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:
<blockquote>
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.
</blockquote>
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:
<blockquote>
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.
</blockquote>

Pindula News

The Confederation of Zimbabwe Retailers is worried about many formal retail stores closing down. They blame the tough economy and competition from informal businesses. They want President Mnangagwa to help them. Many big stores like N. Richards, Spar, and Choppies are shutting down. The informal sector sells goods cheaper because they don't pay taxes. The retailers want the government to take urgent action to save their stores and jobs. They need help with money and rules to survive. They are asking the President to do something quickly to stop more stores from closing.

Formal Retailers Alarmed By Business Closures, Seek Mnangagwa's Intervention

The Confederation of Zimbabwe Retailers (CZR) has warned the government against banning the existing multi-currency system and designating the Zimbabwe Gold (ZiG) as the exclusive legal tender to stabilise the rapidly depreciating local currency, reported <a href="https://www.newsday.co.zw/local-news/article/200033068/no-to-forced-de-dollarisation-retailers">NewsDay</a>.
On September 27, the Reserve Bank of Zimbabwe (RBZ) devalued the ZiG from 14.1 to 24.3 per United States dollar. 
In the wake of this devaluation, some economic analysts have urged the government to ban the use of the United States dollar and adopt the ZiG as the exclusive currency for trade.
However, in a report addressed to RBZ governor John Mushayavanhu on September 30, CZR president Denford Mutashu warned that enforced de-dollarisation could have “catastrophic consequences” for the economy. Said Mutashu:
<blockquote>
As the CZR, we strongly believe that any attempts to fully de-dollarise at this stage could have catastrophic consequences for both businesses and the broader economy.
A hasty transition will amplify current economic challenges rather than alleviate them.
</blockquote>
Mutashu warned that banning the US dollar for domestic transactions could lead to fuel shortages and severely impact the retail sector, along with other industries. He said:
<blockquote>
Any move to switch the currency of transaction, without adequate reserves and systems in place, will inevitably lead to scarcity, causing significant disruptions across all sectors.
The transportation industry, a critical player in the retail supply chain, would also be affected, driving up logistical costs and causing inflationary pressures.
With the current foreign currency exchange allocation system, there are already challenges in meeting the demands of industries for US dollars.
Full de-dollarisation would exacerbate these shortages as businesses will struggle to secure foreign currency to import essential goods and raw materials.
</blockquote>
Mutashu suggested that, for now, the government should permit the coexistence of both the US dollar and the ZiG to provide businesses and consumers with the flexibility necessary to adapt. He added:
<blockquote>
Gradually, as confidence in the local currency builds, the reliance on the US dollar can be reduced.
</blockquote>
In an interview with NewsDay, Economist Prosper Chitambara said de-dollarisation should be market-driven. He said:
<blockquote>
Well, my thinking is that the issue of de-dollarisation is a very sensitive matter and it is a matter that must be dealt with very circumspectly and also very cautiously.
It must not necessarily be a rushed exercise or a government-decreed exercise, but it must be an inclusive process that is based on a market-determined process that is tied to the attainment of certain key benchmarks around issues of production, issues of reserves, inflation and issues of informality.
</blockquote>
Economist Vince Musewe warned that forcing a local currency will collapse the economy. He said:
<blockquote>
Zimbabweans prefer the US dollar and that is not about to change. Unless there is a drastic change in policymaking, the same problems will continue to be faced by us beyond 2030. Forcing a local currency will collapse the economy.
</blockquote>
The ZiG, or Zimbabwe Gold, was launched in April 2024 and represents the country’s sixth attempt to establish a stable currency in the past 15 years.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Retailers in Zimbabwe are worried about the government changing the currency to only use the Zimbabwe Gold (ZiG) instead of the US dollar. They say this could have bad effects on the economy, like fuel shortages and higher prices. They want both currencies to be allowed for now, until people trust the ZiG more. Economists also think the change should be gradual and decided by the market, not rushed by the government. They are worried that forcing a new currency could make things worse for the country. The ZiG was started in 2024 as an attempt to make a stable currency.

Retailers Warn Government On Potential Risks Of De-Dollarisation

Zimbabwean retailers are currently grappling with restocking locally produced goods due to currency-related challenges.
As reported by <a href="https://www.newsday.co.zw/local-news/article/200024355/shortages-loom-as-basics-disappear-from-shelves">NewsDay</a>, manufacturers and wholesalers are favouring transactions in United States dollars (USD), which has led to difficulties for retailers buying in the local currency.
The Zim dollar has experienced significant depreciation against the USD, prompting discussions about the potential full dollarization of the economy.
As a result, retailers have encountered prolonged periods without the supply of essential locally produced commodities. Critical shortages of items like sugar have been reported.
Speaking to NewsDay, Denford Mutashu, the president of the Confederation of Zimbabwe Retailers, said that the supply chain for basic commodities has become dollarized.
Mutashu said this situation has left retailers who buy in local currency facing difficulties in maintaining their stock levels. He said:
<blockquote>
The biggest challenge is the currency that one uses to source products at the procurement level.
Manufacturers do not want the local currency. Generally, the appetite for the US$ in the market is high.
The supply chain is 90% dollarised, and for the formal stores, it becomes very difficult because they are the only ones that are still selling to the customers in local currency.
So, with a huge local currency balance, running a retail business in this current environment is difficult.
Manufacturers also indicate that most of their suppliers for raw materials or services are demanding payment in US$ and that is why they demand US$ when they sell their products.
It’s a glitch that is happening. That is why most formal retail shops are failing to stock up. Those products are in the informal market.
</blockquote>
As of 14 March 2024, the Zim dollar was trading at 1:17 830 against the United States dollar at the interbank market and 1:18 500 in supermarkets, while it stood at 1:20 000 on the parallel market.
Meanwhile, Consumer Council of Zimbabwe (CCZ) director of corporate affairs Philemon Chereni said that prices of goods and services had gone down in US$ terms as operators were offering discounts to encourage foreign currency transactions.
Chereni said the cost of living for a low-income urban-earner family of six, as measured in USD, decreased by 1% from US$551.38 to US$544.71.
He said the stability of the basket’s overall cost is partially attributed to the discounts applied when paying in USD.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Manufacturers Do Not Want Zim Dollar, Supply Chain Is 90% Dollarised - Retailers

The Confederation of Zimbabwe Retailers (CZR) president Denford Mutashu has urged businesses to reduce prices in Zimbabwe dollars after the local unit recovered against the US dollar last week.
The Zim dollar on Thursday firmed by more than $1 000 against the United States dollar on the Reserve Bank of Zimbabwe (RBZ)’s Wholesale Foreign Exchange Auction following another gain on Tuesday.
On Tuesday, the local currency firmed against the US dollar to ZWL$6 326, from ZWL$6 926 on 20 June.
Speaking in an interview with <a href="https://www.sundaynews.co.zw/prices-stabilise-as-government-interventions-take-effect/">State media</a>, Mutashu said shops should start pricing responsibly following the stability in the exchange rate and improved power supply. He said:
<blockquote>
The expectation is to begin to see prices falling in line with key economic indicators like stability in exchange rates, improved power supply and other Government measures.
We have seen price stability in most retail shops but we want to see more. We want to see them reducing prices relative to economic developments. They should start pricing responsibly.
</blockquote>
National University and Science and Technology (NUST) lecturer Stevenson Dlamini said although businesses haven’t reduced prices, the rate at which prices were going up had slowed down lately.
He added that recent fiscal and monetary measures were starting to bear fruit. Said Dlamini:
<blockquote>
The floating of the exchange rate on the wholesale market has destabilised the parallel market and shown the formal market that the Government is now more committed to the price discovery mechanism of the local currency.
This has been further buttressed by the recent fiscal policy measure that requires the payment of corporate tax in local currency.
This is forcing even firms that were beginning to reject the local currency to start demanding it at the official market exchange rate and thus pushing up the demand and value of the local currency.
</blockquote>
Among the measures introduced by authorities include the RBZ’s sale of foreign currency to banks at market-determined rates for on-selling to bank customers.
The central bank has introduced gold coins and gold-backed tokens which have mopped over ZWL$60 billion.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Shops Urged To Reduce Prices As Exchange Rates Stabilise

The Confederation of Zimbabwe Retailers (CZR) is set to host a business summit next month with President Emmerson Mnangagwa to discuss various issues affecting all business players.
The country is currently experiencing a liquidity crunch, foreign currency shortages and unscheduled power cuts.
CZR president Denford Mutashu <a href="https://www.newsday.co.zw/business/article/200005703/business-to-engage-ed-over-operating-environment">told NewsDay Business</a> that the summit will host more than 1 000 delegates from the country’s 10 provinces, the SADC region as well as from India and China. Said Mutashu:
<blockquote>
This is an event which is being hosted by the Confederation of Zimbabwe Retailers. It will involve all business players, be it mining, manufacturing, retail or distribution.
It is an opportunity where the President will meet with the business community and engage on various issues, be it policy, challenges, suggestions and solutions to some of the challenges.
The platform is being created to ensure that business and government continue to dialogue even at the highest level.
</blockquote>
Mutashu said it is important for the President to meet the business community once or twice every year so that he gets feedback about the business environment. He said:
<blockquote>
It is also critical that once or twice in a year, business meets his Excellency and, of course, highlight the areas that may require his involvement, highlight areas that we may have failed, areas where government may have excelled or those that may have remained hanging.
This is a very key opportunity that is going to see business come together.
We have also received inquiries from businesses from the region including South Africa, Malawi, Mozambique and so on.
We will also look at the investment arm of the government to see what are the opportunities and challenges.
</blockquote>

Business To Engage Mnangagwa Over Operating Environment

Retail shops have been ordered to implement, with immediate effect, a price freeze on all basic commodities for the duration of the 21-day lockdown that kicks off at midnight today.
Retailers who fail to comply with the directive will be closed indefinitely. The development was confirmed by Confederation of Zimbabwe Retailers president Mr Denford Mutashu on Saturday. He said:
<blockquote>Basic commodity price increases are frozen as a sector contribution measure to Zimbabweans who have to date supported our businesses through good and hard times.
Retail outlets that will increase prices of basic commodities during this difficult time will be closed indefinitely.</blockquote>
Mutashu also revealed that goods covered under the directive are sugar, cooking oil, salt, mealie-meal, meat, sanitary pads, bottled water, pharmaceutical products, rice, masks, sanitary gloves, sanitisers and washing soaps.
The order comes after some retail shops last week increased prices of most basic commodities after people started panic buying in anticipation of a lockdown that was eventually announced by President Mnangagwa on Friday.
<h4>More: <a href="https://www.sundaynews.co.zw/covid-19-price-freeze-for-basic-commodities/" rel="noopener noreferrer" target="_blank">Sunday News</a></h4>

Retailers Ordered To Freeze Prices Of Basic Commodities

The president of the Confederation of Zimbabwe Retailers (CZR), Mr Denford Mutashu has indicated that sales volumes in the sector have significantly dropped due to weakening consumer spending and rising inflation.
Speaking to the Chronicle on Thursday, Mutashu, also revealed that retailers were suffering loss as a result of the increased cost of doing business when the demand has dwindled. He said:
<blockquote>The general demand has dropped by 40 per cent. The volumes have actually gone down by 60 per cent for high-value items (non-basic goods).
On buying groceries the high-value items or non-essential products have been affected because we have demand dropping by more than 50 per cent while on electrical gadgets it’s about 60 per cent. On the basic commodities or non-essential commodities, demand is still going down by about 40 per cent.</blockquote>
His remarks come at a time when prices of commodities have been going up at an unparalleled rate making them unaffordable for the majority of consumers.
Prices of commodities are normally affected by exchange rates and fuel prices. Businesses need foreign currency to restock whilst fuel is significant for the production and the transportation of commodities.
More: <a href="https://www.chronicle.co.zw/retail-sales-volumes-drop-price-hikes-weaken-consumer-spending/">The Chronicle</a>

Demand For Retail Commodities In Sharp Decline

Retailers have said that inflation in the country is being caused by the increased cost of doing business.
Speaking in an interview with the Chronicle, Confederation of Zimbabwe Retailers (CZR) president, Mr Denford Mutashu said:
<blockquote>It will be folly for us to focus on prices that we see in the shops without addressing the fundamental challenges that are actually pushing the pricing models to be unstable and one of them is the issue of general cost of doing business.
The cost of doing business has been going up and this has been exacerbated by quite a number of challenges. Many retailers were forced to buy generators so that they remain open even when there is no electricity and operating on a generator is very expensive. These are some of additional costs that businesses have to contend with as they grapple with price changes from manufacturers.</blockquote>
His remarks come when prices of commodities have been going up countrywide. The government accuses the business community of sabotaging efforts to revive the economy.
Consumers have been complaining about the soaring inflation at a time when workers’ salaries have remained stagnant.
Analysts have also projected that prices of commodities will continue to go up for as long as the local currency is losing value against foreign currency.
The local industry is grounded, therefore, businesses need scarce foreign currency to purchase commodities from beyond the country’s borders.
More: <a href="https://www.chronicle.co.zw/retailers-shift-blame-on-price-increases-2/">The Chronicle</a>

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