Staff Reporter
The Confederation of Zimbabwe Retailers (CZR) has applauded a raft of measures adopted by Government during the First Half (H1) for managing to curb inflation and ensure viability of the retail sector.
According to the State of the Retail Sector Report for the H1 2021, retailers noted that annual inflation rate for the month of July 2021 had slowed down to 56% from a three figure recorded beginning of the year.
“Zimbabwe’s annual inflation rate for the month of July 2021 slowed down to 56%, from a high figure of 362.63% recorded in January this year.
“It is also our view that the weak demand in products contributed, to some extent, to the reduction in inflation, although we applaud the different inflation targeting measures deployed by Government,” read the report.
Government in its Mid-term Policy Statement stated that the retail sector stood to benefit from ongoing reforms which were strengthening the economy, overall invigoration of domestic production through strengthening of domestic value chains, tax reforms which cushion employees, as well as rolling out of various social protection schemes under the COVID-19 Stimulus package.
CZR acknowledges the adverse impact that COVID-19 has had on the retail sector’s performance, though applauded the overall Zimbabwean economic performance.
“While Government was bullish in the Mid-term Fiscal Policy and revised upwards GDP growth projections for the year 2021 from 7.4% initially projected in November last year to 7.8%, growth projections for the wholesale and retail trade sectors were slashed downwards from 5.7% to 5.1%,” read the statement.
“This downward revision is a reflection of how the retail sector was significantly affected by the national lockdown measures adopted during the first half, owing to COVID-19.”
Government also stated that about 65 – 70% of products in the retail sector were now being produced locally, thereby resulting in the import substitution drive espoused in the Industrial Development Policy.
CZR added that it anticipates a progressive second half and is hopeful that the economy will benefit from the good harvest from the 2020/2021 agricultural season, declining inflation and continued rollout of the vaccination programme.
