Many of Zimbabwe’s manufacturers, including those in the textile sector, have expressed worry over smuggling activities taking place at the nation’s open borders.
Due to competition from smuggled items entering from nearby nations like South Africa, their enterprises are selling substantially fewer volumes, the publication can reveal.
By Munashe Ashely Musiyiwa
Smugglers reportedly bypass the regulatory processes at the borders to avoid import duty and some do not even have valid import licenses that are required.
A snap survey by the reporter reveals that there are a number of factors that work hand in glove with each other that contribute to the successful smuggling of textiles contraband into that country which affects the industry.
The publication is reliably informed that some smugglers collaborate with dishonest Zimbabwe Revenue Authority (Zimra) and security forces personnel at border crossings who permit them to pass without disclosing their cargo.
Some of the textiles illegally imported to the country are kept in heavily guarded warehouses in Harare. Reports have also indicated that these warehouses are well fortified and monitored to prevent Zimra raids.
According to a report of 2021, Zimbabwe loses billions of precious USDs annually due to smuggling and illegal dealings.
One of the biggest blankets manufacturers, Waverley Blankets is concerned that if untamed, smuggling could scuttle their revival efforts.
In an interview, Raymond Huni of Waverley Blankets said the continuation of such practices “will see an ever-increasing drainage of our much-needed foreign currency.”
At one time Zimra was approached to engage people form the textile industry to monitor the borders, as textile industry believes that with their expert knowledge, they can better detect the various textile products being smuggled into the country. Textile industries though their body ZITMA are still waiting for a response to their request.
“It (smuggling) is killing our business. Right now, at Waverley Blankets, we could employ over 2 000 people but currently, we have just over 1200 employees. The winter season, which is our peak period, is not going as well as we thought it was going to be.
This is due to unfair competition from smugglers and those not fiscalised, selling only in foreign currency so that they can avoid declaring their sales to Zimra and avoid adding VAT to their price. This enables them to sell at a cheaper price.” Huni said.
A price comparison was conducted by this paper between Waverly blankets and the runners.
At approximately half the price charged by Waverly Blankets, one can actually buy a similar product from the runners thereby pushing the local company out of business.
For example Waverly Mafuta King blanket is going for $45us whilst the smuggled one is going for $30us, Waverly Mafuta Double is going for $30us yet the runners are charging $15-$20us depending on the quality.
This is the threatening the survival of local companies who are facing stiff competition from sub standard products being smuggled into the country. Not only are the effects being felt by the processors but it is also being felt by cotton farmers who are wailing about low demand and low pricing of their cotton in the country due to the closure of most textile companies and with the few still left are in a state of comatose due to stiff competition and economic collapse.
Government officials, individuals involved in the smuggling of textiles into the country
Zimbabwe Anti-Corruption Commission (ZACC) chairperson Justice Loice Matanda-Moyo has previously told the media that Zimbabwe was losing billions annually to smuggling while bemoaning rampant corruption at the ports of entry.
“We are investigating the Zimra officials and the law enforcement agents at the borders to find out how those buses are actually bypassing the regulations at the border. In some of the buses, you find out that it is only the driver and the conductor, there are no passengers in there. It is now the buses being used to carry contraband into South Africa,” she said.
Matanda Moyo’s remarks followed the impounding of nine buses after they were found with various items imported from South Africa including blankets and groceries.
Zimbabwe Republic Police spokespersons Assistant Commisoner Paul Nyathi said that they are aware of the members of the security forces who are conniving with the police and soliders at the boarders post to facilitate the smuggling of blankets into the country.
“As the members of the police were are very saddened by the corrupt activities that are taking place at border post by our members and other security officers. We guarantee members of the public that are engaging in this smuggling that the Zimbabwe Republic Police will not relax until arrests of those involved have been done,” said Nyathi.
Confederations of Zimbabwe Industries (CZI) recently boasted that local industrial capacity had surpassed 50% for the first time in more than 20 years, but this is now in jeopardy due to rampant smuggling, which has resulted in over 150 000 arrests at all ports of entry into Zimbabwe since January 2021.
Speaking to (CZR) President Denford Mutashu also complained over corruption at the ports of entry saying it is threatening the country’s economic revival efforts.
Mutashu called for an inter-ministerial task force to look into rampant smuggling of cheap imports into the country.
“The growing informalisation has also necessitated smuggling by providing a safe haven locally. Government should set up an interministerial task force comprising various departments from industry, commerce and private sector players,” he said.
Zimbabwe Revenue Authority (Zimra) recently pledged to increase vigilance at ports of entry to ensure that the country does not serve as a transit point or destination for smuggled goods.
This was said by Zimra acting commissioner-general Regina Chinamasa at a “#I’mForZero” breakfast meeting with stakeholders in the border city of Mutare.
She declared: “Given Zimbabwe’s important location in the area, it is our guarantee that Zimbabwe will not serve as the final destination or transit country for illegal products.”
“Therefore, it is essential for all of us to remain vigilant and to take action in order to build our country, Zimbabwe, and therefore the region. Let’s fight corruption together and create a society free from it, she urged.
Chinamasa claimed that Zimra needed help fighting corruption, which was encouraging unauthorized importation, exportation, and transit of goods.
One of the major non-tariff barriers that reduce the competitiveness of our products on the global market and undermines investor trust, according to her, is corruption.
“The sharing of information reduces corruption and boosts compliance rates. If corruption is not addressed, underdevelopment is bred and maintained.
Chinamasa added 75 employees, 34 stakeholders, including business people who were working with the employees, were also arrested in connection with the smuggling of goods into the country.
Mrs Chinamasa said provinces like Masvingo which are along the main Beitbridge-Chirundu highway should play a pivotal role in dealing with corruption.
Routes used by smugglers to facilitate smuggling
The boarders towns areas of Mutare Forbes, Churundu, Beitbridge borders, and Nyamapanda Border post are the main ports of entry that are used by smuggling cartels. They have resorted to illegal entry so that they enter with their blankets and other bales undedicated by the security forces.
585km north east of Beitbridge, Mutare the capital of the mountainous Manicaland province, the home to Forbes border post a crossing point shared between Zimbabwe and Mozambique, echoes the same sentiments of smuggling.
The proximity of Mutare to the port city of Beira in Mozambique has made Manicaland the hub of second hand clothes popularly known as “Mabhero” ,which is mainly imported using illegal points of entry which are controlled by cartels who dominate the trade with some going to the extent of hiring excavators to construct roads which link the two countries evading the formal crossing points where the second hands are not totally allowed to pass into the country.
Unlike in the southeast where the land borders are separated by a river Limpopo which acts as an obstacle to smuggling, in Mutare it’s a matter of crossing from one territory to the other on foot since it’s a land border.
It’s difficult for the security forces to control the all the illegal crossing points as some areas are still infested with landmines which were planted by the colonial government during the liberation struggle.
Armed with the knowledge of the terrain villagers and smugglers from both sides of the countries easily navigate the between the two countries avoiding areas which have active landmines thereby facilitating the inflow of second hand clothes into the country from the port city of Beira.
Recently, the High Court of Zimbabwe froze assets valued at half a million dollars belonging to Edward Muhamba who is being allegedly accused of being in charge of a smuggling syndicate responsible for the illegal importation of second hand bales of textile.
Such syndicate thrive from corruption and connection to the political elites to maintain their grip on power and for the smooth flow of their operations.
Muhamba on previous occasions had his trucks impounded by police whilst carrying bales of textile products. It is alleged that in one of the cases, police chose to arrest two detectives who had impounded his vehicle laden with 142 bales of clothes on charges of criminal abuse of office and used him as a State witness.
According to Zimra’s integrity reports, in 2021, 47 employees were dismissed/suspended for corrupt activities with 2018 have the highest dismisals. 2020 had the dismals in the past 6 years and this may be attributed to to the closure of legal ports of entry which saw the proliferation of illegal crossing points and gradually increased in 2021 which can also be attributed to the opening of legal crossing points which saw the increase in traffic on the legal crossing points.
The data explicitly shows that greedy officials at the legal ports of entry are facilitating corruption and the inflow of contraband into the country at the expense of the economy, industries, and the country as a whole.
New trends, and modus operandi used to smuggle goods into Zimbabwe
Smuggling is a game of bribery and establishing relations with the customs officials and border control officials. In the case of runners procuring textile from Zambia and Tanzania using Chirundu border post.
Goods are moved from Tanzania to Zambia via Tunduma border post where they are then repacked into smaller quantities in Lusaka by traders who use trucks plying Zambia-Congo route to courier their contraband into Zimbabwe. Trucker in connivance with the officials they bribe their way into the country.
Speaking to Kondwani Jack a Zambian based runner who supply to the local said, “sales are at brisk due to the winter season and truck drivers are the life blood of my business, they are my link to my Zimbabwean counter parts. At a small fee of about 50usd I can get my bale to cross to the other side of Chirundu.
Women who ply that route also bemoaned against the border officials who ask for sexual favours for the safe passage of their wares. These sexual favours are not limited to the border control officials but they include intimate relations with the truck truck drivers and bus drivers in exachange of free transportation and free passage of contraband into the country so as to maximize profits.
“Hapana kusiri kufa hanzvadzi, vanofa nenzara kumba tikasadaro, when push comes to shove we give in to their demands kuti stock idarike paborder nekuti vazukuru vako vanofa nenzara hanzvadzi,” were the words of Melody Katiyo(name changed). This leaves female traders at the mercy of the of every player who facilitate the illegal importation of blankets and other textile product