They say when one sector of the economy suffers, this presents an opportunity for another sector to grow. This truly seems to be the case when one looks at the commodities retail industry in Zimbabwe. The major retail outlets like OK, TM and Choppies have found it hard to keep some basic commodities like cooking oil and mazoe stocked on their shelves. However these products can now be found in abundance on the streets and in small shops, leading one to believe that small business are benefiting from the current commodity shortages that have hit the country. One major reason why this could be the case is that individuals and small companies are now finding it easy to bring in basic commodities through the border. This comes at the wake of government having indefinitely amended the Statutory Instrument 122 of 2017 (SI 122) that had previously been put in place to protect the local industry.
In light of the unjustified hiking of prices of basic commodities in the market, government saw it fit to open up the gates so as to bring in competition with the hope that normalcy would creep in soon. This move is also meant to put an end to the hoarding of goods as customers engage in panic and speculative buying. Small-to-Medium Enterprises (SMEs) should take advantage of this amendment and see it as an opportunity to supply the main retailers in the country with basic commodities.
Speaking at an SME`s solution indaba held recently, these sentiments were echoed by the Minister of Women Affairs, Community Small and Medium Enterprise Development Sithembiso Nyoni who told players in the SMEs sector to take advantage of this current situation to grow their business and that there was a need for more players in the market. She however warned them against the illegal hiking of prices as there was bound to be a temptation for them to take advantage of the situation and do that.
The government hopes now that goods will be freely imported by companies and individuals using their free or offshore funds, there will be less pressure on the central bank for foreign currency. The goods will also pay duty hence this means a new line of revenue will has been created by the government. SMEs should fully take advantage of this amendment and use it as an opportunity to grow and hopefully move from being small to being big companies that will create employment for many people in the future.
This also creates opportunity for SMEs to start new local manufacturing companies to provide goods which are in shortage. Most of the raw materials used to manufacture goods which are in shortage like Mazoe can be found locally. The shortage of the popular brand, Mazoe Orange Crush, present an opportunity for a new brand to take over the market.
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