FINANCE minister Mthuli Ncube on Wednesday used Statutory Instrument 10A of 2024 to remove the duty-free status on a number of essential products.

In May 2023, the government permitted the duty-free import of goods, including cooking oil, maize meal, milk, sugar, rice, flour, salt, toothpaste, washing powder, bath soap and petroleum jelly due to shortages and pricing manipulations that were speeding up price increases.

The administration argues that by lifting the emergency measures, it will preserve employment and make sure the nation has the foreign exchange that is vital to the growth of its economy.

Yes, to some extent this could be correct.

For instance, starafricacorporation reported that its subsidiary, Goldstar Sugars, experienced a 41% decrease in sales volumes of granulated sugar during the six months ended September 30, 2023, due to depressed demand caused by the influx of cheaper sugar imports, after the suspension of duty on basic commodities.

But one would ask: so, the government never considered the possibility that this policy would kill industry and jobs when they developed it?

Keep Reading

What has changed since then? This merely highlights the policy contradiction, whereby the fiscal authorities merely propose measures without first conducting a cost-benefit analysis, then modify them after significant harm has already been done.

It demonstrates that those in charge of our nation are reactive, narrow-minded, and lack a long-term perspective.

The return of duties on these goods also coincides with a global trend toward free trade, with Africa leading the way.

Zimbabwe ratified African Continental Free Trade Area (AfCFTA) on May 24, 2019, becoming one of the earliest nations to embrace the deal.

The agreement aims to create the world’s largest free trade area with the potential that brings together more than 1,2 billion people with a gross domestic product of over US$2,5 trillion and usher in a new era of development.

The main objective of the AfCFTA is to create a single continental market for goods and services, with free movement of business persons and investments, thus paving way for accelerating the establishment of a customs union.

Surprisingly though, the nation nevertheless embraces a variety of trade protectionist measures that go against the principles of free trade.

United Nations Economic Commission for Africa programme manager Batanai Chikwene told delegates at the Zimbabwe National Chamber of Commerce annual congress in June 2022 that trade protectionism policies work in the short-term, but as “we go, these policies will come short”.

Once more, we do not believe it is prudent to ban the duty-free importation of goods at a time the country is facing El Nino-induced drought.