Source: Government scraps duty on fuel in transit – herald
Freeman Razemba and Victor Maphosa
Zimpapers Reporters
The Shipping and Forwarding Agents’ Association of Zimbabwe (SFAAZ) has commended the Government of Zimbabwe for scrapping duties and taxes on fuel in transit.
The latest development has since been gazetted through the Finance Act Number 7 of 2025.
This policy adjustment effectively reverses the temporary import duty on fuel in transit that was introduced in August 2024.
At that time, the Government had imposed duties and levies on petrol, diesel, paraffin and Jet A1 fuels moving through Zimbabwe by road to neighbouring countries.
The measure was designed as a control mechanism to curb rising cases of transit fraud.
While the policy was well-intentioned, its operational impact on the clearing, forwarding and transit logistics sector was significant.
The upfront payment requirement increased the cost of doing business, strained cash flows for operators, and led to the diversion of regional transit traffic away from Zimbabwe in favour of alternative corridors.
In light of the latest developments, SFAAZ has welcomed the Government’s decision to scrap the duty, describing it as a timely and pragmatic intervention that restores Zimbabwe’s competitiveness as a regional transit hub.
Commenting on the development, SFAAZ chief executive officer, Mr Washington Dube, said the move was “a clear demonstration of the Government’s willingness to listen to industry concerns and to align policy implementation with economic realities on the ground.”
“This decision is a significant boost to the clearing, transport and freight forwarding sector, which had begun to experience a noticeable decline in transit volumes as a result of the temporary duty. Removing this cost barrier will immediately improve route competitiveness and restore confidence among regional transporters and cargo owners,” Mr Dube said.
He said Zimbabwe occupies a strategic geographic position at the heart of Southern African trade corridors, offering landlocked countries such as Zambia, the Democratic Republic of Congo, and Malawi some of the shortest and most efficient routes to key regional ports, including Beira Port in Mozambique and Durban Port in South Africa.
“The removal of duty on fuel in transit dovetails neatly with the Second Republic’s broader vision of positioning Zimbabwe as a regional logistics and transport hub within the SADC region. Policy coherence of this nature is essential if the country is to fully capitalise on its geographic advantage and take advantage of the vast opportunities envisaged under the African Continental Free Trade Area (AfCFTA),” Mr Dube added.
He highlighted the positive downstream effects of increased transit traffic, including higher toll revenue collections, increased demand for roadside services, enhanced utilisation of border infrastructure and broader economic activity along national highways.
In particular, he noted that the policy shift complements the Government’s substantial investment in strategic road infrastructure projects, most notably the Beitbridge–Harare–Chirundu Highway, which forms the backbone of Zimbabwe’s North–South Corridor.
Mr Dube applauded the Second Republic for its consultative approach to policy formulation and implementation, noting that sustained engagement between the Government and the private sector is critical to achieving long-term economic transformation.
“The level of openness, responsiveness and structured engagement being demonstrated by the Government is encouraging for business. Such an approach creates certainty, builds trust and accelerates progress towards Zimbabwe’s aspiration of becoming an Upper Middle-Income Economy by 2030,” he said.
SFAAZ reaffirmed its commitment to continued collaboration with the Government and other stakeholders to strengthen trade facilitation, safeguard compliance, curb smuggling, and enhance Zimbabwe’s standing as a preferred transit and logistics gateway in the region.
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