No to Ex-Jap, yes to mabhero

29 Jan, 2017 - 00:01 0 Views
No to Ex-Jap,  yes to mabhero Minister Bimha

The Sunday Mail

Howdy folks!

Government has a lot of explaining to do in the wake of its lifting of import controls which were previously imposed on second-hand clothing, commonly known as mabhero.

Industry and Commerce Minister Mike Bimha argues that “we cannot ban something when we do not have an alternative. People need to have an alternative if we are to say you cannot bring in clothes”.

Before the removal of second-hand clothes from the Open General Import Licence was imposed in 2015, Government was charging a customs duty rate of US$5 per kg.

Government then took a protective stance, arguing that the move would mitigate competition with the local industry as second-hand clothes were flooding the market.

It further pointed out then that the proliferation of second hand clothes were causing a reduction in the demand for locally produced goods, which stifles measures that were put in place to resuscitate the local industry.

But another reason cited then by government, which I also considered to be more crucial, was that “used clothing and shoes present a health hazard to the citizens, since the goods may be imported without proper fumigation”.

What a remarkable concern for the gullible folks who may not know all these technicalities and may expose themselves to some diseases!

In taking that policy position, Government also announced that “any further importation of second-hand clothing and shoes will be liable to forfeiture and destruction”.

It made perfect sense — why would they allow confiscated second-hand clothes to be sold to Zimbabweans and expose them to “health hazards”?

Fast-forward 14 months, Government is singing a different tune: “We can only enforce when we believe that we have capacity … if we can’t, we might as well continue importing.”

In other words, let’s keep on importing more diseases as we finalise our fight with typhoid.

Why should capacity now come before health concerns?

And if Government is really concerned about both health and capacity, why not just say only new clothes can be imported?

But the question one might ask is: Why did capacity in the textiles sector remain constrained and operating at 20 percent despite the dozens of months of protection?

And what lessons can it give to the current SI64 which is enforcing some import controls on several products?

Well folks, when second hand clothes were banned, did you see mabhero disappearing in the city sidewalks and pavements?

No, it was business as usual.

They kept coming, as if it was nobody’s business.

Corruption won, at the end of the day, as tonnes and tonnes of mazitye kept on being smuggled through our bales after paying thirty pieces of silver.

To then say that the local textiles does not have capacity, when we are doing nothing about smuggling, is senseless.

Goods are moving freely and illegally at the border every day, which does not only pose a health and security threat to citizens, but also prejudices the tax man.

In the recently released revenue collection results, Zimbabwe Revenue Authority said “unwillingness to meet tax obligations by economic agents” was one of the reasons why the Authority failed to meet its revenue targets.

“If Zimbabwe is to develop, there is need for a paradigm shift in the way we view this obligation across the board”, added the authority.

But it doesn’t end there.

Government went on to make another ironic announcement — that it was crafting a motor vehicle policy that would remove the barriers to investment in the sector.

Minister Bimha was quoted saying, “Investors would like to know if there are any guarantees that they will have a market, because if we are to continue importing vehicles . . . there is need to come up with an acceptable arrangement that guarantees investment.”

It is a diplomatic way of saying: We are going to restrict the importation of second-hand cars because they discourage people who may want to invest in the motor industry.

It then manifests another case of double standards, whereby the textiles sector is now left vulnerable to extremely cheaper mabhero which we vowed to confiscate and destroy not long ago; while other sectors that do not impact on health deserve protection.

And we expect the sector to miraculously grow its capacity in that kind of environment.

How can players in the sector attract investment where there is no domestic market?

How do we then expect them to recapitalise?

Can textile companies that had closed down be revived to sell clothes for dollar muviri wese and compete out mabhero out of business?

Later folks!

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