Staff Reporter
Confederation of Zimbabwe Retailers (CZR) has implored the government to come up with measures that would stop the closures of major retail shops and companies across the country.
This comes as many formal companies, retail shops and wholesale businesses are closing due to an unconducive operating environment.
Some of the leading retail which closed recently includes N. Richards Group, Spar Zimbabwe’s Queensdale shop, Choppies Zimbabwe’s exit and Mahommed Mussa which reduced their shop space by 60 percent.
On the other hand, one of the global leading accountancy firms, PriceWaterhouseCoopers exited from operating in Zimbabwe with effect from January 17, 2025. The exit by PwC follows the departure of another audit firm Deloitte Africa from the country last year.
One of the country’s biggest business membership organization, CZR president Dr Denford Mutashu said the situation was a direct consequence of the prevailing turbulent economic environment that has consistently failed to support formalized sector players.
“As the representative association for these and other brands, CZR is alarmed that while formal businesses face enormous challenges, the authorities continue to present a different picture of the operating environment.
“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.
“The growing levels of informalization have led to a significant loss of market share for formal businesses. The unregulated informal sector offers goods at much lower prices, largely because it operates outside compliance with statutory obligations such as taxes, licensing fees, and labor laws. This has made it increasingly difficult for formal businesses to compete effectively,” Mutashu said.
The CZR boss further urged the urgent intervention from President Emmerson Mnangagwa and his administration to rescue what remains of the formalized retail and wholesale sector.
“One of the most pressing challenges is the dual currency system, which disproportionately affects formal retailers and wholesalers. Formal businesses are compelled to accept the ZiG in a predominantly dollarized supply chain.
“This is exacerbated by key operational costs, such as fuel for generators, which must be paid for in USD while sales remain largely denominated in ZiG, with 80 percent of transactions in local currency. Additionally, punitive bank charges, including the Intermediated Money Transfer Tax (IMTT), have encouraged cash transactions, further shifting consumer activity to the informal sector and leaving formal businesses struggling to attract foot traffic.
“Retailers and wholesalers are also burdened by excessive regulatory and compliance requirements, with over 30 separate licensing costs. This regulatory overload often exceeds the profits these businesses generate, effectively eroding their viability,” he further noted.
Mutashu said his organization remains committed to engaging with the government and other stakeholders to address these challenges and restore the stability of Zimbabwe’s retail and wholesale sector. Urgent action is needed to protect the livelihoods of millions of Zimbabweans who depend on these businesses and to ensure the survival of established retail and wholesale brands.
