Fuel transport operators to the Copperbelt are increasingly bypassing Zimbabwe due to a newly imposed duty aimed at curbing in-transit fuel theft. This development is leading to a significant shift in transportation routes.
According to Mike Fitzmaurice, CEO of the Federation of East and Southern African Road Transport Associations (Fesarta), at least two major companies, which handle substantial market-share volumes, have already stopped using Zimbabwe as a transit route.
This change follows the Zimbabwe Revenue Authority’s (Zimra) imposition of duties on the in-transit transportation of fuel, including petrol, diesel, paraffin, and A1 jet fuel.
The duty was implemented on August 10, following a mid-term budget announcement by Finance Minister Mthuli Ncube.
Private-sector stakeholders had warned that imposing additional costs on an already expensive operation could lead to a loss of business. However, Zimra assured that the duties, payable at ports of entry, would be refunded upon exiting Zimbabwe.
While public officials hailed the duty as a potential solution to Zimbabwe’s fuel theft problem, Fitzmaurice criticized the inefficiency of the country’s banking system.
He explained that it could take up to two days for the payments to reflect in a transporter’s account and even longer for refunds, creating a prohibitive situation for operators handling large fleets.
Fuel transporters, especially those on the Beira Corridor, are now considering alternative routes. Many operators, including those trucking fuel from suppliers like Sasol in South Africa, are choosing to drive through Botswana despite the route being approximately 200 kilometers longer.
This shift is driven by delays at the Beitbridge Border Post and a strict cargo scanning regime instituted by Zimra, which is causing severe congestion.
Fesarta’s Transit Assistance Bureau (Transist) has recorded a noticeable decrease in northbound cargo entering Zimbabwe.
Additionally, the dip-testing practice at Chirundu Border Post, intended to detect fuel theft, is further discouraging operators.
The setup at Chirundu, where the scanning and dipping sheds are adjacent, forces all tankers and cargo carriers into the same queue, causing significant delays.
When Finance Minister Ncube announced the new duty on July 25, he acknowledged that fuel smuggling remained rampant and that current cargo tracking measures were ineffective.
However, Fitzmaurice argued that targeting transporters was misguided. He suggested that more effective measures, such as sealing cargo with satellite tracking and conducting thorough audits, could help distinguish compliant operators from those involved in smuggling.
Despite these stringent measures, fuel smuggling continues to undermine Zimbabwe’s economy as more cross-border operators choose to bypass the country altogether.
