MDC Sounds Alarm Bell Over Company Closures

The opposition MDC, led by Douglas Mwonzora, has bemoaned the continued carnage in the economy, after retail giants close several branches across the country.

Top wholesaler N.Richards, which recently closed three branches in Harare, has closed more branches in Mutare.

Another retail giant, TM Pick’n’Pay has closed three branches in Mutare, attributinb this to a tough operating environment.

Below is the full statement on the recent company closures by the MDC.

ZIMBABWEAN GIANT RETAIL SHOPS FACE AN APOCALYPSE

As Zimbabwe turns into a tuckshop economy

The entry of Mtuli Ncube in Government as the Money Man and Economic Tsar was met with heightened expectations of an economic and currency turnaround.

It seems that the Finance and Economic Development Minister has failed in all aspects as the carnage is there for all to see.

Big supermarkets are fast disappearing around the country.

From Greatermans, Barbours, and several outlets under the Foodworld flagship.

This retail apocalypse has significantly impacted the economy, leading to widespread bankruptcies and job losses. With even the trade union membership dropping drastically, with the ZCTU still holding fort, but its sister the ZFTU now nowhere to be found, seen or head of.

With teacher organisations mushrooming all over the country but unfortunately they are all fishing in one pond.

Here’s a breakdown of the big chain retail apocalypse effects: 

●Economic Impact:

●Job Losses:

•The retail apocalypse has resulted in massive job losses, affecting millions of workers countrywide as well as the Commercial Workers and some of its sister Unions that feed directly into it and eventually affecting the Zimbabwe Congress of Trade Unions. When large retail chains close stores, it does not only affect employees and trade unions, but it also has a ripple effect on suppliers, manufacturers, and the local economy.

Local Economy Decline: Store closures can lead to a decline in foot traffic, negatively impacting local businesses and economies, such as tuckshops and market stalls. This has resulted in reduced consumer spending, lower property values, and decreased economic activity.

*Industry-Specific Impact:*

– *Malls and Shopping Centers*:

•There is now an oversupply of shopping malls in most city centres, replacing the once thriving Department Stores and large chain supermarkets.

– This is now more of a cluster tuckshop model, which has replaced many jobs and trade union memberships.

Consumer Behaviour:

– *Experience Over Products*: Consumers are increasingly not prioritizing essential goods as the market is now flooded with cheap Chinise goods, including non durable furniture.

– *ZiG A Weak and non Existing currency*

The ZiG Zimbabwe’s own currency is the catalyst in all these economic woes because it is not recognised outside of our boaders, and it can not trade outside our boaders, nor is it recognised.

The manufacturing industry has relocated across the boarders, and so the big retail shops buy using foreign currency and forced to sell in the local worthless ZiG.

Positive Mirage Effects:

●Government Surlplus and exports:

– So far the Minister of Finance keeps telling us every financial year that our economy has grown and that exports have doubled due to the fact that we have our local currency which has potentially increased demand and boosting the economic growth, but in actual fact, its a Mirage.

Eastern Tourism benefits: 

We have seen a growth in tourism, especially from Asia, in particular the Chinise. They purchase local traditional homeware and then go back and manufacture them in plastic form.

These are then shipped back and sold cheaply in United States dollars.

So a weak currency can make a country more attractive destination for tourists, as their money goes further.

Negative effects:

●Reduced purchasing power

• Our weak currency has reduced the purchasing power of citizens, making it more expensive for them to buy imported goods and services, thereby turning on the United States Dollars for economic recourse.

●Increased debt burden: This has made it very difficult for us to repay the country debt to international lenders.

The Causes of our weak currency:

●Political instability

●Corruption in Both the Public and Private Sector

●Nepotism

●Tribalism

●Regionalism

Consequences:

●International Isolation

●Reduced genuine investor confidence

●Economic volatility and uncertainty

●Unemployment

●Poverty

●Disease; just to mention a few.

So far, it seems as if the ZiG will be leaving a lot of carnage in its path,for now, let’s bid farewell to Food Lovers. Other big retail outlets are closing their branches across the country as the economy continues to sink.

As long as the Zanu-PF Government is still in charge of the country, a lot of supermarkets are in danger of an apocalypse.

By

Lloyd Damba

Presidential Spokesperson

Director of Communications in the Office of the President

Shadow Minister of Information, Communications and Broadcasting Services.