THE Zimbabwe Revenue Authority (Zimra) says the country’s retailers are struggling to restock due to their over-reliance on illicit goods by consumers and operational inefficiencies, denying claims that the anti-smuggling crackdown is to blame.
Zimra said it had intensified the anti-smuggling crackdown along borders with South Africa and Mozambique, targeting syndicates using buses and trucks to transport groceries and beverages illegally.
Some reports claimed that the operation disrupted stock levels for major retailers, but Zimra Commissioner-General Regina Chinamasa dismissed the allegations that the crackdown had disrupted supply chains.
“Smuggling distorts the economy and our operations are aimed at ensuring a level playing field for all businesses,” she said in a statement.
“The challenges faced by some retailers are due to other operational issues, not the anti-smuggling efforts.”
While smuggled products such as imported beverages have disappeared from the market, Zimra insists its crackdown is necessary to protect local industries from unfair competition.
“Anti-smuggling operations are about protecting our economy. Businesses must operate within the confines of the law to avoid disruptions,” Chinamasa said.
A number of retail outlets are facing viability challenges, with many failing to restock as a result of the prevailing harsh economic climate.
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In a statement last week, OK Zimbabwe admitted the crisis facing the sector.
“We are actively engaged with our suppliers and key stakeholders, including industry associations and regulators to restore supplies to normal levels while working on solutions that stabilise the trading environment,” the retailer said.
Choppies Zimbabwe last year announced that it was pulling out of the country as its local subsidiary had become a financial burden on the group’s financials.
A number of buildings have been turned into mini tuckshops, competing with large retail shops.
Zimbabwe’s formal sector players, particularly retailers, have been lamenting unfair competition from informal sector operators, who sell smuggled goods and evade taxes.
