Story by Owen Mandovha, Business Reporter
Players in the wholesale and retail sector have called for policy interventions to address viability challenges at a time when the market has been flooded by smuggled goods and informal traders on their doorsteps.
The Second Republic has created an environment for business to thrive with various players including the informal sector running successful business ventures.
The gains are, however, being set back by a glut of smuggled goods which have found their way into the informal market at cheaper prices.
Key proponents of the Buy Zimbabwe initiative are convinced there is need for policy and regulatory interventions.
“The situation obtaining here is clear, you have got big manufacturers who are doing very well in the same environment that these retailers and wholesalers are operating. The problem here is that laws favour the informal sector because big businesses have to comply with a lot of policies that are difficult and distort their pricing framework. So it’s not an economic issue but an issue of how government should reform policies that allow these companies to thrive,” Buy Zimbabwe’s Executive Director Mr Munyaradzi Hwengwere said.
Confederation of Zimbabwe Retailers’ president, Dr Denford Mutashu concurred adding that there is need to cushion the formal sector.
“Retailers have to sell in both currencies which does not apply to the informal sector hence manufacturers end up preferring to sell directly to the informal sector who sell in foreign currency so this provides an untenable situation for the formal retailers.”
The government has since pledged to respond to address the situation.
“Government is aware of the challenges being faced by the big supermarkets and are working down the clock to ensure that they protect the industry through a raft of measures,” Permanent Secretary in the Ministry of Industry and Commerce Dr Thomas Utete Ushe noted.
A survey by ZBC News in Harare indicated that informal traders have huge amounts of goods that they sell outside established shops at a slightly cheaper price, a situation necessitated by the fact that they do not pay rent and taxes levied on supermarkets.
