The Ministry of Industry and Commerce has some strategic statutory bodies under its purview. One of which is the Standards Development Fund which was established through an Act of Parliament, the Standards Development Act [Chapter 14:19) of 1987.
What it does and its significance.
Standards Development Fund was established to provide for the charging of a levy upon employers or classes of employers for the benefit of the Fund to enable it to develop and promote the standardization of commodities and services and for other related purposes. Currently there exists an information gap between the Fund, employers and other stakeholders in terms of the existence of the fund and its objectives. As an organization, our aim is to bridge the gap by raising awareness through stakeholder engagements.
Is SDF an independent body, a parastatal or government department?
SDF is a Statutory Fund within the Ministry of Industry and Commerce.
Background history of SDF and its overall functions?
SDF was established through the Act of Parliament Chapter 14:19 of 1987. The Minister of Industry and Commerce is empowered to impose a levy of 0.5% of the total remuneration payable by the employer to his employees. Payments are paid four times a year.
The overall function of the Fund is to collect a levy of 0.5% and distribute it to the beneficiaries who are involved in the development and promotion of standards and quality of goods and services.
How does SDF aid or promote the Ministry of Industry and Commerce’s mandate or functions?
The Ministry of Industry and Commerce (MoIC) is mandated to promote the development of vibrant, sustainable, and globally competitive industrial and commercial enterprises by providing an enabling policy and regulatory framework. The Fund promotes the Ministry’s mandate primarily through funding for the development of standards and standardization of commodities and services in Zimbabwe to assist Zimbabwean goods and services to compete on the global market.
Who are the beneficiaries of SDF?
The current beneficiaries of SDF are: Standards Association of Zimbabwe (SAZ), Scientific and Industrial Research and Development Centre (SIRDC) (NMI), Trade Measures, National Competitiveness Commission (NCC) and The Southern African Development Community Accreditation Services (SADCAS)
Are there any penalties for offenses that are committed by members of the business community/employers/employees in violation of any section of the SDF Act and is SDF empowered to arrest or sue anyone for violating any of the sections of the Act?
There are penalties for offenses committed by employers. Any employer who fails to pay the levy on due date will be surcharged an amount equivalent to 10% if levy is not paid within the time prescribed (paragraph as amended by Section11 of Act No.12 of 1997)
Does SDF retain 100% of revenue it collects and how is it utilized?
SDF retains 100% of revenue collected. The revenue collected is distributed to beneficiaries who are involved in the development and promotion of standards and quality of goods and services.
Which instrument is used to collect the levy and what is the collection period?
SI 140 of 2007 provides for quarterly collection of levy being 0,5% of the total remuneration payable by the employer to his or her employees.
How are the public and the private benefiting from the revenue collected?
The public and the private sector benefit from revenue collected in the following ways:
- Standards promote national production in terms of quality, quantity and reliability and also enhances quality of consumer products
- Protection of public health and safety in relation to measuring instruments used.
Who approves beneficiaries of the funds collected by SDF?
The Minister for Industry and Commerce is responsible for the approval of SDF beneficiaries.
Who is the Trustee of the Fund and do you prepare budgets and who approve the budgets?
The Trustee of the Fund is the Minister. The Fund prepares an annual budget which shall be approved by Treasury.
In terms of consumer protection, how does SDF contribute to consumer protection and quality of products manufactured in the country?
SDF contributes through funding of beneficiaries such as Trade Measures which is a section within the Ministry responsible for Consumer protection and quality assurance of products.
Where is SDF located?
The head office is located at number 1 Adylin Road, In Marlborough and other offices are in Bulawayo, Gweru, Masvingo and Mutare.
Additional information
Standards Development Levy is collected every quarter and is payable on the following dates 15 April, 15 July, 15 October and 15 January of every year in arrears. The fund has inspectors who move around regularly across the nation to verify the wage bill.
