CZR Urges Government to Rescue Struggling Retail Sector
Harare, Zimbabwe – The Confederation of Zimbabwe Retailers (CZR) has issued a stark warning about the deteriorating state of the retail and wholesale sectors in the country, calling for urgent government intervention to prevent further closures and economic stagnation.
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In a statement released today, the CZR highlighted the pressing need for closer collaboration between the government, regulators, and key stakeholders to address the numerous challenges facing the industry. The organization emphasized the importance of a fair and level playing field within the multi-currency system, rather than seeking special treatment for any particular group.
One of the major concerns raised by the CZR is the disparity between the cost of goods sourced in US dollars and the selling price in Zimbabwean Gold (ZiG). This pricing distortion has severely impacted profit margins for businesses, leading to reduced competitiveness and increased operational costs.
To address this issue, the CZR has called for the complete liberalization of the exchange rate to align with market conditions. While the central bank has recently relaxed the exchange rate, the organization argues that additional measures are necessary to stabilize the domestic currency and increase the number of active sellers in the market.
CZR Urges Government to Rescue Struggling Retail Sector
Furthermore, the CZR has urged the government to reopen borders for the importation of essential goods, as the current restrictions have contributed to shortages and price increases. The organization also proposed the provision of fuel in ZiG to alleviate the burden on retailers' operational costs.
With several major retail chains already facing closure due to the challenging business environment, the CZR warned that without immediate government intervention, the future of the sector looks bleak. The organization's recommendations include:
- Â Further exchange rate liberalization
- Â Fuel provisions in ZiG
- Â Reopening of borders for essential goods
- Â Closer collaboration between government, regulators, and stakeholders
- Â A fair and level playing field within the multi-currency system
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The CZR's call for action comes at a critical time for Zimbabwe's economy, as the retail sector plays a vital role in job creation and consumer spending.
