Speaking during the presentation of a CZR award to Industry and Commerce minister, Mike Bimha, president of the confederation, Denford Mutashu said the retail sector was being severely affected by the current liquidity challenges.
“The cash crisis has affected volumes of our transactions and suppressed the movement of goods,” he said.
Zimbabwe in 2009 adopted a basket of currencies dominated by the United States Dollar, but in the past few months the country has been witnessing an acute liquidity crunch due to a widening trade deficit and lack of production.
Mutashu said the retail sector was facing many other challenges, including high tax charges, difficulties in accessing lines of credit.
He said the mushrooming of vendors outside supermarkets mades it difficult for retailers to carry out their business.
“We are appealing to government for a tax break to allow us to come out as a survival move and also the pricing for shop licenses at $530 is too much,” Mutashu said.
Bimha said government was putting in place a number of measures to address challenges faced by industry, including rebranding of the National Incomes and Pricing Commission into the National Competitiveness Commission, as well as addressing the Ease of Doing Business in Zimbabwe and control of imports.
“The retail sector is a very important component of the entire value chain and you cannot achieve excellent results without achieving good results throughout the value chain. So as a ministry our primary objective is to create a conducive environment for the private sector to operate,” Bimha said. “Our best bet is to have local manufacturers who can produce quality goods at affordable prices.”
He said government will continue supporting the private sector through policy, imports management, local procurement and the buy Zimbabwe campaign.
“We are coming up with policies that support production and reduce imports, encourage local procurement and that as government we are looking at how best to do it,” Bimha said.
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