Zimbabwe Imposes Tariffs to Boost Local Cooking Oil Production
What happened
The government of Zimbabwe raised the customs duty on cooking oil imports to 40 percent and added a 25 percent Surtax or $0.50 per litre, whichever is higher, while also removing the traveler's rebate for grocery items. These protectionist measures aim to help local producers meet the country’s demand for edible oils, which requires 11,500 metric tonnes monthly. Confederation of Zimbabwean Industries president Busisa Moyo stated that local production, currently at 10,500 metric tonnes a month, is expected to surpass demand by September, though he cautioned the measures should be temporary.
From insiderzim.com
Why it matters
The measures represent a strategic shift away from Zimbabwe’s previous reliance on cheaper imports from South Africa. By increasing the cost of foreign goods, the government is attempting to resuscitate critical domestic sectors and allow local industries to grow despite high production costs.
From insiderzim.com
Who's involved
- ZimbabweThe sovereign state implementing tariffs to support domestic food production.
- South AfricaThe neighboring state whose cheaper imports were previously relied upon by Zimbabwe.
- Mthuli NcubeThe African economist guiding Zimbabwe's national economic policy.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- ZimbabweSpeculative
Local cooking oil producers might see increased demand and revenue due to the protectionist levies.
- South AfricaSpeculative
South Africa might see reduced export revenue to Zimbabwe because of the new punitive tariffs.
Keep exploring
The entities involved
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South Africa
country in southern Africa
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Zimbabwe
sovereign state in southern Africa
Related events
- South African maize imports are undercutting local prices, prompting calls for local manufacturing in Namibia.
- Trade volume between countries involving Zimbabwe is reported to be declining.
- The UK has strengthened trade and investment ties with Zimbabwe.
- The focus must be on economic institutions for development in Zimbabwe.
- Zimbabwe is seeking European technology and capital while shifting away from anti-Western rhetoric.