'Counterfeits, financial instability imperil manufacturing sector'

Zimbabwean consumers are grappling with increasing difficulties, including the proliferation of counterfeit goods and financial instability, as the country's manufacturing sector struggles to grow. Patience Chikwiriro, the Director for Policy Advocacy, Monitoring, and Evaluation at the Consumer Council of Zimbabwe (CCZ), highlighted these challenges during a panel discussion at the Zimbabwe Independent's annual Banks and Banking Survey ceremony, which was held in partnership with First Capital Bank.

Chikwiriro expressed deep concern over the ongoing stagnation in Zimbabwe's manufacturing sector, pointing to a troubling trend of stagnant growth since 2003. According to the data presented in recent budgets, the sector has grown by only 1% annually, raising concerns about its ability to meet the needs of local consumers.

"We have received numerous complaints about situations where people, instead of receiving their change, are forced to accept alternative items," she said. "For example, someone from Glen Norah might have a dollar for a return trip into town, but the kombi crew does not have change. So she is forced to accept a packet of pasta instead of her change, leaving her with no money to get back home."

Chikwiriro noted that liquidity constraints, especially regarding change for everyday transactions, were becoming a significant issue for consumers, particularly those with low disposable income. She emphasized that, due to financial pressures, many consumers are being forced to prioritize survival over essential health and safety considerations.

"We tend to overlook essential health issues, prioritising survival instead. This is a significant concern for us," she said. "I am also passionate about the challenges facing the manufacturing sector, which has not shown any signs of growth."

In addition to financial instability, Chikwiriro raised alarm over the growing prevalence of counterfeit and substandard products in Zimbabwe. The Standards Association of Zimbabwe (SAZ) has recently called for stronger adherence to production standards amid reports of counterfeit goods flooding the local market. The Consumer Protection Commission (CPC) also reported last month that the influx of counterfeit products and smuggled goods has become a major concern for consumers and businesses alike.

Chikwiriro called for urgent measures to address the growing issue of counterfeit goods, stressing that this not only jeopardizes consumer health and safety but also undermines the competitiveness of local industries. "We have also registered a substantial number of complaints regarding counterfeits. Why are consumers being exposed to counterfeits?" she asked. "This highlights the broader issues I am addressing: 2024 has been a particularly difficult year for us as consumers. The handling of counterfeits needs urgent attention, as it reflects the vulnerability of consumers."

The financial strain and liquidity challenges were echoed by Kelvin Msipa, the Confederation of Zimbabwe Industries (CZI) value chains and sector coordinator, who stated that businesses, particularly in manufacturing, must prepare for further economic shocks. Msipa pointed out that the 2024 budget allocation introduced numerous structural changes, and market equity has been in short supply, making it even harder for manufacturing companies to thrive in an increasingly volatile environment.

"Manufacturing companies, in particular, have faced a tough time since the 2024 budget allocation came with numerous structural changes and market equity has been scarce," Msipa said.

As Zimbabwean consumers continue to face mounting challenges related to counterfeit products and economic instability, there is an urgent need for effective policy measures to address these issues, support the manufacturing sector, and protect consumer interests in the country.