Impact Evaluation of Statutory Instrument 64 of 2016 on Consumer Prices in Zimbabwe

 
Let me just identify SI 64 and key issues on SI 64:
The government has recently gazetted Statutory Instrument 64 of
2016, which temporarily regulates the importation of certain
products that can be produced locally.
 Some of the products which were removed from the Open General
Import License (OGIL) include bottled water, mayonnaise, salad
cream, peanut butter, jams, yogurts, flavoured milks, dairy juice
blends, ice creams, cultured milk, cheese, white petroleum jellies,
body creams, plastic pipes and cooking oil.
The legislation also controls importation of second hand tyres, urea
and ammonium fertilizers, tile adhesives and tylon, shoe polish,
synthetic hair products, building materials and furniture.
 
The Minister of Industry and Commerce, Hon. Mike
Bimha had to clarify to the nation that Statutory
Instrument 64 of 2016 (SI 64, 2016) was meant to
regulate commercial imports and the legislation does not
mean a ban on importation of listed products but
imposes a licensing requirement for bulk importers.
It also means that the removal of products from OGIL
implies that a license will be required to import the listed
products.
This clarification came after the legislation was received
with mixed feelings by many and it caused
demonstrations in the Beitbridge area which saw people
burning down the Zimra Warehouse.
 
SI 64 focuses on goods purchased for resale,
people who bring truckloads of products into the
country for resale.
In a nutshell, the SI is 
not
 targeting goods for
individual consumption.
 And that administrative aspect falls under ZIMRA’s
purview.
undefined
 
 
CCZ Family Basket Price survey
 
The graph above is a depiction of the family basket
three months before and three months after SI 64
was put in place and it generally shows that there
are some increase in basket prices of goods after SI
64 was in place.
 
This is mostly seen in margarine, cooking oil, meat,
laundry bar, and washing powder. The increase can
be attributed to various cost pushers besides SI 64
which include fluctuating fuel prices, general
increases that supermarkets put on their goods
and uncompetitive price products in Zimbabwe .
undefined
 
 
Generally, over the last three or four years we have
seen consumer behavior change especially in their
spending patterns and CCZ has attributed this to:
 Not only the introduction of SI 64
 Consumers’ pockets overstretched in also paying
for other services like transport, school fees, rentals,
electricity and water.
NB: it is important that we don’t only
attribute changes in product prices only to SI
64 but remember that there are other cost
pushers that are also culprits in our products
shifting prices.
 
 
 
 
 
 
 
 
 
Consumers have resorted to buying smaller amounts
…..re-emergency of tsaona”.
Consumers do more shopping around and thus incur
more transport cost.
Consumers now do not easily part with their money
unless it is a “necessary” buy, further resulting in less
cash circulating in the environment.
There has been a product availability gap created by the
institution of SI 64 whilst manufacturing productivity is
ranging in the 30 – 35%....meaning that for a period
after SI 64, some products disappeared on the shelves
and consumers’ right to choice was limited and there
was lack of competitive pricing because local products
were priced higher 
.
 
 
 But on another level, consumer complaints
handled by CCZ were easier to resolve because
most products bought by consumers were locally
made and therefore  local producers could be
reached to resolve them.
 
NB: SI 64 was negatively received by all in the
environment and therefore all expectations of SI 64
was that it was to impact the environment
negatively and some of the reasons for this maybe:
 
1.
Lack of consultation in the creation and
submission of SI 64.
2.
Poor publicity and misinformation from various
quarters.
3.
Lack of further education and to different levels of
the community right down to the consumers.
 
If the above have been better handled, there would
be no reason now for” damage control”.
 
Based on what has been said especially by the originating
Ministry of SI 64 (Ministry of Industry and Commerce),
consumers have great expectations and these
expectations can only be met if there is real effort to
monitor the impact of SI 64. It has been said that SI 64
will:
1.
Rejuvenation of manufacturing resulting in increased
productivity in both range, standard and quality on
our shelves. Currently we talk of productivity levels of
30 – 35% and consumers want to see these figures
increase by way of physically seeing more products.
 
 
2. Once productivity increases, unit cost must fall.
3.Once manufacturing and productivity is buoyant
employment figures must rise thus more
consumers have money in their pockets to spend
and therefore:
Consumers cost of living and quality of life should
improve and
Zimbabwean exports should increase and be more
competitive and
Zimbabwe earns more foreign currency to improve
social and economic environment.
 
 
 
Once there is more money circulating in the
environment, less queues at the bank.
 
NB: Consumers need to be updated on results
coming from periodic monitoring and evaluation of
the issues mentioned above:
 
Any variations that happens to SI 64, with regard to
whatever re-negotiations happening with our
trading partners in the region…as we have made to
understand that there are talks going on.
 
 
Thank you
Tatenda
Siyabonga
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Statutory Instrument 64 of 2016 in Zimbabwe regulates the importation of various products to promote local production. The legislation does not ban imports but requires licensing for bulk importers. The consumer prices of certain goods increased post-implementation, influenced by factors beyond SI 64 such as fluctuating fuel prices and supermarket pricing strategies.


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  1. Three months into SI 64 of 2016: An Impact Evaluation: Consumer Perspective Presentation by Rosemary Siyachitema Executive Director CONSUMER COUNCIL OF ZIMBABWE 12-13 October 2016

  2. Let me just identify SI 64 and key issues on SI 64: The government has recently gazetted Statutory Instrument 64 of 2016, which temporarily regulates the importation of certain products that can be produced locally. Some of the products which were removed from the Open General Import License (OGIL) include bottled water, mayonnaise, salad cream, peanut butter, jams, yogurts, flavoured milks, dairy juice blends, ice creams, cultured milk, cheese, white petroleum jellies, body creams, plastic pipes and cooking oil. The legislation also controls importation of second hand tyres, urea and ammonium fertilizers, tile adhesives and tylon, shoe polish, synthetic hair products, building materials and furniture.

  3. The Minister of Industry and Commerce, Hon. Mike Bimha had to clarify to the nation that Statutory Instrument 64 of 2016 (SI 64, 2016) was meant to regulate commercial imports and the legislation does not mean a ban on importation of listed products but imposes a licensing requirement for bulk importers. It also means that the removal of products from OGIL implies that a license will be required to import the listed products. This clarification came after the legislation was received with mixed feelings by demonstrations in the Beitbridge area which saw people burning down the Zimra Warehouse. many and it caused

  4. SI 64 focuses on goods purchased for resale, people who bring truckloads of products into the country for resale. In a nutshell, the SI is not targeting goods for individual consumption. And that administrative aspect falls under ZIMRA s purview.

  5. CCZ Family Basket Price survey 12 10 8 Apr-16 6 May-16 Jun-16 4 Jul-16 Aug-16 Sep-16 2 0

  6. The graph above is a depiction of the family basket three months before and three months after SI 64 was put in place and it generally shows that there are some increase in basket prices of goods after SI 64 was in place. This is mostly seen in margarine, cooking oil, meat, laundry bar, and washing powder. The increase can be attributed to various cost pushers besides SI 64 which include fluctuating fuel prices, general increases that supermarkets put on their goods and uncompetitive price products in Zimbabwe .

  7. Generally, over the last three or four years we have seen consumer behavior change especially in their spending patterns and CCZ has attributed this to: Not only the introduction of SI 64 Consumers pockets overstretched in also paying for other services like transport, school fees, rentals, electricity and water. NB: it is important that we don t only attribute changes in product prices only to SI 64 but remember that there are other cost pushers that are also culprits in our products shifting prices.

  8. Consumers have resorted to buying smaller amounts ..re-emergency of tsaona . Consumers do more shopping around and thus incur more transport cost. Consumers now do not easily part with their money unless it is a necessary buy, further resulting in less cash circulating in the environment. There has been a product availability gap created by the institution of SI 64 whilst manufacturing productivity is ranging in the 30 35%....meaning that for a period after SI 64, some products disappeared on the shelves and consumers right to choice was limited and there was lack of competitive pricing because local products were priced higher .

  9. But on another level, consumer complaints handled by CCZ were easier to resolve because most products bought by consumers were locally made and therefore local producers could be reached to resolve them. NB environment was negatively NB: : SI SI 64 environment and was that negatively and was negatively and therefore that it it was and some 64 was negatively received therefore all was to some of received by all expectations to impact of the all in of SI SI 64 environment for this by all in the the 64 expectations of impact the the reasons the environment reasons for this maybe maybe: :

  10. 1. Lack submission 2. Poor publicity quarters 3. Lack of the Lack submission of 2. Poor quarters. . 3. Lack the community consultation of SI SI 64 publicity and of of consultation 64. . and misinformation in in the the creation creation and and 1. misinformation from from various various of further community right further education right down education and down to and to to the to different the consumers different levels consumers. . levels of of If If the be the above be no above have no reason have been now for been better for damage better handled, damage control handled, there control . . there would would reason now

  11. Based on what has been said especially by the originating Ministry of SI 64 (Ministry of Industry and Commerce), consumers have great expectations and these expectations can only be met if there is real effort to monitor the impact of SI 64. It has been said that SI 64 will: 1. Rejuvenation of manufacturing resulting in increased productivity in both range, standard and quality on our shelves. Currently we talk of productivity levels of 30 35% and consumers want to see these figures increase by way of physically seeing more products.

  12. 2. Once productivity increases, unit cost must fall. 3.Once manufacturing and productivity is buoyant employment consumers have money in their pockets to spend and therefore: Consumers cost of living and quality of life should improve and Zimbabwean exports should increase and be more competitive and Zimbabwe earns more foreign currency to improve social and economic environment. figures must rise thus more

  13. Once there is more money circulating in the environment, less queues at the bank. NB NB: : Consumers coming the Any variations that happens to SI 64, with regard to whatever re-negotiations happening with our trading partners in the region as we have made to understand that there are talks going on. Consumers need coming from the issues need to periodic monitoring issues mentioned to be monitoring and above: : be updated updated on and evaluation on results evaluation of results from periodic mentioned above of

  14. Thank you Thank you Tatenda Tatenda Siyabonga Siyabonga

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