‘Joint effort needed to combat smuggling’

CLOUDINE MATOLA

Dr Thomas Utete Ushe, permanent secretary of the Ministry of Industry and Commerce, has issued a decisive call for collaboration between government authorities and the business community to confront the growing menace of smuggling and counterfeit goods.

Warning that these illicit activities pose a ‘serious threat to the health and well-being of our citizens and the economic future of this country’ Dr. Ushe emphasized that only a united, strategic effort can effectively root out such practices.

This partnership is vital to protect both the public and the economy from the far-reaching consequences of illegal trade.

These illicit activities, Wushe warned, are undermining Zimbabwe’s efforts to stabilize its economy, protect public health, and ensure long-term economic growth.

Speaking at the CEO Africa Roundtable banquet held in the capital last week, Dr Wushe said:  “Smuggling and counterfeit goods are a serious threat to the health and well-being of our citizens and to the economic future of this country. These issues are so critical that they must be addressed with urgency,” Wushe said, stressing that both businesses and government must work together to root out these illegal activities.

The smuggling crisis in Zimbabwe has far-reaching economic consequences.

First and foremost, it undermines government efforts to collect taxes and generate revenue. Smuggled goods bypass customs duties, depriving the government of essential income that could otherwise be used to fund infrastructure projects, social services, and economic development initiatives.

Wushe revealed that as much as 17% of the country’s Gross Domestic Product (GDP) is lost to smuggling, much of it flowing into the informal sector where it is difficult to track or regulate.

“This leakage is a massive drain on our economy. Smuggling not only robs the government of vital tax revenue but also creates an environment in which legitimate businesses struggle to compete. The informal sector thrives at the expense of formal businesses, and this imbalance must be addressed,” Wushe stated.

The informal sector, which is not subject to the same regulatory oversight as the formal economy, is rife with unregistered businesses that trade in illicit goods, contributing to Zimbabwe’s economic instability.

The widespread presence of counterfeit goods also damages consumer trust in locally produced products.

Many of these fake products are substandard, posing serious risks to public health. Counterfeit foodstuffs, medicines, and household goods undermine consumer confidence in the marketplace and jeopardize the reputation of legitimate local producers.

“Consumers who buy counterfeit goods are often unaware of the dangers they face. These products are often harmful and fail to meet basic health and safety standards. We cannot allow this situation to continue,” Wushe emphasized.

Wushe’s address also highlighted the importance of boosting local manufacturing as a way to combat the rising tide of smuggling.

He argued that Zimbabwe must prioritize domestic production of goods to reduce reliance on imports, curb smuggling, and create jobs for local workers.

“We need to start manufacturing locally. We must produce our own food, our own shoes, our own household goods. This is the only way we can grow as a nation and reduce our dependency on imported products,” Wushe urged.

The government, he stated, has made strides in this area through the launch of the Zimbabwe Reconstruction and Growth Plan (ZIRGP) 2024-2025, which is focused on enhancing industrial capacity and fostering local production.

By shifting the focus from simply importing goods to prioritizing local production, Zimbabwe can strengthen its manufacturing sector, create jobs, and reduce the volume of smuggled goods entering the market. Wushe stressed that local manufacturing is not just about economic growth but also about ensuring that Zimbabwe has the capacity to produce its own essential goods, thereby safeguarding national interests.

“We must stop thinking of trade as the only solution. Trading imported goods will not help us grow. We must formalize our industries and focus on manufacturing if we are to secure a prosperous future,” he added. This strategy will not only address smuggling but will also support sustainable economic growth by reducing the country’s reliance on foreign imports.

In addition to calling for action against smuggling, Wushe stressed the importance of collaboration between the government and the private sector. He emphasized that achieving long-term economic growth in Zimbabwe will require the private and public sectors to work in unison, with both playing complementary roles in fostering industrialization and economic recovery.

“The government and the private sector must now be one. We share a common future and a common objective: economic growth. The days of working in isolation are over. We must work together to achieve our goals,” Wushe declared.

Wushe’s call to action is not just about curbing smuggling, it is about reshaping Zimbabwe’s economic landscape. While the challenges of smuggling and counterfeit goods are significant, they also present an opportunity for businesses, government agencies, and consumers to come together to create a more resilient, self-sufficient economy.

To succeed in this effort, Zimbabwe must adopt a multi-faceted approach. Strengthening enforcement mechanisms, cracking down on illegal trade routes, and improving the capacity of local industries are all critical steps toward curbing the smuggling crisis.

At the same time, the government must create a business-friendly environment that incentivizes local manufacturing and supports businesses in their transition to formal, regulated markets.

Wushe’s speech serves as a reminder that the fight against smuggling and counterfeit goods is not just an economic issue; it is a public health issue, a security issue, and a national issue that requires urgent attention from all sectors of society.

The road ahead may be challenging, but by working together, the government and private sector can begin to address these issues and steer Zimbabwe toward a more prosperous and self-reliant future.

Zimbabwe has the potential to become a leading manufacturing hub in the region, but this will require strong leadership, robust policy frameworks, and a collective commitment to reducing smuggling and counterfeit trade. Through unity and collaboration, Zimbabwe can overcome these challenges and build a more resilient economy for future generations.

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