RBZ Blames Poor Management for Collapse of Retail Sector
The Reserve Bank of Zimbabwe (RBZ) has dismissed claims that the recent closure of several retail outlets is due to the economic environment.
Instead, Governor John Mushayavanhu insists that internal management issues are to blame.
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His sentiments come when retail giant OK Zimbabwe closed five branches nationwide with a sixth slated to be closed in March.
The closure of the OK Zimbabwe branches came after the closure of Food World and Choppies shops nationwide.
In a recent statement, Governor Mushayavanhu explained that while working capital challenges exist, the problem is not an economic downturn but poor management practices.
RBZ Blames Poor Management for Collapse of Retail Sector
To help alleviate cash flow issues, the government has extended the Trade Facilitation Fund (TFF) to retailers and wholesalers.
However, he warned that without proper internal controls, even access to additional funds would not prevent businesses from folding.
“To address working capital challenges recently experienced by some wholesalers and retailers the TFF has been extended to these critical sectors of the economy to enable them to restock.
“Previously we had said TFF was only for the productive sector but we have heard the pleas and we are saying those struggling retailers can also access the TFF even though we know that their problems they’ve got nothing to do with the environment. We know it.
“These are management issues and even if they access that TFF and continue with those management practices they will fold. This is a competitive environment,” Mushayavanhi said.
