News / National
Retail outlets closes amid ZWG fluctuation
05 Nov 2024 at 08:25hrs | Views
The recent spate of closures among prominent retail outlets in Zimbabwe has prompted Parliament to demand an explanation from Finance Minister Mthuli Ncube. The closures, attributed to the ongoing economic meltdown and currency depreciation, have raised alarms about the sustainability of the country's business environment.
Several retail chains have shut down branches across the nation as they struggle to cope with an increasingly hostile economic landscape. The latest data reveals that Zimbabwe's sixth currency, the Zimbabwe Gold (ZiG), is rapidly losing value against the US dollar, currently trading at approximately ZiG40 on the black market.
During a recent parliamentary session, Citizens Coalition Change (CCC) MP Zivai Mhetu voiced concerns about the repercussions of these closures on the economy. "Our economy is becoming increasingly hostile for businesses, and we could soon witness an exodus of companies if this trend continues," Mhetu warned. He cited the recent closures of major retailers, including Unilever and Truworths, as indicative of the broader economic challenges. Furthermore, he highlighted reports that Choppies, a leading supermarket chain based in Botswana, is contemplating exiting the Zimbabwean market despite thriving in other Southern African Development Community (SADC) nations.
Mhetu expressed concern over Choppies' struggles in Zimbabwe, saying, "It is only in Zimbabwe that it is facing operational challenges. This is a clear indication of our problematic business environment." Last month, retail outlets warned of potential total closures, citing the overvaluation of the local currency as a significant obstacle to their operations.
The MP also emphasized the potential social impact of these closures, particularly on employment. "Closure of big companies triggers unemployment, something we cannot afford as our unemployment rate is already incredibly high. Only 46.3% of Zimbabweans of working age are employed, according to statistics released by ZIMSTAT earlier this year," he noted.
Mhetu called for urgent action to address currency instability and inflation, warning that without intervention, more businesses could follow the path of Choppies. He reiterated the need for the government to stabilize the currency and foster an environment conducive to business growth. "The National Development Strategy 1 speaks of creating 760,000 formal jobs by 2025. We must act swiftly to achieve this goal," he urged.
As the economic crisis continues to unfold, the pressure mounts on the government to implement effective measures to revitalize the retail sector and restore confidence among businesses operating in Zimbabwe.
Several retail chains have shut down branches across the nation as they struggle to cope with an increasingly hostile economic landscape. The latest data reveals that Zimbabwe's sixth currency, the Zimbabwe Gold (ZiG), is rapidly losing value against the US dollar, currently trading at approximately ZiG40 on the black market.
During a recent parliamentary session, Citizens Coalition Change (CCC) MP Zivai Mhetu voiced concerns about the repercussions of these closures on the economy. "Our economy is becoming increasingly hostile for businesses, and we could soon witness an exodus of companies if this trend continues," Mhetu warned. He cited the recent closures of major retailers, including Unilever and Truworths, as indicative of the broader economic challenges. Furthermore, he highlighted reports that Choppies, a leading supermarket chain based in Botswana, is contemplating exiting the Zimbabwean market despite thriving in other Southern African Development Community (SADC) nations.
The MP also emphasized the potential social impact of these closures, particularly on employment. "Closure of big companies triggers unemployment, something we cannot afford as our unemployment rate is already incredibly high. Only 46.3% of Zimbabweans of working age are employed, according to statistics released by ZIMSTAT earlier this year," he noted.
Mhetu called for urgent action to address currency instability and inflation, warning that without intervention, more businesses could follow the path of Choppies. He reiterated the need for the government to stabilize the currency and foster an environment conducive to business growth. "The National Development Strategy 1 speaks of creating 760,000 formal jobs by 2025. We must act swiftly to achieve this goal," he urged.
As the economic crisis continues to unfold, the pressure mounts on the government to implement effective measures to revitalize the retail sector and restore confidence among businesses operating in Zimbabwe.
Source - NewZimbabwe
