‘No need to import cooking oil, soap products’

Dumisani Nsingo Senior Business Reporter
THERE is no need for Zimbabwe to continue importing cooking oil and soap from neighbouring countries because local producers are now able to meet demand, an official said.
United Refineries chief executive officer and Confederation of Zimbabwe Industries president Mr Busisa Moyo said the country’s soap manufacturers are meeting the local demand for both bathing and laundry soaps.

“There are lots of imports, we should localise that demand because it means we are creating a lot of job opportunities elsewhere. In terms of price we are actually very competitive as we work on our cost environment, costing of electricity and other things.

“Between us and Olivine, the two large manufacturers of soap in the country we used to supply the whole of Zimbabwe through our Image soap brand and Olivine’s Jade and Geisha, which used to be made here and it’s no longer made here, we used to supply the whole market. There is no need to import soap products,” he said.

Announcing his 2016 National Budget statement, Finance and Economic Development Minster Patrick Chinamasa acknowledged that imports of bath and laundry soaps continue to dominate the local market, despite the capacity to produce locally.

“Notwithstanding efforts by the local industry to improve the product quality, price and range, competitiveness has been undermined mainly due to the depreciation of currencies of major trading partners against the United States dollar.

“This has undermined efforts to revive the local soap manufacturing industry. In order to level the playing field between imported and locally produced soap, I propose to introduce a specific duty of US$0,50 per kg, with effect from 1 January 2016,” he said.

Mr Moyo also said local cooking oil manufacturers are producing enough to meet local demand.
“The cooking oil market is 8 000 tonnes monthly and as local manufacturers we can produce up to 10 000 tonnes. We have only cut back because there is not enough demand.
“Our warehouses are now full that’s why we are looking for exports. We just need to work on our cost environment, once our cost environment comes in line we can then export,” he said.

Consumer Council of Zimbabwe’s Matabeleland region manager Mr Comfort Muchekeza said most consumers were shunning local products largely owing to their high prices.
“It’s true that the supply of local products has improved because you talk of United Refineries and Olivine they are doing a splendid job. Their quality is more superior compared to the imports but we still have a problem, Zimbabwean consumers are price sensitive than being quality sensitive.

“Government should put a deliberate policy which protects local manufacturers against imports. Of course there is this issue of globalisation where there are treaties, which promote free movement of goods among countries but as a country we can put minimum required standards for imported products like cooking oil,” Mr Muchekeza said.