Zim retailers still look to South Africa for stock

Although most of Zimbabwe's imports from South Africa are through third party suppliers, retailers are still enjoying a 30-day credit window, which is more favourable than the 14-day credit facility available from domestic suppliers.

Retail giant, OK Zimbabwe's CEO, Willard Zireva, said in a recent review of operations that they were likely to be “reliant on imports for some time.”

OK Zimbabwe is talking to an unidentified South African retailer to help it handle competition posed by peers propped up by South African shareholders who have been able to organise direct credit facilities for them.

Pick n Pay has helped TM Supermarkets, in which it has a 25% stake, with both capital and imports, while Tiger Foods is backing up National Foods and retail and fast foods giant, Innscor Africa in Zimbabwe. Innscor controls nearly 70 Spar outlets in the country.

Massmart Holdings has also helped restock its Makro Zimbabwe operations, as has Metcash South Africa, which is invested Jaggers Trading as well as the growing Friendly supermarket chain.

Clothing retailers Truworths and Edgars are also stocking up with support from their parent companies in South Africa, lowering the risk of non-credit purchases from the country.