Christmas cheer is back

Leroy Dzenga
Senior Reporter

A resurgent economy, buoyed by the Government’s decision to pay bonuses in United States dollars, made yesterday’s Christmas a day to remember, as consumer demand was relatively higher than last year despite the grim shadow of rising Covid-19 infections.

Business operators who spoke to The Sunday Mail said consumers noticeably spent more than last year.
On Christmas Eve, there were long queues at several shops in Harare’s Central Business District (CBD), with shop owners claiming this had been the trend for the past two weeks.

Confederation of Zimbabwe Retailers (CZR) president Mr Denford Mutashu said this year has been comparatively better than last year due to increased consumer spending.

“It is too early to have received computations from players. However, from the increased vehicular and customer traffic at most shopping centres, there are indicators of increased volumes compared with last year.

“The quality of the basket improved on the 23rd and 24th, with customers adding non-essentials to key basics,” he said.

“Kumatuckshops” in downtown Harare recorded roaring business this Christmas.

“We have been having long queues of people lining up to buy for much of the week. Business is really booming this year and I think one of the main reasons is that civil servants were given US dollar bonuses, which gave them more spending power,” said Mike Nyowani, who runs a shop along Cameron Street.

There was also brisk business in the aviation sector, although cancellations were considered high.
Aviation expert Ms Winnie Muchanyuka said had it not been for the Covid-19 Omicron variant, which emerged right as the holiday season was about to kick in, airlines would have enjoyed rich pickings.

“We have experienced cancellations as a result of the new travel restrictions and health protocols instituted by countries in response to Omicron.

“Most cancellations were tourist visitors who were worried about being quarantined upon arrival,” she said.

“Even with the cancellations, this year’s festive bookings are better than in 2020. Most operators over the past few days have had good loads. It is still not as good as the pre-Covid-19 era, but there is a marked improvement.”

The Tourism Business Council of Zimbabwe (TBCZ) says the emergence of the new coronavirus variant disrupted what could have been an incredible year for the sector TBCZ president Mr Wengai Nhau said:

Quarantine requirements scared away potential tourists from outside Zimbabwe as well as the Diaspora.
“The 10-day quarantine period really scared away tourists. Before the travel restrictions, we were on course to register one of the best figures ever recorded in the country. This is because the local market has been responding to calls to travel to resorts.”

Notwithstanding current challenges, occupancy at top resorts in Kariba and Victoria Falls is estimated to be around 95 percent.

The majority of people booked in resorts are locals.

Signs of rising consumer demand and spending have been evident for the better part of the year.
In its half-year results published last month, Delta Corporation, which is the biggest beverages manufacturer, recorded rising volumes in most of its product lines.

The company said growth was driven by the performance of the mining sector and the impact of Government spending on infrastructure development.

In its 2022 outlook, Delta said: “The improved food security, reduced pressure on food imports and access to additional foreign currency from the International Monetary Fund’s allocation of Special Drawing Rights (SDRs) will promote consumer spending.”

The strong rebound of Zimbabwe’s economy was anchored on the bumper harvest that saw the country produce more than two million tonnes of grain, higher international commodity prices, stable macroeconomic environment and Covid-19 pandemic response measures, including a remarkable vaccination programme.

In his Christmas message to the country, President Mnangagwa attributed the resilience being witnessed in the economy to the irrepressible spirit of Zimbabweans.

“Our traditional culture of hard work, focus, unity and purpose, as well as our national cohesion, have seen our nation scoring remarkable achievements in economic growth, employment creation and greater welfare of our people,” he said.

The President promised Zimbabweans that work to develop the country will not be derailed by the ongoing pandemic.