Moffat Mungazi
Ray Bande
Senior Reporter
THE Government has taken a firm stance against smuggling and business malpractices, resulting in the closure of more than 43 businesses in Mutare.
The affected businesses, mostly located around Trade Route Mall, Village Market, Sunrise Mall, Central Mall and other premises around the Central Business District, were forced to shut down due to embargoes, pending the production of requisite customs documentation for imported products.
Foreign-owned businesses without local currency swiping machines were given a 14-day ultimatum to comply.
Minister of State for Manicaland Provincial Affairs and Devolution, Advocate Misheck Mugadza said Government aims to protect local industries, which are being undermined by the illegal importation of cheap goods.
Minister Mugadza said Government has set up a team to ensure that goods on shelves are legally sourced, and those found to be illegal will be removed. While some may view these policies as unfair, Government believes they will ultimately benefit the local industry through employment creation and downstream benefits.
“Government is very keen to protect the local industry. The economy Manicaland Province and the country at large is on a rebound. It is growing from strength to strength, but this is being disturbed by the illegal importation of goods that are then sold at a cheaper price on the market, thereby undoing our own production from our own industries.
“So it is the duty of Government to protect our own industries. This is why Government has set up a team to ensure that goods that are on the shelves are there legally. Those that are there illegally will be removed. Leaving the situation unabated will mean total collapse of our industry which is otherwise on a rebound.
“These are the policies that will ensure strengthening local industry. Yes, people will feel like this is unfair at first, but as we move, being ably led by His Excellency, President Emmerson Mnangagwa, people will soon realise the benefits of these polices through employment creation and benefits that will come through downstream,” said.
In a separate interview, Secretary for Manicaland Provincial Affairs and Devolution, Mr Abiot Maronge confirmed that 43 businesses were penalised.
“The anti-smuggling programme is ongoing, and we have made a lot of progress since its commencement in December. To date, our teams have carried out 151 inspections, and these have resulted in 43 businesses being arrested or embargoed. What we have noted is that most of the goods being smuggled are meant for tuck-shops and small retail players. What we have done beyond just arresting, confiscating or fining those found wanting, was to organise engagement and awareness meetings with business players concerned,” he said.
Mr Maronge noted that engagements with concerned business players were also conducted to enlighten them on the requisite legal demands of operating their business projects.
“We have worked closely with representatives from the retail sector, CZI, Manicaland Chamber of SMEs, and related organisations. We met with sector players to explain why this exercise is critical, as it aims to keep our economy afloat. We also used these platforms to ensure that our key players, namely ZIMRA and the Ministry of Industry and Commerce, explained the legal procedures for importing goods. We found these meetings to be very useful and believe they will make a difference,” he said.
Mr Maronge added that the programme also targeted foreigners participating in reserved sectors.
“We carried out compliance inspections on these sectors, which are reserved for Zimbabwean citizens and exclude foreign participation. Out of 60 inspections, about 20 businesses were found non-compliant, with foreigners operating in sectors reserved for Zimbabweans. We issued necessary compliance documents to those that were not compliant,” he said.
He said the programme is largely aimed at levelling the playing field between formal and non-formal businesses to protect the economy.
“This exercise will continue as long as the need is there. What we want to emphasise is that it is not meant to punish or penalise or small-scale businesses, but to make sure that there is a level playing field and compliance with the laws.
When some are just smuggling in goods without paying duty, that can only give an unfair playing field between formal and non-formal businesses. It will only result in shrinking of formal or so-called big businesses, resultantly loss of jobs for the common populace and other negativities,” said Mr Maronge.
According to the report on Manicaland anti-smuggling and business malpractices blitz programme, some businesses were given tickets for violating the Consumer Protection Act which they paid to the police as admission of guilty.
“66 businesses were inspected for reserved sector compliance, and 20 businesses comprising of foreigners were discovered to be operating in the reserved sector, and they were advised to visit the Ministry of Industry and Commerce Offices to regularise their operations. The businesses are partly owned by Chinese and Nigerians. The operation also checked for swipe machines in the businesses, and the majority of the businesses were not using swipe machines.”
Implementation of the anti-smuggling programme began on December 2, 2024 when Minister Mugadza called for a stakeholders meeting resulting in the setting up of the Provincial Anti-Smuggling Taskforce, pursuant to the Cabinet Directive issued in October 2024.
Ministry of Industry and Commerce, Ministry of Women Affairs, Community, Small and Medium Enterprise Development, Ministry of Information, Office of the President and Cabinet, City Council, ZNA, ZRP, ZIMRA and ZPCS are represented in the taskforce.
“The taskforce is mainly targeting small enterprises which are known for not complying with legal obligations. Most businesses are failing to produce valid documents related to items in stock and are advised to follow due process whilst the taskforce will temporarily close the shop.
“The taskforce has observed that most smuggled goods are stored in warehouses waiting to restock mostly tuck-shops. When the taskforce identifies such shops with these kind of warehouses, they effect arrest by means of embargo for further ZIMRA verification. The major smuggled products include alcohol beverages, soft drinks, second hand clothes, motor spare parts, groceries, mining and farming equipment. Smuggling of groceries, beverages, clothing, footwear, selling of counterfeits, violation of the Consumer Protection Act (disclaimers and selling products without warrants),” reads the taskforce report.
