Zimbabwe to introduce tight import laws soon

Government might soon introduce stringent legislation to control importation of basic commodities that can be manufactured in sufficient volumes locally, Industry and Commerce Minister Mike Bimha has said.

Speaking at a business conference in Victoria Falls last week, Minister Bimha said this would dissuade companies from importing non-essential products and ultimately help local industries to grow. Though he did not outline a legal framework, raising import duty and scrutinising product quality are options.

The food and clothing sectors are likely to be among the targeted sectors. "Government knows some imports are to cover the gap left by local industry. But some companies continue to import even non-essential products that can be manufactured locally and this is unacceptable.

"There may be gaps on the supply side that require imports to avoid shortages, but this should only be for products that are not readily available in the country," he said.

More than 60 percent of goods in Zimbabwe's supermarkets are imports, mainly from South Africa, Zambia and Botswana.

In 2014, Finance and Economic Development Minister Patrick Chinamasa expected imports to rise 9,2 percent to US$8,3 billion on continued low industry performance, creating a trade deficit of over US$3 billion.

In the first six months of 2014, grocery imports topped US$400 million.

Government has been under pressure to enact laws that protect domestic manufacturers and retailers, and has in turn, come up with various measures, including the imminent introduction of the National Competitiveness Commission.

However, with industry capacity utilisation at 36 percent, the key question among analysts remain whether a heavy hand on imports will improve domestic sales and production without creating shortages.