Govt Orders Manufacturers To Stop Supplying Products To Tuckshops

The Government says it will address current distortions in the supply chain of products whereby manufacturers bypass wholesalers and directly supply goods to retailers and informal traders, reported The Herald.

Speaking during a tour of National Foods Holdings on Wednesday, the Minister of Industry and Commerce, Sithembiso Nyoni, said manufacturers are “killing” wholesalers and fomenting chaos in the market. She said:

We are putting order in the commerce sector by ensuring that manufacturers deliver to wholesalers and these are accessed by retail (operators) rather than what is happening now, whereby companies are delivering to the informal sector.

That is distorting that value chain. If we do not address that, we are killing the wholesalers and bringing chaos to the market.

National Foods understands this, and together we will correct this and ensure we address the distortions that are happening right now.

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Manufacturers are reportedly selling products to informal traders such as tuckshops and those that sell from vehicles, who pay in US dollars.

One of the country’s biggest retail chains, OK Zimbabwe, recently claimed that large-scale retailers in Zimbabwe are struggling to remain viable due to competition from tuckshops.

Manufacturers and suppliers now sell their goods directly to informal traders who pay in USD upfront.

More: Pindula News