Michael Tome
Business Reporter
THE Government says it has intensified efforts to curtail the growing incidence of smuggling as part of broad measures to protect and enhance the competitiveness of domestic industries.
It has directed border control agencies to implement more stringent surveillance and monitoring measures to combat the menace.
Addressing delegates at a 2025 post-Budget breakfast meeting, organised by Business Weekly, in collaboration with the Confederation of Zimbabwe Industries and the Ministry of Finance, Economic Development and Investment Promotion, Treasury boss Professor Mthuli Ncube said the Government had activated all systems to tackle smuggling and an influx of counterfeit goods.
The Zimbabwe Revenue Authority (Zimra) has since notified travellers and cross-border traders to comply with the law to avoid trouble with law-enforcement agencies.
Zimra has made it clear that travellers must present valid proof of customs declarations at various roadblocks set up by law-enforcement authorities.
Failure to provide the required documentation of the goods, whether deliberately or accidentally, may lead to severe penalties, including substantial fines and confiscation of the goods in question.
The measures are essential since non-declaration of imported goods not only creates a direct financial loss to the fiscus but also fosters an environment conducive to continued smuggling.
Smuggled goods and counterfeit products flooding the domestic market may also pose significant risks to consumers.
Further, these illicit practices are also negatively impacting the viability of local businesses and industries, resulting in job losses and diminished tax revenues for the State.
Import duties and fees on goods and services entering the country are a vital source of revenue for the Government.
These funds are crucial as they are channelled towards essential development projects, infrastructure improvements and the provision of public services.
Furthermore, these levies serve as a protective measure for local industries by mitigating unfair competition posed by cheaper imported goods, thereby creating a more favourable environment for domestic production to thrive.
Unfortunately, the current influx of smuggled goods has placed immense pressure on many local industries, leading to a decline in production and, in certain cases, outright closure of businesses.
Those affected include clothing, footwear, leather, and food and beverage manufacturing industries, making it imperative for the Government to effectively address the challenges posed by smuggling.
“We are trying hard to deal with smuggling. I think you have seen operations by the Ministry of Industry and Commerce, Zimra and security agencies. We are very serious about beating smuggling; it is hurting formal businesses,” said Minister Ncube.
Zimra commissioner of customs and excise Mr Batsirai Chadzingwa said the authority had started taking action against smuggled goods.
“I can confirm that we have started work on anti-smuggling. It has received mixed feelings; some are saying it is very good while others are blasting us for disturbing their businesses.
“But the truth is we need to (deal with) smuggled goods. What we require is a viable economy.
“If you look at the clothing industry, it is dying simply because there is so much smuggling of clothing items. If you look at the shoe industry, it is dying. Almost everywhere, we need to be dealing with smuggled goods,” said Mr Chadzingwa.
Recently, while launching the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP) 2024-2025, Industry and Commerce Minister Mangaliso Ndlovu said ZIRGP would strive to contain the influx of smuggled and counterfeit goods that continue to flood the domestic market.
ZIRGP will also focus on enforcement of provisions of the consumer protection and trade measures laws, and ensure compliance with quality standards to curtail the entry of smuggled, counterfeit and substandard goods.
“Our economy is confronted with a number of challenges such as the influx of smuggled and counterfeit products, the informalisation of industry and commerce, and the high cost of doing business.
“We must find a way to address these issues head-on if we are to realise the full potential of our industrial and commercial sectors. This is the task that requires Government, business and the consumers to work together and I have no doubt that these challenges are not insurmountable,” said Minister Ndlovu.
In a recent interview, Tika Shoes managing director Mr Hashmook Naran bemoaned the lack of adequate Government protection measures as second-hand shoes continue to find their way into the market.
He said this is detrimental to the survival of the local footwear industry.
“Our only concern is lack of support from the Government in allowing second-hand shoes in the market, cheap imports with duty not being paid,” said Mr Naran.
