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Chronicle Writers
SCORES of traders operating at Haddon and Sly Building and Amaya Mall in Bulawayo’s central business district were locked out yesterday after the Zimbabwe Revenue Authority (Zimra) closed the premises as part of a nationwide blitz targeting smuggled goods and counterfeit products.
The operation, part of a multi-agency initiative, aims to curb smuggling and unethical business practices to safeguard local industries and consumer welfare.
The Government has undertaken the exercise to safeguard local industries and promote consumer welfare.
The multi-agency operation, which began two weeks ago, targets entertainment spots, liquor vendors and businesses trading in contraband, counterfeit products, or engaging in unethical practices.
Retail outlets and sprouting lettable shops are also subjected to impromptu inspections, where shop owners are asked to provide documentation proving their stock was imported legally.
Those failing to comply face steep fines and seizure of merchandise. Last week, KidsMart, a popular retail outlet in Bulawayo was closed by authorities only to resume operations days later.
Several night spots have also been temporarily closed.
Yesterday, a Chronicle news crew observed scores of Haddon and Sly traders milling outside the building with several security guards manning entry points.
In interviews, traders said they have lost considerable business while their clients have been inconvenienced.
They indicated they are in talks with Zimra officials to map a way forward.
The building houses mobile and accessory shops, gaming, electricals, salons, gift shops, clothing stores, and a restaurant.
“I trade in mobile phones and related accessories. I had clients who were meant to collect their handsets today (Tuesday) but when I came this morning, I found the building closed,” said one trader who declined to be named.
“While some clients understand the situation others are demanding their gadgets back.”
One trader said she had to refund some of her clients who had booked for hairdos.
“I was alerted by other traders that the building has been closed. So, I had to make arrangements to refund some of my clients. We have not yet been told when the building will be re-opened,” she said.
Zimra Commissioner-General Ms Regina Chinamasa said the ongoing initiative is meant to create an even playing field for economic players.
“This is an ongoing initiative, which we have just started. The minister of finance mentioned that all imported products will be deemed smuggled if they don’t have proper documentation.
“What we are doing is engagement to make sure that everyone complies with tax and duty requirements,” she said.
In terms of counterfeit products, Ms Chinamasa said there is an inter-ministerial task force that has been set to tackle the issue.
“There are fake medicines, fake beer, fake lotions, and fake clothes among other things. The task force is being led by the Ministry of Industry and Commerce. If those goods find their way into the country, we will get there and demand our dues in terms of tax and import duty,” she said.
“When we seize counterfeit products, we destroy them. This crackdown is meant to create an even playing field for economic players.”
Edgars Stores chief executive officer, Mr Sevious Mushosho, lauded the crackdown, saying it supports formal businesses while boosting Government revenue.
“This action by Zimra is welcome as it allows formal businesses to thrive while the Government earns more revenue. The informal sector is killing real business and not helping the Government fund development,” he said.
National University of Science and Technology (Nust) economics lecturer, Mr Stevenson Dlamini said the initiative reflects the Government’s commitment to enforcing tax laws.
“This initiative sends a strong message about the Government’s commitment to combating smuggling and tax evasion. This approach is likely to deter defiance of tax laws and encourage greater adherence to legal obligations,” he said.
In a recent statement, Industry and Commerce Minister, Nqobizitha Mangaliso Ndlovu, said the task force was geared towards promoting ethical business practices and safeguarding the economy.
“Government, through this task force, is utilising a whole-of-Government approach to address the rampant business malpractices, which have a negative impact on consumer welfare,” he said.
“Such malpractices also pose a very serious threat to the viability of our local manufacturing industry, thus affecting employment levels and job creation.”
Minister Ndlovu said the primary objective of the compliance inspections is to ensure businesses operate following established laws, regulations, and industry standards, thereby safeguarding consumer welfare and maintaining a level playing field for all business players.
Presenting the 2025 National Budget, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, decried the proliferation of smuggled goods in the market.
Speaking during discussions on the 2025 National Budget, Prof Ncube highlighted the adverse effects of smuggling on local production and revenue collection.
He said non-declaration of goods constitutes a criminal offence in Zimbabwe, encompassing items purchased abroad, personal belongings, and goods intended for commercial purposes.
“This national programme is targeting businesses engaging in practices such as using parallel market exchange rates and selling counterfeit, underweight, or unlabelled goods,” said Prof Ncube.
He said smuggling considerably hampers local production initiatives, disrupts value chains, and creates an uneven playing field between locally produced and smuggled foreign products, ultimately undermining Government revenue collection mechanisms.
He said as part of the crackdown, 24-hour roadblocks will be mounted along major highways leading into major cities, with multi-agency teams inspecting vehicles suspected of transporting smuggled goods.
Confederation of Zimbabwe Retailers (CZR) president, Dr Denford Mutashu, commended the crackdown as a measure to protect consumers and local industries.
“We are working with security services to make sure that sanity prevails. These smuggled goods are harmful to consumer health,” he said.
“As an association, we warn businesses that smuggling is an offence, they have to abide by the law. Any businesses found on the wrong side of the law must face the consequences.”
Dr Mutashu said smuggled goods such as electronics, detergents, and foodstuff, among others, are negatively affecting local industries.
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