{"id":77956,"date":"2023-05-17T21:55:26","date_gmt":"2023-05-17T19:55:26","guid":{"rendered":"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/import-duty-lift-wont-turn-zim-into-sa-supermarket-says-treasury-ps-as-he-blasts-wanton-price-hikes"},"modified":"2023-05-18T00:08:55","modified_gmt":"2023-05-17T22:08:55","slug":"import-duty-lift-wont-turn-zim-into-sa-supermarket-says-treasury-ps-as-he-blasts-wanton-price-hikes","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/import-duty-lift-wont-turn-zim-into-sa-supermarket-says-treasury-ps-as-he-blasts-wanton-price-hikes","title":{"rendered":"Import duty lift won\u2019t turn Zim into SA supermarket \u2013 says Treasury PS as he blasts \u2018wanton price hikes\u2019"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; Zimbabwe. <\/strong><\/span><b>By UK Correspondent<\/b><\/p>\n<p>ADDRESSING belated Independence celebrations at Zimbabwe\u2019s embassy in London last month Finance Minister Prof Mthuli Ncube reiterated a point the Treasury regularly uses as evidence that the country\u2019s economy is firmly on the mend.<\/p>\n<p>He said more than 70 percent of goods in Zimbabwe\u2019s major retail chains are locally produced which means local industry is now back to production and jobs are being created.<\/p>\n<p>This is in contrast to a few years back when the country was basically turned into a supermarket for South African manufacturers after the virtual collapse of local manufacturing.<\/p>\n<p>However, Treasury recently announced a lifting of import duties on basic commodities as part of a cocktail of measures aimed at stabilising the economy amid resurgent currency volatility and price increases.<\/p>\n<p>A similar decision was resorted to in May 2022, again in response to a spike in the prices of basic commodities.<\/p>\n<p>Responding to questions by newzimbabwe.com Finance Ministry permanent secretary, George Guvamatanga, said the new measures would not again turn Zimbabwe into a supermarket for South African manufacturers.<\/p>\n<p><b>RELATED:<\/b><\/p>\n<p>\u201cNot at all; it\u2019s a temporary measure to address wanton price increases by local manufacturers as well as limited supply of goods into the formal market,\u201d he said.<\/p>\n<p>He insisted that there was no justification for the recent spate of increases in the prices of basic commodities across the economy.<\/p>\n<p>\u201cWhat is the justification of pricing ZWL at a rate of 2,500 to 3,000?\u201d he added.<\/p>\n<p>However, industry cites the country\u2019s foreign currency challenges which forces companies to source money for imports from the parallel market where rates are more than twice the Reserve Bank of Zimbabwe\u2019s auction system which also has a huge backlog.<\/p>\n<p>But Guvamatanga said retailers had enough of their own foreign currency and did not need to resort to the parallel market or the RBZ auction.<\/p>\n<p>\u201cWith domestic foreign currency sales now over 80% of their sales, actually they (retailers) do not need the (RBZ) auction for their forex requirements.<\/p>\n<p>\u201cThey have enough forex at the &#8230; (so) there is again no justification (for the price hikes).\u201d<\/p>\n<p>Addressing a post-cabinet media briefing Tuesday, Information minister Monica Mutsvangwa also insisted that the import duty suspension was a temporary intervention.<\/p>\n<p>\u201cImport duty on the 14 basic commodities will remain suspended for six months in order to ensure their availability at competitive prices,\u201d she said.<\/p>\n<p>Industry has meanwhile warned that the move risks more harm than good to the country\u2019s economy.<\/p>\n<p>\u201cThe lifting of duties on the 11 products has more negatives than positives on the economy,\u201d Confederation of Zimbabwe Industries (CZI) president Kurai Matsheza told local media.<\/p>\n<p>\u201cThis measure means as a country we\u2019re outsourcing the production of those products, hence exporting jobs.<\/p>\n<p>\u201cWhile the intention is to protect the general consumer from the price increase, the general consumer will not be importing, it\u2019s small businesses and big to some extent who will be importing and then retailing in US dollars.<\/p>\n<p>\u201cThis deepens dollarisation as basic goods will only be available in USD.\u201d<\/p>\n<p><strong>For More News And Analysis About <a href=\"https:\/\/www.africa-press.net\/zimbabwe\">Zimbabwe<\/a> Follow <a href=\"https:\/\/www.africa-press.net\/\">Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Zimbabwe. By UK Correspondent ADDRESSING belated Independence celebrations at Zimbabwe\u2019s embassy in London last month Finance Minister Prof Mthuli Ncube reiterated a point the Treasury regularly uses as evidence that the country\u2019s economy is firmly on the mend. He said more than 70 percent of goods in Zimbabwe\u2019s major retail chains are locally [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":77954,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,12],"tags":[1493,2189,19],"class_list":["post-77956","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-policy","tag-africa-press","tag-africa-press-zimbabwe-2","tag-zimbabwe"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Import duty lift won\u2019t turn Zim into SA supermarket \u2013 says Treasury PS as he blasts \u2018wanton price hikes\u2019 - zimbabwe<\/title>\n<meta name=\"description\" content=\"By UK Correspondent ADDRESSING belated Independence celebrations at Zimbabwe\u2019s embassy in London last month Fina ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/import-duty-lift-wont-turn-zim-into-sa-supermarket-says-treasury-ps-as-he-blasts-wanton-price-hikes\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Import duty lift won\u2019t turn Zim into SA supermarket \u2013 says Treasury PS as he blasts \u2018wanton price hikes\u2019\" \/>\n<meta property=\"og:description\" content=\"By UK Correspondent ADDRESSING belated Independence celebrations at Zimbabwe\u2019s embassy in London last month Fina ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/import-duty-lift-wont-turn-zim-into-sa-supermarket-says-treasury-ps-as-he-blasts-wanton-price-hikes\" \/>\n<meta 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