Zimbabwe saved over $2 billion in potential import expenses following the introduction of import control measures under Statutory Instrument 64 of 2016, Vice President Emmerson Mnangagwa said yesterday. Government last year introduced SI-64, effectively banning the importation of certain products without prior clearance in a bid to support local industry, which had suffered from the influx of cheap imports.
VP Mnangagwa revealed this during the official opening of Hanawa Super Food’s $1,5 million potato crisp manufacturing plant in Harare. He said according to official information from the Ministry of Industry and Commerce, the country saved around $2 billion since the promulgation of the Statutory Instrument.
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“As Government, we see Hanawa as a success story of the import management programme, which enabled them to invest in the state-of-the-art equipment. I am told by the Ministry of Industry and Commerce since the imposition of SI-64 of 2016, the country has saved around $2 billion from imports, which is a great achievement. To date, several other companies have taken advantage of the Statutory Instrument to establish plants in the country, being assured that goods which are produced locally are not on the general import license. The implementation of SI-64 of 2016 has resulted in the resuscitation of a number of companies and the setting up of new companies in a number of sectors,” said VP Mnangagwa. The VP reiterated that Government was currently working on the formulation of a local content policy that is aimed at enhancing value addition through the utilisation of local resources and localisation of supply chains.
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“The LCP is an industrialisation policy strategy aimed at stimulating the production and consumption of locally produced goods through buttressing existing policy interventions and strategies such as the import management programme.” VP Mnangagwa said Government, after the success of SI-64, is currently working on initiatives to fund businesses in order to grow the economy.
“As Government, we will continue to provide a conducive environment that allows more investments, which stimulates economic activities by providing balanced policies for the establishment of a vibrant, competitive value chain. The Government has also in an effort to support investment enacted SI-6 of 2016 where capital equipment can be imported under rebate of duty. Furthermore, investors can also defer payment of VAT due on importation of capital equipment for a period of three months.”