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Formal Retailers Claim Viability Under Threat

Formal Retailers Claim Viability Under Threat

The viability of Zimbabwe’s formal retail and wholesale sector is under threat as more and more manufacturers and suppliers are now demanding foreign currency payments for their products.

Speaking at a retailer’s conference in Harare this week, Achie Dongo, director for N. Richards Group, said trading in Zimbabwe dollars is increasingly becoming uncompetitive. Said Dongo:

Where the Zimdollar is accepted, we tend as retailers and wholesalers to be subjected to forward rating and this forward rating on ZWL prices then makes the Zimdollar product uncompetitive.

This is a placement cost which is imperative in a hyperinflation environment, that is what is happening and we are feeling the heat as retailers.

… We will have no choice, but pass the cost to the consumer. So this is how dollarisation along the value chain from the producer manifests itself on formal shop shelves.

Dongo said the informal sector has an edge over the formal sector as it is subject to fewer regulatory restrictions and is better able to generate foreign currency locally. He said:

This gives them better product availability and pricing. The increased demands for forex payments for local transactions suggest growing reliance on forex sources other than the auction and the willing buyer willing seller.

As formal sector, our capacity to generate forex from this service is inadequate and this is because customers are not willing to transact through the interbank plus 10 percent rate that is in the market.

So we are constrained in terms of raising the forex when we face increasing demand for those forex payments.

More: Business Weekly

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14 Comments

ED pfee 1 month ago

Viability vs Votality. I am being sabotaged.


Robert Gabriel 1 month ago

You are a criminal surrounded by criminals

Chimboti Pizza 1 month ago

Ko VaMnangagwa ngavachitiudza kaa mameasures ekudzikisa maprice tiwanewo kurara zvakanaka


. 1 month ago

Sorry ndanga ndakadakwa

Citizen 1 month ago

Under threat only?!....we citizens hev been victims for the last 42 yrs


Tio4 1 month ago

Manje ana Denford Mutashu vakasangana ne gvt vanobva vati the gvt is right the bond we will use it, kutadza kuudza hurumende kuti the rtgs is no longer viable and we need to use the us$.


Bläskøshto 1 month ago

so you are the ones literate to use USD shunning your bond.. Minister fled after offered 3 cows if he had any bond in his pocket..Truth be told you are satanists and nothing last forever

Economist 1 month ago

Problem ndeyekuti maZimbabweans muri illiterate, you don't understand basic economics. Kushandisa USD hakusi sustainable because the USD is in low supply. It is only possible to dollarise through getting loans from imf or world bank, of which we can't get those loans because tagara tine zvimwe zvikwereti zvihombe zvatisati tabhadhara

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Doug 1 month ago

Any news on the solutions to the economy due for today? I did not have a chance to listen to radio or television news.


Zvichanaka 1 month ago

@Doug nothing dear kungozhamba kwemunhu arasika mugomo reJiri


Gogo 1 month ago

@ecomomist.Are you really sure that we are all illiterate?Do you have any rtgs in your pocket?Kuno kumaruzevha maretailers hautengi kana broiler nertgs


Chawabvunza 1 month ago

@Economist is not wholly correct that we need to get loans from IMF or the WORLD BANK to get us$ in the country. Government must improve diaspora receipts. Zimbabwe must also improve its manufacturing and agricultural products so that it exports more. Then there are services which Zimbabwe government charges in foreign currency like ZIMRA and Tollgates. Government may opt to pay its civil servants half salary in rtgs component and another half in us$ component. But to do that the rtgs component must first of all be made meaningful. It is failing to make citizens understand the salary increment of 100% because 100% of nothing is nothing or 100% of little will give little. Doing business in rtgs is no longer competitive.

MAMWE MA POLICIES EDU AYA NDIWO ARI KUURAYA NYIKA.

NGAAPINDE HAKE CHAMISA [NHC].

[VOTE CCC FOR REAL CHANGE].


с10 1 month ago

шоьч6й йфьло нрякщ зсйупйытрфч

Bhe 1 month ago

Ndyn akunyora chishongrish muno



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