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Temporary Night "Shops" Take Over Zimbabwe's Retail Sector

3 months agoTue, 31 Dec 2024 07:08:35 GMT
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Temporary Night "Shops" Take Over Zimbabwe's Retail Sector

Supermarkets in Zimbabwe are struggling to survive as the volatility of the new currency pushes prices up, leading shoppers to opt for cheaper informal markets that appear at night to avoid authorities.

These temporary shops, which pop up on sidewalks, store verandas, and car parking spaces, offer a wide range of goods, including groceries, fresh meat, electronics, clothes, medicines, fashion accessories, and stationery.

These vendors do not face expenses such as rising energy costs, taxes, or laws that force formal retailers to accept the local currency at artificially low official exchange rates.

As a result, they can offer bargains. For example, a box of juice that sells for $3 in a supermarket costs half of that on the street.

Batsirai Pabwe told the Associated Press that he enjoyed shopping on the streets after managing to fill a plastic bag with items for just $20.

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For the same amount in a supermarket a week ago, he said he could only get “meat and spices, and they were not even that much.”

In April, Zimbabwe introduced a new gold-backed currency called ZiG (short for Zimbabwe Gold) to replace one that had depreciated and was often outright rejected by the people.

This is the country’s sixth attempt at a new currency since the 2009 collapse of the Zimbabwe dollar and the adoption of the U.S. dollar as legal tender amid hyperinflation.

The U.S. dollar has remained legal tender alongside successive local currencies. The latest currency, introduced with much pomp and fanfare, included promotional jingles and songs played on public radio, television, and online.

However, seven months on, the ZiG appears to be failing like its predecessors. The gap between official and black market exchange rates continues to widen, with many people and informal traders preferring the more stable dollar.

Traditional stores, required by authorities to charge using the local currency, are increasing prices to stay afloat.

However, they have become uncompetitive compared to unregulated informal markets. The Retailers Association of Zimbabwe warned of potential store closures, describing the situation as “clearly untenable.”

In October, Pick n Pay, one of Africa’s biggest grocery chains that operates more than 70 stores jointly with a local partner in Zimbabwe, said that it had “impaired” its investment in Zimbabwe “to a book value of zero” because of the “deteriorating economic conditions.”

Gift Mugano, an economics professor, said the exchange rate crisis has negatively impacted traditional stores. He said:

In every transaction business is doing in the formal setup, it’s making an exchange rate loss that cannot be compensated. The major issue here is a currency crisis.

Everything is against their survival. The informal sector works at night, (if there is) no electricity they use their phones, they don’t care. They are there for survival.

According to official figures and the International Labour Organisation, over 80% of Zimbabwe’s employable population relies on the informal sector for their livelihoods.

More: Pindula News

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14 Comments

Tohwa Chikodza Mapenda · 3 months ago
Uchatoona vanozviti vemutemo vachitanga kuvhiringidza vanhu vanozvitsvagiravo kurarama.Ndezvipi zviri nani kuba kana kuzvishandira.Ndiwo Mabasa acho iwayo ari kuita kuti vanhu vararame.
😎 · 3 months ago
It's become a bit inevitable that the impasse between ZiG and USD will never collude unless they fix certain things to lure people to have faith and use ZiG irregardless of its volatility, there will come a time it would automatically gel with USD The government should stop policy inconsistency over issue to do with exchange rates rather it should employ measures to ursup ZiG and from USD, how If banks are would give mortgages to the people who have been a accumulated certain amount of money of ZiG in their accounts, whichever you want to do banking USD or ZiG, the bonds you get from these can get you, a stand, or build a new a house or bya car establish a company do farming poultry etc, every transaction is done by the bank and your bank details debt swipe to cards, mobile or ecocash and without that confusing rates disparity Mazai ese ano zongorarirwa arimu one basket
prof · 3 months ago
hustle pamunhu ngatishandei guys,izvovzvirikutawurwa neawooo ndezve**** izvoo mxm
Antman · 3 months ago
When we tell you effects of taxing formal sector you laugh at us. Look now you will losw in taxes and you will incur some expenses trying to extinguish such informal setups.
Anonymous · 3 months ago
Violence in Mozambique is in direct response to poor governance. Soon zim will catch up with it.Where will revenue come from to finance govt if taxes disappeared if businesses informalise to avoid paying taxes..We have destroyed ourselves.
😎 · 3 months ago
Government has vast facets to get tax and ye informal tax sector iyi hayreve chinhu kwavari but ka kwese kupi world over kana uine an income generating project misika included, you are liable to remit tax chegumi chodiwa, And to have musikana you must have a hawkers licence, ikoko kunoita u remit tax,how, Kwauno hoarder kuma wholesale they should not sell you goods on wholesale price if you don't have a hawker licence that how they are to remit your tax if you have a licence It's not kuti tax inotorwa pamusika but where you buy in bulk, Vaya vanotenga vasina ma rezinesi ngavaite havo but they won't realise proceeds from their sales as the police always disrupt themand get fined or arrested, so the loss is even bigger Ndovanhu vanozotanga kutaura kuti hee hurumende yakaipa when it's crystal clear, You don't pay tax you pay fine, courts, lawyers and you fail your business, but you pay tax you are licenced you get even favoured by wholesalers you get success in business
Anonymous · 3 months ago
What incentive is there to pay tax? What service is gvnt offering through these taxes? We are paying toll fees for roads, we are paying fees for education, we are paying for medical assistance, we are paying for electricity, we are paying for water, we are paying for almost everything & we are buying our own food. For all these payments gvnt is getting tax but to what end. What has gvnt done with all the tax that it has been collecting?
wezhira wezheve · 3 months ago
ko iyo ma vendors will they pay tax.lm foreseeing zimra retrenching cz honestly who will they tax??no formal tax payers except civil servants.zesa soon will rettrench as pple go solar.nssa too as therez no industry to talk of.only civil servants teachers nurses zrp zna zps will remain ok pick n pay will close only vendors will remain .Edgar's soon will close
Anonymous · 3 months ago
Formal business is a sure source of revenue. Proceeds from mining alone will not suffice. Mining companies under state their massive profits to avoid taxes. Mugabe once said that the government is not getting anything from the mining sector. Their end of year financial sheets show them as breaking even or loss making. We don't get anything out of mineral wealth. Govt revenue was sourced via sales tax.What next now tthat this is out of the equation..Chaos is inevitable like in DRC and Venezuela. Already chaos has kicked in.Visit Boterekwa where president son is mining Gold in partnership with all weather Chinese friends to see it first hand
korruptPRIEST 🇿🇼 · 3 months ago
They r also zim citizens, haiz mhosva haana mari yekuvaka tuckshop kokuzot abhadhare rent yeold mutual kana yeshop zvayo iyo yepaanogara achimbo DEFAULTER! Gud enuf!, let them survive ndovasinao vana vanoda kuchengetwa here?
Anonymous · 3 months ago
Cry my beloved country. Nyka iya yaenda kumawere - kumaziva ndadzoka.Hapana achaidzora.This big headedness is heading the country towards doom.Gudo guru peta muswe kuti vadiki vakuremekedze. Mankind has a documented history of breaking down walls
Quiry 10 · 3 months ago
lyf yamazuvano yakutoda munhu ari business wise otherwise unofa nenzara maplans azere mustreet
§hûmb@ · 3 months ago
Night shops kkkk

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