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Zimbabwe’s retail sector is expected to grow by 5.10% in 2025, driven by its potential to flourish if businesses and policymakers effectively address current economic constraints. According to a report by Fincent Securities, the sector’s future expansion depends on navigating challenges such as high financing costs, tight liquidity, unreliable power supply, and excessive taxes and regulatory burdens.
The government is taking steps to alleviate some of these pressures. The Confederation of Zimbabwe Industries (CZI) proposed a 50-70% reduction in licensing fees and charges, while President Emmerson Mnangagwa and Finance Minister Mthuli Ncube have emphasized the need to eliminate unnecessary taxes and regulatory fees that hinder business operations.
The retail and wholesale trade sector has become a key economic driver, contributing approximately 18.8% to Zimbabwe’s gross domestic product (GDP). However, the sector faces a delicate balancing act, contending with the rapid expansion of informal trade while adapting to regulatory and economic reforms.
Despite subdued consumer spending due to stagnant growth in disposable incomes, the retail sector’s outlook remains positive. With the right adaptations and sustained policy support, the sector could continue to grow and play a central role in the broader economy. The government’s efforts to resolve structural issues in the regulatory and tax systems will be crucial in determining the sector’s future growth and success.
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