Competition Commission to probe impact of SI64

Published: 28 September 2017

THE Competition and Tariff Commission (CTC) says it will shortly embark on a comprehensive survey to measure the effect import restrictions introduced in June last year have had on local industries.

Isaac Tausha, an analytical research officer at CTC, told The Financial Gazette last week the statutory body would in October start conducting research to establish the benefits that have accrued to the local industry following the import ban.

"The survey will start in October," Tausha said. "We will be seeking to find out what effect SI64 (Statutory Instrument 64) has had on local industry… on capacity utilisation, on employment levels." He said they would "check with manufacturers and retailers to see what impact it has had."

Last year, the Ministry of Industry and Trade banned the import of several products under Statutory Instrument 64 of 2016, Control of Goods (Open General Import Licence) (Number 2) (Amendment) Notice, 2016 (No.8).

At least 100 products were affected by the import ban.

Government said its intervention was meant to protect domestic industries, which have been failing to stand competition from cheaper and higher quality imports.

Products that have been removed from the open general import licence include fertilisers, plastic pipes, wheel barrows, roofing frameworks, tinned fruits and vegetables, dairy products, furniture, coffee creamers and petroleum jellies.

Previously, government had gazetted a ban on the importation of batteries, candles, floor polish, tobacco twines, second-hand clothing, blankets, 23 pharmaceutical products, milk, potatoes, onions, biscuits, sugar, poultry, meat products and yeast.

Tausha said the main challenge the body faced was that most players in the private sector were reluctant to make available data when visited by officials from the commission.

The regulations strained trade relations between Zimbabwe and its trading partners, particularly South Africa and Zambia, whose firms were benefitting by exporting into Zimbabwe.

According to the CTC, in the past few years, Zimbabwe has experienced a surge in imports, which are causing serious injury to its domestic industries.

"This is manifested through such economic indicators as the decline in sales, profits, capacity utilisation, market share, employment among others. Companies have closed down as a result. The safeguard instrument can therefore be used to guard against de-industrialisation."

- fingaz