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Buy Zimbabwe raises concerns over retail sector challenges
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Buy Zimbabwe has raised concerns about the challenges facing the retail sector, stating that these obstacles are hindering efforts to promote locally-produced goods.
Over the past few weeks, major retailers and wholesalers, including Choppies Zimbabwe and OK Zimbabwe, have struggled to operate due to an influx of smuggled goods, increased informal trade, exchange rate volatility, high costs of doing business, and high taxes.
This has resulted in operational challenges for top retailers, raising fears that thousands of jobs could be at risk.
Buy Zimbabwe chairperson Munyaradzi Hwengwere emphasized the critical role that large retailers such as OK Zimbabwe, TM Pick n Pay, and N Richards play in promoting local products. These retailers stock over 60% of locally-produced goods, making them essential pillars for the buy-local campaign.
"When they cough, the Buy Zimbabwe campaign catches a cold. No one loves a cold. The sooner we heal from the current problem, the better," Hwengwere said.
Hwengwere noted that informal trade, exchange rate disparities, and smuggled goods are among the major challenges affecting the sector. He highlighted that these factors reduce market share, negatively impact disposable incomes, and encourage rampant smuggling.
"The gap between official and parallel markets still exists. This is a cost that has become an atomic driver in costs and competitiveness. The losers are both the retailer and the consumer," Hwengwere added.
Economist Vince Musewe stressed the urgent need to address high business operating costs and currency uncertainties. He noted that these factors are driving businesses to shut down, negatively impacting competition and economic stability.
Similarly, UK-based economist Chenayimoyo Mutambasere pointed out that poor policy implementation, political instability, and a weak domestic market are at the core of the retail sector's challenges.
"Inconsistent fiscal and monetary policies, such as frequent changes in exchange rate regulations, have created an unpredictable business environment that undermines investor confidence," Mutambasere said.
Mutambasere urged the government to prioritize consistent and transparent economic policies while ensuring political stability to foster a conducive investment environment.
"The structural issues need addressing to promote inclusive growth, which is essential for restoring confidence in the economy," she added.
Buy Zimbabwe, along with economic experts, is calling for a coordinated approach to resolve these challenges by fostering a supportive environment for local businesses and promoting sustainable economic development.
Over the past few weeks, major retailers and wholesalers, including Choppies Zimbabwe and OK Zimbabwe, have struggled to operate due to an influx of smuggled goods, increased informal trade, exchange rate volatility, high costs of doing business, and high taxes.
This has resulted in operational challenges for top retailers, raising fears that thousands of jobs could be at risk.
Buy Zimbabwe chairperson Munyaradzi Hwengwere emphasized the critical role that large retailers such as OK Zimbabwe, TM Pick n Pay, and N Richards play in promoting local products. These retailers stock over 60% of locally-produced goods, making them essential pillars for the buy-local campaign.
"When they cough, the Buy Zimbabwe campaign catches a cold. No one loves a cold. The sooner we heal from the current problem, the better," Hwengwere said.
Hwengwere noted that informal trade, exchange rate disparities, and smuggled goods are among the major challenges affecting the sector. He highlighted that these factors reduce market share, negatively impact disposable incomes, and encourage rampant smuggling.
"The gap between official and parallel markets still exists. This is a cost that has become an atomic driver in costs and competitiveness. The losers are both the retailer and the consumer," Hwengwere added.
Economist Vince Musewe stressed the urgent need to address high business operating costs and currency uncertainties. He noted that these factors are driving businesses to shut down, negatively impacting competition and economic stability.
Similarly, UK-based economist Chenayimoyo Mutambasere pointed out that poor policy implementation, political instability, and a weak domestic market are at the core of the retail sector's challenges.
"Inconsistent fiscal and monetary policies, such as frequent changes in exchange rate regulations, have created an unpredictable business environment that undermines investor confidence," Mutambasere said.
Mutambasere urged the government to prioritize consistent and transparent economic policies while ensuring political stability to foster a conducive investment environment.
"The structural issues need addressing to promote inclusive growth, which is essential for restoring confidence in the economy," she added.
Buy Zimbabwe, along with economic experts, is calling for a coordinated approach to resolve these challenges by fostering a supportive environment for local businesses and promoting sustainable economic development.
Source - newsday
