Zim unveils new trade tariff policy

Tapiwanashe Mangwiro

Zimbabwe has unveiled a National Trade Tariff Policy, which will overhaul how the country sets and manages import duties, with officials promising a more transparent, predictable system to boost industrial competitiveness and attract investment.

Presenting the framework at a validation workshop in Harare, Competition and Tariff Commission tariff division’s assistant director, Ms Cicilia Mashava, said tariffs must now work as a tool for development rather than distortion.

“Tariffs are more than just a tax on imports. They are a lever to protect local industry, to promote value addition, and to regulate consumption where necessary,” she explained.

The Government says the policy is needed to correct long-standing distortions in the tariff regime. Past tariff structures often imposed higher duties on raw materials and machinery than on finished goods, unintentionally raising costs for local manufacturers.

“High import tariffs on raw materials and intermediate goods increased the cost of production,” Ms Mashava acknowledged, adding that ad hoc reviews had undermined industry planning and expansion.

The NTTP is billed as a structured framework to guide national tariff setting, implementation, and review.

The policy aims to support initiatives towards the attainment of Zimbabwe’s Vision 2030 targets, by which the country is seeking to achieve upper-middle-income status.

This will entail building an integrated and competitive high-value industrial sector that supports domestic and international trade.

The mission is clear, said Ms Mashava, “To develop and implement a tariff regime that fosters sustainable, innovative, and globally competitive domestic industry while promoting fair trade.”

Among the policy objectives are simplifying tariffs, promoting industrial value chains, attracting investment, and safeguarding consumer welfare.

The policy proposes tariffs that increase along processing stages; lower for raw inputs and higher for finished products, to encourage local value addition in industries like lithium and agriculture.

Among the highlights is the proposed promulgation of a standalone Tariff Act, which would create a strong legal foundation for tariff management.

According to the policy framework, the Act will empower the regulatory authority to investigate unfair trade practices and manage tariff-related matters effectively, while also strengthening Zimbabwe’s hand in international trade negotiations.

Transparency and predictability are recurring themes. The NTTP calls for clear, publicly available tariff handbooks, regular updates, and advance announcements of rate changes.

“Predictability through stable rates helps businesses and investors plan effectively,” the assistant director stressed.

A full tariff review is proposed every five years to ensure alignment with global standards and domestic economic realities.

Zimbabwe’s commitments under the World Trade Organisation (WTO), the African Continental Free Trade Area (AfCFTA), and regional blocs like COMESA and SADC present both opportunities and constraints.

The NTTP acknowledges the delicate balance between trade liberalisation and the protection of domestic industries.

“Membership in COMESA and SADC promotes regional trade liberalisation and economic cooperation. But tariff policy must also shield strategic local industries to support sustainable growth,” Ms Mashava added.

The policy is not narrowly economic. Tariffs are expected to support social and environmental goals, including poverty reduction, food security, gender equality, and climate adaptation.

For example, the framework suggests using tariffs to encourage the adoption of green technologies, while ensuring low-income households are shielded from sharp price shocks.

“Tariff policy must promote industrialisation and diversification without stifling innovation or efficiency,” the framework read.

To oversee the process, the Government proposes creating a National Trade Tariff Technical Committee (NTTTC), chaired by the Permanent Secretary in the Ministry of Industry.

The body would include government ministries, private sector representatives, and technical working groups focusing on thematic tariff areas.

The NTTP also builds in monitoring and evaluation systems, with regular assessments and stakeholder feedback to improve outcomes.

“The goal is to promote economic growth, competitiveness, and sustainable development through inclusive engagement,” according to the assistant director.

Despite its ambitions, the NTTP faces potential obstacles. Stakeholder coordination has historically been weak, with conflicting objectives between institutions. In some cases, tariffs used as revenue tools have undermined competitiveness.

Ms Mashava acknowledged, “Tariff adjustments have not been implemented timeously, since they usually come through the Mid-Term Fiscal Policy Review or the National Budget. This has created delays and distortions.”

Ensuring buy-in from industry players, civil society, and regional partners will be critical as the government moves to legislate and implement the policy.

If successful, the NTTP could provide Zimbabwe with the consistent, transparent tariff regime investors have long demanded.

It promises to guide future trade talks, safeguard consumer welfare, and foster a climate where local industry can thrive.

Ms Mashava concluded, “The National Trade Tariff Policy is not just about rates and duties. It is about shaping the future of Zimbabwe’s industrialisation and ensuring our industries are competitive in the region and the world.”

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