Economy has great potential: VP Mphoko
Happiness Zengeni and Conrad Mwanawashe
THE economy has great potential to recover as the trend in the retail sector has shown that there is “money” in Zimbabwe, Vice President Phelekezela Mphoko has said.In an interview with The Herald soon after he officially opened Choppies Zimbabwe High Glen in Harare yesterday, VP Mphoko said the economy, though currently experiencing a recession, would recover as it had shown great resilience.
“Yes, the economy has great potential of recovery because as you can see we are pushing volumes. All the Choppies shops are always full showing that there’s money somewhere,” said VP Mphoko.
The Vice President also announced his resignation as chairman of Choppies in light of his new political office. He, however, said the position would remain vacant with the group making use of an ad hoc chairman when necessary.
VP Mphoko said the driving force behind the recovery would be the current empowerment gospel being pushed by Government.
Giving Choppies Zim as an example; VP Mphoko said the retailer was at the forefront of supporting local businesses.
“The retailer tries by all means possible to push for local procurement especially on goods that can be manufactured in the country.
“Choppies Zim has engaged the services of two small bakeries, Triple Fresh and Ocean and have stopped taking bread from the larger companies because if we support the SMEs we give them capacity to grow the business and add to economic revival,” he said.
He added that he would prefer a situation where the ratio of local goods against imported is skewed towards local.
“If we continue buying from South Africa, you are supporting that economy. You need to support the Zimbabwean economy by ensuring that money circulates within its borders.”
Choppies Zimbabwe is a joint venture between listed Choppies Entreprises (Botswana) and the Mphoko family.
It employs over 1 400 people and is one of the largest taxpayers in Bulawayo.
Chief executive Ramachadran Ottappath said there’s potential for the retail business in Zimbabwe considering the size of the population and the prospects the country offers.
Currently, Choppies is operating from rented infrastructure but plans to build own shops once strategic sites are identified. “There’s still room for more players in the retail sector. Once the economy starts picking up the retail sector will turnaround big time,” said Mr Ottappath.
Mr Ottappath said the group has poured in about US$35 million into the 18 stores in Zimbabwe with funds expected to be channelled as 40 more will be opened in the next three years.
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