• Zimra and Buy Zimbabwe formalized a partnership to combat the estimated USD 1 billion annual revenue loss from smuggling of fuel, alcohol, clothing, groceries, and other goods
• Smuggling has triggered widespread closures and downsizings eroding formal market share, jobs, and economic stability in food, clothing, and household goods
• Counterfeit and untaxed goods have undermined companies leading AFDIS to endorse recent Statutory Instruments signalling hope that decisive action, though late can still revive formal sector

Harare- In a belated yet potentially pivotal move to stem the hemorrhage inflicted on Zimbabwe's economy by rampant smuggling, the Zimbabwe Revenue Authority (Zimra) has partnered with the buy-local advocacy group Buy Zimbabwe.

This collaboration, formalized through an official letter dated February 19, 2026, seeks to combat the influx of illicit goods that have not only eroded government revenues but also precipitated a cascade of closures and downsizings in the retail and manufacturing sectors leading to 65% economic informalisation.

While the initiative signals a recognition of smuggling's destructive scale estimated to cost the nation USD 1 billion annually, the question looms: is this alliance arriving too late to salvage a crumbling formal economy, or is it never too late for targeted enforcement to revive local industries?

The partnership's core objective is multifaceted, extending beyond mere border patrols to encompass consumer protection from counterfeit products and the restoration of fair competition for domestic producers.

Buy Zimbabwe's Advocacy Officer, Mr. Elvis Masvaure, articulated the urgency, stating, "The goal is not only to stop smuggling of goods but also to ensure that the local market is free from counterfeit products."

This sentiment reflects the ethical dimension of the crisis, where unethical trading practices have systematically disadvantaged legitimate businesses.

Zimra's Commissioner of Customs and Excises, Batsirai Chadzingwa, provided an inventory of the most commonly smuggled items which are fuel, alcohol, energy drinks, footwear, detergents, meat, confectionery, washing powder, clothing, and general groceries highlighting how these staples infiltrate informal markets, undercutting formal channels and distorting price signals.

The smuggling epidemic represents a structural vulnerability in Zimbabwe's economy, exacerbated by porous borders, currency volatility, and weak enforcement mechanisms.

Illicit imports, often originating from neighbouring countries or further afield like Dubai, evade duties and quality controls, flooding informal vending spaces (colloquially known as "mabhero") with cheap alternatives.

This creates a vicious cycle: formal retailers, saddled with taxes, compliance costs, and regulated pricing (corporate taxes, IMTT taxes, Aids Levy, PAYE, NSSA, wages, medical aids, etc)  cannot compete, leading to reduced revenues, inventory shortages, and eventual operational collapse.

The government's recent Statutory Instruments (SIs), such as SI 7 of 2025, which empower Zimra to seize undocumented consignments and deem goods without receipts as smuggled, offer a regulatory backbone.

However, their effectiveness hinges on implementation, as previous efforts have been hampered by resource constraints and corruption allegations at border posts.

The retail sector's disintegration provides a sobering case study of smuggling's corrosive impact, illustrating how unchecked illicit trade has accelerated the decline of once-stable enterprises.

OK Zimbabwe, the nation's largest supermarket chain, exemplifies this unravelling. Its interim results for 2025 revealed a staggering net loss of US$17.81 million, driven by cash flow strains from unpaid suppliers and empty shelves.

Smuggled groceries and household items, peddled in informal markets at below-cost prices, have siphoned demand away from formal outlets, forcing OK to grapple with declining footfall and eroding market share.

This is not an isolated incident; the broader food and clothing retail landscape has witnessed a wave of closures and contractions, signalling a systemic failure to protect formal commerce.

Metro Peech and Browne Wholesalers, a venerable institution in wholesale distribution, succumbed to these pressures with a temporary shutdown and entry into corporate rescue proceedings.

The company shuttered branches in key locations such as Rusape, Marondera, Mutare, Murehwa, Shurugwi, and Mbare, citing the influx of smuggled goods as a primary factor in its eroded competitiveness.

Retrenchments followed, amplifying unemployment in already strained communities.

Similarly, Spar Zimbabwe has undergone significant downsizing, with multiple outlets reduced or repurposed amid the same competitive distortions. Food World and N Richards have fared no better. The former has seen widespread store closures, while N Richards operates at diminished capacity, its viability undermined by untaxed imports that flood the market with counterfeit or substandard alternatives.

The clothing segment has been equally ravaged, with Edgars Stores facing existential threats from smuggled apparel sourced from Dubai and informal channels. Sales volumes have plummeted, prompting the closure of underperforming outlets and a strategic shift toward budget-oriented Express Stores to capture a shrinking middle-class demographic.

Second-hand and fake garments, often lacking quality assurance, have reshaped consumer behaviour, prioritizing affordability over legitimacy and further marginalizing formal retailers.

Manufacturing firms, integral to Zimbabwe's industrial base, have not escaped unscathed, with counterfeit smuggling compounding operational challenges. CAFCA, a leading electrical cable producer, has repeatedly highlighted a hostile environment where fake products erode consumer trust and market integrity.

In the agro-processing realm, Hippo Valley Estates, the largest employer coming second to government, employing over 15 000 employees contend with over 17 smuggled sugar brands that undercut its pricing, jeopardising sales volumes and export revenues.

Beverage conglomerates like Delta Corporation and African Distillers (AFDIS) report similar woes. Illicit alcohol and soft drinks infiltrate the market, squeezing margins and prompting calls for stricter controls. AFDIS, in particular, has lauded recent government SIs for curtailing smuggling through enhanced taxation and receipt mandates, viewing them as essential to levelling the playing field.

This retail and manufacturing crumble reflects deeper economic asymmetries. smuggling thrives in environments of high formal taxation and regulatory burdens, where informal actors exploit gaps for quick profits. The resultant job losses, thousands across shuttered outlets exacerbate poverty and informaliSation, perpetuating a cycle that diminishes tax bases and stifles innovation.

While the Zimra-Buy Zimbabwe partnership promises coordinated raids, awareness campaigns, and policy advocacy, its success will depend on integration with broader reforms, such as digital tracking systems for imports and incentives for local production.

Though it may be too late for sectors already in freefall, it's never too late for decisive action to rebuild resilience.

Ultimately, this alliance could mark a turning point if executed with vigour, fostering a marketplace where local industries thrive unencumbered by illicit competition. By prioritising consumer safety, revenue integrity, and business sustainability, Zimbabwe stands a chance to reverse the tide, provided enforcement translates rhetoric into results.

As the partnership unfolds, its analytical litmus test will be measurable reductions in smuggling volumes and a resurgence in formal sector vitality, proving whether intervention is indeed timely or tragically overdue.

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