**Harare**: Intrachem highlights that high raw material costs, import tariffs, and unfair duty exemptions for foreign goods are undermining Zimbabwe’s explosives manufacturers, urging urgent policy reforms to protect local industry and reduce reliance on fragile regional supply chains.
Explosives manufacturer Intrachem has voiced significant concerns regarding challenges that are undermining the competitiveness of local industries in Zimbabwe. In an interview with Mining Zimbabwe, Managing Director Darryn Brider outlined that despite the company’s considerable production capacity, various structural and policy-driven issues are threatening the sustainability of domestic manufacturing.
Brider stated, “We have more than sufficient supply capacity to meet the market requirements,” but emphasised that increasing raw material costs pose a substantial disadvantage in comparison to international competitors. He pointed out that the local sourcing of raw materials is both impractical and excessively costly. “We have little to no availability of local suppliers for critical inputs, and when they are available, their pricing is simply too high for us to remain competitive in certain segments of the mining industry,” he explained.
This scenario has pushed many manufacturers to rely on imports, particularly from South Africa, where supply chains are considered more reliable. However, Brider highlighted the fragility of this dependency, noting, “South African supply can be fragile,” yet at present, it enables them to keep pace with market demand.
In an effort to ensure operational continuity and mitigate the risks associated with regional supply disruptions, Intrachem has made significant investments in infrastructure. The company has developed a new ammonium nitrate (AN) dissolving plant and expanded its storage facilities, aiming to enhance self-sufficiency and secure a consistent supply for both current and future mining clients.
Nonetheless, Brider identified policy issues as a major hurdle to progress. Imported raw materials for local manufacturers attract tariffs and duties, while foreign competitors benefit from exemptions under the Southern African Development Community (SADC) framework for finished goods. This disparity results in what Brider described as an “uneven playing field,” wherein domestic manufacturers face penalties for local production, while importers enjoy duty-free access. He expressed concern that this dynamic not only drains mining procurement funds from Zimbabwe but also exacerbates the country’s trade deficit.
Additionally, Brider raised alarms over the misuse of VAT-free and duty-free ammonium nitrate fertiliser, which is intended for agricultural purposes but is being diverted for use in mining operations. He noted that this loophole distorts the market and undermines legitimate industrial supply chains.
Brider called for urgent policy reforms to bolster domestic production, address the abuse of duty exemptions, and promote local procurement within the mining sector. He asserted, “We have the capacity, the commitment, and the infrastructure. What we need is a fair operating environment.”
As the local industry continues to grapple with these challenges, the implications for the broader economic landscape in Zimbabwe remain significant, necessitating careful consideration from policymakers and industry stakeholders alike.
Source: Noah Wire Services
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