Government acts on prices

A CABINET committee has been set up to investigate the latest spate of basic commodity
price increases as Government moves to ensure corrective measures are taken to protect
consumers.

The intervention follows an outcry by consumers who say they are being pushed to the
receiving end by a wave of unjustified price increases that pushed the cost of living up by
11 percent in April, according to ZimStat.

Government has also rebuked some unscrupulous traders, mainly in the informal sector,
for demanding payment for goods and services exclusively in foreign currency, a practice
that violates the dual currency regulations and is leading to artificial shortages of some
items in shops

Prof Mthuli Ncube
Cabinet has since appointed Industry and Commerce Minister, Dr Sekai Nzenza; Finance
and Economic Development Minister, Professor Mthuli Ncube, and Information
Communication Technology, Postal and Courier Services, Dr Jenfan Muswere to lead the
committee tasked with addressing the pricing distortions.

Yesterday Dr Nzenza briefed Cabinet on the pricing concerns for basic food supplies, and
extensive deliberations were made, said Information, Publicity and Broadcasting
Services Minister, Senator Monica Mutsvangwa while briefing the media after the
Cabinet meeting in Harare.

She said the committee will make recommendations to Cabinet on action to be taken.    
Minister Jenfan Muswere
“The nation is being informed that Cabinet is concerned by the spiralling prices of the 14
basic goods, especially bread, flour, cooking oil and mealie-meal.
   
“The Minister of Industry and Commerce is already engaging the concerned stakeholders
including manufacturers, wholesalers, retailers and other associations on the matter,”
said Minister Mutsvangwa.

“Given the urgency of the matter, Cabinet has set up a Committee to quickly investigate,
monitor and make appropriate recommendations to Cabinet with a view to bringing
sanity to the situation.”

She said Dr Nzenza will soon issue an appropriate statement on the matter.
“Cabinet wishes to assure the nation that corrective measures will be taken in order to
protect the transacting public,” she said.

Earlier, Dr Nzenza had said the Government was monitoring the pricing situation and
assured consumers that corrective measures were being taken to protect consumers. She
chided operators who are demanding forex only for frustrating consumers.

“It has come to our attention that some suppliers of basic commodities have been
observed demanding payment exclusively in foreign currency for certain basic
commodities in violation of the dual currency pricing system adopted by the
Government,” she said.

“Furthermore, a few manufacturers of basic goods have been observed selling goods that
are below the prescribed weight and volume and corrective action will always be taken to
protect consumers.”

Government is on record calling upon producers and traders to embrace fair business
practices and treat their customers with dignity in line with the provisions of the
Consumer Protection Act.

As such, Dr Nzenza said the ministry has held frank and fruitful engagements with
manufacturers, suppliers, and retailers of basic commodities over the past week in a bid
to find a lasting solution to the observed matter.

She said all stakeholders concerned are being engaged and are committed to finding a
lasting solution to this situation.

“The ministry, in liaison with relevant arms of Government, continues to advocate for
the availability of foreign currency to productive sectors of the economy and to achieve
macro-economic stability. We also assure the private sector that issues brought forward
in our engagements are being attended to for the benefit of the consumers,” said Dr
Nzenza.

Contacted for comment, Zimbabwe National Chamber of Commerce (ZNCC) president Mr
Mike Kamungeremu said the shortage of foreign currency on formal platforms was
forcing businesses to raise their own through sales so as to keep their businesses
running.

ZNCC
“The response that I am getting on the USD issue is that they are not getting enough
foreign currency from the bank and they are now trying to use their products to generate
the forex that they need to import raw materials and settle local bills that need to be
settled exclusively in USD for example fuel purchases and electricity,” he said.

Confederation of Zimbabwe Retailers president Mr Denford Mutashu has said the
increasing dollarisation of the economy has created a dilemma for traders who are now
forced to pay for goods upfront in United States dollars, thereby frustrating demand for
local currency usage, amid concerns over the recent weakening of the local dollar,
especially on the parallel market. -chronicle