PHILLIMON MHLANGA
Government has intensified crackdown on private businesses it considered “sabotaging the economy” to curb the rising prices of goods nationwide.
Rocketing prices have given the government a serious headache over the past two weeks, which said there was no legitimate reason for the unprecedented price hikes.
Consequently, President Emmerson Mnangagwa’s administration has tasked the Ministry of Industry and Commerce to keep an eye on the private sector.
Business Times can report that the Ministry of Industry and Commerce is currently conducting an enforcement blitz. Government is also expediting the amendment of the Competition and Tariff Act as well as drafting consumer protection regulations to come up with enforcement mechanisms to address unfair business practices.
The crackdown comes as prices of basic commodities this week rocketed beyond the reach of many Zimbabweans.
A survey conducted by Business Times yesterday shows that the price of a 2 litres cooking oil has shot up to ZWL$8 499.99 from ZWL$4 749.99 two weeks ago while bread was yesterday selling at ZWL$1 739.99 from ZWL$1 399.99.
A 2 litre Mazoe drink is now selling at ZWL$9 399.99 from ZWL$4 149.99 two weeks ago.
A 10kg roller meal was yesterday selling at ZWL$12 639.99 from ZWL$6 999.99 two weeks ago while a 2kg pack of rice and bar of soap were yesterday selling at between ZWL$5 799.99 and ZWL$11 199.99 and ZWL$2 849.99 from ZWL$ZWL$2 199.99 and ZWL$3 899.99 respectively.
A kg of beef has jumped to between ZWL$16 999.99 and ZWL$21 999.99 from ZWL$6 899.99 while a 2kg pack of chicken has soared to ZWL$18 999.99 from ZWL$6 899.99 two weeks ago.
Information Minister Monica Mutsvangwa told a post Cabinet briefing on Tuesday that an investigation has shown that prices in the formal retail sector are relatively high in both US$ and ZWL$ terms and are thus an “indicative of speculative and forward pricing”.
“The Consumer Protection Commission is creating a hotline that will receive and respond to complaints from consumers to mitigate against unfair trading practices in the market. “Government is increasing the enforcement against the collusion on pricing by the Competition and Tariff Commission so that they quickly address the unfair business practices which have become rampant in the economy.
She said the Ministry of Industry and Commerce was preparing to conduct an evidence based research within seven days in collaboration with the National Competitiveness Commission, Competition and Tariff Commission and the Consumer Protection Commission and all other relevant stakeholders with the ultimate goal of ensuring that consumers continue to access basic commodities at affordable prices.
Mutsvangwa said the Ministry of Industry and Commerce would expedite the amendment of the Competition and Tariff Act and the drafting of the Consumer Protection Regulations in order to come up with enforcement mechanisms to address the unfair business practices in the economy.
The spike in prices has seen the government suspending import duty on 14 basic products. The suspension is valid for a period of six months.
