The Confederation of Zimbabwe Retailers (CZR) has urged greater collaboration between the government, regulators, and key stakeholders to address the challenges facing the retail and wholesale sectors.
CZR expressed concern over the unsustainable state of these sectors, with some businesses facing serious viability issues that could hinder economic growth.
CZR emphasized the need for meaningful interventions, warning that without them, further closures and economic stagnation could follow. The group called for constructive dialogue to find solutions that would enhance the sector’s contribution to national economic development.
Reaffirming its commitment to working with stakeholders, CZR highlighted the importance of ensuring fairness in the business environment, especially under Zimbabwe’s multi-currency system, rather than seeking special treatment for the sector.
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They called for reforms to the exchange rate and regulations to support both established and emerging businesses.
CZR advocated for greater liberalisation of the exchange rate, allowing market conditions to dictate fair pricing, and cited the recent actions of the Reserve Bank of Zimbabwe (RBZ) in moving towards a more market-driven system. However, CZR stressed the need for further refinements to protect the local currency from market shocks and to encourage more participation beyond the RBZ and Treasury in the foreign exchange market.
They noted that the gap between the cost of sourcing goods in US dollars and selling them in Zimbabwean Gold (ZiG), coupled with the disparity between official and market exchange rates, was eroding profit margins and hurting businesses and consumers alike. CZR also pointed out that several major retailers had been forced to shut down due to these pressures.
CZR called on manufacturers and distributors to strengthen their supply chains by prioritizing sales through formal channels, which would create a more accountable system. They also emphasized the need for fair regulation across both formal and informal sectors to ensure stability and competition.
Addressing regulatory oversight, CZR criticized the Exchange Control Act for restricting price adjustments in line with market conditions and noted that enforcement actions by the Financial Intelligence Unit often disregarded the operational challenges faced by businesses.
CZR warned that without urgent action from the government, the future of the retail and wholesale sectors remains uncertain. They proposed solutions, including further liberalisation of the exchange rate, adjustments to fuel provisions or taxes, and reopening borders to allow for the import of essential goods.
