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Covid-19 jump-starts online retail sales in Zimbabwe

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BY EVIDENCE CHENJERAI

MUTARE- Kenneth Mudzingwa has worked and studied in Turkey for five and a half years.

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To help his two siblings with groceries, the Zimbabwean citizen used a money transfer service that sometimes took days.

But since last June, he has ordered toiletries, cooking oil, maize meal, milk, sugar and other basics via a supermarket website. The items usually arrive in 24 hours.

“My siblings just send me a list of what they want and I complete the transaction from here, and they get notified of the order instantly for collection or delivery,” Mudzingwa said. “It’s a good start, and I hope online shopping improves in all retail outlets back home.”

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Mudzingwa’s experience is mirrored throughout Zimbabwe, where fears of contracting the coronavirus have forced long-resistant shoppers to embrace online shopping, a trend that could ultimately reshape the retail industry in this southern African country.

The shift comes as Zimbabwe continues to battle the coronavirus that causes Covid-19.

More than 3,000 people have died from the disease in a country that borders South Africa, which has the highest number of cases on the continent.

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Since the pandemic erupted in March 2020, Zimbabwe’s government has ordered two nationwide lockdowns, which closed businesses and schools, and kept Zimbabweans at home.

This March, the government partially lifted the latest lockdown. But it left many restrictions in place for businesses, requiring mandatory masks and hand sanitizer, physical distancing, and temperature checks.

As the pandemic has worn on, grocery stores and other retailers have more aggressively promoted online shopping, which Zimbabweans have historically shunned.

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Obstacles to online shopping include the high cost of internet data, a lack of digital infrastructure or weak connectivity in some regions, and security concerns, says economist Prosper Chitambara.

In March, Pick n Pay, a major supermarket chain, saw its Zimbabwe stores lose some $22 million (about US$260,000) to email hackers.

Online sales at OK Zimbabwe Limited, another supermarket chain, have jumped by 800 percent during the pandemic.

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Monthly website visitors grew to 30,000, said Patricia Gondo, the company’s financial services manager.

She said the company, which began selling groceries online in 2019, started the pandemic with a very small online customer base.

SPAR Zimbabwe, another prominent grocer, unveiled online shopping in 2018, but officials say it didn’t catch on until March 2020, when the government announced the country’s first case of Covid-19.

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Average monthly visits in 2020 were 127% higher than 2019, says Louise McAllister, marketing manager for SPAR Zimbabwe.

This year, she says, monthly visits are up 10% over 2020.

To combat Covid-19, both OK Zimbabwe’s and SPAR Zimbabwe’s delivery staff regularly use hand sanitizer, wear masks and submit to temperature checks.

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McAllister says that to maintain physical distancing, SPAR Zimbabwe’s staff delivers to a customer’s porch.

Flexible payment options also have made online shopping more popular.

Only an estimated 1.3% of Zimbabweans over age 15 use credit cards, but in recent years mobile money – paying for goods and services through a cellphone – has surged in popularity.

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Between 2016 and 2018, mobile money transactions leaped 445%, to more than 1.6 million, according to a report last year from FSD Africa, a financial sector development program funded by the United Kingdom.

A postal and telecommunications sector performance report found that in the first quarter of 2020, active mobile money subscriptions rose by 4.6% to reach more than seven million, compared to the fourth quarter of 2019.

Sydney Mangweka, a father of two whose wife works in a different city, says he started shopping online in April 2020.

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A film and music producer who also owns a small printing business, he mainly pays for electricity and buys internet data, groceries and takeout meals.

“Being the only parent at home, it is my duty to ensure the kids have all they need, but due to my busy schedule, I would at times fail to meet that obligation,” said Mangweka (38), who uses mobile money to pay for his goods.

“During the duration of the 2020 national lockdown, as I was working from home, I discovered that I could actually work and shop at the same time using online shopping.”

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He also likes the fact that if both he and his wife are traveling, he can still order groceries to be delivered at home.

Meanwhile, Mudzingwa (25), says retailers need to keep honing the online experience for customers.

“They have a long list of questions you go through when ordering, which puts me off ordering from those shops,” he said.

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Mudzingwa also says sometimes a supermarket doesn’t include basic grocery items among its online offerings, which means he has to hopscotch between online stores to buy everything he needs.

And sometimes he processes and pays for his order – only for it to be delayed.

Nonetheless, both Mudzingwa and Mangweka plan to keep shopping online after the pandemic ebbs.

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Chitambara, the economist, predicts that online shopping’s newfound traction will last, because it reduces the costs that come with in-person sales and lowers the price of goods and services.

“It enhances the long-term welfare and well-being of the economy,” he said. – Global Press Journal

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National

Econet unveils new home and business data packages

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BY NOKUTHABA DLAMINI 

Econet Wireless Zimbabwe has launched new ‘Smart-Suite’ Fixed Wireless Access (FWA) data packages consisting of six plans tailored to address the data needs of different customers – from the ‘SmartLite’ plan, offering 50GB of data (best for light users) and retailing for $30, to ‘SmartPro’, offering 800GB of data (ideal for established SMEs) and retailing at $170.

In between are ‘SmartPlus’, offering 75GB at $40 (targeting families); ‘SmartMax’, offering 100GB at $50 (ideal for bigger homes and freelancers); ‘SmartFlex’, offering 200GB at $70 (tailored for flexible scaling and small offices) and ‘SmartUltra’, offering 400GB at $99 (suitable for heavy, multi-users and SMEs).

Introducing the SmartSuite packages on multiple media channels, Econet said the new data packages will be easy to upgrade and will offer flexible plans “that grow with your needs”.

To ensure optimized and stable performance within a customer’s premise and network coverage area, the new packages will be geo-locked to a customer’s location, and accessible using a 4G or 5G CPE (customer premises equipment) router.

Geo-locking – a term used to describe the restriction of access to a product or service to a specific geographical location – ensures customers get the best possible usage experience while enabling service providers like telcos and Internet Service Providers (ISPs) to ringfence critical resources such as bandwidth, making certain they are utilized by the intended users.

Econet said the SmartSuite packages will be available through its Econet Shops across the country where the company enjoys the largest network coverage, adding that CPE routers will also be available for sale in its shops – starting from US$48 per unit. The company noted though that customers will be free to use their existing CPEs, or to purchase CPEs anywhere elsewhere, as long as they were compatible with Econet’s SmartSuite product specifications.

Econet, which is the largest mobile network operator in Zimbabwe, enjoys the widest 4G (LTE) network coverage in the country. With 300 5G base stations deployed in the country’s major cities and towns, it is by far the market leader in 5G technology in Zimbabwe.

The launch of the new SmartSuite packages follows a notice to customers of the former SmartBiz packages from Econet a month ago, notifying them that it would soon launch new data packages offering more choice and flexibility, and tailored to different customer needs.

Customers registered to the old SmartBiz service and who already have a CPE, can simply dial *143, choose a package of their choice and credit their new SmartSuite package. New subscribers to the SmartSuite packages will however need to buy a new SmartSuite SIM from an Econet Shop, as well as a CPE, for them to be able to connect to the new packages. If they own a CPE that meets Econet’s specifications, they will be able to use it for their SmartSuite package.

Along with the new SmartSuite data packages, Econet continues to offer its all its customers the choice of a wide range of mobile data products, accessible ‘on the go’ throughout the country via the customer’s mobile device or smartphone.

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In the community

Population Services Zimbabwe to offer free family planning services in Nkayi

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 BY WANDILE TSHUMA 

Population Services Zimbabwe (PSZ) is set to provide free family planning services in Nkayi District from next week

The initiative which will run from 15-18, aims to enhance access to comprehensive reproductive health care and empower individuals and couples to make informed choices regarding family planning.

The outreach will kick off on Monday, September 15, at the Sivalo Rural Health Centre (RHC) and its outreach site. This will be followed by activities at various locations each day:

Tuesday, September 16:
Jabulisa at 9:00 AM
Ngabayide at 2:00 PM
Wednesday, September 17:
Sebhumane at 9:00 AM
Nesigwe RHC at 10:00 AM
Thursday, September 18:
Mateme RHC at 9:00 AM
Sembeule at 10:00 AM

The services offered during this campaign include:

Loop insertion and removal
Implant insertion and removal
Depo Provera injections
Secure and control pills
Emergency contraceptive pills
Counselling on reproductive health issues

 

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National

Parliament advocates for youth employment quota amidst growing crisis

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BY NOKUTHABA DLAMINI 

The Parliament convened on Tuesday to discuss a crucial motion demanding the establishment of a quota system for youth employment in the public sector.

This motion is in response to alarming statistics revealing that over 62% of Zimbabwe’s population is under the age of 35, yet these young people face significant challenges in accessing job opportunities.

MP Ropafadzo Makumire, who moved the motion, stated, “I rise today to move this motion in my name with respect for this House and with deep concern for the future of young people.” He articulated the urgency of addressing youth unemployment, citing Section 20 (1) (c) of the Constitution, which mandates that the Government “at every level must take reasonable measures to ensure that the youths are given opportunities for employment and economic development.”

Makumire expressed his concern regarding Statutory Instrument 201 of 2024, which raised the pensionable retirement age for civil servants from 65 to 70 years, declaring, “This unintentionally reduced opportunities for young Zimbabweans entering the workforce.” He emphasized the struggle of the youth, stating, “Every year, over 30 000 graduates leave our universities and colleges. Many struggle to find meaningful jobs… the majority are struggling to meet even basic needs.” He also pointed out that many graduates resort to street vending: “If we can take a sample of street vendors in the streets eof Harare… you are going to realise that the majority of them are graduates. This is a sign that this country is in jeopardy.”

Mutsa Murombedzi seconded the motion and echoed the urgency for action. He remarked, “Our Constitution is clear. Section 20 of the Constitution of Zimbabwe obligates the State to take measures to ensure that youth are afforded opportunities for employment… The Government raised the retirement age for civil servants… it acted in a manner that is inconsistent with this constitutional principle.” He expressed deep concern: “If we do not give the youth jobs, we bury them either in graves of addiction or in airports as they flee this country.”

During the debate, another legislator acknowledged the global unemployment issue, stating, “The issue of unemployment is a global phenomenon… inasmuch as I acknowledge that we have over 62% of youths between the ages of 15 to 35… there are a number of initiatives that have been put forward by our Government to make sure that our youths participate in the mainstream economy.” He mentioned vocational training efforts as critical steps forward: “We have localised some of these programmes that have been implemented… with young people who are taking up vocational training courses.”

Joseph Mapiki raised concerns about the context of employment: “What is happening in the country is totally different from what is happening in other countries… we came up with the law that someone must be able to employ someone, not waiting for someone to employ you.” He highlighted initiatives to empower young entrepreneurs, stating, “We are happy that the Government managed to sign an MoU called India Zimbabwe… where they are purchasing low-priced machines.”

Dexter Malinganiso partially supported the motion, recognizing the demographic dividend of the youth. “It is evident that we have in Zimbabwe a very good demographic dividend that is still energetic, agile, educated and willing to partake in nation building,” he said, while also acknowledging government efforts to create opportunities for youth.

Finally, Tanatsva Mukomberi emphasized the need for progressive solutions. He stated, “It is key to note that solutions come from proper cause and effect analysis. To analyse what actually causes high rates of youth graduates’ unemployment, not just focusing on unemployment per se.” He highlighted the importance of exploring sustainable solutions that enable young people to thrive rather than simply identifying the problem.

 

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