Zimra blitz disrupts Bulawayo traders

Scores of traders operating within Bulawayo's city centre were left reeling last week after the Zimbabwe Revenue Authority (Zimra) implemented a series of business closures, as part of a wider national effort to combat smuggling and the trade in counterfeit goods.

The raids, part of an ongoing multi-agency initiative, were aimed at curbing illegal trade practices and fostering fair competition, with a strong focus on protecting local industries and consumers. The crackdown underscores the government's broader economic revitalisation strategy, which seeks to ensure compliance with import regulations while promoting the consumption of locally produced goods.

Business premises across Bulawayo, particularly those selling low-cost imports from China, have been at the centre of the operation. These outlets, often operating with minimal regulatory oversight, have proliferated throughout the city, contributing to the surge in illicit trade. In recent months, businesses such as Haddon and Sly, Amaya Mall, Unity Village Flea Market, and Mutize and Sons Flea Market were all targeted and, following compliance with legal requirements, allowed to resume operations.

The latest wave of inspections focused on shops operating in the city centre, many of which specialize in counterfeit products and smuggled goods. These inspections are part of a broader, intelligence-driven strategy designed to root out illegal trade across the country.

Speaking at the Doing Business in Matabeleland breakfast meeting in Bulawayo on Thursday, Industry and Commerce Minister Mangaliso Ndlovu emphasized the importance of these efforts in protecting the country's domestic industries and ensuring fair competition.

"The Government is resolutely committed to intensifying the fight against smuggling and business malpractices. This is done to protect our vital local industries, create a level playing field for fair competition, and ensure consumer protection," Minister Ndlovu stated.

The Minister provided an update on the progress made by the taskforce on smuggling and business malpractices, set up last year. To date, the taskforce has carried out 1,907 inspections, secured 137 prosecutions, issued 247 compliance notices, and seized 3,987 units of counterfeit and smuggled products.

Minister Ndlovu also warned that smuggled and counterfeit goods pose significant health risks to consumers and undermine formal businesses. He encouraged all operators to comply with the law in order to avoid heavy penalties.

The Cabinet approved the creation of the inter-ministerial task force on smuggling last year, with a focus on safeguarding local industries and promoting fair trade. The task force includes agencies such as Zimra, the Zimbabwe Republic Police, the Reserve Bank of Zimbabwe (RBZ), and the Consumer Protection Commission (CPC).

The task force's mandate extends to conducting regular inspections, prosecuting offenders, and issuing compliance notices in an effort to combat unethical trade practices and protect the market for locally produced goods.

Zimra's head of marketing and corporate affairs, Mr. Francis Chimanda, clarified that the blitz is intelligence-driven, with operations targeting locations where contraband goods such as second-hand clothing are stored and sold. He also highlighted that post-clearance audits are one of Zimra's core responsibilities, and any goods found without proper documentation or clearance will be subject to detention and seizure.

"These audits are conducted as needed, particularly when non-compliance issues are identified," said Mr. Chimanda.

The impact of smuggled goods on local businesses was further underscored by Bulawayo Chamber of SMEs vice-chairperson, Ms. Sithabile Bhebhe, who pointed out that many small and medium-sized manufacturers are struggling to compete with the influx of cheap smuggled and counterfeit products.

"We have SMEs that are into manufacturing and producing most products locally, but these are slowly dying because of the cheap smuggled and counterfeit products that we are seeing on the market," Ms. Bhebhe lamented.

She noted that many SMEs have been forced to lower their prices to remain competitive, often incurring substantial losses. Smuggled goods such as cooking oil, peanut butter, beverages, pharmaceuticals, detergents, toothpaste, and rice have flooded the market, further exacerbating the challenges faced by local producers.

The Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland regional manager, Mr. Mduduzi Ncube, welcomed the efforts of the inter-ministerial task force, acknowledging the widespread nature of illicit business practices.

"We are witnessing business malpractices such as currency manipulation, use of fraudulent scales, underweight and unlabelled goods, and counterfeit and smuggled products in Bulawayo and across the country. These have significant effects on both businesses and the economy," said Mr. Ncube.

He called for intensified consumer education campaigns to raise awareness about the dangers of counterfeit goods and to help restore consumer confidence in locally produced, authentic products.

The Zimra-led blitz has sparked mixed reactions, with some traders fearing continued disruptions, while others express support for the government's stance on smuggling and unethical practices. The campaign to protect local industries and ensure the safety of consumers is expected to intensify as authorities continue to crack down on the illegal trade of goods.