Zimbabwe has lowered import tariffs in an effort to allow people to buy basic commodities in neighboring nations amid an economic downturn fueled by the devaluation of the local currency.
In a statement. Finance Minister Mthuli Ncube said this is designed to improve people’s access to affordable basic commodities.
“To further ensure that citizens have access to affordable basic commodities, in the face of recent substantial price increases in shops, the government hereby opens up imports of basic commodities by citizens, through the lowering of import tariffs and other accompanying measures. This is with immediate effect. Those with free funds are, with immediate effect, permitted to make use of these funds and other resources to import basic commodities.”
Ncube said the government has also introduced incentives for maize deliveries to the state-owned Grain Marketing Board (GMB)
“In the quest to incentivize farmers and encourage early deliveries of maize and other grains to the Grain Marketing Board, government has taken the decision to pay the maize farmers 30% of the amount due on grain delivered in United States Dollars and 70% in domestic Zimbabwe dollars. The US Dollar payment will be calculated by the Reserve Bank of Zimbabwe on the date of delivery. The payments will be backdated to the date of the first deliveries of this season’s maize to GMB.”
He said government has been seized with various initiatives aimed at stabilizing the economic, contain inflationary pressures, and “therefore to restore the purchasing power of the local currency, with the primary goal being to increase the domestic and external competitiveness of the economy, create and preserve jobs, improve livelihoods whilst limiting damage to the economy particularly in the face of the COVID-19 pandemic and more recently, the impact of the geo-political tensions in eastern Europe.”
The government recently banned banks from giving people and companies loans in an attempt to contain the rapid devaluation of the Zimbabwe dollar.