The Sunday News
GOVERNMENT is working on a Bill that will see the formation of a more vibrant standards controlling body — the Standard Regulatory Association — which will ensure imported and exported products meet the required international standards with regards to quality, health and safety, a situation that will effectively lead to the disbanding of the Standards Association of Zimbabwe.
Industry and Commerce Minister Cde Mike Bimha said in Victoria Falls during the Zimbabwe National Chamber of Commerce congress last week that SRA would supersede SAZ which he described as “toothless” since it had no powers to enforce or arrest businesses that fail to produce goods that conform to the required international standards.
“As of now in Zimbabwe we have the Standards Association of Zimbabwe and its role is to set the standards. They advise and assist companies to meet those standards.
“They don’t have powers to enforce standards hence they cannot arrest anybody for not meeting the standards or stop a product from coming into the country,” Cde Bimha said.
He said the setting up of SRA was in line with the World Trade Organisation practice.
“In most countries you find SRAs, which not only set the standards but enforces them. We have already presented the principles to Cabinet and they have approved and we have carried out stakeholder consultation.
“We now need to get the motions going in terms of the Bill going to Parliament to get it debated and later on enacted.”
He said in the interim Government had enlisted the services of Bureau Veritas to carry out Consignment Based Conformity Assessments.
“In the meantime we have decided to bring in a reputable international company to do the same functions so that by the time we set up that authority we would have had the experience of doing conformity assessments,” Cde Bimha said.
He said the move had been met with resistance by a section of the business community.
“Like any new intervention that is still in its process there have been a number of outcries by those profiteering who are saying we shouldn’t do it now.”
Meanwhile, captains of industry have said although this was a noble move meant to do away with flooding of poorly imported goods it could also backfire and lead to more company closures.
Director of Zimtownship Global Services Limited Mr Fungwa Mawarire said the development was welcome because it was going to do away with revenue leakages in the country.
“This programme offers a much needed and impartial win-win solution. It is a welcome development and benefits most constituencies of the population. The Government will minimise revenue leakages in the system and, shake-off the ‘Junk-Yard’ status the country was increasingly becoming associated with by bringing it into alignment with international environmental assessment standards,” he said.
Confederation of Zimbabwe Industries president Mr Busisa Moyo, however, said the requirement had a huge impact on raw materials which might lead to more companies to close.
“Our biggest concern on Pre-Shipment Inspection requirement is that if it is applied on raw materials it will result in more company closures as it will increase costs for the formal sector and ultimately reduce inflows to Treasury,
Businesses and capacity utilisation is likely to decline further from the 36 percent forecasted in our annual CZI survey,” said Mr Moyo, who is also the United Refineries Limited chief executive officer.
Association for Business in Zimbabwe chief executive officer Mr Lucky Mlilo added that there was likely to be job losses if the programme is enforced on raw materials which most companies were importing.
“It is understood that the steady decline in the manufacturing industry has led to many companies subsidising their income by importing goods deemed necessary for their survival. The projected inspection programme if imposed in its current format will prove disastrous to these companies and will result in further job losses,” he said.
