Analysis of the Control of Goods (Import and Export) (Commerce) (Amendment) Regulations, 2026 (No. 15) – Statutory Instrument 59 of 2026.

The issuance of Statutory Instrument 59 of 2026, formally cited as the Control of Goods (Import and Export) (Commerce) (Amendment) Regulations, 2026 (No. 15), marks a transformative juncture in the trade and industrial policy of Zimbabwe. This regulatory framework, promulgated by the Minister of Industry and Commerce under the authority of the Control of Goods Act [Chapter 14:05], represents a strategic pivot toward aggressive import substitution, industrial protectionism, and the formalization of a historically fragmented trade environment. By amending the principal regulations established in 1974, the government has signaled a departure from the liberalized trade paradigms of the past, aligning instead with the National Development Strategy 2 (NDS2) and the overarching Vision 2030 objective of attaining upper-middle-income status. This report provides an exhaustive examination of the regulatory architecture, a meticulous cataloging of prohibited and restricted goods, and a nuanced analysis of the multi-dimensional impacts on the macroeconomic landscape, the private sector, and the individual citizenry.

The Evolution of the Regulatory Framework

The foundation of S.I. 59 of 2026 lies in the modernization of the Control of Goods (Import and Export) (Commerce) Regulations of 1974. For decades, the principal regulations served as a broad framework, but the 2026 amendment introduces specific, high-resolution controls tailored to contemporary economic challenges, including the preservation of foreign currency, the stimulation of local manufacturing, and the mitigation of environmental degradation caused by the influx of aged machinery and second-hand textiles.

The introduction of Section 5A grants the Secretary for Industry and Commerce unprecedented discretionary power to reject applications for import or export licenses. This discretion is not arbitrary but is tethered to three specific criteria: the failure of goods to meet national quality or safety standards, the determination that a trade activity is prejudicial to the economic interests of Zimbabwe, or a history of regulatory non-compliance by the applicant. This mechanism functions as a qualitative filter, ensuring that the domestic market is not used as a dumping ground for substandard products while prioritizing the growth of local industries that have demonstrated the capacity to meet domestic demand.

Exhaustive Analysis of Prohibited Goods

The regulations establish a clear hierarchy of control, ranging from absolute prohibitions on health and dignity grounds to time-based restrictions on automotive assets. A thorough understanding of these prohibitions is essential for legal compliance and market strategy.

Absolute and Qualified Prohibitions: Second-Hand Textiles

The prohibition of second-hand textiles under Section 7B is perhaps the most socially and economically significant element of the 2026 regulations. The government has imposed a blanket ban on the importation and sale of second-hand clothing, framing the move as an effort to restore order and revive the domestic garment industry.

The ban is particularly absolute regarding second-hand undergarments, which are prohibited under all circumstances without any provision for permits or exemptions. This measure addresses long-standing public health concerns and is a symbolic effort to reclaim national dignity by rejecting “waste colonialism”—the practice where developed economies dispose of textile waste in African markets. For general second-hand clothing, a qualified exemption exists only for charitable organizations that can demonstrate the goods are for free distribution, subject to a specific permit from the Secretary.

This prohibition directly targets the “bales” culture that has dominated the informal sector. Retailers like Truworths Zimbabwe, which delisted in 2025 after failing to compete with cheap, untaxed imports, represent the formal sector’s casualties that this ban seeks to prevent in the future. The revitalization of local giants such as David Whitehead Textiles is predicated on the success of this enforcement.

The 10-Year Automotive Rule: Prohibitions by Category

Section 7A introduces a time-based prohibition on second-hand motor vehicles. Any vehicle manufactured ten years or more prior to the date of importation is strictly prohibited. This regulation addresses the “Grey Market” that has historically drained foreign currency for aged assets with high maintenance costs and low environmental standards.

Prohibited Vehicle Categories (Aged 10 Years and Above)

It is critical to note that the regulations include nuanced exemptions to the 10-year rule, designed to protect the rights of returning residents, diplomats, and heirs. Inherited vehicles from deceased estates, vehicles belonging to immigrants (as defined under SI 257 of 2003 and SI 154 of 2001), and vehicles owned by returning diplomats are allowed entry regardless of age, provided they meet the specific definition of personal property. Furthermore, “vintage vehicles” at least 25 years old, which are preserved for historical or cultural significance rather than daily transport, are exempted to support the automotive heritage sector.

Detailed Analysis of Goods Requiring Import Licensing

Beyond absolute prohibitions, S.I. 59 of 2026 expands the First Schedule to include a vast array of goods that require an import license. This licensing regime is not merely a revenue-generating tool but a sophisticated instrument of trade management.

Agricultural and Food Security Management

The regulations place heavy restrictions on the importation of food products where domestic production has reached or is nearing sufficiency. This is a direct attempt to support the recovery of the agricultural sector, which saw a 40% increase in maize harvests after the 2024 drought-induced contraction.

• Poultry and Meat Products: Live poultry (01.05), fresh or frozen poultry meat (02.07), and meat of swine (02.07) are now tightly controlled to protect local poultry farmers and the “Command Agriculture” initiatives.

• Dairy: Milk and cream, including infant formula and disaccharide-free milk, require licenses when retail-packed (04.01, 0402.91.10). This protects local dairy processors like Dairibord.

• Horticulture: Onions (0703.10.00) and potatoes (0710.10.00) are restricted to ensure that local smallholder farmers can access the domestic market without being undercut by regional imports.

• Processed Foods: Noodles (1902) have been included, reflecting the growth of local grain-milling and pasta-processing facilities.

Construction and Industrial Materials

The licensing of construction materials is a response to the infrastructure boom projected for 2026, where the construction sector is expected to be a primary growth driver.

• Cement: All forms of Portland cement, including clinkers and white cement (2523), require licensing. This protects major domestic producers like PPC and Khayah Cement from regional surpluses.

• Steel and Structural Components: Iron and non-alloy steel bars, rods (7214), angles, shapes, and sections (7216) are now restricted. This is particularly relevant as the government seeks to breathe life into ZISCO Steel via the Mutapa Investment Fund.

• Infrastructure Hardware: Bridges, bridge-sections (7308.10.00), towers, and lattice masts (7308.20.00) are licensed to ensure that large-scale infrastructure projects prioritize local fabrication capacity.

The Pharmaceutical Sovereignty Strategy

Perhaps the most detailed portion of the licensing schedule pertains to pharmaceuticals. Zimbabwe’s 2021–2025 Pharmaceutical Manufacturing Strategy aimed to increase the local share of the $US244$million market from 12% to 35%. S.I. 59 of 2026 provides the regulatory “teeth” for this strategy by requiring licenses for molecules where local production capacity is established.

Energy and Chemical Management

To ensure energy security and manage the environmental impact of hazardous materials, the regulations tighten controls on fuels and water treatment chemicals.

• Petroleum Products: Petrol, diesel, Jet A1, and paraffin require licenses if imported in containers other than a vehicle’s fuel tank, except for imports by the National Oil Company of Zimbabwe (NOCZIM). This addresses the informal and potentially unsafe trade in fuel containers.

• Water Treatment: Aluminium Sulphate (2833.22.00) is a priority restricted item. This directly supports the $US86,000, tonne annual capacity of Chilmund Chemicals in Bindura, which commissioned its state-of-the-art plant in July 2023. Local production of Alum has already reduced the risk of waterborne diseases like cholera by ensuring a steady chemical supply for municipalities.

• Specialized Substances: Radioactive elements and isotopes (28.44, 28.45) and nuclear reactors (8401) are included, ensuring stringent oversight of sensitive materials.

Economic Impact: Macroeconomic Benefits and Growth Drivers

The implementation of S.I. 59 of 2026 is projected to be a catalyst for sustained economic expansion. Zimbabwe’s GDP growth is forecast to remain robust at 5.0% in 2026, following a 6.6% peak in 2025. The regulations contribute to this growth through several interrelated mechanisms.

Trade Balance and Currency Stability

A primary benefit of the import restrictions is the improvement of the external current account. By curtailing the $US10.11 billion annual import bill, particularly for non-productive goods like second-hand clothes and older cars, the government preserves vital foreign currency reserves. In January 2026 alone, Zimbabwe recorded a trade surplus of $US114 million, a streak supported by gold and tobacco exports but solidified by managing the import side of the equation.

The stability of the “ZiG” currency is a critical beneficiary. Backed by gold and foreign reserves, the ZiG has significantly moderated inflation, with targets for single-digit levels by the end of 2026. By reducing the parallel market demand for US dollars—often driven by informal importers of second-hand goods—the regulations help anchor price stability and improve consumer confidence.

Value Addition and Industrialization (NDS2)

The 2026 regulations are a practical application of the National Development Strategy 2. The focus on timber and furniture licensing supports the goal of meeting 80% of national timber demand through domestic processing within five years. Local value addition in the forestry sector is expected to rise from 25% to over 60% by 2030, transforming Zimbabwe from a raw-log exporter to a competitive producer of high-value paper and wood-based products.

The manufacturing sector, which has suffered from years of underinvestment and competition from “clunkers” and “bales,” is seeing a retooling boom. Government incentives, combined with the protection offered by S.I. 59, have encouraged investments in modern sawmills, pharmaceutical laboratories, and textile hubs.

Impact on Businesses: Formalization and Competitive Advantage

For the business community, S.I. 59 of 2026 represents both a challenge of adaptation and an opportunity for growth. The regulations are part of a broader “Ease of Doing Business” overhaul that includes Statutory Instrument 41 of 2026.

The Single Business License Revolution

The government has recognized that high regulatory fees previously acted as a “friction tax” that drove $86\%$ of MSMEs into the informal sector. To offset the impact of import restrictions, the 2026 reforms have consolidated 11 fragmented licenses into a single shop license, capped at $US500$ for SMEs. This allows a retailer to operate a bakery, butchery, and takeaway under one permit, significantly reducing compliance time and costs.

This formalization allows businesses to access bank loans, insurance, and government tenders, transitioning them from “survivalist” operations to growth-oriented enterprises.

Manufacturing Resilience: The Case of Chilmund Chemicals

The business benefit of these regulations is most visible in the chemical manufacturing sector. Chilmund Chemicals, located in Bindura, transitioned from a trading company to a manufacturer, investing in a plant that produces $70 tonnes of Aluminium Sulphate per day. By listing Alum as a licensed import, the government has ensured that Chilmund’s $US120 permanent employees, a number set to rise to $250 have a secure market. This “import substitution” not only creates jobs but also positions Zimbabwe as a regional leader in the water treatment sector, with plans to export to SADC markets.

Challenges for Car Dealers and Importers

Conversely, the second-hand car dealership sector faces significant disruption. New presumptive taxes of $US15,000$ per quarter for non-compliant dealers, combined with the 10-year age limit, have forced a consolidation of the market. Dealers must now pivot toward newer vehicles or focus on the exempt commercial vehicle segments (mining and construction trucks). While this may raise the retail price of vehicles, it aligns with ZIMRA’s 2026–2030 Strategic Plan to expand the tax base and ensure that high-value consumer trades contribute fairly to the fiscus.

Impact on Individuals: Social Stability and the Personal Basket

The social impact of S.I. 59 is a subject of intense debate, weighing the long-term benefits of safety and stability against the immediate costs to low-income earners.

Public Health and Road Safety

For the average citizen, the 10-year rule on vehicles and the ban on second-hand undergarments are framed as public safety measures. Older vehicles are disproportionately involved in per capita crash injuries and contribute significantly to urban air pollution. By modernizing the fleet, the government aims to reduce the public health expenditure associated with respiratory illnesses and road trauma.

The ban on second-hand clothes, while controversial, addresses the environmental and health risks of “waste colonialism.” Reports suggest that unregulated textiles often carry pathogens or chemical residues from Western treatment processes. Protecting the local textile industry also promises the return of high-quality, “Made in Zimbabwe” school uniforms, which are currently restricted items (Part I, First Schedule) to ensure that local garment workers many of whom are women retain their livelihoods.

The Personal Use Buffer: The Third Schedule

To mitigate the impact of trade restrictions on individual households, Part II of the Third Schedule defines “Exemptions from Import Licensing.” An individual is permitted to import a specific basket of goods for personal use once per calendar month without a license.

This allowance ensures that while commercial trade is regulated to support industrialization, individual citizens maintain the flexibility to supplement their household needs through small-scale imports, particularly for residents near borders like Mutare or Beitbridge.

Livelihoods and the Informal Sector Outcry

The most acute negative impact is felt by the estimated $5.2 million informal workers. Organizations like the Vendors Initiative for Social and Economic Transformation (VISET) have condemned the ban on second-hand clothing as “damaging to livelihoods”. The argument is that in an economy where formal employment is still recovering, vending is a survival strategy for graduates and the urban poor.

However, the 2026 economic strategy attempts to solve this through “more carrots than sticks”. By reducing the cost of formalization (SI 41) and providing microfinance facilities for small-scale entrepreneurs, the government aims to move vendors from the streets into designated, structured markets like the rebuilt Mbare Musika. This transition is critical for “urban renewal” and reducing traffic congestion in the Harare CBD.

Administrative and Legal Framework for Compliance

The success of S.I. 59 depends on its integration with modern digital systems. Applicants for import/export licenses must now use the ZimConnect platform, which retrieves company data directly from the Companies Registry. This integration reduces the potential for fraud and ensures that only tax-compliant entities can participate in trade.

Application Costs and Procedures

For commercial entities, the $US100 import application fee is non-refundable and must be paid prior to the issuance of the license. This fee, payable via platforms like PayNow, serves as a significant revenue stream for the Ministry of Industry and Commerce, which is then reinvested into quality monitoring and standards enforcement.

The procedures are rigorous:

1. Submission: Application letter to the Permanent Secretary (Harare or Bulawayo).

2. Product Separation: A separate application for each product category to prevent the “bundling” of unrelated goods.

3. Justification: For companies, a profile must indicate that the goods “cannot be sourced locally,” reinforcing the import substitution drive.

4. Verification: ZIMRA and the Ministry coordinate to ensure that the “marked off” import license from previous shipments matches the new application.

Penalties and Deterrence

The regulations introduce severe consequences for “selling” a license or permit, a practice that historically undermined trade controls. Under Section 13A, offenders face up to one year of imprisonment. This is complemented by new VAT regulations for 2026, which increase the standard rate to 15.5% and mandate the use of “electronic fiscal devices” to ensure that every dollar of value added in the protected sectors is captured by the treasury.

Sectoral Synthesis: The Path to 2030

The Control of Goods (Amendment) Regulations, 2026, are not an isolated set of restrictions but part of a holistic economic vision.

Furniture and Timber: Doubling Value Production

Under the National Development Strategy 2, Zimbabwe plans to modernize its sawmilling and pulp capacity to meet over 80% of national demand within five years. S.I. 59 supports this by licensing imported furniture and steel kitchen units (Part I, First Schedule). The commercial forestry industry in Manicaland, worth several hundred million dollars, is being repositioned as a driver of job creation. Finance Minister Mthuli Ncube has highlighted that retooling existing facilities and establishing “timber-processing clusters” will lower production costs and make Zimbabwean furniture competitive in the SADC region.

Textiles: From David Whitehead to Local Boutiques

The 40% import tariff on polyester staple fibers and dyed woven cotton fabrics, combined with the ban on second-hand clothes, aims to correct long-standing distortions. The recovery of the “Cotton-to-Clothing Value Chain” is essential for the 58.6% employment rate reported in 2023. By protecting the 15 million meters of polyester and 25 million meters of cotton fabric capacity installed in recent years, the government is ensuring that the “Buy Zimbabwe” mantra moves from a slogan to a measurable economic reality.

Education and Healthcare: Essential Goods Protection

The licensing of school uniforms, socks, textbooks, and exercise books ensures that the massive student enrollment in both government and private schools supports local garment and printing industries. In the healthcare sector, the goal is to raise local production of essential medicines to $60\%$ by the end of 2025. The licensing of molecules like Amoxicillin and Metformin is a “non-tariff barrier” that provides a favorable regulatory environment for local pharmaceutical research and development.

Conclusions

Statutory Instrument 59 of 2026 represents a definitive and bold reclamation of Zimbabwe’s economic sovereignty. By meticulously managing the flow of goods across its borders, the government has created a framework where industrial growth is not left to chance but is fostered through strategic protection.

The exhaustive list of prohibited second-hand vehicles and textiles addresses the twin crises of environmental degradation and industrial decline. The licensing regime for agricultural, construction, and pharmaceutical goods ensures that domestic manufacturers, from the Bindura Alum plant to the Harare pharmaceutical labs, have a stable and predictable market.

For the individual, the transition is marked by a dual narrative: the immediate challenge of rising costs for cheap imports and the long-term promise of higher quality, safer roads, and increased formal employment opportunities. The “Growth-First” strategy, supported by the massive reduction in business fees and the stability of the gold-backed ZiG currency, provides the necessary cushion for this transition.

As Zimbabwe moves toward its 2026 targets, the successful implementation of S.I. 59 will depend on institutional transparency, the efficiency of the ZimConnect digital platform, and the ability of the manufacturing sector to meet the quality and volume requirements of the domestic market. If executed with consistency, these regulations could indeed be the engine room that transforms Zimbabwe into an upper-middle-income society by 2030.