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Bianca Mlilo, Business Reporter
THE Confederation of Zimbabwe Retailers (CZR) says the retail sector is likely to record notable growth in 2017 spurred by widespread use of plastic money and the introduction of bond notes.
The sector has over the past six years recorded significant growth driven by the rise in consumer patterns following adoption of the multi- currency system in 2009, CZR said.
The organisation’s president Mr Denford Mutashu said: “The retail sector is poised for growth despite the reduced economic growth of about 1,6 percent.
“The growth in the retail sector will be premised on the increase in plastic money usage in the country coupled with the drive on financial inclusion by the Government through RBZ.”
He said bond notes had come at an opportune time and urged the monetary authority to expedite distribution of the notes to cover all areas including rural areas.
Mr Mutashu said his organisation recently joined the RBZ in outreach awareness campaigns on bond notes during which members of the public overwhelmingly embraced the surrogate currency.
He said retailers were pushing for the promulgation of the Shop License Bill as a measure to open up the sector to new players.
Mr Mutashu also said the Government should come up with other protection measures in order to support the revival of industries.
“The foundation laid by S.I (Statutory Instrument) 64 of 2016 should see Government coming up with other support initiatives like the buy local products policy,” he said.
S.I 64 removes about 40 products from the open general import licence as these products are being produced locally.
Industrialisation anchored on a vibrant agricultural sector, added Mr Mutashu, is the panacea to the Zimbabwe’s economic challenges. This, he said, should bring forth a tremendous rise in local production for domestic consumption and the export market.
A report released by the central bank earlier this month indicate that during the week bond notes were released, the volume of transactions processed on Zimbabwe’s National Payment System went up by 13 percent and increased in value from $1,2 billion to $1,5 billion.
So far $29 million worth of bond notes have been released into the market since their introduction in November.
— @BiancaMlilo
Online Reporter