Economy

Zimbabwe reportedly scraps transit duties on petroleum products to ease Zambia’s supply challenges

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Zimbabwe has reportedly scrapped transit duties on petroleum products with immediate effect in a move aimed at enhancing trade and easing Zambia’s fuel supply hurdles.

Professor Amon Murwira, Zimbabwe’s Minister of Foreign Affairs and International Trade, disclosed the development, noting that Cabinet had approved the measure to boost regional trade and cooperation.

The announcement came as Zambia and Zimbabwe signed two Memoranda of Understanding (MoUs) covering the creation of a bi-national commission, and cooperation on private sector development and the implementation of the planned Zimbabwe-Zambia Oil Products and Natural Gas Pipelines Project (ZIZOP).

Both countries also agreed to expedite consultations and finalise outstanding agreements ahead of the inaugural Bi-National Commission, scheduled to be held in Zimbabwe by November 2025, during a planned working visit by President Hakainde Hichilema.

Zambia reiterated its continued advocacy for the removal of unilateral sanctions on Zimbabwe, stressing that such measures undermine developmental efforts.

The MoU on the Bi-National Commission was signed by Zambia’s Minister of Foreign Affairs and International Cooperation, Mulambo Haimbe, and his Zimbabwean counterpart, Professor Murwira, while the pipeline cooperation MoU was signed by Energy Minister Makozo Chikote alongside Murwira.

According to a joint statement released after the Mid-Term Review of the 18th Session of the Joint Permanent Commission of Cooperation (JPCC), held from September 9–11, 2025, in Harare, the two governments reaffirmed progress under the Simplified Trade Regime (STR) and pledged its full implementation to ease small-scale cross-border trade.

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The statement also noted that the countries had agreed to increase the capacity to transmit electricity from other parts of the region through Zimbabwe, while underscoring the importance of enhanced transport connectivity as a driver of trade and investment.

Further, the two sides committed to commercialise joint assets such as the hotel in Victoria Falls and mineral rights in South Africa held by Zambia Railways Limited and the National Railways of Zimbabwe.

They also agreed to deepen cooperation in mutual legal assistance, with authorities tasked to initiate the process of signing a new MoU.

Both governments concluded by emphasising the need to intensify collaboration across existing and emerging areas of mutual interest and to strengthen coordination on regional, continental, and international platforms to advance shared positions.

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