Economic woes killing retail sector: Ncube

Finance Minister Mthuli Ncube has acknowledged that all is not well in the retail sector, citing the negative impact of smuggling on businesses, among other challenges, including a currency crisis in Zimbabwe.

According to Minister Ncube, retailers have expressed concerns that smuggling is hurting their businesses, prompting the government to launch a blitz on smuggling. Ncube has pledged to engage with retailers to address the challenges facing the sector

“The issue of retailers who are struggling is the reason why we have launched the blitz on smuggling. One of the things that retailers told us is that smuggling is hurting their businesses,” the Minister said

“We are very happy to look into key issues that are impacting the sector negatively. I will engage them to make sure we can unlock those challenges.”

The crisis facing the retail sector has been further exacerbated by the recent closure of several N. Richards Group outlets, as well as Spar Zimbabwe’s decision to shut down Queensdale Spar.

Additionally, Choppies Zimbabwe’s withdrawal from the market and Mahommed Mussa’s drastic reduction of shop space by 60% have underscored the severity of the situation.

The Zimbabwe Revenue Authority (ZIMRA) has since launched a multi-agency operation targeting importers and cross-border transporters involved in smuggling and unethical business practices.

The operation has resulted in the seizure of goods valued at approximately US$2.4 million, including dozens of vehicles and illicit goods such as foodstuffs and second-hand clothes.

ZIMRA Commissioner-General Regina Chinamasa stated that the operation aims to curb smuggling, promote voluntary compliance, and encourage ethical business practices.

The Confederation of Zimbabwe Retailers (CZR) has since made a desperate plea to President Emmerson Mnangagwa to intervene and save the retail sector, which is on the brink of collapse.

CZR president Denford Mutashu, said the sector is facing enormous challenges due to the tough economic environment, which has consistently failed to support formal businesses.

Mutashu stated that the continued closure of formal retail and wholesale businesses is a direct consequence of this environment, which has allowed informal businesses and vendors to thrive without tax obligations.

Mutashu expressed concern that authorities are downplaying the crisis, while CZR is alarmed by the growing number of formal businesses facing enormous challenges. This is an Ignite Media Zimbabwe news production. “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,” he said.

“CZR therefore calls for urgent intervention from His Excellency, President Emmerson Dambudzo Mnangagwa, to rescue what remains of the formalized retail and wholesale sector

“While CZR acknowledges the continued support from the Ministry of Industry and Commerce, it is clear that the root causes of these challenges are fiscal and monetary in nature. These require urgent and decisive action to ensure the survival of formal businesses.

“CZR therefore appeals to the Presidium to prioritize interventions aimed at saving jobs and mitigating the ongoing wave of shop closures and retrenchments,” he said.

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