LIVINGSTONE MARUFU
The cash-strapped government will subsidise various basics in order to make goods affordable amid revelations that prices have remained high despite a directive to roll back prices to March 25 levels.
Last week, the government said it had reached an agreement with millers, oil expressers and bakers for prices to revert to those obtaining on March as it moved to cushion consumers under the lockdown period.
In a snap survey conducted by this publication prices of basic commodities were still high and in some cases some products such as cooking oil, mealie meal and sugar were in short supply.
At Pick ‘n’ pay supermarket, a 2kg packet of sugar was going for ZWL$70 and 2 litres was going for ZWL$159, limiting customers to only two packets per customer, but even then, it quickly finished.
The price freeze was implemented following engagement by the Ministry of Industry and Commerce and various players in the value chain.
“From the meetings we have had since Monday, retailers are arguing that they can’t reduce price to March 25 levels as manufacturers have since spiked their prices and are reluctant to go down without any form of payment from the authorities,” an industry source said.
“Hence the government has so far promised to pay suppliers and all those in the value chain and we can see the retailers starting to adjust prices.
Without that prices are not going to go down.”
Since Monday this week, Reserve Bank of Zimbabwe, treasury, Industry and Commerce officials, retailers, consumers and manufacturers were discussing the best way possible to contain price increases that continue to spike.
Confederation of Zimbabwe Retailers president Denford Mutashu confirmed the meetings but could not be drawn into revealing more.
“We are engaged in a series of meetings since Monday and we are at the final stages of mapping out the implementation strategy. We are happy that all parties have reached agreement and we hope for better things to come from this week going forward,” Mutashu said yesterday.
Last week, Mutashu said all parties will continue to carry out the same spirit under the arrangement. He said the price freeze would be achieved in the shortest possible time.
Mutashu said consumers should desist from hoarding of basic commodities as it puts retailers under unnecessary pressure to continuously restock.
Oil Expressers Association of Zimbabwe president Busisa Moyo said the sub sector was waiting for the conclusion of the negotiations “so that we can charge our prices according to agreements laid down at the negotiation table”.
“On March 25, soyabeans which is the main source of cooking oil production were going for ZWL$17 000 per tonne and now it’s now going for over ZWL$22 000 and we can’t reduce cooking oil prices without a tangible agreement.
Now that there was a positive meeting we will act accordingly,” Moyo said. Confederation of Zimbabwe Industries president Henry Ruzvidzo declined to comment on the issue.
Last week Finance and Economic Development minister Mthuli Ncube said it was important for government and the private sector to reach a consensus on prices and tame inflation.
“We don’t want inflation to run away so we are really looking towards business to support us to work together to make sure that prices remain under control as we go through this difficult time.
It’s not price control, its moral suasion; it’s a gentlemen’s agreement,” Ncube said.
He said the new arrangement will not result in shortages of basic commodities.
