Embattled Zimbabwe hikes import tariffs

Protectionist stance negates earlier promises, writes Martin Rushmere SOUTH AFRICAN consumer goods exports to Zimbabwe have again been the target of duty increases as Harare tries to protect local industry. Fruit juices, processed tobacco and clear beer are among those that have been hit with hefty increases (see table alongside). And in a bid to foster clothing manufacturing, duties on some synthetic fabrics have been decreased. But there have also been baffling rises in other clothing tariffs. No explanation has been forthcoming from the government. The Confederation of Industries says that while the cuts in tariffs are commendable, the whole point of the exercise is made worthless by increases. The private sector is generally hostile to the changes. Says a spokesman for Stanbic Bank, the foreign arm of South Africa’s Standard Bank: “As recently as September last year the Ministry of Trade and Industry had put together a tariff structure which broadly sought to lower tariffs and eliminate the complex per unit tariff structures, focusing more on the easier to administer ad valorem system. “The country’s regional trading partners may interpret the move as a harsh protectionist stance.” Zimbabwe has pledged to SADC and COMESA to eliminate all import duties. TABLE Item Old Tariff New Tariff Fruit Juices 40% 40% plus Z$10 per litre Selected Clothing 60% 60% plus Z$50 per kg Tobacco,clear beer 100% 100% plus uniform excise duty Matches 40% Z$4 per kg Calendars, trade advertising material, designs, photographs 40% 40% plus Z$0,50 per kg Selected artificial Reduced by 5 percentage points fibres Blankets 60% 60% plus Z$100 per kg