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Zimbabwe retailers warn of shutdowns due to exchange rate distortions

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BY WANDILE TSHUMA

Companies like TM Pick n Pay, OK, Halsteads, Electrosales, Edgars, and Metro Peach are warning that they may be forced to shut down due to exchange rate distortions and strict enforcement measures by the central bank.

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The retailers are being forced to use the official exchange rate, which is US$1 to ZiG14.8, but manufacturers are using parallel market rates of up to ZiG31 in some cases.

The Retailers Association of Zimbabwe said, “Suppliers of goods and services into the formal retail sector are now maintaining two tier price lists for local currency and another for foreign currency – whose implied rates are way higher than the obtaining official exchange rate… Our suppliers have expressed concern that they are faced with an acute foreign currency shortage and excessive volatility of ZiG exchange rates on the parallel/alternative market which has now become the basis of their pricing framework.”

This has caused retailers “massive losses,” and they’re trying to lessen the impact by making steep USD price increases. However, this leads to real USD inflation creep and other economic and social problems.

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The retailers are proposing to let the ZiG float freely to allow a “market determined exchange rate” and implement a pricing model that reflects real-time market exchange rate fluctuations.

They also want to offer discounts for customers buying in forex to attract payments in foreign currency.

The situation is clearly untenable, and the retailers are calling for policy measures to protect the formal retail sector.

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The gold-backed ZiG, which was introduced in April, has lost almost 80 percent of its value on the black market, and the central bank has injected US$64 million into the foreign exchange market to address dollar demand.

The retailers are hoping for a solution soon to avoid company closures.

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    September 24, 2024 at 10:32 am

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National

Bulawayo businessman takes own life

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Picture: ZimLive

 

BY WANDILE TSHUMA

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Tragedy struck in Bulawayo’s Cowdray Park on Saturday, when a 36-year-old businessman John Madzikatire took his own life by shooting himself.

According to a police statement, the incident occurred around 9:30 pm on an unnamed dust road, where a motorist stumbled upon Madzikatire’s lifeless body lying next to his Mercedes Benz vehicle.

The vehicle was still idling with its lights on and the driver’s door wide open.

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Madzikatire was found in a pool of blood, bleeding from a gunshot wound to the head, with no signs of life.

A pistol was discovered under his right knee, and it’s suspected that he shot himself in the head from the left side, with the bullet exiting from the right side.

A search of the vehicle revealed an army green bag containing a substantial amount of cash: $5,122 USD, 20,719 South African Rand, and $24 Zimbabwean dollars. The body was taken to United Bulawayo Hospitals for a post-mortem examination.

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The Zimbabwe Republic Police is investigating the incident and encourages the public to seek help when facing challenges. “We urge people to engage with others and seek counseling from community leaders and professional counselors rather than resorting to taking their own lives,” said Inspector Nomalanga Msebele, Press and Public Relations Officer for Bulawayo Province.

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National

Vic Falls road crisis: Motorists slam “undrivable” highway

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BY NOKUTHABA DLAMINI

The once-thriving Victoria Falls-Bulawayo highway has become a nightmare for motorists, with many labeling it “undrivable” due to its deplorable state.

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As we drove through the Hwange area, close to Dete, Lubimbi Turn and Lupane, we witnessed firsthand the treacherous conditions that have left drivers frustrated and fed up.

The road is riddled with potholes, gullies, and mud-filled craters, forcing many to abandon the main road and opt for a dusty, makeshift alternative.

In some areas close to Lupane, villagers have taken it upon themselves to fix the road using the ordinary soils. This is usually done by the children and women.

“I’ve been driving for over 20 years, but this road is the worst I’ve ever seen,” said Thomas Moyo, a truck driver who frequently travels the route. “It’s like they’ve abandoned us. We’re forced to create our own paths, but even those are becoming increasingly difficult to navigate.”

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Another motorist, Sarah Ndlovu, expressed her disappointment and concern for safety. “It’s not just the damage to our vehicles; it’s the risk of accidents and injuries. I’ve seen cars stuck in the potholes , and it’s only a matter of time before someone gets seriously hurt.”

The poor state of the road is also affecting travel times, with some motorists reporting journeys that take up to 10 hours to cover a stretch of 400 kilometers.

“It’s unacceptable,” said James Dube, a tourist operator. “This road leads to one of the world’s most iconic tourist attractions, and yet it’s in shambles. We need urgent attention to fix this road and restore our country’s reputation.”

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However, in a recent statement, the government announced plans to prioritize the rehabilitation of the Victoria Falls-Bulawayo highway this year.

According to the Ministry of Transport and Infrastructural Development, a significant allocation of funds has been set aside for the project, which is expected to commence in the coming months.

While this news has brought some relief to motorists, many remain skeptical, citing previous unfulfilled promises. “We’ve heard it all before,” said Moyo. “We’ll believe it when we see it.”

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As the situation continues to deteriorate, motorists are calling on authorities to take immediate action to repair and maintain the highway.

With the peak tourist season approaching, it remains to be seen whether the government will follow through on its promises and restore the Victoria Falls-Bulawayo highway to its former glory.

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National

Cyclone Chido moves away from Zimbabwe

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BY NOKUTHABA DLAMINI 

According to the latest updates from the SADC Humanitarian and Emergency Operations Centre (SHOC), Tropical Cyclone Chido has made landfall in Mozambique, approximately 35-40km south of Pemba, in Cabo Delgado Province.

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The intense tropical cyclone brought heavy rainfall and strong gusty winds of up to 220km/h, causing widespread destruction in Mozambique. The system is expected to continue tracking west-southwest towards Malawi, steadily dissipating.

Zimbabwe, which was initially predicted to be in the cyclone’s path, has been spared the worst of the storm.

However, neighboring countries, including Malawi, are expected to experience heavy rainfall and strong winds over the next 72 hours.

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The SHOC has issued a multi-hazard impact-based classification, warning of expected impacts, including strong gusts, heavy rainfall, and rough seas, in Mozambique, Malawi, and other parts of the region.

Member states have been urged to closely monitor official weather updates, intensify public awareness campaigns, and preposition relief supplies to enable a swift response to the cyclone’s impact.

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