The Sunday Mail
Livingstone Marufu
ZIMBABWE spent over US$600 million on food imports last year due to the relaxation of import licences, The Sunday Mail Business has learnt.
Government has allowed the importation of basic commodities to avert potential food shortages after companies faced serious foreign currency challenges.
Basic commodities like cooking oil, rice, cornflakes, spaghetti and macaroni, among others, gobbled over US$200 million.
Flour, snacks and milk squashed almost the same amount.
Porridge, cereals and other breakfast foods chewed up US$100 million.
Chewing gums, cat and dog food crushed a considerable amount.
However, most of these goods are being smuggled through the country’s porous borders.
The overall January to November import bill was US$4, 9 billion against exports of US$3, 4 billion, an increase of 40 percent on 2016 outbound sales.
Finance and Economic Planning Minister Patrick Chinamasa recently told the Parliament that, “As a country we have spent, almost $600 million that some of it had not been budgeted for in terms of securing and procuring food imports.
“Of which some of the goods that were imported were non-essentials.
“We accept that this time around we should re-look at that and try to save a great deal of foreign currency as we continue to spend more than we earn as a country.
“This is not healthy for our economy, that is why we always emphasise on production to increase the country’s exports earnings.”
Serious foreign currency shortage has forced Government to allow corporates and those with free funds to import as much as they can.
This has ballooned the import bill, which was previously contained in 2016.
According to Zimbabwe National Statistical Agency’s recent information, US$3, 4 million was spent on tissue paper, US$1,3 million on cat and dog food while US$1,2 million went to chewing gum.
Toothbrushes worth roughly US$1, 1 million were imported.
Industry, Commerce and Enterprise Development Minister Dr Mike Bimha said Government is moving to balance both foreign currency shortages and the importation of goods.
“We have always known that our imports are outweighing our exports so we are in the process of sourcing some funds to ensure that most of our companies can retool and start to produce again.
“It’s not always everywhere where we have foreign currency shortages, in the sugar and cooking oil industry, though not enough in their own standards, they have supplies up to around next year and June this year respectively.
“Where there is a shortage we will allow those with funds to import to avert shortages by all means,” he said.
The country used US$240 million in importing soya bean crude oil, which is used in the manufacture of cooking oil.
Confederation of Zimbabwe Industries president Mr Sifelani Jabangwe weighed in, “We must invest locally in order to deal with imports. We must localize production and ensure that all goods produced have the local content policy aspect to create more jobs.
“Command programmes were meant to do so.
‘‘In these dry seasons, we should invest much into irrigation to ensure that crops reach their potential to avert shortages.”
Confederation of Zimbabwe Retailers said much of the imported goods come through informal channels and are a menace to those who pay taxes as they are cheap when compared to those in retail shops.
They want Government to act on the porous borders to minimize the damage.
Meanwhile, Zimra have computerized their systems to ensure that imported goods pay import duties.
