Govt must act fast to rescue formal retailers 

The time for talking is over.

Zimbabwe’s formal retail sector is on life support, and only urgent government action can prevent total collapse.

The measures announced to regulate the informal economy and rescue struggling retailers must be enforced immediately. Delay is not an option. Hesitation will be fatal.

Right now, supermarkets are shutting down. OK Zimbabwe, TM Pick n Pay, Spar, Choppies, and wholesalers like Mohammed Mussa and N. Richards are scaling back or closing outlets. Meanwhile, unregistered street vendors dominate the market, operating outside the tax system, selling smuggled goods, and siphoning millions in untaxed cash.

The government has finally stepped in, introducing mandatory Point-of-Sale (POS) machines, cracking down on tax evasion, regulating manufacturer supply chains, and expanding financial support for formal businesses. These are necessary steps—but they mean nothing if not enforced immediately and aggressively.

Zimbabwe has seen too many bold policies crippled by weak implementation.

The government must prove that this time is different. The new regulations must be backed by real enforcement, not empty pronouncements.

Tax evaders must be shut down. Manufacturers fueling the informal sector must be penalized. POS machines must be installed across all businesses without delay.

Retailers have made their position clear: they cannot wait.

The government must move with urgency, ensuring that these reforms are not just announced but executed with full force.

The future of Zimbabwe’s formal retail industry depends on what happens next.

If the authorities act swiftly, they can restore order to the market.

If they hesitate, they will preside over the sector’s funeral.

There is no middle ground. The time to act is now.

The crisis in Zimbabwe’s retail sector did not happen overnight.

It is the result of years of economic decline, inflation, foreign currency shortages, and the unchecked rise of the informal sector.

Retailers are not closing because they mismanaged their businesses. They are collapsing because the playing field is rigged against them.

The informal sector now dominates retail, with street vendors selling everything from basic groceries to luxury items. Many of these vendors source their goods from smuggling syndicates, bypassing taxes and undercutting formal retailers who must comply with VAT, corporate tax, and import duties.

While formal supermarkets must charge 15% VAT, their informal competitors pay nothing. When wholesalers like N. Richards try to pass on legitimate costs, consumers opt for cheaper smuggled goods instead. This is a fundamental distortion of the market—one that the government has allowed to fester for far too long.

A shocking reality in Zimbabwe’s retail sector is that some manufacturers are complicit in the collapse of formal stores. Instead of supplying registered supermarkets at wholesale rates, some producers sell their products directly to informal traders at discounted prices.

This means that a vendor operating from the pavement outside OK Zimbabwe can sell the exact same goods as the supermarket—but at a lower price.

The result? Supermarkets lose business, reduce orders, and eventually shut down. The government’s promise to regulate manufacturer supply chains is long overdue. If enforced properly, it will be a game-changer.

Zimbabwe’s tax regime punishes formality and rewards illegality. Businesses that register and comply with tax laws face a crushing burden, while those that operate in the shadows thrive.

This imbalance is unsustainable. No formal business can compete when its biggest rivals are allowed to bypass every cost and regulation.

The government must level the playing field by bringing the informal sector into the tax net.

Even if the informal sector were regulated, formal retailers would still struggle with Zimbabwe’s broader economic challenges. High inflation and job losses have pushed millions of Zimbabweans into survival mode, where affordability is the only priority.

Consumers are no longer loyal to brands or shopping experiences—they simply go where prices are cheapest. With salaries lagging behind inflation, even middle-class Zimbabweans have turned to vendors and cross-border traders.

For retailers, this means declining sales and shrinking margins. Even those that remain operational are barely breaking even. If the government does not restore economic stability, there will be no market left for formal businesses to serve.

The government has made the right noises, but action is what matters.

To save Zimbabwe’s formal retail sector, authorities must move beyond policy announcements and implement real change.

Every business—formal or informal—must be required to have a Point-of-Sale (POS) machine. No exceptions. This is the only way to ensure that all transactions are captured in the tax system.

Manufacturers that supply informal traders at discounted rates must be held accountable. The government must audit supply chains and penalize companies that fuel the informal market while starving formal retailers.

The Zimbabwe Revenue Authority (ZIMRA) must crack down on tax evasion. Vendors earning thousands per day cannot continue to operate without contributing to the national tax base.

The government must create a retail stabilisation fund to help struggling supermarkets stay afloat. If banks are unwilling to lend due to economic risks, the government must step in with guarantees or direct subsidies.

Rescuing formal retailers is not just about regulation—it requires fixing the economy.

Until Zimbabwe stabilizes inflation, increases job creation, and restores consumer spending power, retail will continue to shrink.

Zimbabwe’s retail sector is hanging by a thread. Every delay in enforcement means more supermarket closures, more job losses, and more power shifting to the informal market.

The government cannot afford another false start.

The time for action is now.