Cement manufacturer Pretoria Portland Cement (PPC) Zimbabwe appeals for customs duty relief on packaging material saying it adversely impacts on production, while favoring foreign imports exempted from similar costs.
PPC head of Sales and Marketing, Nkosana Mapuma said there was an imbalance in the customs regulations as they were seemingly giving a competitive advantage to imported cement.
Mapuma made these remarks on the sidelines of a ceremony where PPC donated 36 tonnes of cement aimed at the Cyclone Idai rehabilitation works, in a gesture of corporate social responsibility.
For this reason, Mapuma said government should ring-fence local firms not only to boost productivity in the country depressed manufacturing sector, but to protect corporate citizens which respond to local need.
He also revealed that the Covid 19 pandemic, while it has caused some delivery delays, has had a nominal impact on their supply chain as the firm procures in advance.
“Other than spares for our machinery we also do import one critical element of our product which is that bag (for packaging) itself.
“The bag is imported and unfortunately it attracts duty but some of the cement which is being imported complete already, with cement inside of the packaging, does not attract duty. So there is a bit of imbalance there, government should protect local products.
“Supply chain hasn’t been fully affected but we have experienced some delays in terms of delivery of bags from our suppliers, mainly from South Africa and Tanzania. We have been cushioned so far because we procure quite a lot to cover us for many months.
“It’s all about preparation and planning ahead but the impacts is there,” said Mapuma.
Mapuma also urged customers to support all products manufactured locally.
“We are appealing to all citizens of this country to support locally produced products. It doesn’t matter whether its cement or cooking oil, or any other products.
“These corporate citizens are the ones who chip in when there is a national disaster or whenever there is need, owners of imported products will not be able to assist,” he said.
Mapuma said despite the quasi redollarisation in the economy, the firm stands guided by authorities and uses the official government position.
He said the company, which operates cashless on its premises, is currently accepting all modes of payment that have been regularized by government including foreign currency transfers.
“We have always followed regulations stipulated by government through RBZ with regards to the pricing of our products.
“Government allowed businesses to trade in US dollars but not as a sole currency, so at PPC we have an RTGS prize and a USD prize, those two prizes will be displayed for a customer to make a choice.
“We are still accepting Zimbabwean dollar transfers from any bank, we also accept USD transfers as we do not take cash at our premises,” said Mapuma.
