LIVINGSTONE MARUFU
Zimbabwe will procure drones during the first quarter of 2022 as part of efforts to scale up the fight against smuggling at the country’s ports of entry.
The Treasury is in talks with the Zimbabwe Revenue Authority (Zimra) to purchase over US$2m drones amid concerns that the country is losing billions of US$ through porous borders.
Finance and Economic Development minister Mthuli Ncube told Business Times that smuggling has made the local industry uncompetitive as the smugglers sell goods at very low prices.
“We are at an advanced stage of procuring surveillance drones that will be used at all ports of entry to reduce smuggling and underhand dealings. After the procurement is done, Zimra will enforce controls to avoid importation of restricted or prohibited goods through the Electronic Cargo Tracking system (ECTS) and the system uses GPS/ GPRS technology for tracking,” Ncube said.
He said Zimbabwe can reduce but cannot destroy smuggling as there are some well knitted syndicates which involve the enforcers.
It is believed that the syndicates include foreign nationals, some police officers and Zimra Customs and Excise officers. Zimbabwe could be losing over US$500m through tax evasion of smuggled basic goods into the country.
A number of foreign nationals who run downtown tuckshops smuggle tonnes of goods every day.
The authorities have placed high taxes on restricted goods to promote local industry but the downtown informal traders saw smuggling as a lucrative deal to supply cheap products at an affordable price.
One of the most affected producers, Detergents Manufacturers Association (DMA), said US$18m could be externalised out of Zimbabwe through the purchasing of the Maq washing powder in South Africa.
It has been established that some foreign nationals, who come under the banner of investors, own the majority of the downtown tuckshops involved in basic goods smuggling.
Millions of unbanked foreign currency circulates in the small area of downtown with authorities remaining silent on the issue.
DMA said there is blame game involving Zimra, the ministry of industry and commerce and the finance ministry over who should help them bring culprits to book.
However, Ncube said the government will take appropriate action against the perpetrators.
“If we do our investigations and find that goods have been smuggled into the country, we will confiscate those goods or destroy them as well as revoke the dealer’s licence,” the Treasury boss said.
