Zim GBC News | Business Correspondent
HARARE – The Government of Zimbabwe has officially scrapped the duty and taxes levied on fuel in transit, a major policy reversal hailed by the logistics industry as a vital step to reclaiming the country’s status as a competitive regional trade corridor.
The removal, enacted through the Finance Act Number 7 of 2025, reverses a measure introduced in August 2024 that imposed levies on petrol, diesel, paraffin, and Jet A1 fuels moving through Zimbabwe by road to neighbouring countries.
The initial duty was intended as a control mechanism to curb transit fraud. However, industry players reported it significantly increased business costs, strained cash flows, and diverted crucial transit traffic to alternative routes.
The Shipping and Forwarding Agents’ Association of Zimbabwe (SFAAZ) has commended the move, with its CEO, Mr. Washington Dube, stating it demonstrates the government’s responsiveness to economic realities.
“This decision is a clear demonstration of the Government’s willingness to listen to industry concerns and to align policy implementation with economic realities on the ground,” Mr. Dube said.
He elaborated on the immediate benefits, noting,
“Removing this cost barrier will immediately improve route competitiveness and restore confidence among regional transporters and cargo owners.”
Mr. Dube emphasized Zimbabwe’s strategic geographic advantage, offering the shortest routes to ports for landlocked neighbours like Zambia, the DRC, and Malawi. He argued the policy shift is aligned with broader national goals.
“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,” he stated, highlighting its importance for leveraging opportunities under the African Continental Free Trade Area (AfCFTA).
The CEO also pointed to positive downstream effects, including increased toll revenues, higher demand for roadside services, and better utilization of border infrastructure. He linked the policy to major ongoing investments, such as the upgraded Beitbridge–Harare–Chirundu Highway.
Praising the government’s consultative approach, Mr. Dube added,
“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.”
SFAAZ reaffirmed its commitment to collaborate with the government to enhance trade facilitation and solidify Zimbabwe’s role as a preferred logistics gateway in Southern Africa.
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