‘Price controls risk further shortages’
Economists warned of worse shortages of basic commodities and an expanding parallel currency market as the Zimbabwean government mulls plans for new price controls across all sectors of production, to take effect within the next weeks. President Robert Mugabe has hinted at the introduction of a new price control structure, which includes fuel, to curb what he termed “price increase madness” by producers, wholesalers and retailers.
Addressing thousands of Zanu-PF supporters soon after landing at Harare International Airport from the United Nations General Assembly, Mugabe said his government would deal with the issue in just two days.
“How can we have shortages of cooking oil and massive price hikes, all this happening while I was away? These are saboteurs, who want to cause panic against the government, so that people can riot against us, but our people are clever. They will not be swayed in that way. This is not an issue you should worry yourselves over. We will deal with it in just two days,” he said.
Mugabe ‘s speech coincided with a statement purported to be from the National Competitiveness Commission (NCC), chaired by renowned business leader Kumbirai Katsande, warning of a crackdown on prices.
The statement said: “Please be advised that the NCC Board has dispatched a taskforce to assess and inquire on pricing nationwide.
“Numbers of the officers are expected to increase as the week goes by as part of government ‘s efforts to cover every part of the country.
“Retailers who may be found wanting will have their licences terminated with immediate effect.”
But Katsande said: “It did not originate from us. In fact, we are just settling in and putting things in place. We have not even started work yet.”
Economists told the Daily News the mooted price control regime would precipitate a shortage of basic commodities on a larger scale than experienced before, because only a few producers are able to supply the market at controlled prices and the majority may stop production.
Economist Kingston Khanyile said: “We are entering into the inglorious sphere of hyperinflation. It is a world of economic chaos, wrenching poverty and financial commotion.–b24
