HARARE – The Reserve Bank of Zimbabwe (RBZ) has refuted claims by registered retailers that the nation’s economic environment is the root cause of their struggles, instead pointing to mismanagement within the sector as a key factor in businesses closing their doors.
RBZ Governor Dr. John Mushayavanhu, speaking during the 2025 Monetary Policy Statement presentation, emphasised that the bank had extended the Trade Finance Facility (TFF) to assist struggling retailers with working capital. The facility, previously allocated for productive sectors, is now aimed at alleviating challenges in the retail sector.
Dr. Mushayavanhu noted, however, that while the facility is available, its effectiveness depends on retailers and wholesalers addressing mismanagement issues. Several major players, including some of the country’s largest chains, have either reduced their operations or shut down due to mounting financial pressures. For instance, N. Richards and Mahomed Mussa wholesalers have scaled back operations, while Choppies Zimbabwe has exited the domestic market entirely.
Industry sources have identified bloated management structures and inefficiencies as contributing to these challenges. Concerns have also been raised over the dominance of informal traders, who operate exclusively in foreign currency and avoid statutory obligations, giving them a competitive edge.
Dr. Mushayavanhu acknowledged this imbalance, stating that informal traders’ reliance on foreign currency continues to challenge formal retailers. Manufacturers, too, often prefer to supply informal traders due to their ability to pay upfront in US dollars, further straining formal retailers’ stock availability.
He reiterated the need for structural reform within the retail sector, calling on businesses to correct internal inefficiencies. “We know these are management issues, and even if they access the TFF, without addressing these, they will fail,” he said.
To stabilise the exchange rate, the RBZ has also been increasing foreign currency retention for exporters, raising the threshold to 75 percent. This measure is intended to strengthen the supply of foreign currency required to anchor the Zimbabwe dollar.
The RBZ Governor highlighted the progress achieved, noting a decline in the annual inflation rate from 243 percent in the previous year to 18 percent currently. He underscored the bank’s commitment to supporting exporters through facilities such as the US$150 million Debt Redemption Facility and the US$30 million Gold-backed Refinancing Facility.
Dr. Mushayavanhu concluded by urging retailers to adopt sound management practices and utilise available financial support to navigate the challenging environment effectively.
