
Bruce Ndlovu, Sunday Life Reporter
AS the cameras snapped, the Permanent Secretary for Bulawayo Provincial Affairs and Devolution Paul Nyoni and Permanent Secretary for Presidential Affairs and Devolution Tafadzwa Muguti stood only a few metres away from each other at the Zimbabwe Revenue Authority’s Container Depot (Condep).
As they smiled, pile upon pile of popular premium alcoholic ciders and beers were stacked behind them. The haul was a result of the work of a multi-agency task force crackdown led by the Ministry of Industry and Commerce, as it attempts to stem the flow of illegal imports that threaten the survival of local industries, undermining the national economy.
The task force, which also comprised the Zimbabwe Republic Police, Reserve Bank of Zimbabwe, Zimbabwe Revenue Authority (Zimra), and Consumer Protection Commission, was the talk of Bulawayo during the weeks leading up to the festive season, as they took on heavyweight pubs and bar owners that were once thought to be untouchable in the City of Kings and Queens.
While the execution of their duties was not restricted to alcohol, their work was keenly felt in a sector that, in the last few years, has become increasingly reliant on these imports, crippling local alcohol makers and haemorrhaging millions from the country’s fiscus in the process.
“It is hoped that the current blitz against illicit and smuggled alcohol will curtail unfair competition,” said Delta Corporation company secretary Faith Musinga in the third quarter trading update to December 2024.
Despite optimism of local spirit and wine manufacturers and the notable progress made over the last few months, the road ahead is still long, as trade in smuggled goods has become an underground economy of its own.
In the face of the heavy loss they suffered with law enforcement hot on their tails, many are still in business, playing cat-and-mouse games in the new year as they search for a quick profit.
With the low prices at which some move their alcohol, some have questioned how these retailers of the famed “dollar deals” are making their money.
When Sunday Life conducted its investigations into the inner workings of the industry, one malayitsha (cross-border transporter) revealed to this paper that the process began in South Africa where, using a license from a major retailer, some of the city’s biggest players in the pub and night scene got their alcohol.
“The problem is that our club or bar owners cannot walk up to the alcohol wholesalers in South Africa and buy the booze themselves,” said the malayitsha who spoke to Sunday Life on condition of anonymity. “For that, they need a licence and the people who have licenses in that country are retailers from major outlets. So you have to pay someone from Bon Marche, for example, to buy on your behalf using a merchant account. That person buys from the wholesalers and takes a truck full of alcohol to the various buyers. So, while the alcohol would be said to be for a particular retail outlet, the different pub owners in
Bulawayo are the ones that send their transporters to collect from that truck.”
Once the alcohol was bought, the next hurdle would be at the border, where the cross-border transporters would then have to convince crooked workers from border authorities to do their bidding.
“The next problem is how to smuggle the alcohol into Zimbabwe. So, you have to factor in all your costs. You have to pay off omalayitsha, then you pay off the guys that smuggle the alcohol across but with everything considered, this is nothing because you’re still going to make your profit. Why is that the case? The fact that you don’t have to pay tax to Zimra for all the booze is a big plus in comparison to paying off the smuggler R500, as an example,” said the malayitsha.
The profit margins that can be realised from every shipment vary due to several economic factors. The strength and weakness of the rand, for example, determine the price that will be asked of an imbiber on the streets of Bulawayo.
“The key lies in pushing volumes and if you have a consistent clientele you can do that,” one seller told Sunday Life.
“For example, in Zimbabwe, one six-pack can be bought for US$10 but in South Africa, that same product would have cost less than that. The price is also determined by the strength and fluctuations of the rand. If the rand is weak, the price for a beer brand like Corona goes to US$1 and if the rand firms then the price goes up to US$1,20.”
Another buyer who acts as a runner for some alcohol sellers in South Africa said while the major pub and club owners flocked to omalayitsha, smaller sellers used cross-border buses to bring in their booze.
“Personally, the people I deal with in Bulawayo sell bottles of whisky or cognac. So, when I calculate, I think they make about US$10 to US$15 from every bottle that they put up for sale. So, they ensure they buy three or four boxes whenever they import something from South Africa.
They also have to pay off the bus drivers and every box of Hennessey, for example, sets them back R400. If things are bad at the border and the search for smuggled goods is more intense that may go up to R550 but that depends on how frequently you’ve been working with your point person at the border.
If they have been working with you for a while you’ll be charged less,” said the runner who also spoke on condition of anonymity.
A key cog in the entire operation, the runners are always on the lookout for bargains and this means keeping their ear close to the street.
“The price of alcohol in SA also depends on the periods you buy it from shops. Sometimes they’re running specials and the booze is cheaper so you have to make sure you download their apps and keep their notifications on just in case there is a special running.
It helps to have a lot of cash on hand all the time. So you have to keep close to shops like Spar, Makro, Tops and others. Timing is everything,” said the runner.
Sellers that deal exclusively in whisky or cognac usually have to be more patient than their counterparts who trade in clear beer or cognac, as their stock moves much slower than the popular “dollar deals”.
“When it comes to clear beer, they deal with people who have a licence in South Africa and thus they can get their things at a dealer price. This means they get their things at a much cheaper rate. Usually, the omalayitsha who bring the alcohol to Zimbabwe are the ones who know people with licenses so you will give them your money for the booze and then put their transportation fee on top.
The last time I checked, omalayitsha were charging between R50 and R70 per case. With dollar deals, I think the profits are smaller and the returns are quicker but it’s different for bottles. Sellers of cognac have to be patient because they move slower but the profits are bigger.”