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Zimbabwe retailers bank on 6% economic growth
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The Confederation of Zimbabwe Retailers (CZR) says it expects consumer spending to rise this year, buoyed by the government's projected 6% economic growth, despite continued pressure on household incomes.
In its review of the 2025 Mid-Year Budget and Economic Review, CZR president Denford Mutashu said the growth forecast could stimulate aggregate demand and boost sales in the retail and wholesale sectors.
"Looking ahead, CZR is optimistic that the projected 6% GDP growth will stimulate consumer spending, increase aggregate demand and ultimately boost retail and wholesale sales," Mutashu said.
He noted that foreign currency inflows had surged by 30% to US$6 billion in the first five months of 2025, a development expected to improve hard currency availability and ease liquidity constraints.
"CZR remains committed to working with the government, policymakers and other stakeholders to ensure the retail and wholesale sector continues to thrive and play its full part in Zimbabwe's economic transformation agenda," he added.
The optimism comes despite concerns that the mid-year review did not outline a clear reform agenda for critical sectors such as mining, retail, and manufacturing - key to sustainable economic recovery.
Instead, Treasury highlighted a rebased GDP of US$45,7 billion and a gross national income exceeding US$3,000 per capita, positioning Zimbabwe alongside other middle-income countries. Critics, however, warn that such headline growth figures mask deeper structural challenges.
Mutashu also commented on the government's liberalisation of the foreign exchange market through Statutory Instrument 34 of 2025, saying it had not sparked speculative or inflationary pricing within the formal retail sector.
"Retailers and wholesalers have generally demonstrated price discipline, which reflects growing alignment with the official exchange rate. However, we note with concern isolated instances of businesses applying significantly depreciated exchange rates to discourage local currency transactions," he said.
He urged businesses to uphold ethical pricing practices to maintain consumer trust and economic stability.
Mutashu also welcomed ongoing government consultations with business bodies - including CZR, the Chamber of Mines, the Confederation of Zimbabwe Industries, and the Zimbabwe National Chamber of Commerce - on tax policy.
"A responsive tax framework is essential for strengthening domestic resource mobilisation and ensuring Zimbabwe remains a competitive investment destination both regionally and globally," he said.
The CZR says it will continue engaging policymakers to ensure tax reforms enhance competitiveness, compliance, and growth while safeguarding the retail sector's role in the country's economic transformation.
In its review of the 2025 Mid-Year Budget and Economic Review, CZR president Denford Mutashu said the growth forecast could stimulate aggregate demand and boost sales in the retail and wholesale sectors.
"Looking ahead, CZR is optimistic that the projected 6% GDP growth will stimulate consumer spending, increase aggregate demand and ultimately boost retail and wholesale sales," Mutashu said.
He noted that foreign currency inflows had surged by 30% to US$6 billion in the first five months of 2025, a development expected to improve hard currency availability and ease liquidity constraints.
"CZR remains committed to working with the government, policymakers and other stakeholders to ensure the retail and wholesale sector continues to thrive and play its full part in Zimbabwe's economic transformation agenda," he added.
The optimism comes despite concerns that the mid-year review did not outline a clear reform agenda for critical sectors such as mining, retail, and manufacturing - key to sustainable economic recovery.
Instead, Treasury highlighted a rebased GDP of US$45,7 billion and a gross national income exceeding US$3,000 per capita, positioning Zimbabwe alongside other middle-income countries. Critics, however, warn that such headline growth figures mask deeper structural challenges.
Mutashu also commented on the government's liberalisation of the foreign exchange market through Statutory Instrument 34 of 2025, saying it had not sparked speculative or inflationary pricing within the formal retail sector.
"Retailers and wholesalers have generally demonstrated price discipline, which reflects growing alignment with the official exchange rate. However, we note with concern isolated instances of businesses applying significantly depreciated exchange rates to discourage local currency transactions," he said.
He urged businesses to uphold ethical pricing practices to maintain consumer trust and economic stability.
Mutashu also welcomed ongoing government consultations with business bodies - including CZR, the Chamber of Mines, the Confederation of Zimbabwe Industries, and the Zimbabwe National Chamber of Commerce - on tax policy.
"A responsive tax framework is essential for strengthening domestic resource mobilisation and ensuring Zimbabwe remains a competitive investment destination both regionally and globally," he said.
The CZR says it will continue engaging policymakers to ensure tax reforms enhance competitiveness, compliance, and growth while safeguarding the retail sector's role in the country's economic transformation.
Source - Newsday
