Zimbabwe has the most expensive sugar on the continent but it cannot totally ban cheaper imports to protect the local industry because of its commitment to open markets, Industry and Commerce Minister Nqobizitha Ndlovu says.
He says the sugar in the country is expensive because the country has only one miller but more importantly production is too low.
“On average, the yield should range between 130 and 170 metric tonnes per hectare of sugarcane. Yet, the average yield as of now is sitting at around 40 metric tonnes per hectare. This is at the core of why our sugar is not competitive,” the minister said.
He was responding to a question on what the government was doing to protect the local sugar industry from cheap imports.
Q & A:
HON. MAKUMIRE asked the Minister of Industry and Commerce to inform the House on the Government plans to protect the local Sugar Industry from cheap imports.
THE MINISTER OF INDUSTRY AND COMMERCE (HON. N. M. NDLOVU): Thank you Mr. Speaker Sir. I will try to be very fast. Allow me to thank Hon. Makumire for asking a very important question about the Government’s plans to protect the local sugar industry from cheap imports. Regarding this critical matter of safeguarding our local sugar industry against the pressures of cheap imports, the Government recognises the vital role the industry plays in our economy, creating employment, creating livelihoods and supporting numerous downstream industries. Therefore, we are committed to taking decisive action to ensure its long-term viability in competitiveness.
To that end, I would like to outline a comprehensive plan that Government is undertaking focusing on the following key areas, the first one relates to the 2025 national budget. The House will recall the recent budget statement by the Minister of Finance, Economic Development and Investment Promotion, which included provisions allowing exporting companies to import sugar specifically for blending purposes. This measure is designed to ensure that our exporting companies can maintain competitive pricing on the global market. It is a targeted intervention carefully calibrated to support our export sector without undermining the local sugar industry.
Secondly, we have a programme on anti-smuggling and this is the illicit influx of cheap sugar which we have strengthened through our anti-smuggling measures. Any sugar found within our borders is now presumed to be smuggled unless the importer can provide documentation, proving its legal status of importation. This robust measure is intended to protect our local producers from unfair competition and ensure that all that should enter our markets adheres to the necessary standards and regulations.
We are also implementing the local content strategy which my Ministry is limiting sugar imports to the bare minimum levels necessary. This strategy priorities the utilisation of locally produced goods and services, fostering domestic value addition and creating opportunities for local businesses. In the context of the sugar industry, it means we are encouraging local procurement of 8% of sugar as raw material. This is in line with the Finance Act.
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