In a desperate move meant to force the Zimbabwean dollar on the economy, the Ministry of Finance has revoked the suspension of duty on imported oranges that Beitbridge Juicing Pvt Limited enjoyed after its parent company Schweppes started charging Mazoe Orange Crush products exclusively in US dollars.
This comes at a time when Zimbabwean manufacturers and retailers are dumping the Zim Dollar as the local currency continues on a free fall. Manufacturers are arguing that their suppliers are pressing for such demands.
Yesterday (Monday) beverage manufacturer Schweppes received a stern warning from the government for charging exclusively in US dollars.
“Treasury however notes that the pricing of your products is now exclusively in foreign currency, notwithstanding Government’s initiative to promote use of the local currency.
“You will be aware that beneficiaries of tax incentives are expected to compliment government’s interventions with responsible pricing models with a view to ensuring affordability of goods which is key to achieving the Government’s developmental objectives.
“In view of the above, I wish to advise that pending conclusion of investigations on your pricing model, the suspension of duty has been revoked.
“In this regard , all new imported consignments will with immediate effect be liable to duty at prescribed rates,” read part of the letter signed by Finance Permanent Secretary George Guvamatanga.
Analyst Pride Mkono blasted the government for giving such exports incentives to big companies while neglecting small producers including smallholder farmers.
“This is the direct consequence of running the economy on nepotism and underhand dealings. Such a scandalous order was preferentially given to a company run by elites who care only about profits through speculative pricing.
“Instead of focusing on big corporations, incentives should be given to producers, especially smallholder farmers to increase their production in the medium to long-term,” he said.
“However, the tone of the letter shows a government also desperate to force the local currency on the economy when it has been rejected. Producing soft drinks requires more than just the fruits and all those ingredients need foreign currency to purchase.
“The reason why the government is clutching straws is that it wants to continue paying workers in the moribund currency and nothing more,” Mkono added.
Mazoe is now importing oranges . Kunzima sure
Keepwell Zuzumbe am surprised toooooo
Hahaha people like Mugabe and Bright Matonga destroyed citrus plantations
Keepwell Zuzumbe kana ndimiwo????🙆♀️🙆♀️😢😢
Good move
stupidily, means repeat and repeat again and again, what you did yesterday and today, cowboy economic, fembera fembera, economy,how many times did citizens told you to resign mr magudya
Wellington Kwaramba…it is never about personalities at the helm of the RBZ. #RGM said Leonard Tsumba was too bookish. Meaning lacking the practical approach to solving the mess of the 2000’s. In came Gono, and now Mangudya. Saka. The issue is the environment around. There usd must cease being a medium of exchange, because our economy is small that we cant all access usd when needed. That is the main issue. There is always a run on demand for usd daily hence the rate keeps going up. All goods and services MUST BE BOUGHT USING USD. The hhuge usd exporter balances sitting in nostro accounts must be circulated within the economy. What is the point of boasting of huge usd reserves when there is no commensurate access to loans based on those reserves to spread and create national wealth?
Importing oranges, what happened to our citrus plantations
Tonderayi Majeke They cut the trees and planted maize during the infamous land invasions. Irrigation pipes were sold as scrap metal.
They were opened to Zanu pf scavengers. At one time in Chegutu everyone was selling oranges
Tonderai Majeke…whatever is in the history books regarding citrus is just that. History. As a matter of fact, Schweppes is actually producing more hence its demand for more oranges. Schweppes never said they are bankrupt. They have the dollars and are expanding their customer base. Rather you should be urging policy makers to increase local production of citrus. Just as tactically we need to strategically leapfrog production of industrial hemp while reducing tobacco hectorage. Soya beans is another problem, area.
Remember we are now exporting to China, and Russia as always and Dubai. That move will take away from the Schweppes supply base. (and do not think for a moment the oranges at Mazowe were ever adequate for Schweppes). It is a brand second only to Vic Falls.
Maurice Maswiswi u sound like Zanupf dictator trying to screw our brains unopenga
Tonderayi Majeke Nottingham Plantations can supply ten such companies. Located in Beitbridge West..but they are exported.
Owethu Lele..you screw women, not brains. What are you smoking? Mutoriro? No wonder!
Maurice Maswiswi ko duzvi iduzvi
Tonderayi Majeke akatorwa nevakomana nd they failed just to mantain kkkkk
Hubby FH Dube Doesn’t make sense, are we not importing the same stuff we are exporting.
Maurice Maswiswi Don’t run away from reality Sir. Zim has capacity to produce more than enough oranges for our industry and the infrastructure is there. Find out why that infrastructure is being underutilised. You may be surprised to find out it’s already vandalised and needs rehabilitation.
Tonderayi MajekeTonderayi Majeke yaa. I worked at the farm…from April to August about 4 trucks cross into SA to be sold together with oranges from other farms there to Europe.
Tonderayi Majeke there is a police camp inside the farm ,police are provided with everything. It has protection from ZANU of course
Tonderayi Majeke its there
Hubby FH Dube yah which means they get good money
Tonderayi Majeke after 20 years they reach maturity hama hazvirambi zviripo zvinokurawo.
Tonderayi Majeke just drove to Bindura recently citrus farms along the way I’m perplexed to read this importation of oranges no wonder why we are suffering Zanu pf doesn’t want anything locally produced.Those in Harare can testify about how oranges are flooded outside town
Tim Changai unonyepa
Owethu Lele ok
Ska murikuti nyika haina enough oranges😂 here
3 big learned fools. You are being used ne bato. You are riding the wrong horse. You can not win any race.
Isaiah ² verse½
Saka makuto importer maorange futi????? Useless beings nxaaaa 😢😢😢😡😡😡
Problem haisi pa duty rema orange problem ikumunhu akatora munda wema orange nenzimbe gadzirisai ipapo zvobatsirei kutsvaka na votes evanhu 200 vanhu 12 million vachitambura imi vadhara chimbomirai kudzungaira mhani vharai zvikoro zvingo zikwanwa kuti tirima dofo tiwane excuse
Silly people masquerading as genuine patriots
So we now importing oranges and it’s all thanks to zanu pf for destroying our once vibrant farms😏😎
Victor Dlamini choicew have consequences people elected criminals
Zanu pf knows what happened to our fruit trees
The headline is desperately misleading. Zimbabwean zwl is the bonafide currency. Lawful and legal. Similarly the GOZ legalized the multi-currency regime. The GOZ is not foistering the local currency, but just asserting what ought to be. Whatever the rate, the ZWL is and must be accepted. The kwacha was never abandoned in Zambia despite it horrid economic meltdown in the 70’s and 80’s following the crush of their main export commodity-copper on the LME. Malawi still maintains its Kwacha. In fact nearly all countries in Africa maintain their currency. The reasom is simple, you cant botjh produce and sell a good using usd$. Your product becomes uncompetitive regionally. What is of essence in this economic debacle is to look at ways of stabilizing the local currency. All fundamentals are aligned in Zimbabwe, hence the problem is behavioural. A heavy handed approach by the state (eg price/rent controls) will not be good for anyone. The first step is clearing the backlog of forex receipients from the auction floors. The second is to make the fuel retailers accessing usd for importation of fuel to charge in zwl. The promotion of the use of zwl will shore up the currency and eliminate loss of purchasing power for the majority of workers who earn their salaries in zwl.
Maurice Maswiswi quite easy to do on paper
Maurice Maswiswi The bond note and RTGs are not a currency,Zim does not have a currency.
Maurice Maswiswi th kwacha did not completely collapse to the extend of ditching and then have to resurrect it ichi chipoko ichi
Makwasha Madzure…the naira is circa 150:1, and the shillings in East Africa, God knows. Of importance is not the number of zeros following, but the stability. Inflation exists and has been acknowlodged, thus it has to be tamed. One way is to increase interest rates as has happened all over the world. You increase beyond the official inflation rate. Our situation is quite unique in that it is a behavioural issue. There is no justification for price increases given that the productive sector accesses forex from government without undue hinderances, subsidized fuel, electricity, sometimes waivers on duty. Yet commercial entities still want to profiteer. A case in point is pharmaceuticals even in usd terms. A drug that was being bought at just 1usd last year is now at usd6. That is madness of the highest order. Fine, you advocate for complete dollarization. The consequences immediately felt for the common man are a rush at the ATM’S. people will queue for days at the banks because our economy has no sufficient capacity to use usd as both a means of transaction and a store of value. #2. There will be a severe curtailment of the productive capacities which has been increasing year on year. There will be massive layoffs and a sudden halt in all projects. Farming will cease, as it will be cheaper to just import, meaning creating jobs for SA’ns who dont like us. Witness what happened between 2009-2017. We ended up producing nothing of note but with the only satisfaction that ‘we eat dollars’….in a messed up policy measure as you are advocating for, zimbabwe just becomes one huge glorified supermarket for Foreign goods. Bad economics. The facade is that you import and import and within a year no one has money anymore. Caveat….it is never the rich who suffer (regardless of political persuasion/religious beliefs/racial composition). It is the Poor. So why ditch a currency when you know the ramifications?
Come 2023 mbavha dzose and zanu Pf must go. CCC mu office ngaapinde hake mkomana
No problem – they have a new curency of gold coins with bubblegum inside.
Kana mazogara Pulpy inonaka #Toitenga ne zwdl
Mangudya uri duzvi
Hnt miti yese yemaorange yakaitwa huni nemawar vet saka maiti msasa ndoichabereka maorange
Forster Gomba chokwdi ku Sigodini yakawoma ndakatarisa
Dennis KhumaloDennis KhumaloKhumalo kkkkkkk saka tomawanep maorange acho ngavatengese nema us
Ko muno hamuchina maOranges here vakomana
But why government sell fuel in USD. That encourages USD usage at the expense of the local currency. Simply reign on your black market,you know the culprits bankrolling money changers, prosecute and send to prison,the problem will end.It is that simple when your hands are clean
Jeremaih Mabhena hard currency is needed when importing and no alternative as FOREX is scarce in this case.
Francis Chitana Forex is not scarce,it’s under the pillow,this is so because of the orthodox economic methods applied by those in power
Jeremaih Mabhena no bro they can’t do that cause it would be like a Kindom fighting it’s self
how can they arrest themselves？
Dennis Khumalo true
Robert Washaya That’s why they are not acting and pointing fingers to the wrong direction…they know they are the problem
Jeremaih Mabhena You are right. Everything should be sold in local currency.
Jeremaih Mabhena some of them are money changers, they employ those money changers, that’s why uchitanga kuona ma new bank notes akazara mu street so they can’t prosecute and arrest themselves kkkkkk haa. At one point instead of releasing COVID funds in $US they stole the money and converted it to rtgs, vakazopa ma Civil servants mhepo inonzi rtgs.
You are talking of kwacha currency ye zimbabwe ndeipi? Agro cheque here? Travellers cheque here? Bearers cheque here? Bond coin here? Bond note here? RTGS here? Gold coin here? We have a serious leadership crisis here hapana zvozikamwa confusion yoga yoga
Hapana hapana
Vakakunetsa vatize sezviya😃😃😃
Maurice maswiswi don’t compare HH nezvidhori zvatinazvo izvi HH policies are SMART
Ko zvamunoimporter cement dombo racho harimo here, kungoda kushora shora, kuita mbiri yokushora, demand ndoyakwira ka saka