Beyond the Blame Game: Exploring the Root Causes of Zimbabwe’s Supermarket Closures

Zimbabwean News You Can Trust

Own Correspondent

Kudakwashe Ruzive

Zimbabwe has recently experienced a wave of supermarket closures, leaving many citizens facing uncertainty and frustration. These shutdowns have sparked widespread outrage, with a significant portion of the public expressing their discontent and anger at President Emmerson Mnangagwa. Yet, the question remains: is the president truly at fault for these developments?

The closures, which have impacted several prominent supermarket chains, have been linked to a confluence of factors contributing to the country’s economic difficulties. Some of the closed stores include OK Zimbabwe Limited, N. Richards Group, and more.

Economic instability, exacerbated by hyperinflation, depreciation of the local currency, and persistent supply chain disruptions, has made it increasingly challenging for supermarkets to operate profitably. Additionally, competition from informal traders has intensified, as these vendors offer more affordable options, often avoiding the overhead costs that burden formal businesses.

Many Zimbabweans, however, quickly attribute the supermarket closures to the government’s policies under Mnangagwa. Economists say the situation is significantly more complex than it initially appears, with various underlying factors and interrelated variables that contribute to its intricacy.

Trust Chikohora, an economist, said a lot needs to be done to address the current situation. “The elephant in the room is the official exchange rate for the Zimbabwean dollar, which is fixed and not related to market realities, making formal businesses uncompetitive. The official exchange rate needs to be allowed to float in order to reflect market realities and reduce reliance on the parallel market.

“In addition, the government has allowed informal traders to operate right at the doorsteps of formal businesses at no cost, making it very difficult for formal businesses to compete,” he said.

Many closed supermarkets faced challenges long before Mnangagwa took office. The retail sector has struggled due to informal traders offering lower prices through reduced legal compliance and taxation. The government has taken steps to support the retail sector by implementing policies to lower business costs and improve financing access for small and medium-sized enterprises.

Some reports indicate that these measures have yielded positive feedback from certain sectors, yet they seem to have fallen short of reversing the trend of declining retail business. Despite this backdrop, the damaging narrative that positions Mnangagwa as the sole architect of the supermarket closures continues to flourish.

Opposition politicians and activists have seized this moment to amplify their critiques of the government, framing the situation as a clear indictment of its governance. For ordinary Zimbabweans affected by supermarket closures, the situation is complex and personal.

“I just want to be able to buy food for my family,” said a mother of two, highlighting the difficulties they are facing.

As discussions about supermarket closures evolve, it is clear that the situation is multifaceted and cannot be simplified. Zimbabweans must engage with these complexities and work together to develop sustainable solutions for the challenges facing the economy. Through collaboration and understanding, the country can navigate its hardships and emerge stronger.