The government has reviewed downwards import duty levied on imports of television, refrigerator and freezer components from 60 percent to 25 percent in a move aimed at improving competitiveness of the local manufacturing sector, a cabinet minister has said.
The move comes after Korean appliances manufacturer Samsung established an assembly plant in Harare in partnership with a local firm, Cranbal Investments, last November and committed to a $10 million investment.
Industry and Commerce Minister Mike Bimha said yesterday that Samsung sought special preference to be allowed to bring in their components duty free.
“We wanted to encourage them to come and create employment but they could not do so without paying duty but at the same time we also had to take cognisance of the players that are already here who have also invested quite a lot and the duty prevailing was too high so we felt the best thing we could do was come up with a reduced tariff to even the field,” he said.
Zimbabwe’s manufacturing industry continues to struggle owing to lack of access to affordable capital and competition from cheaper exports from the region.
Imperial Derby and Capri are the only other active manufacturers of freezers and refrigerators in the country.-The Source
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