Consumer Council slams retailers

TATENDA CHIKARA IN CHIVI

The Consumer Council of Zimbabwe (CCZ) has slammed retailers  for demanding United States dollars for basic goods as they dump the local currency which has been on a freefall against major currencies.

Masvingo regional manager, Ndumiso Mgutshini  told Business Times  that the conditional selling being implemented by retailers was an offence since the Zimbabwe dollar was a legal tender.

“In our survey we have observed that some retail shops and service providers which are now selling some basic commodities like cooking oil, soap and salt only in US dollars reject the Zimbabwe dollar,” Mgutshini said.

He added: “Business is now using conditional selling which is an offence because consumers have a right to choice, they must not be coerced to using the currency only business wants.”

The Confederation of Zimbabwe Retailers president Denford Mutashu  said high inflation was causing some businesses to sell their commodities in the greenback.

He said most manufacturers were also asking for upfront cash in foreign currency.

“Those retail shops are selling basics like cooking oil only in US dollars  because most companies selling them are demanding foreign currency. It becomes difficult for businesses to sell using swipe, mobile money because they will find it difficult to get US$,” Mutashu said.

Economist and director of Labour and Economic Development Research Institute of Zimbabwe, Prosper Chitambara said businesses were motivated to sell in dollars due to high inflation which has eroded the value of the local unit.

“Most retailers are no longer preferring to use the Zimbabwe dollar because when we have high inflation, people prefer a more stable currency. The local currency is no longer effectively functioning as money,” he said.