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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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National

Retailers send Mnangagwa SOS as shops continue shutting down over operational woes

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BY ZIMLIVE

The Confederation of Zimbabwe Retailers (CZR) has implored President Emmerson Mnangagwa to intervene and save the sector which has seen various formal retail and wholesale businesses closing shop countrywide due to operational challenges.

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In a statement on Sunday, CZR president Denford Mutashu said the continued closure of formal retail and wholesale businesses is a direct consequence of the tough economic environment that has consistently failed to support formalised sector players who face stiff competition from informal businesses and vendors the majority of whom have no tax obligations to deal with.

Mutashu said his association was concerned that authorities continue to downplay the crisis.

“The recent closure of several outlets under the N. Richards Group, coupled with Spar Zimbabwe’s painful decision to shut down Queensdale Spar, Choppies Zimbabwe’s exit from the market, and Mahommed Mussa’s significant reduction of shop space by 60%, highlights the growing crisis.

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“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.

Given the situation, Mutashu said, only President Mnangagwa can rescue the troubled sector.

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

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He said the sector was in urgent need of rescue.

“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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Crisis in Zimbabwe Coalition vows to resist term limit changes

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BY WANDILE TSHUMA

Zimbabweans are speaking out against proposed constitutional amendments that would extend President Emmerson Mnangagwa’s tenure beyond the constitutional limit of two five-year terms.

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A stakeholder engagement meeting convened by the Crisis in Zimbabwe Coalition today brought together a diverse group of stakeholders, including labor, church, and business representatives, to devise a collective strategy against the proposed amendments.

“The participants firmly argued that such changes would significantly undermine the spirit and collective will of the Zimbabwean populace,” the meeting noted.

They characterized the amendments as “self-serving maneuvers orchestrated by a small clique of politicians pursuing personal ambitions over the broader interests of the nation.”

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“This clique’s pursuit of power undermines the very foundation of Zimbabwe’s democracy,” the meeting emphasized. Furthermore, the participants noted that the proposed amendments “fundamentally contradict the democratic principles enunciated in the country’s constitution.”

The meeting expressed concern that enacting such changes would exacerbate the lingering legitimacy crisis, leading to increased international isolation and a further decline in Zimbabwe’s global standing.

The participants also reflected on how these ongoing attempts to alter the constitution demonstrate a profound disregard of the will of Zimbabweans, as expressed in 2013 when they unanimously voted for the supreme law.

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The meeting further noted that the relentless efforts to amend the constitution will continue to limit the democratic space in Zimbabwe. “The shrinking environment poses a serious risk of consolidating authoritarian practices and eroding the fundamental rights and freedoms of the citizens,” the meeting warned.

In addition to the constitutional amendments, the meeting highlighted the ongoing economic crisis in Zimbabwe, which has severely impacted the daily lives of ordinary citizens. “As inflation spirals and basic necessities become increasingly scarce, many families struggle to meet their fundamental needs,” the meeting noted.

The participants expressed concern that political elites and a small group of individuals with close ties to the government are exploiting the nation’s resources for their own gain. “This systematic looting occurs with little regard for the welfare of the populace, exacerbating the country’s economic plight and contributing to widespread hardship among the general population,” the meeting emphasized.

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To resist these developments, the meeting resolved to:

– *Build a Broad-Based Movement*: Unite various stakeholders to defend democratic space and resist the proposed constitutional amendment. This comprehensive approach seeks to unite stakeholders, including the media, diplomats, community mobilizers, and rapid response teams, to ensure ordinary Zimbabweans are empowered to engage in this righteous and noble cause.
– *Mobilize Nationally*: Prioritize community consultation to safeguard the constitution and nurture a culture of constitutionalism. This mobilization effort must extend across all political affiliations and should commence without delay.
– *Convene a National Convention*: Organize an inclusive national all-stakeholders convention that incorporates all stakeholders to prepare for a united response, specifically a collective VOTE NO campaign, should a referendum be called regarding any constitutional changes.
– *Employ All Permissible Channels*: Utilize mass mobilization initiatives, organize demonstrations, engage in diplomatic discussions, and pursue public interest litigation to challenge and stop the encroachments on democracy.

The Crisis in Zimbabwe Coalition emphasized the urgency of mobilizing citizens across the country to defend democratic ideals and resist any proposed amendments to the constitution.

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Update on Victoria Falls town clerk issue: Residents association speaks out

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Victoria Falls town clerk Ronnie Dube

BY NOKUTHABA DLAMINI 

Victoria Falls Town Clerk Ronnie Dube’s suspension and reinstatement have sparked controversy.

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Late last year, Mayor Prince Moyo suspended Dube over corruption allegations, but the minister Daniel Garwe intervened, calling for the suspension to be rescinded.

The Victoria Falls Combined Residents Association (VFCRA) objected to the minister’s decision, citing concerns over corruption.

After a series of meetings and protests, Dube was reinstated in the first week of January.

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VFCRA Chairperson Kelvin Moyo met with VicFallsLive to discuss the developments.

NOKUTHABA DLAMINI: Maybe if you can start by briefing us on what has happened following the meeting before Christmas with the residents?

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KELVIN MOYO: There was the rescinding of the town clerk’s suspension, which was done by the councillors in a special full council meeting, excluding residents. Afterward, the town clerk came back to work. We called a residents’ meeting and updated them on what had happened. Some councillors attended but couldn’t speak due to the code of conduct requiring them to speak through the mayor, who was unavailable that day.

As a result, residents resolved to go to the council and ensure that, on the day the town clerk was meant to return to work, January 6th, they would demonstrate peacefully to express their dissatisfaction with the decision. Residents expected the town clerk to clear his name through the courts and the commission of inquiry before returning to office. However, these expectations were not met, and he resumed his duties.

We reported the issues to court and obtained a case number. Currently, we are following up on the investigation’s progress. The local ZRP advised us that the case has been referred to Hwange, where an investigating officer will handle the criminal aspects, while another investigator from ZACC will address the administrative issues.

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Residents expect the town clerk to inspire confidence by clearing his name and ensuring that rates and tariffs are used effectively. They are worried about expensive rates and tariffs, which are linked to corruption allegations against the town clerk. We will continue to push for justice and ensure that the Victoria Falls remains a destination of choice for local and international investors.

Regarding the minister’s comments labeling our associations as “burial societies,” I view it as political banter. Our mandate is to represent the interests of Victoria Falls residents, and we are registered associations, not burial societies. We are constituted to ensure service delivery, particularly in areas like water, garbage collection, roads, and drainage systems. We will continue to be watchdogs, ensuring that the council’s actions are consistent with the laws of the urban council act and the nation.

I believe the minister is misinformed about the situation on the ground. If he engages with us, I’m confident he will understand our perspective and not have the same views and comments about the Victoria Falls and our associations.

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