Almot Maqolo, Staff Writer 
16
ZIMBABWE’S manufacturing sector is being crippled by a thriving “pavement economy,” where smugglers flood the market with essential commodities like soap, evading Value Added Tax (VAT) and leaving local producers at a 15 percent disadvantage.
Advertisements
Smugglers sell soap on the streets for as little as US$1, while local manufacturers, burdened by VAT, are forced to charge US$1,15, making it difficult for them to compete.
This issue extends beyond soap manufacturers, affecting the oil expressers who supply them.
Busisa Moyo, a leading industrialist and former president of the Confederation of Zimbabwe Industries (CZI), has voiced strong concerns over the challenges facing local manufacturers.
Subscribe to The Financial Gazette
This is premium content. Subscribe to read article.
Login if you have purchased
