Source: Anti – smuggling blitz pays pays off as local goods dominate – herald
Business Reporter
THE Government’s ongoing nationwide anti-smuggling blitz has reshaped the country’s domestic retail landscape, with industry players reporting that 80 percent of basic commodities in most retail outlets, including the informal trading sector, which traditionally provided the primary market for smuggled items, are now locally produced goods.
The shift highlights the campaign’s success in curbing illicit trade, effectively displacing untaxed imports and providing commercial space for domestic manufacturers to grow their market share.
The Government launched the nationwide anti-smuggling blitz in November last year to combat illicit trade.
The campaign was in direct response to an outcry from legitimate local businesses and industries, many of whom reported being severely hurt by the massive influx of smuggled and uncustomed goods.These illicit imports often circumvented taxes and regulatory fees, allowing them to be sold at prices that severely undercut compliant local products, posing an existential threat to domestic enterprises.
Furthermore, the smuggled items posed a serious threat to public health and safety.
A considerable portion of these goods did not meet minimum local health and quality standards, while others were outright substandard, counterfeit, or expired.
The anti-smuggling campaign has thus served a dual purpose: protecting the economy and safeguarding human lives by preventing the distribution of potentially harmful and unregulated products to consumers.
According to the recent report by the Ministry of Finance, Economic Development and Investment Promotion, smuggled goods worth millions of dollars were recovered during the first half of 2025.
The co-ordinated crackdown by law enforcement agencies and the Zimbabwe Revenue Authority (Zimra), primarily against smuggling of various goods, has seen authorities collecting over ZiG129,7 million and about US$614 85 from the sale or forfeiture of seized goods alone.
In addition to collections from seized items, duties on goods that were merely detained, pending payment, amounted to a further ZiG89,2 million and US$1,9 million.
The total collections from the operation, combining revenue from seized goods and duties on detained items, stood at about ZiG218,9 million and over US$2,5 million over six months.
Confederation of Zimbabwe Retailers president Dr Denford Mutashu has said retail shops across the country, including the previously import-dominated informal sector, are now largely stocked with locally produced basic commodities.
He noted that following the launch of the campaign, smugglers and illicit traders were observed “retreating and starting to procure locally,” leading to an “exponential rise in the uptake of domestic products.”
Dr Mutashu explained that even if smugglers were to pay appropriate duties, many imported basic goods would ultimately be more expensive than local equivalents, such as sugar and cooking oil.
The cost difference has effectively removed the financial incentive for importing these common consumer items, even if imported legally, further cementing the market dominance of local manufacturers.
“We wish that the campaign should not have a timeline, but should be a normal way of enforcing compliance,” he said.
The blitz has provided an immediate and tangible boost to local manufacturers, particularly within the beverages sector.
Major players, including Delta Corporation and its associate, African Distillers, have attributed their volume growth to the campaign’s success in clearing the market of illicit imports.
The domestic beverage industry has battled an influx of cheap, untaxed imports, which severely distorted pricing and eroded the market share of legitimate local products.
The intensified crackdown has significantly reduced the availability of these smuggled beverages on the domestic market.
Afdis chairman, Matlhogonolo Valela, in the group’s financials for the half year to September 30, 2025, said the wine, ready-to-drink, and spirits segments grew by 59 percent, 47 percent and 36 percent, respectively.
“This strong performance was driven by sustained demand across all categories, supported by the improved consumer spending and the clampdown on informal imports and illicit products,” he said.
While the quantifiable revenue recovered from seized and forfeited goods may, on its own, be viewed as a moderate contribution to the fiscus, some economic analysts say the true impact of the anti-smuggling blitz extends far beyond the recovered funds.
“The successful enforcement campaign has created a powerful deterrent effect across potential offenders,” economic analyst Mr Tobias Musara told this publication in an interview.
“Even if the value of a single seizure or forfeiture might appear relatively small in isolation, the high frequency and visibility of the raids have instilled a genuine fear of loss among illicit traders.
“The realisation that their goods could be permanently confiscated and forfeited to the state could have drastically changed the risk calculus for would-be smugglers.”
Mr Musara said the “deterrence encourages a shift toward compliance”, forcing businesses to formally register, pay the required duties, and adhere to customs regulations, thereby formalising trade that was previously operating in the shadows.
“The blitz acts as a punitive measure that raises the cost of non-compliance,” said Mr Musara.
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