Smuggled Zim products flood Mozambique
Ray Bande recently in Chimoio
A variety of smuggled products, mainly foodstuffs manufactured in Zimbabwe, are awash but selling at a higher price on the Mozambican informal market.
Items that include Dairibord of Zimbabwe-manufactured Steri Milk, Mazoe Orange Crush, Knorr soup, buttercup margarine, vim, chili and detergents, among many others, have literally flooded the Mozambican informal market, especially in areas near the border like Manica and Chimoio where they are selling at a relatively higher cost compared to the local prices.
While some players in the informal sector hoard goods, transport them to Mozambique through illegal entry points, investigations revealed that most of the products are smuggled into Mozambique by employees of producing companies working in cahoots with hired couriers using illegal entry points along the porous border.
In fact, some of the products are in short supply in local supermarkets and retailers as employees of producing companies hoard for ‘‘export’’ before local retailers can access the items.
Interestingly, the trend, which is a result of the porous border, is a direct opposite of the era of biting food shortages in the country when basic groceries were being sourced from neighbouring Mozambique.
A visit on the other side of the border revealed that most of the goods are being smuggled through illegal entry points.
Nando Mustafa, a Mozambican trader, who runs and survives on proceeds from a tuckshop in Chimoio, said products from Zimbabwe are selling fast hence the relatively higher price.
Apart from competing well on their market, he said they are easily accessible.
“We have people that cross the border to get these products for us at a cost. However, they make it easy for us since some of the goods are actually delivered on our doorstep.
“At times, however, we also make an effort to get what we want on our own. Personally I know the routes and I can cross when there is need.”
In most of the makeshift outlets that sell groceries, 1kg buttercup margarine costs 220 metical, an equivalent of about $7 given that 30 metical is equivalent to about $1.
1kg buttercup margarine normally costs an average of $6 on the local market.
One litre of contemporary opaque brew known as Super, which is brewed by Delta Corporation subsidiary Chibuku, costs an equivalent of $1.50 while the same product costs $1 on the local market. 750 grams vim costs 70 metical while the same volume of Jik bleaching agent goes for 65 metical.
Knorr Usavi mix costs 15 metical and a 175ml chili bottle goes for 65 metical.
A bottle of Steri milk costs 50 metical while Mazoe Orange Crush costs 100 metical.
Although official comments from companies manufacturing products that are being smuggled into Mozambique could not be obtained at the time of going to press, Confederation of Zimbabwe Industries (CZI) national vice-president Mr Henry Nemaire said the issue of porous Zimbabwe/Mozambique border has taken long to be redressed.
Mr Nemaire said the products manufactured in Zimbabwe but are now awash even on the Mozambican informal market represent part of the $2 billion in the informal sector and never finding its way to the bank.
“Yes, we are aware that there are numerous products manufactured in Zimbabwe that are on the informal market in Mozambique and we strongly believe it is a result of the porous border between the two countries.
“We have long engaged Zimra on the issue of the porous border, but there is little, if anything, that has been done to bring a lasting solution to it.
“The tragedy is that the money does not find its way to the formal market, or the bank. The products go out through illegal entry points and it is a loss to the fiscus. There is no revenue that is generated for the fiscus through such transactions.
“These are some of the reasons why we will continue having the liquidity crunch that we are talking about,” he said. Manica Post
