Zimbabwe scrapped rules that made businesses sell goods at official currency rates. The finance minister canceled last year's regulation through a new government notice on Wednesday. The old rule punished sellers who charged prices above the central bank rate. Many large stores struggled because their dollar prices seemed high to shoppers.
People often bought from street vendors instead of regular shops. These informal traders ignored the rules completely. Economist Tinashe Murapata criticized officials for waiting to make this change. He said the delay hurt retail businesses badly. Products smuggled from neighboring South Africa have flooded markets recently.
Local factories operate at half capacity because they cannot compete. The previous law threatened fines for businesses setting their prices differently. Store owners felt trapped between following the rules and losing customers. The unexpected reversal might help formal businesses attract shoppers again. This change comes after months of economic pressure on Zimbabwe retailers.
People often bought from street vendors instead of regular shops. These informal traders ignored the rules completely. Economist Tinashe Murapata criticized officials for waiting to make this change. He said the delay hurt retail businesses badly. Products smuggled from neighboring South Africa have flooded markets recently.
Local factories operate at half capacity because they cannot compete. The previous law threatened fines for businesses setting their prices differently. Store owners felt trapped between following the rules and losing customers. The unexpected reversal might help formal businesses attract shoppers again. This change comes after months of economic pressure on Zimbabwe retailers.
