Are basic goods being diverted to informal markets? Mr Comfort Muchekeza

Nqobile Bhebhe, Senior Business Reporter

BULAWAYO wholesalers and major supermarkets have been accused of diverting basic goods to the informal sector to mop up foreign currency leaving shelves of most supermarkets empty.

This, according to the consumer watchdog, the Consumer Council of Zimbabwe (CCZ), gives an impression that basic goods are in short supply.

Recently, the city has witnessed the sprouting of partitioned shops in several buildings stocked virtually with all basic commodities, which are sold in foreign currency. This leaves consumers without access to foreign currency stranded.

Speaking to Business Chronicle yesterday, CCZ Matabeleland regional manager, Mr Comfort Muchekeza, said they have noted the trend of informal markets stocked with basic goods but not available at major supermarkets.

He said brands of big manufacturers are more easily found in the informal market than in supermarkets. Mr Muchekeza said they suspect that wholesalers and supermarkets were sponsoring some informal traders to mop up foreign currency.

“On Tuesday almost all major supermarkets had no mealie meal, cooking oil, bathing soap and other basic goods on the shelves,” he said.

“However, those products are readily available in the informal market. Every basic commodity is found at the mushrooming partitioned shops and sold in foreign currency.

“Consumers now believe that it’s either wholesalers are supplying small shops with products for resale or major supermarkets are doing that,” said Mr Muchekeza.

He said although they have not instituted investigations, all pointers indicate underhand dealings.

“Currently as CCZ we do not have tangible evidence on this practice but points indicate that wholesalers supply these small shops.

“We believe there is underhand dealing taking place. The sprouting shops are not even licensed. Authorities should look into that,” he said.

On mealie meal shortages, Mr Muchekeza said in conversations with millers on mealie meal shortages, they indicated that they do not have sufficient grain.

He said the situation is expected to normalise before the weekend. Bulawayo Progressive Residents Association ward 27 secretary, Mr Crispen Ndlovu, said the scarcity of basic goods in the formal market was having a strain on consumers who have no access to foreign currency.

He said some consumers are now forced to resort to the parallel market to buy foreign currency in order to buy basic commodities in the informal market.

“We have noticed that cooking oil is far cheaper in the informal market than at supermarkets.  We appeal to the Government to intervene and control prices of basic goods to be affordable to everyone,” said Mr Ndlovu.

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