The Sunday Mail
Business Reporters
The prevailing economic stability, following a series of effective policy interventions by the Government, has boosted festive shopping, with greater spending being evident in many shops around the city.
A snap survey by The Sunday Mail Business established that activity has mainly been concentrated in clothing, gifts, liquor and food products.
While the economy went through a tough episode during the first half of the year, characterised by inflation and an exchange rate spiral, which were eroding the purchasing power of the local currency, a coterie of policy measures by the Government has managed to stabilise the economy, bringing back smiles to the faces of many a consumer.
The Reserve Bank of Zimbabwe more than doubled the key policy rate to a record 200 percent to curb speculative borrowing, while Treasury suspended payments to Government contractors accused of manipulating the currency.
The introduction of gold coins by the central bank to mop up excess liquidity has resulted in inflation easing, black market exchange rates stabilising, and restoring confidence in the Zimbabwe dollar.
Further, the widening of tax-free thresholds for normal incomes and bonuses and part payment of the thirteenth cheque to civil servants, including in foreign currency, and other workers in private employment, boosted spending for many Zimbabweans.
In central Harare, scores of people could be seen frantically running around, carrying shopping bags full of groceries, clothes and other festive season goodies, while activity at some downtown shops resembled “Black Friday” shopping stampedes.
Informal sector businesses had their own fair of festive season shopping proceeds.
“People are spending big,” Ms Rudo Kurai, a shop owner in Harare’s busy Mbuya Nehanda Street, said.
“The shopping activity this time is incredible. Because of the stability, we are accepting all currencies, including mobile money.”
A clothing vendor at a flea market on Chinhoyi Street said she recently had to travel to South Africa twice a week to replenish her stock due to high demand.
“It has been a very hectic period, traveling to Messina twice a week to get more stuff,” Ms Pelagia Gwatidzo said.
“We can’t complain; we are enjoying good business.”
There has also been a hive of activity at retail outlets selling school uniforms.
“I will enjoy my holidays better knowing that I have bought some school uniforms for my kids,” Ms Gertrude Porai, a mother of two, told The Sunday Mail Business.
“There is stability now but, of course, who knows what the situation will be tomorrow?”
Consumers have been spreading out their spending to include Christmas gifts.
Retailers of various goods such as groceries, fast foods, clothing, school merchandise and toys have stepped in to entice the market with festive season discounts.
Edgars retail outlets have been offering discounts on clothes for women, men and children, while account purchases added to the cheer.
Personal beauty and care businesses would not be left outdone during this season, as salons and barber shops around Harare’s central business district (CBD) also saw a hive of activity.
“Business is good. I have been getting new clients since the beginning of this week,” said Ms Yeukai Nkomo, a beauty therapist on Chinhoyi Street.
It has also been a good season for transport operators ferrying both long-distance travellers and urban commuters. Long-distance bus drivers and conductors who spoke to this publication said the holiday season was good for their business.
“This time we increase fares. We can even double because demand is high due to the holidays. It’s our chance to make money and travellers have no option because they want to be with their families or friends in the rural areas,” said Mr Musabayana Gondo, who works for a long-distance bus company.
Money transfer agents have also recorded brisk business, with long-winding queues being seen at Mukuru, Innbucks, Western Union and bank ATMs, as people made the last-minute rush to collect money for shopping.
With the excitement that characterises the festive season, some unscrupulous individuals have taken advantage of the increased traffic in the city to engage in illegal activities such as vending on pavements.
Traffic offences by illegal mishikashika operators increased, while trade in fake banknotes by money changers became rampant.
However, police officers have been vigilant in attempting to control traffic to avoid jams. They have been on the lookout for any traffic offences, while the municipal police have been seen engaging in running battles with illegal vendors in the CBD.
