Foreign nationals hijack retail sector
…we have a problem, says Minister

SIFISO MAPURANGA
Foreign nationals from China, Democratic Republic of Congo, Rwanda, Tanzania and other countries have allegedly forced out local bonafide retail outlets out of business and dabbling in illegality by selling counterfeit products while also operating without licenses, Business Times has learnt.
This follows the proliferation of counterfeit food products and illegal operation of retail shops in Harare’s downtown and different suburbs.
It has emerged that some makeshift shops mainly run by the foreign nationals have been erected metres from established retail outlets like OK Zimbabwe, Spar and Pick and Pay among others, a move that has forced outlets to close shop.
So dire is the situation that the government has promised to take action.
Industry and Commerce Deputy Minister Raji Modi confirmed to Business Times that some retail outlets operating in Zimbabwe and run by foreign nationals are breaking the law.
“We have a problem of foreign nationals from the region operating our local retail shops and it is not only them, there are the Chinese also who are in the retail sector because they are not supposed to be doing so, the retail sector is only reserved for Zimbabwean citizens,” he said.
The Constitution of Zimbabwe Amendment No.20 of 2013 prohibits foreign nationals from operating and owning retail shops and only giving the right and provision to citizens.
“Unfortunately, they are using our local Zimbabweans names or workers names to obtain licenses and they are doing it illegally,” Modi said.
The government says it has engaged relevant authorities in order to map a way forward to deal with the illegal operations in the retails sector which has a strong negative impact on the country’s economy.
“We will be going around with the Customs and ZIMRA finding out where they got the goods but another issue of concern is on local goods which is a bit difficult but we are working on it to put an end to that,” he said.
Former Zanu PF Harare provincial political commissar who once served as Harare South MP Shadreck Mashayamombe also confirmed that there was proliferation of illegal retail outlets with foreigners only using locals as fronts.
This, Mashayamombe said, was forcing established retail outlets out of business.
“At least 90 % of these tuck-shops are owned by foreign nationals.” He said. “They have destroyed all the big supermarkets in our country. OK Zimbabwe is seriously struggling as the biggest employer in the grocery retail business,” he said.
The foreign-owned outlets are reportedly transacting excessively in the United States dollars neglecting and deliberately avoiding to sell in local currency, the ZiG.
“In these tuck-shops, our local brothers and sisters are used as loaders and other menial work. These people don’t pay tax and the question is who is protecting these people?”
“I am not xenophobic and I will never be one but we cannot destroy what we have, our brothers must follow our laws,” Mashayamombe added.
Several refugees who have reportedly fled Tongogara Camp in Manicaland Province are flooding the streets of Harare where they are involved in money laundering, according to a senior government official.
“Refugees, some from Tongogara Refugee Camp, are flooding the streets and we have engaged in a blitz, where we have rounded up some of them and have been arrested and deported,” the official said.
Business Times has observed that a number of foreigners have flooded downtown Harare and other suburbs including Waterfalls where they are engaged in trade of groceries and other commodities.