eBusiness Weekly
HARARE – The Zimbabwe government has partially repealed Statutory Instrument 122 of 2017 which controls the importation of basic goods and commodities to ensure improved supply in the wake of widespread shortages and price hikes, a Cabinet Minister said on Tuesday.
Zimbabwe has maintained import restrictions on certain products as a way of limiting consumer spending on luxury imports, since Zimbabwe is facing a huge trade deficit.
The restrictions were also meant to push the industrialisation agenda.
But currently, many retail outlets are failing to re-stock products such as cooking oil and sugar, following the recent panic-buying of basic goods by fearful Zimbabweans in reaction to Government’s new economic stabilization measures.
The new policy measures, including the separation of foreign currency accounts and RTGS accounts, triggered a dramatic increase in parallel market rates and shocking increases in the prices of basic commodities.
Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said Cabinet had resolved to exempt at least 31 items from import licensing requirements.
The items include animal oils and fats, baked beans, body creams, bottled water, cereals, cheese, cooking oil, crude soya bean oil, fertilizer, wheat flour, juice blends, margarine, packaging material, potato crisps, pizza base, soap, shoes polish, sugar, agro-chemicals and stock feeds.
“Cabinet resolved as follows; that the Minister of Industry and Commerce temporarily amends statutory instrument 122 of 2017 to allow both companies and individuals with offshore funds and free funds to import specified basic commodities currently in short supply, pending return to normalcy in buying patterns of the public and adequate re-stocking by manufacturers,” she said in her weekly media briefing on Cabinet deliberations.
“(Cabinet also resolved) that government through the Reserve Bank of Zimbabwe should support the productive sector through allocation (of forex) to ensure that they adequately stock up for the upcoming festive season.”
Mutsvangwa however said other provisions of SI 122 remained in force.
She said Cabinet had also directed that more resources should be channeled towards primary production particularly agriculture with focus on soya beans and wheat.
Weighing in on the matter, Finance and Economic Development Minister Professor Mthuli Ncube said the partial repeal of SI 122 would apply for an indefinite period.
But, he said the targeted items would not be imported duty free.
“It (the partial repeal) will also reduce the demand for foreign currency allocations from the central bank as individuals, companies and entities are able to use their own funds to supply themselves,” he said.
Meanwhile, Cabinet also resolved that the Bank Use Promotion Act which outlaws the three tier pricing system among other things should be enforced forthwith.
Attorney General Prince Machaya who was also present at the press conference said section 10 (a) of the Bank Use Promotion Act re-enforces the idea that the money used in Zimbabwe although in different forms was at par.
The section also states that there is no trader or anybody who receives payment who should decline one form of payment over another.
“No payee shall charge a premium or discount of his goods or services on the basis that the person has paid for goods or services by cash or electronic means instead of cash or partly by cash and partly by electronic means,” he said.
“The legislation makes it clear that people who are trading cannot decline any one form of payment over another.” – New Ziana
