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Zimbabwe’s retail sector could achieve growth rates between 5% and 10%, depending on how effectively industry players and policymakers respond to ongoing economic pressures, particularly the rise of informal trade.
This is according to the latest Zimbabwe Retail Sector Report by Fincent Securities, a leading stockbroking and research firm, which underscores the urgent need for adaptive strategies to drive economic growth, enhance financial stability, and uplift citizen livelihoods.
Key challenges hampering growth include high financing costs, limited liquidity, unreliable power supply, a complex tax regime, and excessive regulatory requirements. The Government has acknowledged these barriers and is working to address them.
Earlier this year, the Confederation of Zimbabwe Industries (CZI) proposed a Presidential directive to reduce licensing fees and administrative costs by 50–70% by mid-2025. President Emmerson Mnangagwa echoed this sentiment, urging ministries and regulatory bodies to make compliance more business-friendly rather than restrictive.
Finance Minister Mthuli Ncube followed up in March by announcing a comprehensive overhaul of the tax and regulatory framework to eliminate redundant fees that stifle enterprise.
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Despite persistent economic challenges, Fincent Securities remains cautiously optimistic. The firm notes that the retail and wholesale trade sector has become a key economic contributor, accounting for approximately 18.8% of Zimbabwe’s GDP. However, the rapid expansion of informal trading continues to undermine the formal retail space.
Looking ahead to 2025, consumer spending is expected to stay subdued due to stagnant income levels. Households will continue prioritising essentials such as food, housing, and transportation, leaving little room for discretionary purchases.
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