Africa Chrome Fields Granted Another Extension on ...

Africa Chrome Fields Granted Another Extension on Duty-Free Diesel Imports

Oscar J Jeke

Zim Now Reporter

The Zimbabwean government has extended Africa Chrome Fields' duty-free diesel import concession, allowing the company to continue importing diesel tax-free until December 2026.

The extension is outlined in Statutory Instrument 6 of 2025, issued by the Minister of Finance, Economic Development, and Investment Promotion under the Customs and Excise Act [Chapter 23:02]. This amendment to the Customs and Excise (Suspension) Regulations, 2003 replaces references to the 2023–2024 exemption period with the new 2025–2026 timeframe and updates the list of approved beneficiaries.

According to the new regulation, ACF—a major chrome producer—is permitted to import 13.95 million liters of diesel duty-free over the next two years. The fuel is essential for running the company’s electric arc furnaces at its Midlands-based smelting plant, which relies on diesel-powered generation instead of the national grid.

“The Customs and Excise (Suspension) Regulations, 2003, published in Statutory Instrument 257 of 2003 (hereinafter called "the principal regulations"), are amended in section 9BB as follows—

(a) in subsection 2 by the deletion of the words ‘1st January, 2023 to 31st December, 2024’ and substitution with the words ‘1st January, 2025 to 31st December, 2026,’” reads the new SI.

ACF has benefited from duty-free fuel imports since 2016, when it was granted national project status, initially securing a 12 million-litre exemption. The latest extension replaces the previous concession that was due to expire in December 2024.

The decision to continue the exemption has drawn scrutiny from Parliament, with some lawmakers questioning the economic justification for sustained tax breaks. Critics argue that duty-free imports reduce potential revenue for the government, while ACF maintains that switching to grid electricity would be significantly more expensive, making diesel-powered operations more viable.

The extension raises key questions about government energy policies and incentives for industrial players. While ACF benefits from tax-free fuel, other sectors, including manufacturers and miners, continue to pay full duties on diesel imports. Some economic analysts suggest that a more comprehensive energy subsidy or tariff reform could ensure fairer competition across industries.

Additionally, there are environmental concerns about continued reliance on diesel, as many mining operations globally are transitioning to renewable or grid-based energy to reduce carbon footprints.

With ACF’s latest concession now in place until 2026, the debate over duty-free fuel policies and their long-term economic impact is expected to continue.