Basic grocery items such as cooking oil, soap, fresh milk and sugar, among others, have disappeared from shelves in formal shops but are readily available on the informal market (tuckshops and streets).
Manufacturers are reportedly supplying goods to informal traders who pay in foreign currency as businesses shun the Zimbabwe dollar whose value has plummetted over the past few weeks.
The Confederation of Zimbabwe Retailers (CZR) president Denford Mutashu said re-dollarisation is posing a threat to the existence of formal trade. <a href="https://businesstimes.co.zw/basic-goods-disappear-from-shelves/">Business Times</a> quoted Mutashu as saying:
<blockquote>
Goods are vanishing from shelves into grey markets where they are priced in US dollars only and there is a general inability to replace stocks in the market.
Supply chains have re-dollarised posing a threat to the existence of formal trade faced with the evaporation of market share easily surrendered to the informal trade while some suppliers and manufacturers are directing basic goods through “runners” to the informal trade selling exclusively in US$ and not obligated to apply the legislated exchange rate when pricing goods.
</blockquote>
Mutashu said manufacturers have come up with strict trade terms that most retailers cannot meet.
Confederation of Zimbabwe Industries (CZI) president Kurai Matsheza said basic goods shortages were not a supplier’s problem. Said Matsheza:
<blockquote>
We are supplying both informal traders and formal traders regardless of the currency but one is supplied upon meeting the trading terms of the suppliers.
Some shops are failing to meet these trading terms which is why some are facing restocking challenges.
</blockquote>
Recently Richards Group director Archie Dongo said suppliers are demanding forex payments for their products.
Dongo added that where the Zimbabwe dollar is accepted, retailers and wholesalers tend to be subjected to forward rating thereby making Zimbabwe-dollar invoiced products to be uncompetitive.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Basic Grocery Items Disappear From Shop Shelves

The Reserve Bank of Zimbabwe Financial Intelligence Unit (FIU) said that retailers and manufacturers who were exclusively charging certain goods in foreign currency and using the street market rate for currency conversion have agreed to reconsider their pricing models.
In an interview with <a href="https://www.sundaynews.co.zw/16-bank-accounts-frozen-in-rbz-price-blitz-overpricing-shops-penalised/">State media</a>, FIU director-general Oliver Chiperesa said that the Unit has received assurances from retailers that they will adjust their prices in line with the prevailing official exchange rate while also accepting Zimbabwe dollars for all products. Said Chiperesa:
<blockquote>
We engaged with them and they have assured us that they are relooking into their pricing models.
Yes, some had items that they were not allowing clients to pay for using the local currency, but we have told them that is not acceptable and they agreed to rectify it.
They also assured us that customers will be able to pay in local currency for all goods whose prices have been marked in foreign currency only.
</blockquote>
He, however, said there were still some rogue businesses who they continue to monitor to ensure that they were brought to book.
Chiperesa gave an example of one supermarket in Belvedere, Harare, saying it had a rate higher than the parallel market. He said:
<blockquote>
On Friday we found out that this supermarket was using an exchange rate of US$1:ZW$10 000 which has no relationship with even the parallel market.
So it is just a rate they came up with as forward pricing just to destabilise the rates because the most extreme parallel market rates were 8 000, but they are beginning to go down.
</blockquote>
Last week, the RBZ set the official exchange rate at US$1: ZW$5 900 while the street rate was hovering at US$1: ZW$9 000.
However, some large retailers were using at least US$1: ZW$10 000 for selected products while popular fast-food outlets were rejecting the local currency on the pretext that their point-of-sale machines were not working and therefore could not accept swipe and EcoCash payments.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Shops Agree To Sell Products In ZimDollars At The Official Rate - RBZ

Chief Gwesela of Zhombe in Midlands Province has appealed to the Zimbabwe Republic Police (ZRP) to intensify patrols in his area following an upsurge in armed robberies.
The traditional leader told Southern Eye that communities in his area are living in fear of armed robbers who were targeting shops.
He said unidentified armed robbers recently used explosives to blow up two shops at Zhombe East business centre before stealing goods. He said:
<blockquote>
We are living in fear of yet-to-be-identified armed robbers who are pouncing on shops and stealing goods.
We have reported the robbery cases to the police and our hope is that they will soon be nabbed and taken to the courts to answer for their bad deeds.
</blockquote>
Chief Gwesela said people in the Midlands province now feel their safety is no longer guaranteed. | <a href="https://www.newsday.co.zw/southerneye/local-news/article/200005292/zhombe-communities-in-fear-of-armed-robbers-targeting-businesses">Southern Eye</a>

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