manage to sabotage ourselves in search for a quick dollar by supporting dumping in the same way we continue to support counterfeiting and smuggling.
Capri, Willowvale Mazda Motor Industries, Quest Motors, Olivine, National Foods amongst other performing local companies have called for the enforcement of anti-dumping laws but the call seems to fall on deaf ears.
The first respondent in the anti-dumping case would obviously be the Zimbabwe Revenue Authority, who are doing a sterling job of collecting revenues on behalf of the nation.
However, some rogue elements at our border posts have affected the efficiency of the institution by perpetuating corruption.
The second respondent would have to be the Ministry of Finance that needs to support our local companies with the right policy framework.
Capri is a critical pillar for economic development in the country and thus should be taken seriously.
As a country, we cannot afford to let a company that has an installed capacity of 140 percent and producing 12 000 units per month of world class quality products at competitive prices to go under because of unfair competition.
Speaking to Buy Zimbabwe, Capri’s marketing manager, Mr Tony Simoes, confirmed that the company was reeling from unfair competition but was quick to point out that they had taken measures to counter this.
In response to consumer needs, the company is introducing a wide range of kitchen and home appliances to include microwave ovens, dishwashers, washing machines, tumble driers etc.
This follows the realisation that many households prefer to have one single brand for their households.
Following the discussion I had with Tony, I must confess that I am a culprit because my apartment kitchen has a lot of Defy products. Shame on me, that has got to change.
On a more positive note, next Friday we have a linkages and networking programme to be held in the Amtec showroom along Fourth Street starting at 6.30pm.
All our current and prospective Buy Zimbabwe partners are invited to come and share business.
Let us all begin a culture of procuring from each other as partners in an effort to promote the multiplier effect.
This linkage cocktail is also an opportunity to network with the top five contestants of My Own Boss entrepreneurship television reality show, who will be led by the show’s head mentor, Mr Nigel Chanakira, and some of the country’s leading business leaders.
Buy Zimbabwe partners will be attending in full force.
Till then . . . God bless.
Robert Garai Muganda is the General Manager Media and Communications for Buy Zimbabwe. He can be contacted on: mobile: 0772714233 email: [email protected] facebook: buy zimbabwe campaign.