Fraser Mpofu
20 August 2008
Harare — The influx of Zimbabwean shoppers into Botswana is set to continue after the government there extended the waiver on import duty for basic commodities from August 10 to December 31.
Originally, the Zimbabwe government suspended duty on food and other critical goods in May this year but the suspension expired on August 12.
During the 90 day suspension, Botswana experienced an increase in the number of Zimbabweans visiting Botswana, especially Francistown and Gaborone, to buy basic commodities which are in short supply at home.
More did their shopping in other neighbouring countries - South Africa, Mozambique and Zambia - as Zimbabweans took advantage of the relaxation on imports.
In a statutory instrument published in an extraordinary government gazette last week, the Minister of Finance, Samuel Mumbengegwi extended the suspension for an additional five months.
Products listed in the notice include cooking oil, margarine, rice, flour, salt, bath and laundry soap, washing powder, toothpaste and petroleum jelly.
In terms of the suspension, people importing the products for household consumption do not pay duty. However, commercial importers still pay import duty.
"With effect from August 2008 to the December 31, 2008, duty is wholly suspended on goods of the following tariff codes," say the regulations, listing the items.Other products are rice in husky, maize flour, wheat flour, Soya-bean cooking oil, groundnut cooking oil, palm cooking oil, sunflower cooking oil, and beauty or make up preparations for the skin and other medicaments including sunscreen or sun tan preparations.
The Zimbabwean economy has been on a decline since 2000. Food, fuel and foreign currency shortages are widespread.
Weighed down by high inflation, lack of fuel and foreign currency, industrial capacity utilisation is averaging 20 percent, according to the Confederation of Zimbabwe Industries.
A spokesman for the Consumer Council of Zimbabwe (CCZ), Comfort Muchekeza, said the extension of the waiver would alleviate the challenges consumers are facing because of the prevailing shortage of basic commodities and high prices.
He accused local manufacturers of over pricing their products but also said the government, through the National Incomes and Pricing Commission, must come up with fair prices.
He said: "This will help consumers because we are facing shortages at home and the only viable option now is to allow them to import without paying duty. Another point is that locally manufactured products are too expensive. The prices of some products here are as much as five times more expensive than in Botswana".
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