Staff Reporter
The Confederation of Zimbabwe Retailers (CZR) has issued a stark warning about escalating prices in the retail and wholesale sectors, attributing the increases to a volatile exchange rate and stringent government regulations.
In a statement released today, CZR President Mr Denford Mutashu highlighted the challenges faced by businesses operating in a multi-currency environment.
“The exchange rate is the primary driver of price increases,” he stated.
“Retailers and wholesalers are caught between the rock of a dollarized supply chain and the hard place of earning in Zimbabwean dollars.”
Mutashu criticized the government’s Exchange Control Act, which he claimed has further complicated matters.
“The Act’s rigid regulations and the FIU’s crackdowns have created a high-risk environment for businesses,” he lamented. “Many retailers and wholesalers are operating on a knife edge, forced to pass on increased costs to consumers.”
The CZR has called on the government to address several key issues.
First, Mutashu urged the government to liberalize the exchange rate, allowing businesses to trade at market-related rates. He also emphasized the need for the government to promote supply chain discipline, encouraging manufacturers and distributors to sell through formal retail channels.
“The government must ensure equal rules for all by enforcing consistent regulations across both the formal and informal sectors. It should also provide relief for fuel costs, either by offering fuel provisions in Zimbabwean dollars or removing fuel taxes for retailers,” said Mutashu.
He further urged the government to open borders for imports, allowing retailers to import basic goods without restrictions.
Dollar-for-dollar transactions should be implemented, requiring goods procured in USD to be sold exclusively in USD.
“We are not asking for favors, but for a level playing field,” Mutashu emphasized. “The current trajectory is unsustainable, and without meaningful intervention, we risk further closures and economic stagnation.”
