The Zimbabwe Revenue Authority (ZIMRA), in a recent show of force, publicly destroyed boats used for smuggling goods across the Limpopo River. While this action may temporarily disrupt the flow of illicit goods, it is unlikely to deliver a fatal blow to the deeply entrenched smuggling networks operating along the border. For many, smuggling is not merely a crime, but a way of life, driven by economic desperation and the lure of quick profits.

On a fateful day along the Limpopo River, ZIMRA, working in tandem with other government agencies, confiscated and destroyed 21 boats and 20 paddles employed in smuggling operations. In an official statement, ZIMRA declared its unwavering commitment to ensuring fair duty and tax payments for all, whilst simultaneously combating smuggling activities, which create an unfair playing field for legitimate businesses and expose civil society to illicit goods and substances. The statement also emphasized the destructive impact of smuggling on local companies.

While ZIMRA’s actions send a strong signal, the reality on the ground suggests a more complex and resilient situation. This article will delve into the intricacies of smuggling at the Beitbridge border, examining its causes, methods, and the likely impact of ZIMRA’s latest crackdown.

Retail Turmoil and the Rise of the Informal Sector

The crackdown comes at a time when Zimbabwe’s formal retail sector is facing considerable turbulence. Established brands, such as OK Zimbabwe, have been forced to shutter some branches as they struggle to remain afloat. The departure of Choppies from Zimbabwe and the contraction of Food World, now with only one branch in Harare’s Central Business District (CBD) compared to five in 2022, are stark indicators of the challenges faced by formal retailers.

The government has attributed the struggles of these formal businesses to the rise of the informal sector, particularly the proliferation of “tuckshops” in downtown Harare. These tuckshops, often accepting only United States Dollars in cash and rarely accepting the ZiG except at black market rates, are accused of undercutting formal retailers by selling cheap, smuggled goods without paying taxes.

While it is true that tax evasion and smuggling contribute to the price advantage enjoyed by these informal retailers, the reality is more complex. The government has an incentive to attribute the failure of formal retailers to these factors, as doing so deflects attention from the problematic exchange rate policies that contribute significantly to the challenges faced by legitimate businesses. These policies, which create an uneven playing field, are discussed in detail in a previous article on Zimpricecheck, which can be found here.

Smuggling at Beitbridge

There is rampant smuggling at Beitbridge. Contrary to popular belief, our research indicates that much of the illicit activity occurs directly at the border post rather than at illegal crossings. Transporters, often referred to as “Malaichas,” employ various methods to circumvent customs regulations, including bribing port officials to overlook discrepancies and understating the value of their cargo.

Once across the border, these goods are frequently loaded onto buses at the Beitbridge bus terminus. Bus operators, often aware of the presence of illicit cargo, factor in a “border control” budget. This colloquial term refers to the informal payments made to the various government agencies responsible for enforcing border control, which conduct patrols along the Beitbridge border post and Harare-Beitbridge Highway. At each stop, the bus conductor engages in brief negotiations with the officials and is typically allowed to proceed without further inspection.

Smuggling also occurs at illegal crossings, peaking during the dry summer months of October and November when the Limpopo River reaches its lowest levels. At this time, individuals can simply walk across in certain areas. These crossings are managed by individuals who collect crossing fees of approximately R50 per person or package. Porters, known collectively as “Zalawis,” facilitate the movement of goods across the river. The term “Zalawi” is of Bantu origin and its precise meaning remains indeterminate. These porters are capable of carrying incredibly heavy loads, including entire refrigerators. Transporters operate on both sides of the border, and the crossings often occur in full view of authorities who are purportedly compensated for their complicity.

A Likely Short-Term Impact

ZIMRA and other government agencies have launched an operation to more rigorously enforce border control measures. This operation targets buses, Zalawis, Malaichas, and, as evidenced by the boat burning, watercraft used for smuggling. The individuals involved in these activities are generally well-known to border authorities.

The short-term effect of this crackdown will likely be an increase in the price of goods, as smugglers factor in the increased risk and cost of operating in a more hostile environment. However, the longer-term impact is less certain.

The Lure of Profit

Smuggling is often seen as a lucrative opportunity, particularly in a country where legitimate economic opportunities are scarce. The potential for significant profits outweighs the risk of getting caught for many individuals. Furthermore, the deeply entrenched nature of these networks, coupled with the alleged complicity of some officials, makes it difficult to eradicate smuggling completely.

ZIMRA’s efforts to combat smuggling are commendable, and the destruction of boats sends a clear message that the government is taking the issue seriously. However, addressing the root causes of smuggling, such as economic hardship, corruption, and ineffective border control measures, is crucial to achieving a lasting impact. Until these underlying issues are addressed, smuggling will likely remain a persistent challenge in Zimbabwe. While ZIMRA’s crackdown may provide a temporary respite, the lure of profit and the desperation of those seeking economic survival will continue to fuel the illicit trade.

OK Zimbabwe is NOT leaving Zimbabwe, it is shutting down six branches
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