Government opens up basic commodity imports Professor Mthuli Ncube

Business Reporter
CITIZENS with free funds have been given the  green light to import basic commodities on lower tariffs as part of measures to cushion the public in the wake of recent price increases.

The measure is with immediate effect and is expected to ease the public burden over domestic price escalation.

Finance and Economic Development Minister, Professor Mthuli Ncube, announced the latest intervention in a statement on “Measures to improve availability of basic commodities and to incentivise farmers for early grain deliveries to the Grain marketing Board” issued on Saturday night.

He said the global economy was largely under pressure, particularly in the face of the Covid-19 pandemic and more recently, the impact of the geo-political tensions in Eastern Europe induced by the Russia-Ukraine conflict.

Domestically, the situation has been compounded by speculative market indiscipline, which is manifested in the rampant manipulation of the exchange rate and abuse of the forex auction system, which continue to pile pressure on prices.

In view of this, Prof Ncube said the Government has been seized with various initiatives aimed at stabilising the economy and contain inflationary pressures.

The interventions are aimed at restoring purchasing power of the local currency, with the primary goal being to increase the domestic and external competitiveness of the economy, create and preserve jobs, improve livelihoods while limiting damage to the economy.

“To further ensure that citizens have access to affordable basic commodities, in the face of recent substantial price increases in the shops, the Government hereby opens up imports of basic commodities by citizens, through the lowering of import tariffs and other accompanying measures,” said Prof Ncube.

“This is with immediate effect. Those with free funds are, with immediate effect, permitted to make use of these funds and other resources to import basic commodities.”

The minister would not immediately state the exact lowered import tariff schedule.

In the quest to incentivise farmers and encourage early deliveries of maize and other grains to the Grain Marketing Board, Prof Ncube said the Government has taken the decision to pay the maize farmers 30 percent of the amount due on grain delivered in United States Dollars and 70 percent in domestic Zimbabwe dollars.

Grain Marketing Board

“The US-dollar payment will be calculated at the prevailing willing buyer willing seller rate published by the Reserve Bank of Zimbabwe on the date of delivery,” he said.

“The payments will be backdated to the date of the first deliveries of this season’s maize to GMB.”

Meanwhile, Prof Ncube ha assured the nation that the country’s economic fundamentals were strong with macro fiscal stabilisation having been achieved largely through fiscal consolidation and the resultant attainment of both fiscal balance and stabilisation of the current account, as well as increased domestic production of goods.

“Government is grateful for, and fully recognises the sacrifice and co-operation of all Zimbabweans in the ongoing effort to stabilise the economy, which is now on a firm foundation for growth,” he said.

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