Abstract: The government of Zimbabwe promulgated Statutory Instrument 64 of 2016 on 1 July 2016. The main objective of the instrument, according to the government was to protect domestic firms from unfair competition from foreign firms and therefore boost production by local firms. However, Zimbabwe’s neighbours especially South Africa and Zambia claimed that the instrument adversely affected their economies and violated the Southern Africa Development Community Protocol on Trade which seeks to promote free trade among member countries. The study, thus, sought to explore the effects of Statutory Instrument 64 of 2016 on Zimbabwe’s neighbours and members of the Southern Africa Development Community region. The study used qualitative research. Data were collected using in-depth interviews, document reviews and observations. The study noted that trade between Zimbabwe and neighbouring countries was governed by the Southern Africa Development Community Protocol on Trade and bi-lateral trade agreements. The study revealed that Statutory Instrument 64 of 2016 had created ‘tension’ in the Southern Africa Development Community region with some exporters in countries like Zambia openly requesting their governments to retaliate by restricting imports from Zimbabwe. The researchers also discovered that some firms in the neighbouring countries had scaled down operations or closed down while others such as Willowton of South Africa had established a plant in Zimbabwe. The study recommended that the government of Zimbabwe should continue to engage neighbouring countries and Southern Africa Development Community as well as respect the outcome of any negotiations to restore trust and confidence in its trading partners. The government should also strive to strike a balance between Statutory Instrument 64 of 2016 and other policies such as Industry and Trade Policy and investment promotion policies; and avoid protecting inefficient industries that continued to underutilize capacity and resources. Thus, the government of Zimbabwe should institute policies that seek to revamp the whole supply chain for the benefit of Zimbabwe and its neighbours.
Keywords: Protectionism; Statutory Instrument; trade; tariffs; imports; exports; infant industry.
Title: An Evaluation of the Effects of Statutory Instrument 64 of 2016 on Zimbabwe’s Neighbours
Author: Stanley Idanai Murangwa, Tavonga Njaya
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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