Staff Reporter
The Confederation of Zimbabwe Retailers (CZR) has praised Government for introducing a range of measures aimed at bolstering the formal sector’s survival while ensuring that the informal sector adheres to legal requirements, especially in terms of tax compliance.
In an interview with Harare Post yesterday, CZR acting CEO, Innocent Marimo, expressed support for Government's initiatives in addressing concerns raised by the retail sector.
Marimo pointed out that one of the most significant challenges facing the retail industry has been the price discrepancy between the formal and informal markets.
“The difference in the pricing system between the informal and formal sectors has been a challenge for retailers. The informal sector had lower prices than the formal sector, which gave them a competitive advantage,” he said.
He also lauded Government’s move to regulate the informal sector while stressing the importance of stronger enforcement of these policies.
“His Excellency President Mnangagwa, together with Finance Minister Mthuli Ncube, is putting in place policies to regulate the informal sector. CZR has a cordial and longstanding relationship with the Government. What is needed now is stronger enforcement of the policies and regulations,” Marimo added.
The acting CEO further highlighted Government’s ongoing efforts to accelerate the formalisation process within the informal sector.
“Government has already started to embark on an accelerated program to make sure that the informal sector complies with whatever requirements they should comply with, be it licensing requirements, payment of taxes, or selling goods at properly designated areas. What is required now is enforcement of the regulations and policies," Marimo explained.
Marimo also underscored the critical role of Zimbabwe Gold (ZWG) in driving growth within the informal sector.
He believes the introduction of point-of-sale (POS) machines will enable informal businesses to accept ZWG payments, which would integrate them more effectively into the formal economy.
“Point-of-sale machines will make it easier for the informal sector to accept ZWG. If Government ensures that local currency is accepted by the suppliers, it will further help the growth of the formal sector,” he said.
Marimo also raised concern about how space baroning has been negatively impacting the retail sector.
“Property owners are partitioning their buildings into smaller compartments. They are facilitating informalization. While having an informal sector is a testament to our empowerment, it’s important to note that these businesses have not been contributing significantly to Government revenue." he said
The CZR remains optimistic that the combination of supportive policies and effective enforcement will not only level the playing field between the formal and informal sectors but also encourage greater compliance and economic growth in Zimbabwe.
