Tag / Harare

by Mike Poverello

Hijackers bleed cigarette exporters

While the world’s health authorities rally for legislation outlawing or at least curbing tobacco abuse, it seems there is a world of intrigue deep in the heart of the tobacco trade. 

Zimbabwe is investigating possible industrial espionage amid reports that South African tobacco firms are hiring hijackers to pounce on export cigarette consignments in transit to that country. In the past year or so, indigenous producers exporting to South Africa lost an estimated R100 million worth of cigarettes to armed robbery syndicates. Among the affected companies are Kingdom, Savanna Tobacco, Breco (Fodya), Cutrag, Trednet and Chelsea.

Savanna Tobacco has confirmed losing cigarettes worth over R18 million through hijackings and robberies while their warehouse in SA has been broken into several times. Only British American Tobacco Company has been spared. At least eight Zimbabweans were arrested at Savanna Tobacco in Harare on suspected espionage. Cosygene Dekeya, a former army military intelligence operative and Edmore Muronzerei appeared in court last week.

Investigations by The Herald showed that the Tobacco Institute of South Africa contracted a security firm, Forensic Security Service, to monitor Zimbabwean cigarette manufacturers, whose brands are giving their South African counterparts stiff competition. Stephen Botha, a former apartheid military supremo owns Forensic Security Services, the company that allegedly recruited spies within the workforce of Zimbabwean cigarette manufacturers. The spies allegedly supply consignment export details, enabling the cartel to track, intercept and hijack. FSS is said to have engaged a local business mogul (name supplied) who owns one of the largest courier service companies to co-ordinate the spies and their payments. The mogul’s trucks have also been hijacked in what might turn out to be inside jobs. Local (Zimbabwean) companies now suspect BAT of being behind the formation of TISA, which has since been regionalised.

Savanna Tobacco executive chairman Mr Adam Molai said it was shocking that South Africans were infiltrating local security organisations to commit economic crimes and bleed the economy. “It is deplorable, you cannot have foreign agencies working for our competitors to distabilise our operations in Zimbabwe. We hope our authorities will ensure that issues of this nature are dealt with accordingly,” said Mr Molai.

Trednet administrative manager Mr Graham Acutt said his company had reduced production by 70 percent. “We are aware of the under cover operations for quite some time now. This is tantamount to industrial espionage and it is highly illegal and frowned upon the world over. Imagine people spying on you and following your consignment. It becomes sensitive and clients will stop buying your product,” he said.

Mr Acutt said he was aware that police were investigating and he was willing to assist as much as he could. “We need more help from the authorities in Zimbabwe to investigate those who are actually behind this. We will assist where we can. This espionage has compromised our ability to export and obviously to earn foreign currency for the country,” he said.

Breco, which is now trading as Fodya said their market intelligence has over time indicated that there were clandestine activities being undertaken by some organisations to disrupt their business. “We understand most companies in this industry experienced this form of activity in one form or another,” said Breco in an e-mail to The Herald. “What is most alarming is that some of the organisations involved in these activities are externally-based and being assisted by local Zimbabweans. If the activities of these institutions or organisations are the real basis for our reduced capacity, then it is illegal,” it said. Source: The Herald (Zimbabwe)

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by Mike Poverello

Zimbabwe: Dependence on SA Imports ‘Risky’

ZIMBABWE’S export trade promotion body, ZimTrade, has warned against over-reliance on South African imports, stressing that Harare could plunge into a serious economic crisis should its southern neighbour experience unexpected production and supply challenges. South African producers of basic commodities, automobile services, chemicals, agricultural inputs and farm produce have taken advantage of a significant weakness in Zimbabwean firms’ capacity to service the domestic market, which has triggered widespread shortages of locally manufactured goods.

South Africa and Zimbabwe have intensified trade relations, but the balance of trade has always been in favour of South Africa, Africa’s largest economy. In March, South Africa’s Deputy Minister of the Trade and Industry, Elizabeth Thabethe, flew into Zimbabwe with a delegation of 45 businesspeople to intensify the hunt for new markets for her country’s companies north of the Limpopo. The business delegation comprised companies in the infrastructure (rail, telecommunication and energy), manufacturing, agriculture and agro-processing, mining and mining capital equipment, as well as information and communication technology.

Zimbabwe labour unions are reportedly facing tremendous pressure from workers to campaign against an overflow of South African products into Zimbabwe to allow for the resuscitation of local industries to create jobs, have said Harare had “turned into a supermarket” for South African products. (Huh? strange since so many of the eligible working Zimbabweans have gainful employment in South Africa. Sounds more like labour union politicking)

If South Africa, for example, is to experience a supply hitch, this will be transmitted directly into Zimbabwe’s production and consumption patterns. The appreciation of the rand in the second quarter of 2011, for instance, resulted in price increases on the domestic market.In other words, heavy dependency on imports will leave an economy susceptible to world economic shocks, according to ZimTrade.

Statistics provided by the Department of Trade and Industry (dti) of South Africa in March, indicated that exports to Zimbabwe increased to R15,5 billion in 2011, from R15,1 billion in 2010, while Zimbabwe’s exports to that country increased to R2,9 billion in 2011, from R1,3 billion in 2010. The statistics indicate that South Africa imported US$1 billion worth of goods and services from the Southern African Development Community trade bloc, with 37 percent of the imports coming from Zimbabwe. The dti said imports from South Africa represented 45 percent of Zimbabwe’s total imports. Therefore, according to ZimTrade, “A growing trade deficit could increase the country’s risk of imported inflation and a direct transmission of shocks into the economy.

South Africa has also been Zimbabwe’s major source market for industrial inputs. The United States, Kuwait, China, Botswana and Zambia were Zimbabwe’s other major trading partners in 2011.However, the dti statistics indicated that Harare had narrowed its trade deficit with Africa’s largest economy in 2011 to R12,6 billion, from R13,7 billion in 2010. This translates to about US$12 million and US$13 million respectively

The dti deputy minister, Thabethe acknowledges that “South Africa and Zimbabwe are not only geographical neighbours. The two countries share historical and cultural linkages. Furthermore, South Africa’s economy is inextricably linked to Zimbabwe’s economy due to its geographical proximity to Zimbabwe whose political and economic welfare has a direct impact on South Africa”. Source: The Herald (Zimbabwe)