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    Retail, wholesale closures worry CCZ

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    Harare, (New Ziana) –  The Consumer Council of Zimbabwe
    (CCZ) has expressed concern at the continued closure of formal retail
    and wholesale shops in the country that is leaving consumers at the
    mercy of tuck shops and vendors.

    The retail and wholesale sectors in Zimbabwe are in the grip of a crisis
    after the closure of several branches of the OK Supermarket and N.
    Richards Wholesale groups around the country, forcing President Emmerson
    Mnangagwa to intervene.

    He interrupted his annual leave to convene an urgent meeting with senior
    government officials to address the collapse of the country’s formal
    retail and wholesale sectors.

    In a statement later, Finance, Economic Development and Planning
    Minister, Professor Mthuli Ncube bemoaned the growing informalization of
    the economy and its effects on formal businesses.

    The CCZ said in addition to the closure of some shops, those still in
    operation are facing an uncertain future amid growing pressure on
    volumes, exchange rate volatility, and viability, due to the mounting
    competition from informal traders who include street vendors and
    tuck-shops.

    “Formal retailers and wholesalers contribute significantly to the
    national fiscus through payment of statutory obligations such as taxes,
    salaries and utilities,” the CCZ said.

    “On the other hand, informal traders usually avoid customs and excise
    duties through smuggling of goods which is proving to be unfair
    competition on the part of formal business, that also battle with huge
    overhead costs that ultimately affect their pricing structures. These
    closures have ripple effects on the economy through reduced payment of
    taxes, unemployment and the whole food value chain is heavily affected,
    compromising on consumers’ right to choose, to fair value, to
    information and above all, every trader must be governed by the Consumer
    Protection Act so that consumers are treated fairly with their rights
    upheld by all.”

    “We call upon policy makers, and enforcement agents to actively play a
    leading role in safeguarding the survival of the formal sector, which is
    the mainstay of our economy.

    “Meanwhile, we urge consumers to buy wisely from formal, registered
    retailers as they are guaranteed good quality and safe products that
    will not affect their health and wellbeing. They are also guaranteed of
    their right to redress especially when faced with counterfeits and
    underweight products on the market,” the consumer watchdog said.

    New Ziana

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