Zim border chaos

Chaos erupted at Zimbabwe’s borders recently as all import and export permits were withdrawn and new ones issued. Loaded trucks were at a standstill, unable to proceed, Kingfisher Freight MD Alwyn Nel told FTW. The Zimbabwean government introduced new import and export licences with special security features on selected goods late last month in an effort to “curb rampant corruption and smuggling through Zimbabwe’s borders”. Another transport operator told FTW anonymously that this was yet another example of new rules and regulations that weren’t properly thought through. “Zimbabwe citizens rely heavily on imported goods from South Africa, which include essential products such as food. Ridiculous regulations, which largely hamper the compliant traders, are just going to force exporters to seek other markets and leave Zimbabweans wanting.” He also speculated that this would lead to further corruption by creating another reason to extort money. The country’s industry and commerce minister, Mike Bimha, said in a statement that local industry was being negatively affected by cheap imports into the country, some of which were being smuggled through the country’s borders. “There are a number of fake import and export permits in the country, which are affecting our industry. As a consequence, my ministry has given a directive that all import and export licences have to be renewed so that new ones can be issued that have special security features,” he said. The minister said anyone wishing to import the selected item would be obliged to apply for an import licence from the ministry. He added that the ministry was also working on a number of interventions to protect local industry such as supporting local manufacturers by removing duty on raw materials and reviewing tariffs and duties with a view to restricting some imports coming into the country. According to Bimha, Zimbabwe’s trade deficit is expected to widen this year with statistics showing that the import bill so far is US$8.3 billion against exports of $5 billion while imports for last year were $7.6 billion against exports of $4.43 billion.