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The Government has suspended duty on a number of basic grocery items for the next six months with effect from 17 May 2022.
The development follows a statement by Minister of Finance and Economic Development Mthuli Ncube on Saturday where he announced that import tariffs will be reduced on selected products.
Ncube said the move would be aimed at ensuring that citizens have access to affordable basic grocery items in the wake of the recent increases in prices of locally manufactured products.
In a letter addressed to Zimbabwe Revenue Authority (ZIMRA) Acting Commissioner-General, R Chinamasa, dated 16 May 2022, the Permanent Secretary in the Ministry of Finance and Economic Development, George Guvamatanga designated 15 products to be included under the new measures. The products are as follows:
<ul>
<li>Rice;</li>
<li>Flour,</li>
<li>Cooking Oil</li>
<li>Margarine;</li>
<li>Salt;</li>
<li>Sugar;</li>
<li>Maize meal;</li>
<li>Milk Powder;</li>
<li>Infants Milk Formula;</li>
<li>Tea, whether or not flavoured;</li>
<li>Petroleum Jelly;</li>
<li>Toothpaste;</li>
<li>Bath Soap;</li>
<li>Laundry Bar; and</li>
<li>Washing Powder.</li>
</ul>
Guvamatanga said that ZIMRA has been requested to urgently draft the necessary legal instrument and implement the duty suspension beginning midnight, that is, 17 May 2022, which should coincide with the gazetting of the relevant legislation.
He added the Ministry of Industry and Commerce is expected to complement the measure through the inclusion of the above goods on the Open General Import Licence.
The letter was also copied to Minister of Finance and Economic Development Mthuli Ncube, Chief Secretary to the President and Cabinet Misheck Sibanda, Secretary for Industry and Commerce M Sibanda, and the Attorney General Prince Machaya.
<h4>More: <a href="https://news.pindula.co.zw/">Pindula News</a></h4>

Pindula News

Here Is The List Of Basic Grocery Items To Be Imported Duty-free

A survey has shown that the price of goods and services in South Africa is 50% lower than that of Zimbabwe Sunday mews reports. Wages and fuel remain cheaper in Zimbabwe but other goods and services are expensive compared to SA. NHMK Capital founder said since dollarisation, to date prices of goods must align in both countries for simple reasons:
<blockquote>As at 23 September 2019, the prices of goods and services in Zimbabwe and South Africa, including the cost of labour should theoretically be expected to be aligned since the currencies are at par according to the interbank exchange rate. However, this is not the case as the Zimbabwean economy continues to suffer from the threat of hyperinflation and significant rent-seeking behaviour caused by the huge arbitrage opportunities that exist in the market.</blockquote>
A few noted items like cooking oil, sugar and washing powder shows a difference between Zim and SA of 60% 53% AND 43% respectively.
More <a href="https://www.sundaynews.co.zw/zim-prices-higher-than-south-africa/">Sunday News</a>

Goods In SA 50% Cheaper Than In Zimbabwe

Industry and Commerce Minister Mangaliso Ndlovu told The Sunday Mail yesterday that Government and industry agreed that there was no need to increase the prices as a result of the recent fuel price hike.
Ndlovu said this was agreed during Thursday’s meeting between Government and industry. Said Ndlovu:
<blockquote>We made an important agreement with the industry players: that there is no justification whatsoever to increase prices as a result of a fuel hike. We agreed that the rebate system is a convenient mechanism to ensure that there are no extra costs that are passed on to the final consumer. We managed to dichotomise the issues at hand and we came up with an agreed position that fuel alone is not the major contributor to the cost of production. Fuel alone doesn’t account for more than 5 percent of total costs on average. It is only in the transport sector where the cost of fuel can lead to a direct upward variation of 40 percent.</blockquote>
Confederation of Zimbabwe Industries (CZI) president Mr Sifelani Jabangwe said there is no need there is no need for any price increase once the rebate is in place.
<hr/>
<h4>Related:</h4>
<ul>
<li>
<h3><a href="https://news.pindula.co.zw/2019/01/14/fuel-price-increase-was-necessary-and-remains-necessary-mnangagwa-says-despite-protests/">“Fuel Price Increase Was Necessary And Remains Necessary”, Mnangagwa Says Despite Protests</a></h3>
</li>
<li>
<h3 class="entry-title"><a href="https://news.pindula.co.zw/2019/01/13/eds-statement-on-new-fuel-prices-3-31-petrol-and-3-11-diesel/">ED’s Statement On New Fuel Prices: $3.31 Petrol And $3.11 Diesel</a></h3>
</li>
<li>
<h3><a href="https://news.pindula.co.zw/2019/01/12/govt-increases-fuel-prices/">Govt Increases Fuel Prices</a></h3>
</li>
</ul>
<hr/>
More: <a href="https://www.sundaynews.co.zw/industry-government-rules-out-basic-commodities-price-hike/">Sunday News</a>

There's No Justification To Increase Prices As A Result Of The Fuel Price Hike- Industry Minister

Addressing a press conference at her office yesterday, Minister of State for Bulawayo Provincial Affairs, Judith Ncube said they have set up a multi-sectoral task force to monitor the fuel situation and prices of basic commodities in Bulawayo.
She said the taskforce starts work with immediate effect. Said Ncube:
<blockquote>The sale of fuel on the black market is a cause for concern regarding safety issues and the distortion of supplies. As a result, we have put together a task force comprising of security forces from the four arms of the security, the transport operators, the think tanks, residents associations, churches and other Government departments such as Zera to look into the matter.</blockquote>
More: <a href="https://www.chronicle.co.zw/goverment-sets-up-taskforce-to-monitor-bulawayo-fuel-supplies/">Chronicle</a>

Bulawayo Sets Up Taskforce To Monitor Fuel Situation And Prices Of Basic Commodities

Speaking during the 4th edition of the Confederation of Zimbabwe Retailers (CZR) Conference last Thursday, Industry, Commerce and Enterprise Development Minister, Mike Bimha claimed prices have decreased and stabilised since President Emmerson Mnangagwa came to power.
Bimha also said prices will continue to decrease as production in industry increases. Said Bimha:
<blockquote>You may agree with me that there has been a notable reduction and stability in prices of some basic commodities and further reductions are expected as production in industry increases.</blockquote>
Bimha said his ministry has since intensified its price and availability of basic goods surveillances through a series of price monitoring surveys and company visits throughout the country.
More: <a href="http://www.chronicle.co.zw/new-dispensation-stabilises-prices-says-minister-bimha/">Chronicle</a>

Mnangagwa Govt Has Reduced And Stabilised Prices: Mike Bimha

The Confederation of Zimbabwe Industries (CZI) has said that it expects the prices of basic commodities to stabilise in March after tobacco farmers start selling their crop. Tobacco sales are expected to bring in close to half a billion dollars in foreign currency. The price of the basics has been increasing in the past four to six months. Retailers and suppliers have blamed the price increases on the shortage of foreign currency.
CZI president, Sifelani Jabangwe, said
<blockquote>The state where we are at is not catastrophic because as we get into March the prices are going to be more stable because the (tobacco) auction floors will be open.
The country’s economy is in a very good position for growth right now and any investment that comes in will ensure that this economy grows especially given the position we have with the new economic dispensation.
From March onwards, the prices will be stable. We also need to grow soya (beans) because that will reduce the amount of money we are pouring to import crude oil. We are spending about $240 million per year which is a lot of money.</blockquote>
More: <a href="http://www.financialgazette.co.zw/price-stability-by-march-says-czi/">Financial Gazette</a>

CZI Says Prices Will Stabilize In March After Tobacco Sales

Industry Minister Mike Bimha clarified that the import restrictions are still in effect but Government had relaxed them because there is no foreign currency to import basic commodities.
He said that Government had relaxed the restrictions to allow those that have foreign currency to import the basic commodities. Said Bimha:
<blockquote>We have always clarified that SI 64 (of 2016) is not a ban but a restriction on imports. We cannot import when we are producing enough goods for the country and the same can be said on shortages, we cannot have empty shelves during the Christmas period because we do not want imports. What this means is that when there is a shortage due to foreign currency deficiencies, we allow those with free funds to import basic commodities and my Ministry is ready to process permits and licences to that effect.</blockquote>
Bimha said that the relaxation was also a means by Government to stop price hikes during the Christmas period. He argues that with the easing of import permits more goods will come, hence prices will go down.
More: <a href="http://www.herald.co.zw/import-relaxation-clarified/">Herald</a>

"Govt doesn't have forex to import basic commodities": Minister clarifies import relaxation

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