Zim bans export of food

Fraser Mpofu
Correspondent | Friday July 25, 2008 00:00

 

Mpofu said although Zimbabwe has an obligation to meet certain regional export commitments, the domestic market came first and that his ministry was in the process of officially notifying governments in the region.

'We have trade protocols with our neighbours,' he said, 'but we are in the process of informing them that we are cutting exports. It does not help to export products that are not available in the country.'

The move is part of the government's initiatives to ease the effects of the economic crisis. At 2.2 million percent, Zimbabwe's inflation is the world's highest. Shortages of foreign currency and fuel have resulted in depressed industrial activity.

Mpofu said Zimbabwean products, which are not available locally but are found in supermarkets in countries such as Botswana, South Africa, Namibia and Zambia include Mazoe Orange Crush drink, cooking oil, sugar, and soft drinks. Zimbabwean-produced seed maize and fertiliser have been spotted in Lusaka and Livingstone in Zambia.

Zimbabwean sugar is available in large amounts in Namibia. 

To curb smuggling the products out of the country, Mpofu said the government would beef up security along Zimbabwe's borders.

He defended the drastic move as an established international practice, saying at some point Mozambique had stopped exports and resumed them only after satisfying its local market.

Zimbabwean manufacturers had come to rely on exports to circumvent price control in their country. The government accuses some producers of colluding with informal traders to illegally export their products into the region where they fetch good prices. This has contributed to a shifting of basic commodities from the formal market to the black market where the goods are expensive.

Consumers who have resorted to shopping in Botswana, Mozambique and South Africa end up buying Zimbabwean products from these countries.

The export ban comes two months after the Zimbabwe government removed duty on imports of basic commodities. The waiver, which expires next month, covers soap, cooking oil, margarine and rice, among others.

In addition, the Zimbabwean government last week unveiled an initiative known as the National Basic Commodities Supply Enhancement Programme under which the Reserve Bank of Zimbabwe will fund imports of basic commodities to be sold at designated outlets countrywide at highly subsidized prices. At the same media briefing, Mpofu spoke of the government's plans to capacitate local manufacturers. Foreign currency is being given to local food manufacturers such as Olivine Industries, National Foods and United Refineries for them to re-tool and boost their production capacities.

'We are giving foreign currency to identified industries to produce goods locally,' Mpofu said.

'Import resources will be directed at these companies so that goods are available in shops.'