Embrace Bond Notes, Retailers Boss Urges Members

By Staff Reporter

Harare, June 14, 2016 – CONFEDERATION of Zimbabwe Retailers (CZR) president Denford Mutashu has urged Zimbabwean retailers to embrace bond notes due to be introduced into the economy October this year by the Reserve Bank of Zimbabwe (RBZ).

Mangudya announced the introduction of bond notes to ease the liquidity crunch currently affecting the country.

But Zimbabweans still with fresh memories of the 2003 – 2008 hyperinflationary period are skeptical about the move.

Retailers are among the businesses that are mopping up scarce cash everyday due to their cash based nature of their businesses.

But monetary authorities say there is little trickling into the formal banking system raising suspicion the cash was being stashed somewhere and used for speculative purposes.

“The Confederation of Zimbabwe Retailers (CZR) urges all well meaning retailers to accept the bond notes as soon as they are unveiled by the RBZ governor because they will ease the cash shortages and also it incentivise exports,” said Mutashu said in an interview with RadioVOP.

Panic cash withdrawals and queues have now characterised most banking halls as people fear the introduction of bond notes was an indirect way of reintroducing the now defunct Zimbabwean dollar.

Mutashu also encouraged retailers to use promote the use of plastic money so as to allow the money to circulate within the local banking system.

“I also urge retailers to embrace the use of plastic money,” he said, adding his organisation had met the RBZ boss where they raised concern on some aspects around the performance of the economy.

He said in their meeting with Mangudya last week, they had raised the issue of the country’s high import bill and the low exports since 1999 saying they was need to incentivise small businesses.

“There is need to incentivise the small scale artisan miners and ensuring that tobacco farmers just like all well meaning retailers are incentivised,” he added.

Mutashu also discouraged small business operators against keeping their money outside banks, further urging them to pay taxes.

“It’s a very bad practice (keeping money at home), be it a tuck-shop owner, they need to start opening bank accounts. They need to start opening bank accounts and operating within the law. This is something that they must embrace because the RBZ Act requires every trader to open an account, it’s actually international practice,” added the business leader.

Mutashu said small retailers should be made to pay tax as avoiding to do so would lead them worsen the culture of tax evasion.

He said his organisation was concerned about the cost of doing business and licensing in the country.

“We are lobbying for the cost of doing business in the retail and local manufacturing sector. Even the issuing of licences for example the City of Harare has set $US530 for those that want a licence, it then scares away some of those that want to formalise their businesses,” he said.