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Formal Retailers On Edge As Manufacturers Favour Tuckshops

Formal Retailers On Edge As Manufacturers Favour Tuckshops

Manufacturers have reportedly cut supplies of basic commodities to those paying in local currency and now favour tuck shops that pay in hard currency.

Speaking in an interview with Business Times, the president of the Confederation of Zimbabwe Retailers, Denford Mutashu, said they are now in a dilemma. Said Mutashu:

We fear that with the way the supply chains are disrupted or broken we may see the resurfacing of basic commodities black market which is not a desirable thing for the economy.

We are given a 30-tonne truck per month. We sell it within three days of delivery. But, the tuck shops are given as many trucks as they want depending on the cash they have.

The Reserve Bank of Zimbabwe (RBZ) insists formal shops should sell their goods at a premium of 10% above the official rate.

The official rate is at around ZWL$403: US$1 with shops allowed to trade at around ZWL$435 per US$1 and this is unsustainable for formal shops as manufacturers now prefer tuck shops who pay in hard currency. Added Mutashu:

The charging of goods using the official rate has a serious knock on our businesses as suppliers and manufacturers are not supplying us on a regular basis as they don’t want the local currency.

We are struggling to re-stock as they go for informal traders who have hard currency.

If we may want to sell in US$, very few customers would come with the hard currency to buy in formal shops instead the money changers are swiping for the customers at a better rate.

With the pricing conundrum at play, reduced stock and a subdued US$ rate, retailers are in a catch-22 situation which needs dialogue between us and other stakeholders.

It is very difficult for a supplier or manufacturer to give me a product where I am paying in ZWL$ understandably because they would also want to use their product to generate foreign currency from their own internal source.

More: Business Times

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12 Comments

ggg 3 weeks ago

we are going... let's see


youth 3 weeks ago

you are jobless ....

Mwana waMambo 3 weeks ago

You can take a donkey the river, but you will never force it to drink. Just open up for US$ to take course. Simple mathematics. Zim dollar rakadhakwa sezanu. Ngatisiyanei nazvo zvima bond izvo


Chris 3 weeks ago

💲💲💲usd to the people.


Usa 3 weeks ago

American dollar is the only way to rescue the economy


SC 3 weeks ago

By this the state had one trick under it's sleeves and the tuckshop community is not going to like it. Govt will start demolishing illegal structures and for those that are legal, Zimra and FIU are coming!


fatso 3 weeks ago

hazvishandi zvose izvo wangu gvt must just admit kuti as for now zim doller rakadhakwa even the gvt itself is shunning its money and charge services in usd wani

Secretary 3 weeks ago

tengai nemagold coin


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Billboard Of Public Opinions 3 weeks ago

CCC is the solution to problems in our country. Zanu pf thugs are clueless on how to improve save our economy.


Ghidhiza 3 weeks ago

It's all because of Zanu pf failures to come to terms with reality. Ayo ma paper amukuti local currency are there to impoverish the public. Remember ana Mnangagwa ne team yake vane ma mines where they earn us dollars imi muchingonzi local currency. Patikuti vana ve zimbabwe zvakwana kani, let's vote CCC into government titange hupenyu hutsva.


angry civil servant 3 weeks ago

yaaaa isusu tikataura kana kuita demonstration munotipisa ...manje izvezvi ma business amugara bumper itai toone kwatosvika free duty makabvisa pama 🍊 now mazoe orange crush its $3.50 no Rtgs


Tk 3 weeks ago

Patichange tavakuenda kusarudzo ndoparichabiswa zim doller iro vachambovaraidza nguva .Takupinda musarudzo voti honai takukupai mausa saka tivhoterei



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