ZIMBABWE has opened an investigation into rising pasta imports amid mounting pressure on the fledgling domestic manufacturing industry, with imports now accounting for close to nine-tenths of the local market.
The Competition and Tariff Commission (CTC) said the investigation followed an application for remedial action by National Foods Limited, the country’s sole known domestic producer of pasta products.
According to a Government Gazette published on Friday, imports of pasta products increased by about 17,4 percent from approximately 49,5 million kilogrammes in 2024 to 58,1 million kg in 2025, while import volumes remained substantially higher than domestic production.
The CTC stressed that the investigation is still at an early stage and that the preliminary findings do not amount to a final determination that imports have caused injury to the domestic industry.
“The Competition and Tariff Commission (‘the Commission’) has received and accepted an application for remedial action in the form of a safeguard measure against increased imports of pasta products into Zimbabwe,” the Gazette said.
The commission said National Foods had alleged that pasta products were being imported into Zimbabwe in increased quantities, both in absolute terms and relative to domestic production, under conditions that were causing or threatening to cause serious injury to the domestic industry.
The scale of import penetration is at the centre of the investigation.
The commission said the level of imports provided sufficient grounds to investigate whether imports had increased in such quantities and under such conditions as to cause or threaten serious injury to the domestic industry.
The investigation covers imports from all countries and territories supplying pasta to Zimbabwe, with Botswana, China, Egypt, Mozambique, Namibia and South Africa identified as the principal exporting countries. The development has potentially significant implications for local manufacturers, distributors, retailers and consumers because any eventual trade remedy could affect the cost and availability of imported pasta.
National Foods commenced domestic pasta production in February 2024, according to the Gazette.
Before this, the applicant participated in the Zimbabwean pasta market mainly through imports.
The CTC said this transition was relevant to its assessment of the domestic industry.
“The commencement of domestic production therefore represented a transition from importing to domestic manufacturing rather than the entry of the Applicant into the pasta market as a new participant,” the Gazette said.
The Commission acknowledged that the domestic industry’s condition could also have been influenced by factors other than imports, including the costs associated with the transition from importing to local manufacturing.
Price competition has also emerged as a central issue. The Commission’s preliminary assessment found that imported pasta was priced below the domestic product, with observed price undercutting of up to 17.8 percent.
“The available evidence therefore provides a basis to investigate whether increased imports have resulted in price undercutting and price depression to the domestic market.”
However, the CTC said it would examine the comparability of imported and domestically produced pasta during the investigation, including differences in product mix, packaging, quality, branding and commercial levels.
That assessment could prove critical in determining whether the price gap reflects import competition or legitimate differences between products.
The Gazette says the preliminary assessment identified deterioration in several key indicators of the domestic industry’s condition.
These included a substantial increase in losses and a marked deterioration in return on net assets.
The industry also continued to face substantial import competition, while other indicators, including production, sales, capacity utilisation, productivity and market share, showed improvement during the period under consideration.
CTC said these positive developments needed to be considered in the context of the commencement and subsequent expansion of domestic production.
The investigation will therefore examine the industry’s overall condition rather than relying on a single indicator.
The investigation is being conducted under Zimbabwe’s Competition Act, the Safeguard Regulations and the World Trade Organisation Agreement on Safeguards.
Under the tariff classifications cited in the Gazette, most pasta products attract a 40 percent Most Favoured Nation tariff, while the general SADC and COMESA rates are listed at zero percent. Some classifications also provide for a 10 percent SADC general duty, depending on the product.
The commission said the investigation would examine the precise product scope, including tariff classification, product characteristics and coverage.
It is also examining what it calls “unforeseen developments” that may have contributed to increased imports.
These include changes in domestic consumption patterns and increased use of pasta as an affordable and convenient food; expansion of regional exports under preferential trade arrangements; changes in regional trade conditions and possible trade diversion resulting from trade measures imposed in other markets.
The causation assessment will be particularly important because safeguard measures require a determination that increased imports are causing or threatening serious injury to the domestic industry.
National Foods has also requested consideration of a provisional safeguard measure, citing increased imports, continued high import penetration, adverse price effects and deterioration in the financial condition of the domestic industry.
The Commission said it would determine the application in accordance with the relevant statutory requirements and WTO rules.
Should a provisional measure be considered, interested parties will be given an opportunity to submit written arguments and supporting evidence.
The broader investigation is expected to be completed within six months from the date of initiation, although the Gazette provides for a possible extension of up to a further two months.-herald
