Douglas Runyowa, the Chief Director for Commerce in the Ministry of Industry and Commerce, has said nearly 50% of groceries seized from tuck shops and vending stalls during the ongoing crackdown on counterfeit and smuggled goods in Zimbabwe are fake and potentially harmful to health.
Speaking before the Parliamentary Portfolio Committee on Industry and Commerce on Tuesday, Runyowa expressed concern over the growing problem of counterfeit products in Zimbabwe, saying the situation has reached alarming levels. He said (via <a href="https://www.zimlive.com/half-of-stock-sold-in-zimbabwean-tuck-shops-are-fake-goods-ministry-official/">ZimLive</a>):
<blockquote>
Most of what we have seen in the informal sector is quite shocking, and in our awareness programmes, we are saying it might be cheap but it’s coming at an expense to your health because we cannot guarantee what is not there.
Our health authorities have not certified some of those goods as safe and fit for human consumption, hence we really need to intensify our efforts through an all-stakeholder approach and it is a fight that would also be needed for our portfolio committee to help us intensify, because really what is out there is quite scary.
</blockquote>
Runyowa revealed that the counterfeit products seized include fake Vaseline, flour, rice, and toothpaste. He said:
<blockquote>
I would like to, not to scare you, but to advise you that we recently carried out a survey with the Standards Association of Zimbabwe where we went and bought products from the shelf and took them for testing and compared what was written in the results; 50 per cent of the products did not comply. You can actually see fake Vaseline, fake flour, fake rice, fake toothpaste, and this is an alarming rate.
You will be aware that over the last quarter, going back to October, there has been an intensified blitz against counterfeit goods, against smuggled goods, so much so that even this afternoon we are actually destroying about four tonnes of goods that were actually confiscated during that practice, to ensure that we remove them from the shelves, because we cannot guarantee our people that they are actually consuming safe goods.
</blockquote>
Runyowa called on Parliament to lend its support in the ongoing battle against the spread of counterfeit products.

Pindula News

Half of all groceries sold in Zimbabwean tuck shops are fake and can be harmful to health. The government is trying to stop the sale of these counterfeit products. The Chief Director for Commerce is worried about this problem getting worse. They found fake Vaseline, flour, rice, and toothpaste being sold. They did tests and found that 50% of the products were not safe. The government is working hard to remove these fake products from the shelves. They need help from Parliament to fight against counterfeit goods.

"Half Of Grocery Items Sold In Zimbabwean Tuck Shops Are Fake"

The industry and commerce sectors in Zimbabwe have once again called for government intervention as more companies are forced to shut down due to the country’s struggling economy.
The formal retail sector continues to face major challenges, including high inflation, foreign currency shortages, and growing competition from informal traders.
In an interview with <a href="https://www.newsday.co.zw/local-news/article/200038004/industry-pleads-for-govt-intervention-as-more-companies-shut-down">NewsDay</a> this week, Zimbabwe National Chamber of Commerce (ZNCC) president Tapiwa Karoro said that the 5% withholding tax on non-registered micro, small, and medium enterprises (MSMEs) has discouraged informal traders from engaging with formal wholesalers, leading many transactions to move further underground. Said Karoro:
<blockquote>
This has resulted in low tax compliance, reduced productivity, constrained investment and limited access to social security benefits.
While the 5% withholding tax on non-registered MSMEs [micro, small and medium enterprises] measure seeks to enforce tax compliance, it has inadvertently discouraged informal traders from engaging with formal wholesalers, thereby pushing more transactions underground.
</blockquote>
Karoro has urged the government to introduce a graduated tax structure with lower initial rates to encourage voluntary registration among businesses.
He asserted that formalising the economy is vital for sustainable economic growth, increased tax revenue, improved business productivity, and greater investor confidence.
He further stressed that a combination of incentives, regulatory reforms, enforcement mechanisms, and digital transformation would be key to fostering a balanced and inclusive economic environment.
Meanwhile, the Consumer Council of Zimbabwe (CCZ) has expressed concern over the ongoing closure of formal retailers.
In a statement this week, the CCZ cited unfair competition from informal traders as a factor factor driving this trend.
The council also voiced its worries about the continued shutdown of formal retailers and wholesalers.

The industry and commerce sectors in Zimbabwe want the government to help as more companies are closing due to economic problems. Retail stores have issues like high prices, lack of foreign money, and competition from informal sellers. The Zimbabwe National Chamber of Commerce wants the government to change the tax rules to help small businesses. They think following the rules can make the economy better. Also, the Consumer Council is worried about stores closing because of competition from informal sellers. They want the government to help keep formal stores open.

Industry And Commerce Sectors Call For Government Intervention As Companies Close

<h2>MEASURES TO ADDRESS THE INFORMALISATION OF THE ECONOMY</h2>
<h2>Preamble</h2>
His Excellency, the President, Dr. E.D Mnangagwa, yesterday took time off his annual leave to chair a session on developments in the economy designed to map the way forward.
The session, which also included the two Vice Presidents and all Economic Ministries, deliberated on measures Government has taken on the Economy, and developments in specific economic sectors, including the retail subsector. This culminated in additional measures being proposed. 
Introduction
Since 2021, the Zimbabwe economy has registered strong economic growth, averaging 5.5% annually, anchored by growth in almost all sectors of the economy.
Economic slowdown of 2% was, however, recorded in 2024, mainly attributable to the El-Nino induced drought which impacted agriculture production and electricity generation, with secondary effects on the rest of the economy.
Notwithstanding the positive growth trajectory, there is an emerging phenomenon with indications that the economy is informalizing, particularly the retail and the wholesale sectors, with serious ramifications on the overall economy.
Since the beginning of 2023, some manufacturers have been opting to supply their goods directly to the customers and informal retailers, bypassing wholesalers and retailers.
This situation has compromised the operations of the formal wholesalers and retailers, as they are competing with informal traders, who are operating outside compliance with regulations such as taxes, licence fees and labour laws, among other formalities.
<h2>Current Measures</h2>
Through the 2024 Mid-Term Budget and Economic Review, and the 2025 National Budget, Government has implemented the following measures in order to improve the level of formalization:
<ul>
<li>Route to Market – to enforce tax compliance by unregistered Micro and Small Enterprises, Government introduced 5% withholding tax to non-registered MSMEs payable to wholesalers and manufacturers.</li>
<li>VAT Registration Threshold – Government reduced the VAT registration threshold from US$40 000 to US$25 000 to promote formalisation of the informal sectors.</li>
<li>Deemed Smuggled Products – Certain goods such as alcoholic and non- alcoholic beverages, dairy products, washing powder &amp; detergents and sugar, among others, are now deemed as smuggled unless the seller provides documentary evidence that customs duty was paid for.</li>
<li>Taxation of the Emerging sector – Several emerging sectors were added to the list of companies required to register for tax payment.</li>
<li>Point-of-Sale Machines – Micro and Small Enterprises are required to transact through Point-of-Sale Machines and operate a bank account linked to the Zimbabwe Revenue Authority.</li>
<li>Tax Administration – The Tax Administration system is being automated through the introduction of the Tax and Revenue Management System (TaRMS) and the Fiscalisation Data Management System (FDMS).</li>
<li>Targeted Finance Facility-The Government, through the Reserve Bank of Zimbabwe Launched the Targeted Finance Facility (TFF) to support the productive and retail sectors with working capital requirements.</li>
</ul>
Additional Measures
The measures implemented so far need to be enhanced. Government, in consultation with business and industry, and the Ministry of Industry and Commerce, is therefore proposing additional measures to address the impact of the informalisation of the economy.
Research and consultations indicate that some of the reasons formal businesses are experiencing distress include competition from the informal sector, poor management and poor corporate governance which have resulted in business failure in some instances. 
The proliferation of smuggled imports-mostly in reserved sectors-which are being sold exclusively in USD, and the high cost of doing business among others, also contribute to the formal sector challenges.
Government is therefore proposing additional measures to promote formalisation and tax compliance by the informal sector, as follows:
1. Mandatory use of point-of-sale machines by all informal traders.
2. Adoption of international best practise on tax payment, which ensures every eligible taxpayer complies.
3. Level the playing field between formal and informal businesses by discouraging manufacturers from supplying directly to end users and the informal market.
4. Establishment of a Domestic Interagency Enforcement Team to enforce compliance in the informal sector.
5. To enforce collaboration between Local Authorities and Central Government in the licencing and enforcement processes.
Furthermore;
6. The Reserve Bank of Zimbabwe will announce additional measures through the Monetary Policy Statement to enhance the formalisation of the market. 
7. Government will embark on an exercise to streamline regulatory processes, fees and charges, as well as duplication of work by Government Agencies, in order to reduce the cost of doing business.
8. Enforcement of the provisions of the Indigenisation and Economic Empowerment Act which provides for Reserved Sectors.
9. Provision of additional incentives to support Industry through the Industrialisation Fund over and above the already existing incentives such as duty-free imports Special Economic Zones incentives.
10. Promotion of the procurement of goods and services from local producers and suppliers by Government, to support local industry.
In conclusion, Government is committed to improving the business environment, in order to curb the informalisation of the economy, as we move towards Vision 2030.
Thank you.

The President of Zimbabwe, together with his team, discussed how the economy is becoming more informal. This means that many businesses are not following the rules. To fix this, the government has put many new measures in place. These include making sure small businesses pay taxes, using machines to pay taxes, and stopping manufacturers from selling directly to customers. The government also wants to make it easier for formal businesses to compete with informal ones. The goal is to make sure all businesses follow the rules and help the economy grow.

Mthuli Announces New Measures To Address Informalisation Of The Economy | Full Statement

The Confederation of Zimbabwe Retailers (CZR) is alarmed by the closure of formal retail and wholesale businesses and has urged President Emmerson Mnangagwa to intervene and save the sector.
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 formalized sector players who face stiff competition from informal businesses and vendors, most of whom have no tax obligations.
Mutashu expressed concern that authorities continue to downplay the crisis. He said:
<blockquote>
The Confederation of Zimbabwe Retailers is deeply concerned about the continued closure of formal retail and wholesale businesses, a direct consequence of the prevailing turbulent economic environment that has consistently failed to support formalised sector players.
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.
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.
</blockquote>
Mutashu said the unregulated informal sector offers goods at much lower prices because it operates outside compliance with statutory obligations such as taxes, licensing fees, and labour laws.
He called for urgent intervention by President Mnangagwa to “rescue what remains of the formalized retail and wholesale sector.” Said Mutashu:
<blockquote>
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 prioritise interventions aimed at saving jobs and mitigating the ongoing wave of shop closures and retrenchments.
</blockquote>

The Confederation of Zimbabwe Retailers is worried about many formal retail stores closing down. They blame the tough economy and competition from informal businesses. They want President Mnangagwa to help them. Many big stores like N. Richards, Spar, and Choppies are shutting down. The informal sector sells goods cheaper because they don't pay taxes. The retailers want the government to take urgent action to save their stores and jobs. They need help with money and rules to survive. They are asking the President to do something quickly to stop more stores from closing.

Formal Retailers Alarmed By Business Closures, Seek Mnangagwa's Intervention

The Ministry of Industry and Commerce is conducting a national blitz on compliance with reserved sector regulations.
Certain sectors of the economy, such as pharmaceutical retailing and haulage and transport logistics, are reserved for local people.
However, nationals from countries like the DRC, Pakistan, and Nigeria dominate these sectors, often without the required operating licenses.
On Thursday, 23 January, the Ministry announced that the number of reserved sectors was increased from 12 to 17 through an amendment to the Indigenisation and Economic Empowerment Act. It said:
<blockquote>
The Indigenisation and Economic Empowerment Act was amended through Finance Act No. 2 of 2024. The amendment means an increase in the number of reserved sectors from 12 to 17.
The added sectors include pharmaceutical retailing, haulage and transport logistics, borehole drilling, customs and clearing and shipping and forwarding.
</blockquote>
Industry and Commerce Deputy Minister Raji Modi recently told <a href="https://businesstimes.co.zw/foreign-nationals-hijack-retail-sector/">Business Times</a> that some retail outlets operated by foreign nationals in Zimbabwe violate the law. Said Modi:
<blockquote>
We have a problem with foreign nationals from the region operating our local retail shops and it is not only them, there are the Chinese also who are in the retail sector because they are not supposed to be doing so, the retail sector is only reserved for Zimbabwean citizens.
Unfortunately, they are using our local Zimbabwean names or workers’ names to obtain licenses and they are doing it illegally.
</blockquote>
Former ZANU PF Harare provincial political commissar who once served as Harare South MP Shadreck Mashayamombe claimed that at least 90% of tuckshops in Harare are owned by foreign nationals.

The Ministry of Industry and Commerce is making sure people follow the rules in some special parts of the economy. Some jobs, like selling medicine and transporting things, are just for local people. But many foreigners from places like DRC, Pakistan, and Nigeria are doing these jobs without the right permission. The Ministry made a new rule to include more jobs that only locals can do. Some foreign people are breaking the law by running stores illegally. A former politician says lots of small shops in Harare are owned by foreigners. The Ministry wants everyone to follow the law and only locals to do these special jobs.

Industry And Commerce Ministry Enforces Compliance In Reserved Sectors

The Harare City Council reportedly collected only US$100 in licence fees from tuckshop owners in residential areas over six months.
This was said by Harare City Council’s acting revenue collection manager, Alfred Guni when he appeared before the Commission of Inquiry, which is probing the operations of Harare City Council since 2017, chaired by retired Justice Maphios Cheda.
He said from April to September 2024, the City Council recorded only US$100 from tuckshops located in residential areas.
The paltry revenue collected from tuckshops raises suspicions of massive corruption within the council, given that almost every street in high-density residential areas has several tuckshops. Said Guni:
<blockquote>
The revenue from tuckshops in residential areas is collected by our market officers, who go around to gather these funds.
If we collect as little as US$100, it indicates a failure on the part of those designated to collect the funds.
This level of performance is concerning, given the number of tuckshops around the city.
</blockquote>
Guni conceded that the City Council is grappling with revenue leakages due to corrupt officials. He said:
<blockquote>
I would not confirm that the City Council owns tuckshops but it licenses privately owned tuckshops but what it owns are commercial buildings that are available for rental to the public.
The City made a resolution to collect tuckshop fees from those we see in our residential areas as long as they are compliant with the building inspectorate laws.
That figure does not mean nothing came but it is a percentage of a huge figure. What it means is that we are getting very low income.
</blockquote>
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The Harare City Council only collected $100 in fees from tuckshop owners in residential areas in six months. This is a very small amount of money. The council suspects corruption because there are many tuckshops in the city, but they are not collecting enough money from them. The council's revenue manager said they have problems with corrupt officials causing money to be lost. They need to fix this problem to collect more money from tuckshops.

Shock As Harare Council Collects Only $100 In Tuckshop Licence Fees Over Six Months

Bulawayo councillors have raised growing concerns about the safety of food products sold in tuckshops, following reports of food poisoning incidents in neighbouring South Africa.
Several cases of food poisoning in South Africa have been linked to Spaza shops, particularly in Gauteng, where over 20 children have died after consuming contaminated food allegedly bought from these informal township shops.
This has led the South African government to declare the situation a national disaster.
During a recent Full Council Meeting, Ward 28 Councillor Ntandoyenkosi Ndlovu said that many of the food products sold in Bulawayo are imported from South Africa, which has raised fears about the safety and quality of the items being sold locally. Said Ndlovu:
<blockquote>
In South Africa, this issue has become a public health emergency. They have recorded a high number of deaths of children caused by food they buy from spaza shops.
We are worried as a city because we know that most of the stuff that we sell in these grocery shops and tuck shops are products that we buy from the neighbouring country.
What measures has the responsible committee taken to ensure that the food products sold in these shops are suitable and safe?
</blockquote>
A member of the Health, Housing and Education Committee, Ward 2 Cllr Rendani Moyo, allayed the fears, saying there is adequate enforcement of the law to regulate the sale of foodstuffs in the city. Said Moyo:
<blockquote>
We are making concerted and frantic efforts to make sure there is adequate enforcement of the law to regulate the activities at these locations. We also have environmental health personnel to inspect all outlets to ensure that operations are above board.
If you are a food handler there are rules and regulations you must abide by. Even in the operations of buying and selling groceries and food products, there are specifications that regulate all those who operate in the city.
While South Africa is one of our biggest trading partners as a city, we need to be on high alert to make sure all operations are above board.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Bulawayo councillors are worried about food safety after children in South Africa got sick and died from eating contaminated food bought from Spaza shops. The South African government declared it a national disaster. Many food products in Bulawayo come from South Africa, so councillors are concerned about the quality and safety of the food sold locally. The Health, Housing, and Education Committee is enforcing laws to regulate food sales in the city. They are inspecting shops to make sure they follow the rules to keep people safe.

Bulawayo Councillors Concerned Over Food Safety After South Africa Poisoning Deaths

Economist Professor Gift Mugano says the proposal by the Minister of Finance, Economic Development, and Investment Promotion Mthuli Ncube to allow only traders registered for VAT purposes and in possession of valid Tax Clearance Certificates to procure goods from manufacturers is aimed at saving established supermarkets from collapse.
Mugano said if the proposal is adopted by Parliament, more than six million people who are making livelihoods from buying and selling will be negatively affected.
In his 2024 National Budget presentation on Thursday, Ncube said:
<blockquote>
To restore the supply chain from the manufacturer, wholesaler to retailer, I propose that only licensed and Tax Compliant Operators procure goods from manufacturers and wholesalers.
In addition, I, therefore, propose that only traders registered for VAT purposes and in possession of valid Tax Clearance Certificates be eligible to procure goods from manufacturers.
I, further, propose to review downwards, the VAT registration threshold to US$25 000, or local currency equivalent, with effect from 1 January 2024.
Enterprises that meet the above threshold should, thus, register and account for VAT, failure of which applicable penalties will be invoked.
</blockquote>
Responding to the Permanent Secretary in the Ministry of Information, Publicity and Broadcasting Services Ndavaningi Mangwana, who had said small-scale retailers should either “formalise or fold up”, Mugano said:
<blockquote>
In my view, this proposed policy aims to save established supermarkets from collapse at the expense of 6 million people who are making livelihoods from buying and selling.
In your view, you are convinced that a trader without a VAT certificate is informal? Most of the traders buying from manufacturers are already formalized – securing a VAT is not the only ticket to formalization.
Are you aware that these traders make sales amounting to US$500 per month which makes it difficult for them to hit US$25 000 required for them to get VAT certificate?
Again, in your view, do you think that when you shut them out of the local manufacturing sector they will fold their hands and die?
There are high chances that they will smuggle goods into the country whilst our own manufacturing companies will be closing down as sales take a drastic fall. Is this what you want to achieve as a government?
Have you ever put a thought on how products like beer, bread and ice cream are sold? Sales of these commodities are moved by traders who can’t qualify for VAT certificates, not supermarkets.
So, what is going to happen to both traders and manufacturers of these commodities?
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Proposed VAT Registration Policy Meant To Protect Supermarkets - Mugano

The Harare City Council is blaming building owners for the influx of tuckshops in the central business district (CBD). The local government authority says business owners are illegally renting their buildings out to foreigners.
Street vendors and tuckshop traders are thriving, posing a threat to traditional supermarkets. The retail space is now dominated by foreigners, including Indians, Chinese, Pakistanis, Nigerians, Malawians, and Tanzanians.
The HCC small to medium enterprises committee chairperson <a href="https://www.pindula.co.zw/Denford_Ngadziore/">Denford Ngadziore</a> said the city fathers have an SME policy which has not been followed. He told <a href="https://www.newsday.co.zw/local-news/article/200017849/inside-supermarkets-tuckshops-war">NewsDay</a>:
<blockquote>
We know that most tuckshops are operated by foreigners which is against the law. Council has no power to come between business partners but building owners are renting out their buildings to foreigners who in turn convert them to retail shops.
</blockquote>
The influx of tuckshops has led to lower prices and increased competition, benefiting consumers. Tuckshops can offer lower prices due to lower overhead costs, sourcing products directly from wholesalers, and flexible pricing. However, big supermarket operators complain of unfair competition, citing tax evasion and informal trading practices.
Finance Secretary <a href="https://www.pindula.co.zw/George_Guvamatanga/">George Guvamatanga</a> questioned the validity of big retailers’ complaints about being unable to compete with tuckshops. He pointed out that tuckshops pay higher rentals, operate with cash purchases, and lack access to cheaper foreign currency, suggesting other factors may be affecting formal retailers.
Renowned economist <a href="https://www.pindula.co.zw/Gift_Mugano/">Gift Mugano</a> responded to Guvamatanga’s remarks and acknowledged that supermarkets have legitimate concerns. He attributed the high prices of goods in supermarkets to the exchange rate disparities between formal and parallel markets. Mugano said:
<blockquote>
Your ministry liberalised the imports for about 11 products. These commodities are coming through duty free and VAT-free. Tuckshops are importing these commodities, whilst our supermarkets procure the very same commodities locally — a position that is economically and morally sound aimed at fostering job creation and local content.
</blockquote>
Mugano also highlighted the compliance burdens faced by formal businesses, including taxes, levies, rentals, and salary payments. He emphasised that exchange rate fluctuations and inflation have negatively impacted formal businesses’ capital and cash flows. While the informal sector can sell in US dollars, formal businesses must comply with the law, which Mugano believes is appropriate.
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Harare City Council Accuses Building Owners Of Illegally Renting Tuckshops To Foreigners

Manufacturers are adamant they will continue supplying goods to unofficial traders (tuckshops) who exclusively pay in United States dollars.
This is despite pressure from the government for them to follow proper supply and distribution channels.
Last week, the Minister of Industry and Commerce, Sithembiso Nyoni, said manufacturers are “killing” wholesalers and fomenting chaos in the market by bypassing wholesalers and directly supplying goods to retailers and informal traders.
However, an executive with a Harare-based manufacturing company, who preferred anonymity told <a href="https://businesstimes.co.zw/manufacturers-vow-to-chase-greenback-in-the-informal-sector/">Business Times</a> that the Minister should engage industry rather than “spit venom”. Said the business executive:
<blockquote>
I don’t think [Industry and Commerce] Minister Stembiso Nyoni knows what we are going through to survive the current challenges.
We need a great deal of foreign currency but the whole economy is only limited to US$5m a week on the auction hence we need these cash payments from the informal traders to oil the industry.
We can’t be forced to supply N Richards, Metro Peech and Mohamed Mussa when they pay the Zimbabwean dollar after 45 days using the price of the delivery date at a time when they will be adjusting prices twice or thrice per week.
Instead of spitting venom, the minister should sit down with the industry and discuss what should be done to find common ground.
</blockquote>
The president of the Confederation of Zimbabwe Industries (CZI), Kurai Matsheza, said manufacturers are not discriminating against anyone. He said:
<blockquote>
Manufacturers are bypassing nobody; they just distribute to whoever meets their trading terms best.
From our members all we hear is that they just want to have that dollar for their product as fast enough so that they are able to keep on producing; remain in business and grow.
</blockquote>
Speaking during a tour of National Foods Holdings on Wednesday last week, the Minister of Industry and Commerce, Nyoni said the Government will “address the distortions” in the supply chain of products.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Manufacturers Vow To Continue Supplying Tuckshops

An economist has accused Finance and Economic Investment Ministry’s Permanent Secretary George Guvamatanga of promoting the cannibalisation of formal businesses after he dismissed claims by owners of formal retailers that informal shops (tuckshops) are killing their businesses.
The economic commentator, Tinashe Murapata, said the retail and wholesale sector is the largest contributor to tax through VAT and the electronic transfer tax. He said:
<blockquote>
The perm sec, in his apoplectic misfiring, was invariably accusing himself and Treasury of mismanaging the economy.
Worse, instead of protecting the guys who believed in his policies to the letter, he threw them under the bus.
The retail and wholesale sector is the largest contributor to tax through VAT and 2% electronic transfer tax.
They act as legal agents to the Treasury. Yet, today, there are clandestine operations that avoid paying VAT at all.
What then does it say about the Treasury promoting the cannibalisation of formal businesses? Businesses that on cue have followed what the President wants?
The banking sector has been reduced to a miserable US$1.2bn lending activity. 25% of its GNU highs. US$2bn deposits outside the banking sector.
The truth is that the Perm Sec is diverting attention. Government of Zimbabwe’s policy prescriptions told the patient to jump off a bridge. Unfortunately, the patient followed instructions.
</blockquote>
Guvamatanga made the controversial comments at the Zimbabwe Economic Development Conference (ZEDCON) in Victoria Falls.
Last week, one of the country’s biggest retail chains, OK Zimbabwe, said “tuckshops” are killing large-scale retailers as they are forced to price their products using the official exchange rate which makes the goods very expensive in US dollars.
But Guvamatanga contended that big retailers should come up with innovative measures and adapt to economic dynamics. He said:
<blockquote>
How do you complain about a tuck shop that pays five times more per square meter rent, does not have access to credit, and buys all the goods in cash right, because they do not have any access to credit?
Possibly they do not have better systems than what you have. And they do not have access to the cheaper foreign currency, they have to go to the parallel market.
You then come and say that you’re not able to compete because you have been taken out of business by informal tuck shops.
If I were on the board, I would fire you because you will be useless management. I would fire you.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Promoting The Cannibalisation Of Formal Businesses - Economist

A Masvingo tuckshop owner was shot dead by unknown robbers who also stole an unspecified amount of money on Saturday evening.
In a report seen by Pindula News, the Zimbabwe Republic Police (ZRP) said the robbers arrived when Michael Munhungowarwa (41) and his wife were closing their tuckshop. Reads the report:
<blockquote>
Police in Masvingo are appealing for information which may lead to the arrest of an unknown suspect who shot dead a tuckshop owner, Michael Munhungowarwa (41), with a pistol before stealing unknown amount of cash on 07/01/23 at around 2100 hours along Kaguvi Street, Mucheke B, Masvingo. The suspect pounced at the tuckshop when the victim and his wife, Martha Taguta (26) were packing groceries while preparing to close the shop for the day. Anyone with information to report at any nearest Police Station. 
</blockquote>
Accidents:
ZRP reported that two people died on the spot while 13 others were injured on Saturday 07 January 2023 at around 1730 hours at the 117 km peg along Harare-Bulawayo Road when a Yutong bus was involved in a head-on collision with a Toyota Hilux vehicle.
The Yutong bus which had 17 passengers on board was travelling towards Harare while the Toyota Hilux was travelling in the opposite direction.
The bodies of the victims were taken to Chegutu District Hospital mortuary for post-mortem whilst the injured are admitted at the same hospital.
In another accident, three people were killed while 12 others were injured when a Toyota Hiace vehicle with 17 passengers on board was involved in a head-on collision with a Ford Ranger vehicle along Robert Mugabe Way, near Clyde Road, Eastlea, Harare on Saturday at 2015 hours.
The bodies of the victims were taken to Parirenyatwa Group of Hospitals mortuary for post-mortem whilst the injured are admitted at the same hospital.
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