The Periscope Report trade related news round-up from a variety of sources for 13th April 2017.
[Zimbabwe] ‘Diamonds no longer major export’
As the country reels from persistent economic turmoil, with countless companies shutting down and thousands of workers losing jobs amid worsening poverty, the need for an economic turnaround has never been greater and so urgent. Zimbabwe Independent business reporter Taurai Mangudhla (TM) yesterday interviewed Macro-Economic Planning and Investment Promotion minister Obert Mpofu (OM) on economic issues, command agriculture, diamond mining and progress made in establishing Special Economic Zones (SEZs).
‘Zim must safeguard against substandard imports’
Industry and Commerce Minister Dr Mike Bimha says it is important for Zimbabwe to safeguard against sub-standard products being imported into the country. The Minister is leading a delegation undertaking a familiarisation tour of Bureau Veritas (BV) laboratories and offices in Shanghai, China and Dubai in the United Arab Emirates. BV is the French company contracted by Government to assess the quality and standards of imports at their source, before they reach Zimbabwe. The move is aimed at protecting consumers and the environment from sub-standard products, provide for fair competition and fight against counterfeits. The offices and laboratories being visited by Dr Bimha and his team are part of the vast network used by BV to provide verification services under what is known as the Consignment Based Conformity Assessment Programme (CBCA). Speaking from Dubai, Dr Bimha said it was critical to get first-hand knowledge of the processes involved in order to better appreciate how the measures put in place by Government are being implemented in the countries of export.
[Zimbabwe] Foreign mining firms accused of under-declaring exports
ZIMBABWE may have lost potential income running into billions of dollars through trade misinvoicing of key minerals such as diamond, gold and nickel. This is according to a research study conducted by Zimbabwe Policy Analysis and Research Unit, which sought to evaluate the relationship between certain key minerals resources and capital flight. The study tracked trade misinvoicing with respect to the main minerals exported by Zimbabwe across major trading partners, namely gold, diamond, platinum, ferro-chrome alloys, nickel, and asbestos. It concluded that Zimbabwe could have lost potential income, at one point, of as much as $3,1 billion through trade under invoicing. The results showed that unrecorded capital outflows occurred through trade with different countries including Italy, United States, Germany, and China, while unrecorded capital inflows into Zimbabwe were mainly from South Africa, Belgium, and Australia. The study concluded that trade misinvoicing was perpetrated largely by multinationals due to the fact that mining is capital intensive. “The analysis of capital flight over the past four decades shows that some developments in the macroeconomic policy and institutional environment may have influenced the behaviour of capital flight,” an excerpt from the study which covers four decades.
[Zimbabwe] Understanding Temporary Importation Permit for visitors’ vehicles
We have come to that time of the year again when our relatives and friends living outside the country come home to visit. Some will bring their vehicles for ease of travelling from one place to another within Zimbabwe. A visitor to Zimbabwe bringing in a foreign registered private vehicle may be issued with a Temporary Import Permit (TIP) by Zimra upon entry into Zimbabwe. This is in terms of Section 104 of the Customs and Excise General Regulations Statutory Instrument 154 of 2001.
[Zimbabwe] RBZ eases foreign payments bottleneck
The Reserve Bank of Zimbabwe has moved to ease foreign payments bottlenecks after it drew-down $100 million on the $150 million African Export-Import Bank loan facility yesterday. The central bank said apart from the Afreximbank facility, the release of the funds was made possible by export earnings from the sale of green-leaf tobacco at the tobacco floors by tobacco growers. As at April 10, about 39 million kilogrammes of tobacco valued at about $102 million had been sold on auction and contract floors, which was day 19 of the 2017 tobacco selling season. About $700 million has been mobilised by merchants for the purchase of tobacco this season, where the golden leaf’s output is expected to marginally surpass last year’s sales.
[Zimbabwe] Tobacco exports rake in $200m
MORE than $200 million has been generated from 41,4 million kilogrammes of tobacco that Zimbabwe exported across the world at an average price of $4,86 a kg since the beginning of the year. Statistics from the Tobacco Industry and Marketing Board (TIMB) indicate the latest record is comparatively less than the $227 million realised from exports of 36,8 million at $6,16 during the same period last year. The country’s golden leaf has been exported to 45 countries while during the same period last year 34 imported the flue-cured tobacco.