Business Reporter
THE Confederation of Zimbabwe Retailers (CZR) has slammed utterances made by the Confederation of Zimbabwe Industries (CZI) regarding the Zim$ weaknesses urging the latter to use the set channels for dialogue and engagement with the central bank.
The retailers group was responding to a press statement issued by the CZI over the weekend claiming that the Zim$ was facing serious challenges amid calls for the Reserve Bank of Zimbabwe (RBZ) to immediately close the foreign exchange auction system among other demands.
Despite an effort by the central bank to clear the air after explaining the positive impact brought about by the auction system as well as the need to adhere to the ongoing process of implementing the Zim$ for the long term good of the economy , the industry group proceeded to hit back maintaining their earlier position.
Adding a voice on the matter this week, CZR president Denford Mutashu hinted that industry must not bypass the already existing platforms for dialogue in pursuit of achieving economic stability.
“It is critical to note that business and the government have been engaging cordially behind closed doors via several platforms. For the record, the Dutch Auction system should be sustained and strengthened,” he said.
Mutashu said just two weeks back, government created a platform where all business stakeholders met with the Minister of Finance and Economic Development Prof. Mthuli Ncube, and proffered a number of solutions that the government undertook to resolve.
He said beginning October 2021, RBZ governor John Mangudya also created yet another platform where all stakeholders representing businesses meet to discuss the state of the economy, with a follow-up meeting taking place in March 2022 and are due to meet in the coming weeks.
CZR said the positives achieved as a result of the broad economic policies by the government cannot be underestimated as statistics show that the importation of capital goods, raw materials, and essential goods like drugs, and medicines among others increased as a direct contribution of the auction system.
The retailers group said capacity utilisation grew from a mere 34% to the current 65% while shelf space for locally manufactured commodities rose to more than 70% as the country eliminated basic goods shortages through the auction market.
Mutashu said there is need to appreciate threats posed by the forex parallel market exchange rate, local and imported inflation, structural concerns, and depreciation of the local currency and the need from the auction market to continue its role as a stabilising agent and ensure protection of consumers.
“Destabilizing the auction market as well as calling for its outright disbandment amidst global disruptions in the supply chains and constrained crude oil movement arising from the ongoing Russia-Ukraine war will be the greatest disservice to the people of Zimbabwe,” added Mutashu.
