Zimbabwe is steadily transforming into a nation dominated by boutiques and spaza shops, as authorities look on with passive detachment.
A drive through major cities reveals a troubling trend: once thriving formal businesses have either collapsed or downsized significantly. Their spacious commercial hubs have been carved into cramped stalls, now occupied by boutiques selling imported clothing and informal grocery shops stocked with foreign goods. This shift from formal, large-scale commerce to informal trading is more than a cosmetic change. It signals a deeper economic decline that threatens the nation’s long term industrial viability.
The situation is more pronounced in industrial zones, where factories that once roared with heavy machinery — producing goods for domestic use and export — have been converted into storage hubs for plastic products, owned largely by Chinese businessmen.
A visit to Harare’s Graniteside Industrial Area tells the story starkly. Warehouses once filled with productive equipment and workers are now stacked with cheap, sub-standard products. This deindustrialisation is not just worrying — it is a national emergency. Left unaddressed, Zimbabwe risks becoming a mere distribution point for foreign goods, lacking a productive base to support its economy.
The surge in imported goods — especially non-essential items such as low quality plastics and second-hand clothing — reflects a dangerous over reliance on foreign markets. Other nations dump their inferior products in Zimbabwe, extract every available dollar, and leave behind little to no reciprocal trade value. This imbalance undermines local industry, stifles innovation, and erodes the country’s competitiveness in both regional and global markets.
With the African Continental Free Trade Area gaining momentum, Zimbabwe should be positioning itself as a serious player in manufacturing and value-addition. Yet, the country is moving in the opposite direction — forsaking its industrial potential for a retail-driven economy reliant on foreign goods.
How can Zimbabwe expect to compete with economies such as South Africa, Nigeria, or Egypt when its own factories lie idle, replaced by makeshift shops selling imported wares?
One of the key enablers of this trend is Zimbabwe’s continued dependence on the United States dollar. Dollarisation has opened the floodgates for foreign traders, who exploit a stable currency to repatriate profits without facing exchange rate risks. Meanwhile, local manufacturers — burdened with dollar-based costs — struggle to acquire raw materials, pay workers, and remain competitive, while catering to a consumer base with limited spending power.
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The recent introduction of the Zimbabwe Gold (ZiG) currency presents an opportunity to restore monetary sovereignty. But success depends on strict enforcement and strategic rollout. Fuel purchases, government services, and high-value transactions should be conducted in ZiG to build credibility and drive demand for the local currency.
Without deliberate, robust policy measures to support the ZiG and restrain unchecked dollarisation, Zimbabwe’s economy will remain exposed and dominated by foreign traders.
