Published: 5 hours ago

Zimbabwe's retail and wholesale industry has lost an estimated US$3 billion in value, according to a report released this week by the Zimbabwe National Chamber of Commerce (ZNCC), with business leaders warning that the country has reached a critical tipping point.

The report, which incorporates input from major business organisations including the Confederation of Zimbabwe Industries, the Construction Industry Federation, and the Tourism Business Council, outlines the fragility of the industrial recovery and calls for urgent, state-backed reforms. The ZNCC likened the scale of intervention required to a "Marshal Plan," drawing parallels to the post-World War II European reconstruction programme, combining investment, policy coordination, and deregulation.

The chamber said Zimbabwe needs bold and coordinated action to stabilise the business environment, restore competitiveness, address widespread informality, and secure inclusive, sustainable growth. The retail and wholesale sector has been hardest hit, with contribution to GDP dropping from 18% to 11.9%, translating to a contraction from US$9.7 billion to US$6.4 billion in an economy valued at US$54 billion.

Business leaders highlighted mounting challenges, including policy inconsistency, cumbersome red tape, and licensing burdens that can require up to 32 separate approvals to operate a single supermarket. The report also flagged multiple taxation, high borrowing costs—up to 40% in ZIG and 18% in US dollars—and a US$9 billion trade gap driven by raw material exports and finished goods imports.

The consequences of the crisis are evident in recent corporate exits and downsizing. Companies such as Unilever and Botswana-based Choppies have exited Zimbabwe, Truworths and Food World have closed outlets, Pick n Pay has written down its TM Supermarkets investment to zero, and even established operators like OK Zimbabwe have undertaken executive reshuffles to survive. More recently, Bitumen World announced layoffs, adding to the sector's growing list of casualties.

The ZNCC recommended sweeping reforms to rescue the sector, including deregulation of licences, reduction of punitive levies such as the Intermediate Money Transfer Tax, stabilisation of the exchange rate, and sector-specific funding facilities to mitigate exorbitant borrowing costs. The chamber also called for incentives to formalise the 76% of enterprises currently operating informally and measures to boost local production and value addition in minerals such as lithium, chrome, and PGMs.

A presidentially-led regulatory reform drive with weekly Cabinet reporting was proposed to ensure accountability and speed in implementing reforms, with the chamber warning that without direct involvement from the Head of State, initiatives risk stalling in bureaucracy.

"The deliberations underscored the shared recognition that Zimbabwe stands at a tipping point," the ZNCC said. "Industrial recovery is underway but fragile, requiring bold, coordinated action to restore competitiveness, address informality, and secure inclusive and sustainable growth."

The report follows a meeting on August 25 between government officials and six leading business membership organisations, highlighting the urgent need for a structured rescue package to stabilise Zimbabwe's retail and wholesale sector.
- the Independent

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