Formal Traders Struggle Amidst Competition from Informal Sector

Formal traders in Zimbabwe are grappling with increased competition from informal traders, whose operations are not subject to the same taxes and regulatory obligations.

This imbalance has left formal businesses struggling to maintain profitability, as informal traders can offer lower prices without the burden of compliance costs.

At the recent Consignment-Based Conformity Assessment (CBCA) stakeholders’ workshop in Bulawayo, the Minister of Industry and Commerce, Hon Nqobizitha Mangaliso Ndlhovu, highlighted the government’s commitment to tackling illegal trade, particularly at the nation’s borders.

He called for greater support from communities to help curb informal trading practices that undermine formal businesses.

The workshop also addressed broader issues affecting the commerce sector, such as counterfeiting and unfair competition. Stakeholders emphasized the importance of fostering transparency and improving trade and investment relations to support the growth of formal enterprises and ensure a level playing field.