Formal Retailers Alarmed By Business Closures, Seek Mnangagwa's Intervention
The Confederation of Zimbabwe Retailers (CZR) is alarmed by the closure of formal retail and wholesale businesses and has urged President Emmerson Mnangagwa to intervene and save the sector.
In a statement on Sunday, CZR president Denford Mutashu said the continued closure of formal retail and wholesale businesses is a direct consequence of the tough economic environment that has consistently failed to support formalized sector players who face stiff competition from informal businesses and vendors, most of whom have no tax obligations.
Mutashu expressed concern that authorities continue to downplay the crisis. He said:
The Confederation of Zimbabwe Retailers is deeply concerned about the continued closure of formal retail and wholesale businesses, a direct consequence of the prevailing turbulent economic environment that has consistently failed to support formalised sector players.
The recent closure of several outlets under the N. Richards Group, coupled with Spar Zimbabwe’s painful decision to shut down Queensdale Spar, Choppies Zimbabwe’s exit from the market, and Mahommed Mussa’s significant reduction of shop space by 60%, highlights the growing crisis.
As the representative association for these and other brands, CZR is alarmed that while formal businesses face enormous challenges, the authorities continue to present a different picture of the operating environment.
Mutashu said the unregulated informal sector offers goods at much lower prices because it operates outside compliance with statutory obligations such as taxes, licensing fees, and labour laws.
He called for urgent intervention by President Mnangagwa to “rescue what remains of the formalized retail and wholesale sector.” Said Mutashu:
While CZR acknowledges the continued support from the Ministry of Industry and Commerce, it is clear that the root causes of these challenges are fiscal and monetary in nature. These require urgent and decisive action to ensure the survival of formal businesses.
CZR therefore appeals to the Presidium to prioritise interventions aimed at saving jobs and mitigating the ongoing wave of shop closures and retrenchments.
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