CZR crafts retail formalisation strategy policy

Zim Now Writer

The Confederation of Zimbabwe Retailers has drafted a policy document geared at promoting the formalisation of the retail and wholesale sectors.

“By promoting formalisation, the strategy aims to foster sustainable business practices, attract investment and contribute to the overall development of Zimbabwe’s economy,” said CZR president, Denford Mutashu.

The strategy targets resolution of challenges that come with informal trade including tax evasion, unfair competition and lack of access to finance.

Formal retailers have indicated that they are under pressure from the unfair competition presented by informal traders who do not have the burdens of controlled exchange rates and taxes.

“The formalisation drive also speaks to the broader ideals of building a prosperous and empowered upper-middle income society by 2030, with small businesses contributing to the growth of the economy through paying taxes and increasing exports,” said Mutashu.

“By encouraging emerging retailers and wholesalers to register their businesses and comply with relevant regulations, the formalisation strategy seeks to bring them into the formal economy, creating a level playing field for all businesses,” he said.

Mutashu said the sectors identified as “informal” are actually a product of indigenisation, hard work and the opening up of opportunities entrepreneurship for ordinary Zimbabweans.

The Finscope Survey of 2022 established that Zimbabwe has 3.4 million MSMEs owned by 4.2 million entrepreneurs employing 4.8 million people and contributing US$8.6 billion to the country’s GDP.

Mutashu said the majority of these MSMEs are from the retail and wholesale sector.

He said implementing of the strategy will help foster economic growth and create employment opportunities.