THE country’s trade development and promotion agency, ZimTrade, has recorded an income growth of 101% to $1,5 million for the year ended December 31, 2012, driven by the administrative effectiveness in the surcharge collection process.
Report by Tarisai Mandizha
In the same period in 2011, ZimTrade’s income was $723 781.
Speaking at the ZimTrade annual general meeting in Harare, finance and Audit committee chairperson Morris Mpofu said the significant growth in trade development surcharge was a result of management efforts with respect to the aggressive follow-up on surcharge collecting banks and the active engagement of the central bank which resulted in the revocation of directive RJ155 of 2008.
Mpofu said the directive RJ155 of 2008 had previously prevented collection of surcharge from the retail, distribution and services sectors.
“The trend is evidence of the aggressive follow-up on surcharge collecting banks as well as the revocation of directive RJ155 of 2008,” Mpofu said.
Mpofu said ZimTrade recorded a growth of 106% in surcharge collection to $1,3 million for the year ended December 31, 2012 from $624 851 due to aggressive follow-up on surcharge collecting banks and the active engagement of the Reserve Bank of Zimbabwe.
Surcharge is a fee or other charge that is added to the cost of a good or service.
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A surcharge is typically added to an existing tax, and may not be included in the stated price of a good or service.
Mpofu said trade development surcharge was the main driver of income, contributing 88%, government grant contributed 4% while fees for services and other income contributed 8%.
In the period under review, total expenditure for the year amounted to $1 million, representing a 27% increase compared to $791 571 in 2011.
Mpofu said contribution to total expenses was direct export development, 52% administration 23%, employment 17% and board and governance 8%.
He, however, said there was an increase in export development related activity as compared to 2011.
“Major activities include South Sudan market research and the Tete trade mission as well as the related breakfast seminars to disseminate information on these markets,” Mpofu said.
He said the growth was not underpinned by an increase in value added exports.
“It is therefore crucial that, as a country, we focus on investment and capacity utilisation in the manufacturing sector in order to grow exports and sustain ZimTrade’s trade promotion and development activities,” Mpofu said. ZimTrade chief executive officer Sithembile Pilime said there was need to reduce the burden on exporters so that they can be more competitive compared to their regional and global counterparts.
“We are looking forward to the commencement of a European Union-funded Trade and Private Sector Development Programme to support industry as well as revamp our trade information services.
“Finances permitting, we intend to support industry through cost-sharing schemes at trade promotion events,” Pilime said.
