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Regulation has put Zim at transformation forefront

Opinion
All importers of ICT products and services are required to obtain a valid import license.

ZIMBABWE has long been at the forefront of digital development in Africa.

It has established itself as a regional leader in information and communication technology (ICT) adoption and integration.

This position of prominence has been hard-won, requiring strategic policymaking, targeted investment, and a steadfast commitment to digital transformation across all sectors of the economy.

As the continent's digital landscape continues to evolve at a rapid pace, Zimbabwe recognised the need to re-evaluate and reinforce its regulatory framework governing the importation of ICT products and services.

I will examine Zimbabwe's ICT import regulations, the key drivers behind their implementation, and their impact on the country's thriving digital economy.

Over the past decade, Zimbabwe has experienced a remarkable digital revolution that has transformed its economic and social landscape.

Once lagging behind regional peers, the country has leapfrogged competitors to cement its status as Africa's leading digital economy.

The foundations of this digital ascent were laid through a series of strategic policy interventions and targeted investment programmes.

In 2010, the government introduced the Zimbabwe National ICT Policy, which outlined a comprehensive roadmap for harnessing the power of technology to drive socioeconomic development.

This was followed by the establishment of the Ministry of Information Communication Technology, Postal and Courier Services in 2013, dedicated to coordinating the country's digital agenda.

Substantial public and private sector investment in ICT infrastructure has been a crucial enabler of Zimbabwe's digital transformation.

The country has seen a rapid expansion of fibre-optic networks, mobile broadband coverage, and data centre capacity, ensuring robust connectivity across both urban and rural areas.

This infrastructure upgrade has been complemented by the proliferation of innovative digital services, from mobile money platforms and e-commerce solutions and e-learning applications.

As a result of these concerted efforts, Zimbabwe has witnessed a remarkable surge in ICT adoption and utilisation.

The country boasts one of the highest internet penetration rates in Africa, with over 60% of the population regularly accessing the internet.

Mobile phone ownership has also skyrocketed, with the majority of Zimbabweans using smartphones to conduct a wide-range of digital activities.

Zimbabwe's rapid digitalisation has brought about a host of regulatory challenges that the government has had to address.

The fast-paced evolution of ICT products and services, coupled with the increasing cross-border flows of digital goods and data, has exposed gaps and vulnerabilities in the existing regulatory framework.

One of the primary concerns has been the uncontrolled importation of ICT equipment, software, and services, which has led to several issues:

Cyber security risks

The influx of unregulated ICT products has increased the country's exposure to cyber security threats, such as malware, data breaches, and infrastructure vulnerabilities.

Poorly secured or counterfeit devices and software have the potential to compromise national security and undermine public trust in digital systems.

Revenue leakage

The unmonitored importation of ICT goods and services has resulted in significant revenue losses for the government, as customs duties and taxes have been difficult to effectively collect and enforce.

Standards and quality concerns

The lack of comprehensive import regulations has allowed substandard or non-compliant ICT products to enter the Zimbabwean market, posing risks to consumer safety and product performance.

Unfair competition

Unregulated imports, including grey-market and counterfeit goods, have created an uneven playing field for local ICT manufacturers and service providers, hindering the growth of Zimbabwe's domestic technology industry.

To address these challenges and ensure the sustainable development of its digital economy, the Zimbabwean government has undertaken a comprehensive review of its ICT import regulations, culminating in the introduction of the new "Information and Communication Technology Products and Services Importation Regulations of 2023”.

The regulations represent a bold and comprehensive effort to streamline and strengthen the control importation of ICT goods and services.

The key provisions of the new regulations include:

Mandatory registration, licencing

All importers of ICT products and services are required to register with the Ministry of Information Communication Technology, Postal and Courier Services and obtain a valid import license. This registration process ensures that importers meet specific criteria, including financial stability, technical expertise, and adherence to national standards.

Product and service certification

Each ICT product or service intended for importation must undergo a rigorous certification process to ensure compliance with national and international technical standards, as well as cyber security requirements. The certification process is overseen by the Standards Association of Zimbabwe (SAZ) and the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz).

Restricted imports list

The regulations establish a comprehensive list of ICT products and services that are subject to additional scrutiny and import controls.

This list includes items deemed critical for national security, such as encryption technologies, surveillance equipment, and dual-use technologies.

Import quota system

To protect the domestic ICT industry and promote local manufacturing, the regulations introduce an import quota system that limits the volume of certain ICT products that can be imported without additional tariffs or restrictions.

Customs duties and taxes

The new regulations harmonise and streamline the customs duties and taxes applicable to imported ICT goods and services, ensuring a consistent and transparent revenue collection process.

Post-import compliance monitoring

The regulations empower regulatory authorities, such as the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) and the Zimbabwe Revenue Authority (Zimra), to conduct regular inspections and audits of imported ICT products and services to verify ongoing compliance with the regulations.

The implementation of the Information and Communication Technology Products and Services Importation Regulations of 2023 is expected to have a transformative impact on Zimbabwe's digital economy, strengthening the country's position as a regional leader in ICT adoption and innovation.

Enhanced cyber security

The comprehensive certification and compliance requirements for imported ICT products and services will significantly enhance the country's cyber security posture, reducing the risk of malware, data breaches, and infrastructure vulnerabilities. This will bolster public and private sector confidence in Zimbabwe's digital systems, fostering further investment and innovation.

Increased revenue generation

The stricter import controls and harmonised customs duties and taxes are anticipated to generate substantial additional revenue for the government, which can be reinvested into further developing Zimbabwe's digital infrastructure and supporting the growth of the local ICT industry.

Improved product quality and safety

The mandatory certification process and the restricted imports list will ensure that only high-quality, compliant, and safe ICT products and services are allowed into the Zimbabwean market, enhancing consumer confidence and protecting public safety.

Promotion of domestic ICT industry

The introduction of import quotas and tariff structures that favour local ICT manufacturers and service providers will create a more level playing field, enabling the domestic industry to thrive and compete on both the national and regional stages.

Strengthened regulatory oversight

The enhanced monitoring and enforcement mechanisms established by the new regulations will empower regulatory authorities to better oversee the importation and use of ICT products and services, ensuring continuous compliance and addressing emerging challenges in a timely manner.

Regional, international standards alignment By aligning its ICT import regulations with global best practices and standards, Zimbabwe is positioning itself as a reliable and attractive destination for international technology companies and investors, further solidifying its status as a digital hub for the African continent.

Zimbabwe's new Information and Communication Technology Products and Services Importation Regulations of 2023 represent a strategic and comprehensive effort to strengthen the country's digital economy, enhance cyber security, and promote the growth of its domestic ICT industry.

These regulations not only address the pressing regulatory challenges posed by the rapid digitalisation of the Zimbabwean economy but also position the country as a leader in responsible and sustainable technology adoption on the African continent.

As Zimbabwe continues to forge ahead on its digital transformation journey, the successful implementation and enforcement of these new ICT import regulations will be crucial in cementing the country's status as Africa s leading digital economy.

By striking a delicate balance between facilitating technology access and ensuring robust regulatory oversight, Zimbabwe is poised to reap the full benefits of its digital revolution while safeguarding its national interests and the well-being of its citizens.

  • Mutisi is the CEO of Hansole Investments (Pvt) Ltd. He is the current chairperson of Zimbabwe Information & Communication Technology, a division of Zimbabwe Institution of Engineers. — chair@zict.org.zw or 263 772 278 161.

 

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