Zimbabwe News and Internet Radio

Zim losing $2,5bn annually to smuggling

Zimbabwe National Chamber of Commerce CEO Christopher Mugaga
Zimbabwe National Chamber of Commerce CEO Christopher Mugaga

In an analysis of Zimbabwe’s thriving informal sector, which is apparently riding on the back of porous ports of entry, ZNCC said the country’s comparatively high taxes and the prevailing foreign currency shortages have made the illegal importation of goods more lucrative.

This comes as government has imposed protectionist policies such as the Statutory Instrument 64 in a bid to protect the uncompetitive local industry, but the measure has fuelled smuggling.

Rampant corruption has also aided the illegal importation of the goods.

“Smuggling costs the country not less than $2,5 billion per year,” said ZNCC chief executive Chris Mugaga in a presentation at the Buy Zimbabwe retailers and suppliers’ conference last Friday.

“In coming up with the $2,5 billion, we looked at a number of variables that include the ease of doing business, trade across boarders as well as the rate of unemployment versus the country’s GDP,” he said.

“You will realise that Zimbabwe’s import bill declined by more than $1 billion not because we are importing less.

“The very products that S1 64 and other protectionist measures sought to remove are still very much on the market.

“It points to goods no longer coming through the formal channel.

“This channel is the informal sector driven by unemployment.

“According to official figures we have an unemployment rate of around 11 percent.”

Persistent foreign currency shortages which are forcing retailers to get the elusive United States dollar from the black market at high premiums, was also fuelling smuggling.

Only last week, illegal imports of alcohol worth 20 million Namibian dollars were seized by Namibian customs officials at Walvis Bay and subsequently destroyed.

According to a Namibian newspaper, intel communicated through a global customs network resulted in the discovery of the counterfeit consignment, which was on its way to Zimbabwe.

The consignment was allegedly shipped from the United States via Dubai to the port of Walvis Bay.

Namibia was meant to be the transit point.

A lawyer representing multinational beverages giant Diageo, which is the trademark holder of Johnny Walker and Smirnoff in South Africa, Paul Ramara, said legal action will be taken against the “counterfeiter” in Zimbabwe, as well as the South African clearing agent at Walvis Bay. Daily News

  • Smuggling is going increase in the face of price controls!! Just wait and see

  • There’s no lost fiscus when poor people smuggle for survival. It’s good when it feeds the poor than ending on fat cats pockets.

  • Hatisati tatanga

  • It’s how we feed our families

  • I would do it over and over again if it feeds my family, until industries are allowed to open and give us Jobs.

  • How about the millions more wasted on a useless govt

  • Leave them alone you black colonilist

  • We are on a learning process, if graduated u will lost 5b

  • they must reduce their duty first

  • Is it based on facts and figures

  • Common sense says if you reduce duty you might have a chance to win the war against smugglers but you busy tryna punish us…

  • Big up to all smugglers….

  • Munhu auya ne 1 litre yemafuta yaatenga 1.50 yotorwa iko ku kushop 5 dollars

  • 15 billion makaiseip

  • Ok

  • Ok

  • Mukomana

    “For out of the heart come evil thoughts—murder, adultery, sexual immorality, theft, false testimony, slander. These are what defile a person…” Matthew 15:19-20 (NIV)

  • Lower the charges at border posts to reduce smugling

  • Solutions please

  • I am still remember years 2007 2009 upto now nothing change mr chris mugaga we need action kwete kungotaura no results this country is dying my dear

  • How do u rocket scientists know?

  • What is duty? Its a, hefty fine for pleading guilty that I have bought from another country

  • Mina Makoti

    Iyoyo ndiyo ye waone kuite nyaya. Kom15 billion yakatsakatika mubvunza here? Mwataura ne zvayo here? Chinoite kuti smuggling iswike kwese uko mwatsvaka here. Just targeting the low-hanging fruit. Kwira kumunengeza uko tikuone!

  • Hw were these figures arrived at?

  • It’s better than letting the money fall into the hands of ZANU Pf government because nothing will benefit an ordinary Zimbabwean. At least in smuggling families survive jobs are created police survive and Zimra officers also manage to buy second hand cars…

  • Smugglers are better because there are no jobs in Zim, They must be worried about the 15 Billion which disappeared WITHOUT TRACE.

  • That’s a lie!!!

  • I dont see how they loose its not like zvunu zvwavo zvwasmuggliwa

  • soo what??? who the fuck is Zim ohhhh!!! u mean Zanu PF

  • I wish you revisit your local pricing regime. It’s as if we are still using bearer cheque currency.

  • tee cee

    11% unemployemnt rate kasi hamusikutaiura about zimbabwe

  • Ower

    Article in South African newspaper recently

    “A video has emerged of President Robert Mugabe’s youngest son, Bellarmine
    Chatunga, pouring champagne over his ‘expensive watch’ while his brother
    and other friends party.

    Music blares in the background, and there is a short glimpse of Mugabe’s other son, Robert
    Junior with his arm draped around a young woman, apparently at a night
    club or bar in Sandton, where the brothers are currently based.

    Then the video turns to Bellarmine and another unidentified person pouring champagne
    from a bottle of Armand de Brignac gold over their watches.

    The champagne sells for several hundred US dollars per bottle.

    It wasn’t clear if the watch doused in the sparkling wine was the same one that Bellarmine
    posted a picture of on his Instagram feed recently with the caption:
    “$60 000 on the wrist when your daddy run the whole country ya know!!!”
    Suppose the smuggling is being referred to the ordinary struggling people ??? while the top brass children apologies brats are enjoying the high life questions need to be asked