Bulawayo businesses fail to cash in on festive hype

BULAWAYO businesses say the festive season has failed to bring the much anticipated business due to low consumer buying power which has been attributed to the prevailing liquidity challenge. The business operators said they normally recorded brisk business in the run up to the festive season but that had not been the case this year.

In an interview Beverage Wholesalers and Retailers Association of Zimbabwe (BWRZ) president Mr Isaac Kanjera said business had failed to peak in the festive season due to the cash crisis faced by consumers.

"Due to the economic challenges business is very low. There is the liquidity crisis and the buying power is very low. People are just buying the basics and those goods that they cannot do without," said Mr Kanjera.

Consumer Council of Zimbabwe (CCZ) regional manager Mr Comfort Muchekeza also echoed the same sentiments and said the consumer buying pattern had changed this year due to the low disposable income.

"People do not have the money due to the liquidity crisis. Companies are carrying massive promotions to attract customers which shows that they are not getting the business they were expecting," said Mr Muchekeza.

He said high prices charged by the local businesses were also contributing to low business.

"The issue is that prices of local goods are still very high here in Zimbabwe when compared to other countries like South Africa and Botswana. On a daily basis we see about 11 buses going to SA to buy goods. This is in addition to the private cars that go to Musina and Francistown to buy groceries where it's cheaper," he said.

Mr Muchekeza, however, highlighted that although the imported groceries were cheaper, they were of poor standard.

"If you look at our local cooking oil and the Mazoe drink, these are of better quality than the imported ones. So there is a need for the local producers to come up with goods that are competitive," said Mr Muchekeza.

He said the shrinking disposable income had made consumers prioritise only basics like school fees.

The flea market traders and city vendors were also singing the blues due to low business.

Ms Angela Nyoni, a cross border trader, said business was at a record low as consumer spending remained constrained.

"In the previous years we used to go to South Africa to buy stuff twice or thrice during the festive season due to high business but this year, the situation is bad," said Ms Nyoni.

She added that business was going to be even worse in January next year.

A branch manager for a furniture and electrical shop in Bulawayo who spoke on condition of anonymity said most workers did not get their bonuses and this was also affecting buying trends.

"To make matters worse, most people are jobless and this is also affecting our business. We are struggling to break even," said the manager.

He added that most companies were struggling to pay wages on time to their workers, affecting their spending behaviour.

During the 2015 budget presentation Finance Minister Patrick Chinamasa said that for the past three years over 4 500 companies had closed shop, rendering at least 55 000 workers jobless.

However, the BWRZ president Mr Kanjera said the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset) blueprint was going to bring a change of fortunes.

"We should hold on and remain focused and very soon there is going to be an economic turnaround. We have the Zim Asset policy document and things are going to change positively," said Mr Kanjera.