Standards fund to double collections

THE Standards Development Fund (SDF), which falls under the purview of the Ministry of Industry and Commerce, targets to double up its revenue collection to US$15 million next year.

SDF, a statutory organisation that promotes and develops the standardisation of services and commodities in Zimbabwe, collects revenue from a quarterly 0,5 percent tax companies’ gross payroll.

The fund’s revenue is used for quality control and standards development purposes and the taxation includes all payments made by the employer on behalf of the employee, such as medical aid and pension contributions.

The SDF sponsors organisations such as the Standards Association of Zimbabwe to help standardise the quality of products and services.

Industry and Commerce Minister Mangaliso Ndhlovu said this in a speech read on his behalf by his deputy, Raj Modi at the SDF Annual Workshop in Nyanga last week.

“We promise you esteemed guests that SDF will double up collection efforts and grow the fund to more than US$15 million in 2025.

To all potential contributors, some of whom I hear have resisted contributing, let us come to the implementation table and ensure adherence to the law.

“The ministry has commenced the process of amending the legislation to close the gap and will ensure meaningful investments of excess funds to grow the fund.”

Other beneficiaries of the SDF include the National Metrology Institute (NMI), which is under the Scientific and Industrial Research and Development Centre (SIRDC), the National Competitiveness Commission, and the Trade Measures Department, and starting next year the Consumer Protection Commission.

Minister Ndhlovu said he was committed to ensuring that SDF continues to drive economic growth and development.

Against this background, the fund has achieved notable milestones including surpassing revenue collection targets and disbursing grants to beneficiaries aligned with Vision 2030.

“Standards are the backbone of our society, ensuring the safety and quality of products and services, facilitating international trade and improving the environment in which we live standards boost business and economies and ensure that business operations are as efficient as possible, increase productivity and help companies access new markets,” he said.

Since Zimbabwe is among the countries that are signatories to the African Continental Free Trade Area (AfCFTA) Agreement, which was operationalised in January 1, 2021, adhering to standards allows the country to leverage the competitiveness of its products and tap into opportunities in the continental free trade area — the world’s largest single market with 1,3 billion people.

Minister Ndhlovu noted that by promoting standardisation and quality control, the nation can increase the viability of its products and services in the global market.

“The market is being flooded by sub-standard goods in terms of quality and quantity. In this regard, the SDF has to play a leading role in financing you (Consumer Protection Commission, Trade Measures and SAZ to curb this malpractice.

“For the economy to grow all of us here have to play our part. We have to use the funds transparently as they are public funds so that we build confidence.”

Due to the currency volatility Zimbabwe experienced this year, it had been difficult to procure capital equipment and other tools of trade.

“Suppliers have been requesting payment in hard currency.

“My ministry engaged the Ministry of Finance, Economic Development and Investment Promotion for Treasury concurrence to allow Standards Development Levy Fund to procure your capital requirements in hard currency so that you continue to execute your mandate for the benefit of the nation,” he said.

-herald