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Business Reporter
RetailERs have expressed concern over the issuance of import licences to middlemen highlighting that lack of checks and balances had exposed consumers to high goods prices.
Last year, captains of industry warned Government to exercise extreme caution when issuing import permits because most ended up in the hands of middlemen who dictate prices which are not in sync with current market conditions.
Confederation of Zimbabwe Retailers president Mr Denford Mutashu told The Herald Business during a tour of supermarkets and wholesalers by Industry and Commerce Minister Mike Bimha on Tuesday that there is need for checks and balances after the issuance of import licences to prevent indiscipline and corruption.
“All those who have been awarded import licences should consider it a privilege and desist from taking it as an advantage to rip off consumers.
“What we have seen is that most companies and individuals awarded import licences end up abusing them and Government should not relax but provide mechanisms to curb the unscrupulous behaviour of those importers.
“The issuance of import licences is a noble idea but because they are awarded mostly to middlemen; most of them have seen it as an opportunity to make money.”
His comments come in the wake of an outcry by the grain milling industry over the issuance of import permits for mealie meal.
Grain millers were of the argument that maize meal imports have taken 55 percent of the local market forcing some grain millers to produce only about 30 percent of their monthly production while stock feeds, a by-product of maize-meal production also stands to suffer.
Some millers said they have been forced to reduce production levels to about 30 tonnes per month from as high as 250 tonnes as the impact of import of mealie-meal begins to hit the market.
Millers said the slowdown in production will have a direct impact on employment, and will also affect production of stock feeds, a by product of maize milling.
Meanwhile, Minister Bimha said after touring supermarkets and wholesalers he observed that there is still room for improvement in terms of local procurement of goods by supermarkets.
He said supporting local producers is not only good for “Buy Zimbabwe” but for the development of the local industry.
Minister Bimha said retailers should feel compelled to support local products as Government would not want to resort to legislation and force retailers to buy locally.
“It is interesting to note that there are some players in the sector that make it a deliberate policy to procure local products. The retailers also assist local suppliers that fail to meet price and quality requirements. This is quite progressive and commendable as they not only promote the Buy Zimbabwe campaign but also assist the development of local suppliers.
Minister Bimha visited TM Pick n Pay Borrowdale, Food Lovers Market Borrowdale, Richards Wholesalers and Mahomed Mussa Wholesalers.
Online Reporter