Zimbabwe unveils new trade tariff policy

Zimbabwe has launched a National Trade Tariff Policy (NTTP), a framework designed to overhaul how the country manages import duties in a bid to enhance industrial competitiveness, attract investment, and foster sustainable development.

The framework was presented at a validation workshop in Harare by Competition and Tariff Commission assistant director for the tariff division, Cicilia Mashava, who emphasised that tariffs must serve as a tool for growth rather than distortion.

"Tariffs are more than just a tax on imports. They are a lever to protect local industry, to promote value addition, and to regulate consumption where necessary," she said.

The government said the policy seeks to address long-standing distortions in the current tariff regime, where higher duties on raw materials and machinery often raised costs for manufacturers while finished goods attracted lower tariffs. "High import tariffs on raw materials and intermediate goods increased the cost of production," Mashava admitted, adding that inconsistent reviews had disrupted industry planning.

Under the NTTP, tariffs will be structured to increase along processing stages, remaining low for raw materials while higher for finished products, to promote value addition in sectors such as agriculture and mining. Among its key features is the proposed enactment of a standalone Tariff Act to provide a legal framework for managing tariffs and investigating unfair trade practices.

The policy also prioritises transparency and predictability, promising publicly accessible tariff handbooks, advance announcements of changes, and comprehensive reviews every five years to ensure alignment with global standards and domestic realities.

Zimbabwe's commitments under the WTO, AfCFTA, COMESA, and SADC were factored into the framework, which seeks to balance trade liberalisation with the protection of strategic local industries. "Membership in COMESA and SADC promotes regional trade liberalisation and economic cooperation. But tariff policy must also shield strategic local industries to support sustainable growth," Mashava said.

Beyond economics, the NTTP integrates social and environmental goals, including food security, gender equality, poverty reduction, and climate adaptation. It also encourages the adoption of green technologies while protecting vulnerable households from sharp price shocks.

To oversee implementation, a National Trade Tariff Technical Committee will be established, chaired by the Permanent Secretary in the Ministry of Industry, and comprising government officials, private sector players, and technical experts.

Mashava acknowledged challenges ahead, particularly in coordinating stakeholders and ensuring tariff adjustments are implemented in a timely manner. "Tariff adjustments have not been implemented timeously, since they usually come through the MidTerm Fiscal Policy Review or the National Budget. This has created delays and distortions," she noted.

If successful, the NTTP will provide Zimbabwe with the consistent and transparent tariff regime long demanded by investors, while guiding trade negotiations, safeguarding consumer welfare, and enabling local industries to thrive.

"The National Trade Tariff Policy is not just about rates and duties," Mashava concluded. "It is about shaping the future of Zimbabwe's industrialisation and ensuring our industries are competitive in the region and the world."