Buy Zimbabwe, a key local content promoter, has raised concerns over the challenging landscape in the retail and wholesale sectors, where numerous businesses are being forced to scale back operations.
The organization argues that the country’s prolonged reliance on the US dollar has exacerbated market imbalances, contributing to persistent high prices in an economy struggling with underperforming manufacturing sectors and an over-reliance on mining exports.
In an exclusive interview with Great Dyke News, Buy Zimbabwe Chairman Munyaradzi Hwengwere highlighted the detrimental effects of a biased market, where imported goods are still dominant.
This, coupled with the weak performance of the local manufacturing industry, has placed significant strain on the national economy, perpetuating a trade imbalance.
The continued usage of the US dollar, Hwengwere noted, has placed a burden on local producers, making it increasingly difficult to compete with imported goods. Consequently, many local businesses are faced with the unenviable task of reducing their capacity, ultimately affecting employment levels and further impeding economic growth.
A recent survey by the Zimbabwe Statistics Agency (ZimStat) for Q3 2024 reveals a bleak outlook for the retail sector, with over half (51%) of retailers reporting stock levels “below normal” and 57.4% describing the business environment as “bad.”
Financially, 62.4% of retailers said their situation was “bad,” and the confidence index, reflecting factors like finances, orders, stock, and employment, fell to -6.9 from -5.6 in Q2, highlighting ongoing struggles within the sector amid tough economic conditions.
