News / National
Zimbabwe's retail sector faces collapse
19 hrs ago | Views
The Confederation of Zimbabwe Retailers (CZR) has expressed grave concerns over the critical state of the country's formal retail and wholesale sector, following the closure of key retail outlets and the downsizing of others.
Recent developments have seen Spar Zimbabwe's Queensdale Spar permanently shutting down and Choppies Zimbabwe completely exiting the market. Additionally, long-established retailers like Mahommed Mussa have been forced to significantly scale back operations, painting a grim picture of the sector's future.
In a statement, CZR president Denford Mutashu attributed the crisis to economic turbulence and the growing dominance of the informal sector, which operates without regulatory compliance. Mutashu said informal traders are undercutting formal businesses by offering goods at lower prices, creating an uneven playing field that is driving many retailers to the brink of collapse.
"The informal sector operates outside compliance with statutory obligations, offering goods at lower prices and making it increasingly difficult for formal businesses to compete," Mutashu said.
He called for urgent intervention from President Emmerson Mnangagwa, warning that the livelihoods of millions of Zimbabweans depend on the survival of the formal retail sector.
"The situation is dire, and urgent action is needed to protect the livelihoods of millions of Zimbabweans who depend on these businesses," Mutashu emphasized.
The CZR has suggested formalizing the informal sector to ensure compliance with statutory regulations while advocating for government support for formal businesses to help them weather the storm. Mutashu also stressed the need to reduce regulatory burdens and create fair competition to prevent further closures.
The retail sector, a critical driver of Zimbabwe's economy, is now at a tipping point. Without swift and decisive government action, more formal businesses may shut down, exacerbating unemployment and further destabilizing the economy.
Recent developments have seen Spar Zimbabwe's Queensdale Spar permanently shutting down and Choppies Zimbabwe completely exiting the market. Additionally, long-established retailers like Mahommed Mussa have been forced to significantly scale back operations, painting a grim picture of the sector's future.
In a statement, CZR president Denford Mutashu attributed the crisis to economic turbulence and the growing dominance of the informal sector, which operates without regulatory compliance. Mutashu said informal traders are undercutting formal businesses by offering goods at lower prices, creating an uneven playing field that is driving many retailers to the brink of collapse.
"The informal sector operates outside compliance with statutory obligations, offering goods at lower prices and making it increasingly difficult for formal businesses to compete," Mutashu said.
"The situation is dire, and urgent action is needed to protect the livelihoods of millions of Zimbabweans who depend on these businesses," Mutashu emphasized.
The CZR has suggested formalizing the informal sector to ensure compliance with statutory regulations while advocating for government support for formal businesses to help them weather the storm. Mutashu also stressed the need to reduce regulatory burdens and create fair competition to prevent further closures.
The retail sector, a critical driver of Zimbabwe's economy, is now at a tipping point. Without swift and decisive government action, more formal businesses may shut down, exacerbating unemployment and further destabilizing the economy.
Source - newsday
