Starafrica corporation says it will continue to engage the Government to find a lasting solution to protect Zimbabwe's sugar value chain against the growing threat posed by the influx of illegal sugar imports.
Illegally imported refined sugar continues to filter into the domestic market despite the repeal by the Government of Statutory Instrument 80 of 2023, which came into effect on February 1, 2024, allowing sugar imports.
Local sugar manufacturers are confident that the reinstatement of import duties on imported sugar will be effectively reinforced, and bolster the conditions of the domestic market significantly.
"The business, through the Zimbabwe Sugar Association, will continue to engage the authorities to find a lasting solution to protecting the local sugar value chain from sugar dumping by regional producers," starafrica corporation chairman Dr Rungamo Mbire said in a statemement accompanying the group's half-year financials for the period to September 30 2024.
Zimbabwe's sugar companies believe there will be no justification for duty-free sugar imports in the current and forthcoming years if robust sugar production is maintained, including strong milling performance.
Zimbabwe Sugar Association secretary general Ms Tracy Mutaviri recently highlighted the challenges facing the industry despite the country's adequate supply from domestic manufacturers.
This includes unfortified sugar imports from neighbouring countries and beyond that continue to infiltrate the local market.
She said while SI 120 of 2016 mandated that all sugar must be fortified with vitamin A, unfortified sugar continued to be imported into Zimbabwe, undermining local efforts to enhance product quality and safety.
"We have an unfair competition of unfortified sugar imports, Zimbabwe is one of the nine countries in the world that fortify sugar, and we do that for US$9-10 dollars per tonne, so if you open borders and allow for non-fortified sugar you are putting us at a cost disadvantage, why are we importing, we need to contain the circulation of local funding within the country.
"We have handed over names and locations of where smuggled sugar is found but nothing has happened and we wonder why," said Ms Mutaviri.
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starafrica corporation achieved a significant turnaround during the half-year period, after reporting a profit of ZiG25, 6 million, compared to a loss of ZiG86, 9 million in the same period the previous year.
The company's turnover for the reviewed period saw a 37 percent increase growing from ZiG381,8 million to ZiG523, 9 million.
This growth was attributed to a substantial rise in sales volumes, which was further complemented by strategic cost-optimisation initiatives implemented throughout the organisation.
