The Zimbabwe National Chamber of Commerce (ZNCC) says the current liquidity challenges and the low use of plastic money in Gwanda has seen businesses hitting an all time low with others subsequently closing down.
Most businesses in Gwanda town rely mainly on customers from the rural areas who come to the urban centre to buy goods and access various services.
However, the current cash shortages that have seen the banking public from remote areas continue to spend days outside banks as they have not embraced the use of plastic money, has dealt a major blow to the SMEs sector.
ZNCC national executive member, Mr Nqobizitha Sibanda said with low sales and the burden of monthly financial obligations, some business people have been left with no choice but to close shop while others are in serious debt as they cannot service bank loans they acquired to recapitalise their business ventures.
The Gwanda business community has called for an increase in point of sale machines (POS) distribution so as to boost the revenue inflows of business entities.