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Cash flow constraints hamper retail sector

Business
THE retail sector contribution to the fiscus remains minimal due to cash flow constraints, Confederation of Zimbabwe Retailers (CZR) president, Denford Mutashu, has said.

THE retail sector contribution to the fiscus remains minimal due to cash flow constraints, Confederation of Zimbabwe Retailers (CZR) president, Denford Mutashu, has said.

BY TATIRA ZWINOIRA

Speaking at the inaugural CZR awards on Tuesday, Mutashu said the volatile economic environment has been characterised by poor industrial performance, low capacity utilisation, poor industry and competitiveness, high cost of doing business, erratic and inconsistent power supply, and the high import bill.

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“The supply and distribution chain requires consistent nurturing, despite the current increased challenges of late payments by some of the retailers and honestly due to cash flow constraints. Our contribution to the fiscus has also been constrained,” Mutashu said.

“The unsustainable import bill has been exasperated by the weaker South African rand, while South Africa has remained our major trading partner in the region and beyond due to its proximity.”

The local industry is just one of the many sectors in desperate need of capital injection, as this has seen government stepping up efforts for re-engagement with the private sector.

Addressing delegates at the award ceremony, Industry and Commerce minister Mike Bimha said government expects collaboration between them, retailers and local manufacturers.

“Government expects retailers to collaborate with the government and local manufacturers in the resuscitation of industries. I would want both of us, the private sector and government, working towards trying to get funds for the industry which requires a capital injection. As a country, I think we really need new money,” Bimha said.

“We are talking about joint ventures, special economic zones, all these things at the end of the day we want to attract foreign direct investment. The ease of doing business, reducing the cost of doing business, again all these activities are aimed at bringing new money. fresh money into the economy’ that is all what we need.”

The performance of the manufacturing sector has seen a gradual decline from 36,3% in 2014 to 35,4% for 2015.