The Confederation of Zimbabwe Retailers (CZR), the unified voice of the formal retail sector in Zimbabwe, has warned that some of the country’s most well-known brands, including major retail chains, are on the brink of bankruptcy due to unfair competition from the informal sector.
In a paper submitted to the government two weeks ago, which included insights from both retailers and wholesalers ahead of the 2025 National Budget, CZR said that the retail industry is in a precarious state.
The Confederation warned that several retail businesses are struggling to stay afloat and could face closure.
CZR pointed to the recent divestiture of Unilever from the Zimbabwean market, along with the challenges facing clothing giant Truworths Limited as indicators of the severity of the situation. The CZR said:
Long established companies in Zimbabwe, such as Truworths and Unilever, have recently shut operations, with many more businesses on the verge of shutdown.
As you are aware, our economy is experiencing rapid informalisation, leading to the closure of numerous formal businesses, with many more facing imminent shutdown.
The formal retail sector is struggling to compete with the informal market, characterised by an uneven playing field.
We are increasingly becoming a society of small-scale operators, or tuck shops, which primarily source 95% of their products from runners (informal cross-border traders) bringing goods from Musina (in South Africa). These informal entities evade taxation, statutory obligations, and labour laws.
The retail sector has urged Finance Minister Mthuli Ncube to implement a range of measures to alleviate the crisis.
These measures include zero-rating value-added tax (VAT) on basic commodities, reducing import duties on high-tax products, and removing import permits and licenses for most goods, among other proposals.
More: Pindula News
Corruptmore Looto · 4 months ago
I have seen the comments of Zanu PF Apologists saying they must go, let's just watch the economy turn into a full force informal economy which doesn't invest, doesn't pay taxes, no pension contributions, yes let's celebrate the tuckshop republic of Zimbabwe which mostly deals with smuggled goods no duties paid whatsoever, yes let's rejoice every space in the CBD being turned into a tuckshop, hurray to former factories being converted into warehouses for storing imported goods from South Africa and China, congratulations to a soon incoming informalisation which doesn't want a local currency only takes the USD so they can repatriate it back home. Wow with all of this one would need to be an **** of elephantine proportions to doubt the middle income economy target of 2030. Praise to Zanu PF for attracting informal traders from all over the region, the Indian sub-continent and China to siphon the USD through their tuckshops. Ladies and Gentlemen the first country in the world to achieve an upper middle income economy anchored on the Republic of the CBD Tuckshops wow just wow. An Upper Middle Income Economy with no strong manufacturing base while the one which is there will be forced to scale down or close as the Association of the CBD Tuckshops only deals with imported goods which are smuggled into the country, aah aaah wait I forget to mention that some are fake products just like the fake colgate which was making the rounds just recently 😅😅, but who cares we soon caught with the charade so what harms done just as long as the industry is dead exacerbated by 24hrs of blackouts but surprisingly heading to an upper middle income economy.
I wouldn't blame them for not paying taxes since we never feel our contributions being ploughed back to lessen the load, instead they choose to buy cars so who would blame someone for not paying tax to such a government.
Corruptmore Looto · 4 months ago
ïďïōť
ïďïōť is an ED.i.o.t · 4 months ago
you are one z.a.n.o.i.d f.u.c.k.wit
🇿🇼44yrs · 4 months ago
Well said friend