Harare retail outlets resemble deserted ruins after war on smuggling

Retail outlets across Harare are increasingly resembling deserted ruins, offering a stark reflection of Zimbabwe's worsening economic conditions. As the country grapples with ongoing economic shocks, many retailers are downsizing operations, leaving behind once-thriving stores in a state of disarray.

A snap survey conducted by NewZimbabwe.com on Monday revealed that numerous retail outlets in the capital are now ghost stores. Among the most affected is N. Richards Wholesale, which has been operating at a fraction of its former capacity. Many shelves in the store were empty, and the bustling Tynwald branch, once one of the busiest, is set to close by Friday. Workers at the store confirmed that stock clearance sales are underway in preparation for the branch's closure.

"Some goods have been put on sale to clear stock," said a worker at the wholesale store.

OK Zimbabwe, one of the country's largest retail chains, is also struggling. Basic goods like cooking oil and sugar have vanished from shelves in residential areas around Harare, further highlighting the growing shortage of essential items.

Charles Kautare, a resident of Kuwadzana, voiced his concerns, comparing the situation to the hyperinflation crisis of 2008. "This means our economy is in bad shape. They appear to be winding down their operations. Since Independence, we have known these supermarkets. We will reach the 2008 situation if the economic issues are not being addressed," Kautare said.

The root cause of the crisis lies in Zimbabwe's unstable economy, largely due to the poor performance of the local currency. The Zimbabwe Gold (ZiG), introduced last year to stabilize the economy, has failed to meet expectations. Trading at ZiG40 against the U.S. dollar on the black market, the currency has underperformed, exacerbating the financial strain.

Economic analyst Gift Mugano explained that the retail sector's downturn reflects broader issues in Zimbabwe's economy, citing poor political governance as a key factor. "This is a resemblance of a dire situation where we are as a country. It explains to you that the current government has failed in terms of driving the economy. There is a legitimate crisis. A currency can only be sustainable or be strong or stable if there is a public trust in government," Mugano said.

The country's economic difficulties have driven consumers away from formal retail outlets in favor of the informal market. In November last year, retail chain Choppies announced its departure from Zimbabwe, citing unfavorable exchange rate policies and a surge in customer reliance on the informal sector. Many Zimbabweans now prefer shopping at tuckshops, which offer lower prices due to their ability to bypass formal regulatory requirements.

The Confederation of Zimbabwe Retailers (CZR) recently issued a statement urging President Emmerson Mnangagwa to take action to save the formal retail sector. The CZR pointed to unregulated informal businesses, which have an unfair advantage by avoiding taxes, licensing fees, and labor laws. This has led to a significant loss of market share for formal businesses.

"The fiscal, monetary, regulatory, and statutory frameworks have remained unforgiving to formal retail and wholesale operators. These challenges have created an uneven playing field, allowing the informal sector to dominate with little intervention to ensure equity," read the statement.

The CZR called on President Mnangagwa to intervene and address the issues facing the retail sector before it collapses entirely, urging a recovery plan to support formal businesses and restore some semblance of economic stability.