Nhau News Online News that is accurate, reliable, trustworthy!!
Government has announced an immediate suspension of import duties on fertilizers brought in by approved importers.
This measure aims to ensure sufficient and affordable fertilizer supplies for local farmers, as Zimbabwe targets a significant boost in agricultural productivity.
The policy was formalized in Statutory Instrument 178 of 2024, issued by Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube.
Under the new regulations, fertilizer importers must obtain approval from the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, led by Dr. Anxious Masuka, to benefit from duty-free status. Only importers deemed reputable and capable of meeting supply demands will qualify for the exemption, according to Prof. Ncube. The suspension of duty is valid for twelve months, from the date of publication of the statutory instrument.
According to Prof. Ncube, these amendments to the Customs and Excise (Suspension) Regulations, 2003, will help ensure that fertilizers such as Urea and Ammonium Nitrate are more accessible, thus supporting the government’s agricultural production goals.
“It is hereby notified that the Minister of Finance, Economic Development and Investment Promotion has, in terms of section 235 as read with section 120 of the Customs and Excise Act [Chapter 23:02], made the following regulations,” Prof. Ncube stated in the statutory instrument. The directive also includes a safeguard to prevent price inflation among approved importers.
Importers benefiting from the duty suspension are not permitted to sell fertilizers at prices equal to or higher than those who have paid duty. Any violations will result in the importer having to pay the full duty amount along with applicable penalties. This provision is intended to prevent exploitation of the duty-free scheme and ensure that cost savings are passed on to farmers.
“The Ministry responsible for Agriculture shall ensure that approved fertiliser importers adhere to responsible pricing of fertilisers for which the Commissioner would have wholly suspended duty payable,” the Statutory Instrument states.
In cases where approved importers violate these pricing regulations, they will face significant financial repercussions.
“Any approved fertiliser importer who sells fertilisers for which duty would have been suspended at prices equal or higher than fertilisers on which duty is ordinarily payable shall be liable to pay the duty suspended and applicable penalties,” the statutory instrument further clarifies.
Only importers holding a valid license issued by the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development will be allowed to import fertilizers duty-free.
The Zimbabwe Revenue Authority (ZIMRA), represented by the Commissioner, is tasked with enforcing these regulations and will only grant the duty suspension to importers who meet all legal requirements.
To further support domestic agricultural targets, the government has set specific allocation limits for the imported fertilizers. Approved importers will be limited to a “ring-fenced” allocation of 100,000 tonnes of Urea and 150,000 tonnes of Ammonium Nitrate.
This restriction is designed to ensure that the fertilizer benefits are managed effectively and support the country’s broader agricultural needs without disrupting the market. The new measures are part of Zimbabwe’s larger strategy to achieve a 347 percent increase in agricultural production in the coming year.
Fertilizer is considered a crucial component in achieving higher crop yields, particularly for staple crops such as maize. By eliminating duty on fertilizer imports, the government is addressing both supply chain stability and cost reduction for farmers, which could lead to increased productivity and help the nation move closer to food security.
The move comes at a critical time, as Zimbabwe’s agricultural sector has faced numerous challenges over recent years, including erratic rainfall patterns and rising input costs. In response, the government has been working to enhance resource access and affordability for farmers, positioning agriculture as a key pillar for economic growth and rural development.
With the duty suspension in effect, stakeholders in the agricultural sector are optimistic that this will lead to more affordable and readily available fertilizers, supporting the government’s ambitions for a successful cropping season.
As implementation begins, the Ministry of Agriculture and ZIMRA will closely monitor compliance to ensure that the program achieves its intended impact without market distortions.
The Ministry of Agriculture has pledged to uphold strict oversight over the duty-free importers, ensuring transparency and accountability in fertilizer pricing and availability, helping Zimbabwean farmers achieve higher yields and better livelihoods in the 2024-2025 season.
