Zimbabwe slides into a spaza nation

Zimbabwe's commercial landscape is undergoing a profound transformation - and not for the better. Across major cities, once-thriving formal businesses have either shuttered or drastically downsized, their spacious premises now partitioned into cramped stalls housing boutiques stocked with imported clothing and informal spaza shops selling foreign groceries.

What might appear as a cosmetic shift masks a deeper, more troubling reality: the steady erosion of Zimbabwe's industrial base. This transition from large-scale formal commerce to informal retail reflects an economic decline that, if left unchecked, threatens the country's long-term productive capacity.

The deterioration is most visible in the industrial zones. Factories that once hummed with machinery and employed thousands in manufacturing goods for local consumption and export now stand silent. Many have been converted into storage facilities for cheap plastic products — often substandard — imported mainly from China.

In Harare's Graniteside Industrial Area, the change is stark. Warehouses that previously bustled with workers and equipment are now crammed with low-quality goods awaiting distribution. Economists warn that this deindustrialisation is not merely a worrying trend but a full-blown national emergency.

"Zimbabwe is at risk of becoming a mere distribution point for foreign goods," an industrial analyst told The Herald. "Without a productive base, the country will have no sustainable means of supporting its economy."

The flood of imported goods — especially second-hand clothing and disposable plastics — underscores a growing dependency on foreign markets. Other nations find in Zimbabwe a convenient dumping ground, extracting hard currency while offering little in return in terms of reciprocal trade or technology transfer. This imbalance stifles innovation, weakens local manufacturing, and erodes the country's competitiveness both regionally and globally.

The African Continental Free Trade Area (AfCFTA) was designed to foster regional value chains and boost African manufacturing. Yet Zimbabwe, rather than positioning itself as a competitive manufacturing hub, is moving in the opposite direction — allowing its industrial base to wither in favour of an import-driven retail economy.

Compounding the problem is the country's reliance on the United States dollar. While dollarisation has provided short-term currency stability, it has also opened the door for foreign traders to dominate the market. They enjoy the advantage of repatriating profits without exchange rate risk, while local manufacturers grapple with dollar-denominated costs, difficulty sourcing raw materials, and a consumer base with constrained purchasing power.

The introduction of the Zimbabwe Gold (ZIG) currency earlier this year could be a turning point if managed effectively. Analysts say that restoring monetary sovereignty requires decisive measures — including mandating ZIG use for fuel purchases, government services, and high-value transactions — to build confidence and demand for the local currency.

Without strong policy interventions to support ZIG and curb uncontrolled dollarisation, economists warn Zimbabwe will remain a retail economy dominated by foreign traders, with its industrial revival slipping further out of reach.

"Industry is the backbone of sustainable economic growth," the analyst added. "Once that backbone breaks, recovery becomes exponentially harder."