The industry and commerce sectors in Zimbabwe have once again called for government intervention as more companies are forced to shut down due to the country’s struggling economy.
The formal retail sector continues to face major challenges, including high inflation, foreign currency shortages, and growing competition from informal traders.
In an interview with <a href="https://www.newsday.co.zw/local-news/article/200038004/industry-pleads-for-govt-intervention-as-more-companies-shut-down">NewsDay</a> this week, Zimbabwe National Chamber of Commerce (ZNCC) president Tapiwa Karoro said that the 5% withholding tax on non-registered micro, small, and medium enterprises (MSMEs) has discouraged informal traders from engaging with formal wholesalers, leading many transactions to move further underground. Said Karoro:
<blockquote>
This has resulted in low tax compliance, reduced productivity, constrained investment and limited access to social security benefits.
While the 5% withholding tax on non-registered MSMEs [micro, small and medium enterprises] measure seeks to enforce tax compliance, it has inadvertently discouraged informal traders from engaging with formal wholesalers, thereby pushing more transactions underground.
</blockquote>
Karoro has urged the government to introduce a graduated tax structure with lower initial rates to encourage voluntary registration among businesses.
He asserted that formalising the economy is vital for sustainable economic growth, increased tax revenue, improved business productivity, and greater investor confidence.
He further stressed that a combination of incentives, regulatory reforms, enforcement mechanisms, and digital transformation would be key to fostering a balanced and inclusive economic environment.
Meanwhile, the Consumer Council of Zimbabwe (CCZ) has expressed concern over the ongoing closure of formal retailers.
In a statement this week, the CCZ cited unfair competition from informal traders as a factor factor driving this trend.
The council also voiced its worries about the continued shutdown of formal retailers and wholesalers.

Pindula News

The industry and commerce sectors in Zimbabwe want the government to help as more companies are closing due to economic problems. Retail stores have issues like high prices, lack of foreign money, and competition from informal sellers. The Zimbabwe National Chamber of Commerce wants the government to change the tax rules to help small businesses. They think following the rules can make the economy better. Also, the Consumer Council is worried about stores closing because of competition from informal sellers. They want the government to help keep formal stores open.

Industry And Commerce Sectors Call For Government Intervention As Companies Close

<h2>MEASURES TO ADDRESS THE INFORMALISATION OF THE ECONOMY</h2>
<h2>Preamble</h2>
His Excellency, the President, Dr. E.D Mnangagwa, yesterday took time off his annual leave to chair a session on developments in the economy designed to map the way forward.
The session, which also included the two Vice Presidents and all Economic Ministries, deliberated on measures Government has taken on the Economy, and developments in specific economic sectors, including the retail subsector. This culminated in additional measures being proposed. 
Introduction
Since 2021, the Zimbabwe economy has registered strong economic growth, averaging 5.5% annually, anchored by growth in almost all sectors of the economy.
Economic slowdown of 2% was, however, recorded in 2024, mainly attributable to the El-Nino induced drought which impacted agriculture production and electricity generation, with secondary effects on the rest of the economy.
Notwithstanding the positive growth trajectory, there is an emerging phenomenon with indications that the economy is informalizing, particularly the retail and the wholesale sectors, with serious ramifications on the overall economy.
Since the beginning of 2023, some manufacturers have been opting to supply their goods directly to the customers and informal retailers, bypassing wholesalers and retailers.
This situation has compromised the operations of the formal wholesalers and retailers, as they are competing with informal traders, who are operating outside compliance with regulations such as taxes, licence fees and labour laws, among other formalities.
<h2>Current Measures</h2>
Through the 2024 Mid-Term Budget and Economic Review, and the 2025 National Budget, Government has implemented the following measures in order to improve the level of formalization:
<ul>
<li>Route to Market – to enforce tax compliance by unregistered Micro and Small Enterprises, Government introduced 5% withholding tax to non-registered MSMEs payable to wholesalers and manufacturers.</li>
<li>VAT Registration Threshold – Government reduced the VAT registration threshold from US$40 000 to US$25 000 to promote formalisation of the informal sectors.</li>
<li>Deemed Smuggled Products – Certain goods such as alcoholic and non- alcoholic beverages, dairy products, washing powder &amp; detergents and sugar, among others, are now deemed as smuggled unless the seller provides documentary evidence that customs duty was paid for.</li>
<li>Taxation of the Emerging sector – Several emerging sectors were added to the list of companies required to register for tax payment.</li>
<li>Point-of-Sale Machines – Micro and Small Enterprises are required to transact through Point-of-Sale Machines and operate a bank account linked to the Zimbabwe Revenue Authority.</li>
<li>Tax Administration – The Tax Administration system is being automated through the introduction of the Tax and Revenue Management System (TaRMS) and the Fiscalisation Data Management System (FDMS).</li>
<li>Targeted Finance Facility-The Government, through the Reserve Bank of Zimbabwe Launched the Targeted Finance Facility (TFF) to support the productive and retail sectors with working capital requirements.</li>
</ul>
Additional Measures
The measures implemented so far need to be enhanced. Government, in consultation with business and industry, and the Ministry of Industry and Commerce, is therefore proposing additional measures to address the impact of the informalisation of the economy.
Research and consultations indicate that some of the reasons formal businesses are experiencing distress include competition from the informal sector, poor management and poor corporate governance which have resulted in business failure in some instances. 
The proliferation of smuggled imports-mostly in reserved sectors-which are being sold exclusively in USD, and the high cost of doing business among others, also contribute to the formal sector challenges.
Government is therefore proposing additional measures to promote formalisation and tax compliance by the informal sector, as follows:
1. Mandatory use of point-of-sale machines by all informal traders.
2. Adoption of international best practise on tax payment, which ensures every eligible taxpayer complies.
3. Level the playing field between formal and informal businesses by discouraging manufacturers from supplying directly to end users and the informal market.
4. Establishment of a Domestic Interagency Enforcement Team to enforce compliance in the informal sector.
5. To enforce collaboration between Local Authorities and Central Government in the licencing and enforcement processes.
Furthermore;
6. The Reserve Bank of Zimbabwe will announce additional measures through the Monetary Policy Statement to enhance the formalisation of the market. 
7. Government will embark on an exercise to streamline regulatory processes, fees and charges, as well as duplication of work by Government Agencies, in order to reduce the cost of doing business.
8. Enforcement of the provisions of the Indigenisation and Economic Empowerment Act which provides for Reserved Sectors.
9. Provision of additional incentives to support Industry through the Industrialisation Fund over and above the already existing incentives such as duty-free imports Special Economic Zones incentives.
10. Promotion of the procurement of goods and services from local producers and suppliers by Government, to support local industry.
In conclusion, Government is committed to improving the business environment, in order to curb the informalisation of the economy, as we move towards Vision 2030.
Thank you.

The President of Zimbabwe, together with his team, discussed how the economy is becoming more informal. This means that many businesses are not following the rules. To fix this, the government has put many new measures in place. These include making sure small businesses pay taxes, using machines to pay taxes, and stopping manufacturers from selling directly to customers. The government also wants to make it easier for formal businesses to compete with informal ones. The goal is to make sure all businesses follow the rules and help the economy grow.

Mthuli Announces New Measures To Address Informalisation Of The Economy | Full Statement

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>

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), the unified voice of the formal retail sector in Zimbabwe, has warned that some of the country’s most well-known brands, including major retail chains, are on the brink of bankruptcy due to unfair competition from the informal sector.
In a paper submitted to the government two weeks ago, which included insights from both retailers and wholesalers ahead of the 2025 National Budget, CZR said that the retail industry is in a precarious state.
The Confederation warned that several retail businesses are struggling to stay afloat and could face closure.
CZR pointed to the recent divestiture of Unilever from the Zimbabwean market, along with the challenges facing clothing giant Truworths Limited as indicators of the severity of the situation. The CZR said:
<blockquote>
Long established companies in Zimbabwe, such as Truworths and Unilever, have recently shut operations, with many more businesses on the verge of shutdown.
As you are aware, our economy is experiencing rapid informalisation, leading to the closure of numerous formal businesses, with many more facing imminent shutdown.
The formal retail sector is struggling to compete with the informal market, characterised by an uneven playing field.
We are increasingly becoming a society of small-scale operators, or tuck shops, which primarily source 95% of their products from runners (informal cross-border traders) bringing goods from Musina (in South Africa). These informal entities evade taxation, statutory obligations, and labour laws.
</blockquote>
The retail sector has urged Finance Minister Mthuli Ncube to implement a range of measures to alleviate the crisis.
These measures include zero-rating value-added tax (VAT) on basic commodities, reducing import duties on high-tax products, and removing import permits and licenses for most goods, among other proposals.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe's big stores might close because of competition from small sellers. A group called CZR is worried that well-known brands like Truworths and Unilever may shut down soon. CZR says small stores are taking business from big ones, and not paying taxes or following rules. To help, CZR wants the government to remove taxes on basic things, lower taxes on some items, and make it easier to import goods. The big stores hope this will help them survive.

Zimbabwe’s Retail Giants On The Brink Of Bankruptcy, Says CZR

Opposition Member of Parliament, Zivai Mhetu (CCC), has demanded that Finance Minister Mthuli Ncube explain the reasons behind the closure of branches by several formal retail chains across the country, and what measures are being taken to address this issue.
Speaking during a recent Parliamentary session, the Epworth North MP warned that the closure of retail outlets’ branches is detrimental to the country’s economy. He said (via <a href="https://www.newzimbabwe.com/parliament-demands-answers-over-closure-of-retail-outlets-amid-zwg-fluctuation/">NewZimbabwe.com</a>):
<blockquote>
Our economy is becoming increasingly hostile for businesses and we could soon witness an exodus of companies if this trend continues.
This is evidenced by the closure of Unilever, and Truworths and recent reports that Choppies, a leading supermarket chain based in Botswana is considering pulling out of Zimbabwe.
Choppies’ experience is worrisome because it is doing well in other SADC countries. It is only in Zimbabwe that it is facing operational challenges. It is a clear indication of our business environment that is problematic.
</blockquote>
Last month, Choppies announced it was considering withdrawing from Zimbabwe due to challenges faced by its local subsidiary, which have adversely affected the group’s financial performance.
These challenges are largely attributed to the instability of the Zimbabwe Gold (ZiG) currency, which was introduced in April to replace the Zimbabwe dollar as the official domestic currency.
Mhetu further argued that the closure of formal retailers will exacerbate the unemployment rate in the country. He said:
<blockquote>
Closure of big companies triggers unemployment, something we cannot afford as our unemployment rate is already incredibly high.
Only 46.3% of Zimbabweans of working age are employed according to statistics released by ZIMSTAT earlier this year.
Without urgent efforts to address currency instability and inflation. More businesses are likely to follow the Choppies route.
It is imperative that Zimbabwe stabilises its currency and creates an environment where businesses can thrive. The National Development Strategy 1, speaks on creating 760 000 formal jobs by 2025.
</blockquote>
The local currency has undergone six name changes but has yet to achieve stability, confidence, trust, or sustainability due to inflation fueled by excessive money creation by the Government.
Its previous iterations include the original currency post-independence, that is, the Zimbabwe dollar, then later bearers’ cheques, traveller’s cheques, bond notes, RTGS dollars, and now ZiG.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Opposition MP Zivai Mhetu wants to know why many stores are closing in Zimbabwe. He is worried these closures will hurt the country's economy. Choppies, a big supermarket, might leave Zimbabwe because of problems with the local currency. This could lead to more people losing their jobs. Mhetu thinks the government needs to fix the currency and create a better environment for businesses. The Zimbabwean currency has changed many times but still faces problems like inflation. It's important to stabilize the currency to help businesses and create more jobs for people.

Parliament Seeks Answers On The Closure Of Formal Retail Outlets

Retailers have pledged to approach banks to get ZiG coins and small-denomination notes to help resolve the shortage of small change, reported <a href="https://www.herald.co.zw/retailers-pledge-to-address-change-shortages/">The Herald</a>.
On Tuesday, Reserve Bank of Zimbabwe (RBZ) Governor, John Mushayavanhu, met wholesalers and retailers in Harare to discuss issues affecting the economy.
During the meeting, CZR president Denford Mutashu said the retail sector had embraced the ZiG more than any other sector in the economy but the dominance of the US dollar is negatively affecting them. He said:
<blockquote>
Unfortunately, at the procurement level, 80 per cent is US dollars and 20 per cent is ZiG, so that is a glitch in the market because it is affecting day-to-day procurement patterns of formal channel retailers and wholesalers… and it is the informal market, which is currently enjoying the benefits of having not formalised their business.
We are quite happy with this dialogue because the Governor agreed to meet retailers and wholesalers and that is actually in line with the President’s engagement and re-engagement dialogue.
On the issue of change that we are currently experiencing, as the Governor has highlighted, we are going to approach the banks to address this.
</blockquote>
Mushayavanhu acknowledged that the Reserve Bank had received reports of consumers failing to get change from shops. He said:
<blockquote>
We are getting complaints that people are coming and they buy something for US$1,50 and instead of you giving them 50 cents change, you are asking them to add a bottle of water, which they don’t need.
I did say yesterday when I met the transport operators, that as we speak right now, we have got ZiG55 million in circulation.
This is more than the amount that was in circulation when we had bond notes. We have issued ZiG1, ZiG2, ZiG5 coins and ZiG10 and ZiG20 notes.
The question I want to ask you is: ‘Have you gone to your bank and said I want a float in change,’ because my knowledge of supermarkets is that you should have a float.
Have you gone to your bank and said I want ZiG100 000 in ZiG1, ZiG2, ZiG5 and they said they don’t have it because I have evidence that they are sitting on ZiG coins for which there are no takers?
So, who is not telling the correct story there? Have we gone to the banks and they said they haven’t got it?
Let us know, we can intervene and say, which is your bank and will give your bank exactly the ZiG coins that you want.
</blockquote>
The issue of change has also affected the transport sector, with passengers on 50c routes forced to pay US$1 or being paired up with strangers who would have paid US$1 and have to buy snacks from street vendors.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Retailers Pledge To Deal With Change Shortages

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

Workers in the retail and wholesale sector have appealed to the Government to exempt those whose earnings are below the prescribed minimum wage from being taxed.
Addressing journalists in Harare, Progressive Retail Wholesale Workers Union of Zimbabwe secretary-general Phillip Mafundu implored the Government to review the tax bracket saying the current system is leaving them poorer. Said Mafundu (<a href="https://www.newsday.co.zw/local-news/article/200022115/retail-workers-bemoan-taxation-low-salaries">via NewsDay</a>):
<blockquote>
We appeal to the Finance Minister (Mthuli Ncube) to revisit the issue of taxing to say how can someone who is getting US$265, which is not even a living wage, be taxed? It is our view again to say the tax bracket should be changed.
They say US$100 is tax-free, and then what can we do with US$100? Our proposal is very simple, we are saying if the government wants to tax its citizens the tax should start from a living wage where I get something that is above the basic.
If we calculate our basics and they come to US$300-400 that should be taxed, but if I am left with US$100 and you tax that automatically I cannot even pay my rent.
So that is the concern, the minimum wage should be raised and the tax bracket should also be raised. The minimum wage should not even be taxed.
</blockquote>
Mafundu said tuckshops and unregistered traders were benefiting from the current situation by not paying their workers a living wage and demanded that they comply.
He also urged the National Employment Council (NEC) of the commercial sector to implement the new section 56 of the Labour Act [Chapter 28:10] and allow other unions with membership to negotiate for their members saying workers in the sector.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Retail Workers Want To Be Exempted From Paying Income Tax

Some major retailers in the country are now displaying prices solely in United States dollars which is against the law.
In terms of Statutory Instrument 185 of 2020, it is an offence not to display prices in both the Zimbabwe dollar and the US dollar.
The Exchange Control (Exclusive Use of Zimbabwe Dollar for Domestic Transactions) (Amendment) Regulations, 2020 (No.3), which was gazetted by President Emmerson Mnangagwa in 2020, amended the original subsidiary legislation that compelled the sole use of local currency.
The S.I. stipulates that no one can provide goods or services in Zimbabwe without displaying, quoting, or offering the price of such goods and services in both the Zimbabwe dollar and foreign currency at the prevailing exchange rate.
However, a senior manager at OK Zimbabwe told the <a href="https://www.chronicle.co.zw/retailers-index-prices-in-usd/">Chronicle</a> that they decided to display prices solely in USD due to the unstable exchange rates that change almost on a daily basis. The manager was quoted as saying:
<blockquote>
Our local currency rate fluctuates on a daily basis and that means we have to be changing our local currency price tag daily as well.
Basically, that is the reason why we have since decided to exclusively denote our prices in USD terms, but our clients can still have the option to pay in local currency.
</blockquote>
Consumer Council of Zimbabwe (CCZ) Matabeleland regional manager Comfort Muchekeza said:
<blockquote>
It is against the law to refuse other currencies or not to display the exchange rate.
If they don’t want to display the exchange rate, they should display prices in all currencies for the benefit of consumers.
</blockquote>
Last week, the Government gazetted Statutory Instrument (S.I) 218 of 2023, which extended the use of the multi-currency system to December 2030.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Supermarkets Display Prices Solely In United States Dollars

The Consumer Protection Commission (CPC) said that more than 400 retailers have been prosecuted, while 100 others have been issued with compliance notices over the past two months for breaking the law in their dealings with consumers.
Speaking to <a href="https://www.sundaymail.co.zw/400-retailers-sanctioned">State medi</a>a, CPC research and public affairs manager Kudakwashe Mudereri revealed that some of the culprits are telecommunications companies.
The companies have been accused of engaging in the sale of expired products, non-compliance with product labelling regulations and failure to display prices on goods, among other violations.
Mudereri warned retailers who persistently cheat and default on their obligations that they will have their licences revoked. He said:
<blockquote>
So far, over 3 000 inspections have been done. Out of that, over 100 have been issued with compliance notices and over 400 have been successfully prosecuted and over 200 cases have been successfully investigated.
Over 98 per cent of the investigations have resulted in consumers being given their refund or an exchange of the faulty product or good.
Some have even been given their mobile phones back by telecom companies after our interventions.
</blockquote>
Mudereri said the most prevalent violations included displaying disclaimer notices such as “No returns”, “No refunds” and “No exchange” and selling expired products.
The other violations include failure to give a warranty on products; failure to display prices for goods and services; failure to provide product labelling; and failure to issue receipts to customers.
CPC has carried out successful inspections in Harare and Bulawayo and has now turned its attention to all small towns across the country. Added Mudereri:
<blockquote>
Following the arrests that were made in Harare, Bindura and Chinhoyi, the commission also made some arrests in Manicaland, where over 60 businesses were made to pay fines for violating provisions of the Consumer Protection Act.
In addition, the commission did 291 inspections in Masvingo, and 33 businesses were issued with compliance notices and 88 were prosecuted.
</blockquote>
The Consumer Protection Act (Chapter 14:44) confers rights to consumers. Some key features and provisions of the Consumer Protection Act are consumer rights, prohibition of unfair practices, product liabilities and safety, consumer contracts, consumer education and awareness, and dispute resolution.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

400 Retailers Prosecuted For "Cheating" Customers

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

Shops have reportedly started to reduce prices following a similar move by manufacturers who are reducing prices for goods supplied using forward pricing models.
The development follows plummeting consumer demand due to the prevailing liquidity crunch.
According to a <a href="https://www.businessweekly.co.zw/commodities-prices-coming-down/">Business Weekly</a> report, some suppliers are now issuing credit notes to retailers so that they can reduce their prices.
Shopowners are being given a choice either to be refunded or to get products worth the value of the note. An executive with a leading retail chain is quoted as saying:
<blockquote>
Retailers are now holding too much stock because no one is buying; it’s a combination of high prices because the suppliers had used forward costing models; and the prevailing liquidity crunch.
</blockquote>
Retailers Association of Zimbabwe Denford Mutashu told Business Weekly on Wednesday that customer traffic into formal shops had declined by an average of 35 per cent. Said Mutashu:
<blockquote>
It’s critical for authorities to increase the injection of some liquidity into the market as the economy continues to contract.
The economic growth projections may be somewhat a mirage.
The velocity of money is key to any economy thriving to maintain its growth trajectory. There is a need to essentially balance the tight monetary trajectory with a necessity for effective demand.
</blockquote>
In July the Reserve Bank of Zimbabwe (RBZ) introduced gold coins as an alternative to store value instead of US dollars.
Harare-based economist, Victor Bhoroma, said though prices were falling, demand for fast-moving consumer goods has also fallen as well. He said:
<blockquote>
It is true that prices are going down, consumer demand for fast-moving consumer goods has slumped and the free-market exchange rate has retreated.
This is largely due to the non-payment of government contractors and suppliers and the mopping of excess liquidity by the central bank through daily and weekly Negotiable Certificates of Deposits (NCDs) to commercial banks locally.
The interventions will not replace the need for a market-driven foreign exchange market and the need for the central bank to end all quasi-fiscal operations that lead to untenable money supply growth in the economy. 
Hence, it is necessary to give it time and assess Government’s sincerity to critical reforms that bring long-term economic stability.
</blockquote>

Retailers Reduce Prices As Liquidity Crunch Bites

Wholesalers in Mutare are reportedly contracting vendors to sell their goods on the streets, thus bypassing the formal retailers.
A survey conducted by New Zimbabwe on the streets of Mutare established that locally-manufactured goods are significantly cheaper on the streets than in shops.
A vendor who spoke to the publication, identified as Tariro Makanga (27) had this to say:
<blockquote>Every day I get three boxes of cooking oil, three cases of sugar and a cartoon of washing soap.
I sell the stuff and at the end of the day, I remit the principal money and deduct my commission.
I am making a living because people now opt to buy from us than retailers who are charging exorbitant prices.</blockquote>
Another vendor revealed that though they have to constantly evade municipal police, business was booming as she took home RTGS$90 daily.
A shop manager at one of the formal shops told New Zimbabwe that they are now in trouble due to the proliferation of vendors. He said:
<blockquote>We are in trouble as you can see the shop is empty customers are shopping in the pavements. Our management should sit down and re-strategise or else we will be forced to retrench or close shop. Our products are overpriced and manufacturers are not happy with the current turnaround period.</blockquote>
Wholesalers are said to have decided to abandon traditional retailers to deal with vendors because the former are overpricing goods resulting in reduced sales.
<h4>More: <a href="https://www.newzimbabwe.com/retailers-in-trouble-as-wholesalers-use-vendors-to-undercut-them/" rel="noopener noreferrer" target="_blank">New Zimbabwe</a></h4>

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