The Periscope Report trade related news round-up from a variety of sources for 12th April 2017.
[Zimbabwe] Importers hard hit by cash crisis
Fast moving consumer goods (FMCG) have called for longer import licences, as the ones they have are too short, and due to the foreign currency shortages, the permits expire long before payments to suppliers are made by banks and this, they fear, could lead to shortages of basics. mporters have to acquire permits from the Industry and Commerce ministry, which are valid for two to six months depending on products. A Zimbabwe Consumer Goods Importers Trust (ZCGIT) official told NewsDay the delays in processing the foreign payments were affecting importers. “The problem for importers is two-fold, and one is access to finance to make payments. The foreign currency crisis is a big problem for commercial importers. Banks are saying there is no money in nostro accounts,” a ZCGIT executive, who requested anonymity, said. ZCGIT is an association comprising of Distribution Group Africa, Aeromat Trading, Bullred Distribution, The Cold Chain, Equip Solutions, Exclusive Brands, FMCG Distribution, Tiger Sales and Distribution, Harrison and Hughson, Equip (Private) Limited and Vaitive Trading. They are importers of consumer goods for key retailers and wholesalers in the country.
[Zimbabwe] Madrid Trademarks Protocol to open new gates
THE move by the Government to ratify the Madrid Trademarks Protocol is expected to create new opportunities for entrepreneurs among numerous benefits to the economy. The protocol seeks to provide a simplified and inexpensive procedure for the registration of trademarks in countries that are party to the agreement. A trademark generally refers to a symbol, word, or words legally registered or established by use as representing a company or product. Parliament has already approved the amendments to the Trademarks Act (Chapter 26:04) to incorporate the provisions of the Madrid Protocol into domestic legislation as contained in the General Laws Amendment Act, 2016, Vice President Emmerson Mnangagwa, who is also the Minister of Justice, Legal and Parliamentary Affairs, said recently.
Qantas freezes ticket sales in Zimbabwe
HARARE: Qantas Airways has told travel agents in Zimbabwe to stop selling tickets for its flights after the International Air Transport Association (IATA) warned it was getting harder to move funds out of the country, according to a circular sent by the Australian airline to agencies and seen by Bloomberg.The carrier is owed a “substantial” amount by Bank Settlement Plan Zimbabwe, the system that IATA uses to transfer local ticket revenue to airlines, according to the circular from Michi Messner, Qantas’s regional manager for Africa. “We’ve been advised by Iata that the situation with the repatriation of funds out of Zimbabwe is worsening,” she wrote.
[Zimbabwe] Industrialists salute SI64
The decision by government to remove some goods under the general import licence was a timely intervention which averted a situation which could have seen an increase in unemployment levels as well as low productivity within the economy. Industrialists continue to salute the statutory instrument 64 (SI64) of 2016 for its positive impact to the economy. The introduction of SI64 last year created debate within the economy while also coming under the spotlight by regional trading partners. What most people did not know is that a lot of foreign exchange has been lost as the import bill went up to around US$7 billion with people importing products which can be produced locally.
Zim firms set to benefit from drop in imports
Zimbabwe’s manufacturing industry is being called on to take advantage of statutory instrument 64 (SI64) of 2016 by increasing production following the continuous drop in imports during the past six months. The SI64 of 2016 gazetted by the government in June last year has seen key manufacturing industries being on a recovery path. While findings by the government reflect a steady rise in the production of locally manufactured commodities, the impact of the instrument in reducing the volumes of imports in the past six months has also reflected its importance in increasing sales for locally produced items.
Zimbabwe International Trade Fair laments low foreign participation
Only seven percent of exhibitors booked for this year’s edition of the Zimbabwe International Trade Fair (ZITF) are foreign, organisers said, indicating continuing disregard of the country’s investment potential. Zimbabwe’s poor business climate has seen it lag regional rivals in attracting foreign direct investment, while much of its manufacturing industry has gone under since the turn of the century. “We are pleased that over 42 000 square metres (lower than last year) has been sold to date, occupied by 385 direct exhibitors, (compared to 361 last year, but only) 7 percent of whom are international companies. Similar to ZITF 2016, 25 percent of local participants are from Bulawayo. Harare companies make up 63 percent while the balance is coming from other cities around the country,” ZITF Company general manager, Nomathemba Ndlovu said.