Zimbabwe: Parliament Demands Answers Over Closure of Retail Outlets Amid ZWG Fluctuation

The recent closure of once-thriving retail outlets due to the economic meltdown, driven by currency depreciation, has prompted Parliament to demand an explanation from Finance Minister Mthuli Ncube.

Several retail outlets have closed branches in the country as businesses continue to struggle under the challenging economic environment.

The country’s sixth currency, Zimbabwe Gold (ZiG) is losing value against the US$, currently trading at ZiG40 against the dollar on the black market.

During a recent Parliamentary session, Citizens Coalition Change (CCC) MP Zivai Mhetu said the closure of branches by retail outlets is detrimental to the economy.

“Our economy is becoming increasingly hostile for businesses and we could soon witness an exodus of companies if this trend continues. This is evidenced by the closure of Unilever, and Truworths and recent reports that Choppies, a leading supermarket chain based in Botswana is considering pulling out of Zimbabwe.

“Choppies’ experience is worrisome because it is doing well in other SADC countries. It is only in Zimbabwe that it is facing operational challenges. It is a clear indication of our business environment that is problematic,” said Mhetu.

Last month retail outlets warned of total closures over the currency which they deemed overvalued.

Mhetu added Zimbabwe the closure will worsen the unemployment rate.

“Closure of big companies triggers unemployment, something we cannot afford as our unemployment rate is already incredibly high. Only 46.3% of Zimbabweans of working age are employed according to statistics released by ZIMSTAT earlier this year.

“Without urgent efforts to address currency instability and inflation. more businesses are likely to follow the Choppies route. It is imperative that Zimbabwe stabilises its currency and creates an environment where businesses can thrive. The National Development Strategy 1, speaks on creating 760 000 formal jobs by 2025,” he said.

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