Major retailers in Zimbabwe have warned that they face potential closures due to the country’s ongoing currency crisis.
The Retailers Association of Zimbabwe (RAZ), which represents leading chains such as OK Zimbabwe and TM Pick n Pay, says the situation is “untenable”.
At the heart of the issue is a significant disparity between official and market exchange rates.
Retailers are required to use the official rate of 14.8 Zimbabwe Gold (ZiG) to the US dollar. However, their suppliers are using rates as high as 31 ZiG to the dollar.
This gap is leading to substantial losses, with some products potentially costing retailers up to 49% more than they can sell them for.
“Without intervention, we’re looking at widespread closures in the formal retail sector,”
The association estimates that its members employ nearly 20,000 Zimbabweans and are a major source of tax revenue for the government.
To address the crisis, RAZ has proposed allowing retailers to use discounted US dollar pricing and urged the central bank to take a more advisory rather than punitive approach to financial monitoring.
The government has yet to respond to these proposals.
This latest development highlights the ongoing economic challenges in Zimbabwe, where currency instability has been a persistent issue for years.
Analysts say the situation underscores the need for comprehensive economic reforms to stabilise the country’s currency and boost investor confidence.
As the crisis unfolds, many Zimbabweans are watching closely, concerned about the potential impact on jobs and access to essential goods.
