ZINARA, ZERA, ZETDC Blamed for Basic Goods Price Hike

Industrialists have blamed price increases of basic goods seen over the past few weeks on the general increase in rates and fees since October last year.

Confederation of Zimbabwe Industries (CZI) president Henry Ruzvidzo said the fact that council rates, tollgates fees, electricity tariffs, and fuel prices have all been going up means consumers will naturally see general price increases. He said:

This is as a result of a number of things. What happens is that a number of things (rates and fee increases) happen over a period time and that builds towards price increases, for example, the price of fuel has just gone up, but it is only an isolated factor, but companies build the price increase into their product prices.

What consumers eventually see are general price increases. For instance, we had price increases for electricity twice in October and November (last year); council rates went up, ZINARA rates went up, and electricity tariffs were adjusted (once) again.

I am not saying this everything that caused the price increases, but these factors contributed to the price increases.

The exchange rate from the auction has been stable, but the parallel market rate, where some manufacturers get forex, has been going up, that also contributes.

The Zimbabwe National Road Administration (ZINARA), the Zimbabwe Energy Regulatory Authority 8ZERA) as well as the Zimbabwe Electricity Transmission and Distribution (ZETDC) all hiked fees and rates recently and this usually has a knock-on effect on the prices of basic goods.

More: The Herald