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Tinashe Makichi : Business Reporter

The retail industry has thrown its weight behind the Reserve Bank of Zimbabwe’s proposed introduction of bond notes on the local market. The RBZ recently announced the impending introduction of bond notes on the local market as a measure to reward exporters and in the process curb illicit financial flows. Retailers however, implored Government to provide assurance that the RBZ will not end up printing more bond notes exceeding what is prescribedunder the $200 million Afreximbank facility.

Speaking on the sidelines of the Zimbabwe International Retailers Summit yesterday, Confederation Of Zimbabwe Retailers president Denford Mutashu said the retail sector is ready to accommodate bond notes because they are aware of the purpose that the notes intend to serve.

“We are going to accommodate the bond notes and we know the purpose that they are going to serve in that they will ease the current cash shortages on the market and also stimulate economic activity.

“If that $200 million from Afreximbank had been injected straight into the economy it will still find its way out the same way that the other facilities have done,” said Mr Mutashu.

“What we want from Government is assurance that the Reserve Bank governor is definitely not going print more than the $200 million Afreximbank facility and those are the fears coming from the retail industry and the general public,” he said.

He said capital flight has been an issue that not only affected the ordinary people but retailers at a larger scale.

Parliamentary Potfolio Committee on Finance and Economic Development member Terence Mukupe who made a presentation at the summit on externalisation of funds by the retail sector said the sector has a role to play in plugging the externalisation of funds through importing unnecessary goods.

He said it was quite surprising that some of the biggest retailers in the country do not have point of sale machines.

“A number of retail shops in the country are externalising money to other countries since they don’t have a point of sale where people can use plastic money.

“Their products are only bought with cash and we don’t know where they are banking their money because when you ask for a cash back it is a night mare for you to get one,” said MP Mukupe.

He said a total of $50 million has been externalised so far this year alone through different activities such as the importation of goods while the country is experiencing a cash deficit of $800 million.

Meanwhile the Ministry of Industry has called on the retail sector to streamline and organise its system in order for Government to formulate necessary policies to boost the sector.

Industry and Commerce Minister Mike Bimha made the remarks while officially opening the conference yesterday.

“As Government we are concerned with the lack of order in the retailer sector. We no longer know who is a retailer or who is a manufacturer. There are so many middlemen across the chain and it is difficult for Government to come up with policies that assist business,” said Minister Bimha.

The Summit was running under the theme, “Zimbabwe’s Retail Opportunities for Accelerated Economic Growth.”