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HARARE, Zimbabwe — Batsirai Pabwe gathered various items such as detergent, toothpaste, snacks, and some pasta among a range of groceries laid out on the asphalt of a parking lot – a unique night market illuminated by cellphone flashlights and fluorescent lights in Zimbabwe’s capital, Harare.

As the country’s new currency experiences significant volatility, traditional stores are facing immense challenges. Many, like Pabwe, are opting for less expensive informal markets that spring up at night to evade scrutiny from authorities.

From sunset, sidewalks, storefronts, and parking lots transform into improvised open-air markets, showcasing an array of products ranging from groceries and fresh meat to electronics, apparel, medicines, fashion items, and stationery.

These informal vendors, including children, are able to offer better deals since they aren’t burdened by rising costs such as energy prices, taxes, and regulations that mandate formal retailers to accept the local currency at unreasonably low official exchange rates. For example, a box of juice priced at $3 in a supermarket can be found for as little as $1.50 on the streets.

“It’s my first time shopping here. My friend told me that it’s much cheaper than the supermarkets,” 30-year-old Pabwe expressed, visibly relieved as he filled a plastic bag for just $20. “I decided to give it a try and I really enjoyed it.”

In contrast, Pabwe recounted that he managed to purchase only “meat and spices” for the same amount at a supermarket just a week prior, and the offerings were meager.

In April, Zimbabwe introduced a new gold-backed currency called ZiG, short for Zimbabwe Gold, intended to replace its previous currency which suffered extensive depreciation and was often disregarded by the public.

This marks the country’s sixth attempt at introducing a currency since the catastrophic collapse of the Zimbabwe dollar in 2009, which resulted in the U.S. dollar being adopted as legal tender amid hyperinflation peaking at 5 billion percent, one of the worst currency failures globally. The U.S. dollar has since coexisted with successive local currencies.

The launch of the new currency was met with much excitement, highlighted by promotional jingles and songs broadcast repeatedly on public channels.

However, seven months later, the ZiG seems to be failing like its predecessors. The disparity between the official and black market exchange rates continues to grow, prompting many individuals and informal traders, who make up the bulk of the economy, to prefer the more stable U.S. dollar.

Formal stores, compelled by the government to only charge in the local currency, have been forced to raise prices to keep their businesses afloat. Yet, this strategy has rendered them less competitive when placed alongside the unregulated informal markets, according to the Retailers Association of Zimbabwe, which issued a warning in September regarding possible store closures, deeming the situation “clearly untenable.”

In October, Pick n Pay, one of Africa’s leading grocery retailers with over 70 stores in partnership with a local entity in Zimbabwe, declared it had “impaired” its investments in the country “to a book value of zero” due to “deteriorating economic conditions.”

“In every transaction within the formal sector, there is an exchange rate loss that cannot be mitigated. The underlying problem is a currency crisis,” explained Gift Mugano, an economics professor. Excessive operational costs compound the plight of these retailers.

“Everything is stacked against their survival. The informal sector operates at night; if there’s no electricity, they make do with their phones, without any concern. They’re simply surviving,” Mugano added.

The disparity between shopping experiences is evident in Harare’s Central Business District, where only a small number of shoppers could be seen cautiously checking prices in a supermarket. While calming music played above, it was drowned out by the lively atmosphere outside, where street vendors were enthusiastically promoting their low prices to a throng of eager customers.

“Business is booming,” declared Oswald Gari, a vendor who appreciates the law’s night-time leniency. Gari, 51, supports his six children and four nephews through this nighttime trade, with little hope of finding formal employment in a nation where productive industrial sites have turned into extensive venues for imported merchandise—much of which is ultimately sold on the streets, while overgrown rail tracks lie dormant.

According to official statistics from the International Labor Organization, more than 80% of Zimbabwe’s workforce makes a living from the informal sector.

For Pabwe, shopping at the informal night markets results in fewer complications.

“It gets quite confusing, especially for someone like me who struggles with understanding the value of the ZiG. Supermarkets can bewilder me,” he mentioned.

Nonetheless, his experience shopping at the night market was satisfying. “I managed to find everything I wanted at really reasonable prices. I was able to stock up for just $20, including washing powder and dishwashing liquid,” he remarked. “I think this will be my go-to shopping method from now on.”

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