An assessment of the impact of de-dollarisation on business performance in a hyper inflationary environment in Zimbabwe: A case study of the retail sector in Harare

Abstract

The primary objective of the study was to assess the impact of de-dollarisation on business performance in Zimbabwe. The research focused on the retail sector in Harare as a case study. The study used the quantitative approach as it enabled the researcher to quantify the effect of de-dollarisation on business performance. A sample size of 250 employees was used to enable generalization of results. The participants were drawn from the big players in the retail sector. Data was analysed using the Statistical Packages for Social Sciences v20. The study revealed that business operations have been affected negatively by the de-dollarisation process. It also discovered that pricing of goods has been affected by inflation and an unstable exchange rate system as businesses have to charge higher prices to hedge against losses. Shortage of foreign currency has been observed to have also affected business operations as they have to import goods from outside our borders as local manufactures are operating below capacity. Strategies to overcome the impact of de-dollarisation were also discussed and these include having consistent policies to boost confidence from the public and business community, development of credible monetary and exchange rate framework, promotion of exports and building of synergies to create value. The retail sector can also invest in marketing and advertising activities. The study concluded that de-dollarisation impacts negatively on business performance and provided areas for further studies to cover other sectors of the economy and its effect on national income, economic growth and economic development.