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Shoppers at a retail outlet in Bulawayo

Mpumelelo Nyoni Business Reporter
THE recent tightening of import duty by the government has started paying dividends resulting in the increase in supply of local products on the market and reduction of prices for certain basic commodities, an official said.
Buy Zimbabwe business development executive Alois Burutsa told journalists in Bulawayo yesterday that the recent mid-term fiscal policy review by Finance Minister Patrick Chinamasa has added impetus to the revival of industries in the country.

“As Buy Zimbabwe we’re pleased with the results of Chinamasa’s increased excise duty on vehicles, the five percent excise duty on airtime for voice and data, fuel tax hike and import duty on selected products such as cooking oil and mealie-meal,” he said.
“Contrary to what people thought, prices haven’t increased. In fact, they’ve actually gone down.”

Burutsa said products such as Schweppes Mazoe have reduced prices from about $3,50 to $2,80 for 2 litres due to an increase in volumes and that Delta 1litre drinks have gone down from $1,25 to $1.

He said the re-opening of companies such as Archer Clothing in Bulawayo and United Refineries Limited alongside other big entities such as Zimplow and Datlabs would go a long way towards increasing employment levels in Bulawayo.

Burutsa said latest figures from a Retailers and Suppliers Conference held two weeks ago showed a reduction in the country’s import bill after the government effected the new tax regulations.

“The ministry has helped the local market and latest figures show that there’s been a reduction in the country’s import bill. This means that there’s an additional $900 million circulating in the country,” he said.

Burutsa said the percentage of local products to imported goods has increased from 35 percent to 50 percent.
“The requirement for import licences and duties by the ministry is a ‘smart protection’ which makes it difficult for people who are importing goods into the country,” he said.

He said Buy Zimbabwe will be making quarterly reviews, working with the Consumer Council of Zimbabwe (CZI) to measure and monitor the success of the Buy Zimbabwe initiative.

He said the surveys would also focus on employment patterns and capacity utilisation hoping the changes would result in improved company performance.