Online Reporter
Michael Tome
Business Reporter
NATIONAL Bakers Association of Zimbabwe has assured consumers that bread prices will remain stable, contrary to unfounded reports on social media and other platforms suggesting an imminent price increase.
NBAZ noted that the circumstances that would have triggered bread price increases had long been resolved.
The unsupported social media reports suggested that bakers plan to raise the retail prices of bread by US$1 if millers decide to elevate flour prices.
According to the reports, the Grain Millers Association of Zimbabwe (GMAZ) had proposed to raise the price of bread flour by four percent, which would require bakers to absorb further input cost hikes without jeopardising business viability.
Flour accounts for about 43 percent of total bread‑production costs and the proposed flour increase would add two cents to the cost of a standard loaf.
NBAZ president Mr Elvis Ncube said recent engagements with millers, the Ministry of Industry and Commerce, and the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development had resolved issues that could have triggered price adjustments.
“The Agricultural Marketing Authority (AMA) has since clarified Statutory Instrument 87 and published the import parity differentials that are supposed to be paid by grain importers. As a result, there will not be any bread price increase unless there are other significant changes to our cost structures,” said Mr Ncube.
The association, however, appealed to the Government to review the current tax framework on bread by reclassifying Value Added Tax (VAT) from tax exempt to zero-rated, as this would enable bakers to claim input VAT and help stabilise production costs.
“As the NBAZ, we plead with the Government to consider reclassifying VAT for bread to be zero-rated instead of tax exempt, such that bakers can claim input costs,” he said.
NBAZ also expressed appreciation to the Government for maintaining policies that promote economic stability and consumer welfare.
“We take this opportunity to thank the Government for the economically friendly policies that are going a long way in ensuring basic commodities remain available and affordable to consumers.”
The assurance comes at a time when Zimbabwe’s inflationary pressures have eased significantly, supported by improved policy coordination and stability in the exchange rate, offering relief to both businesses and consumers in the food sector.
Bread is Zimbabwe’s second‑most important staple after maize meal and remains a daily essential in most urban households.
NBAZ noted that the industry had endured heavy cost pressures since January 2024, especially after the Government shifted bread from zero‑rated to tax‑exempt under VAT rules, blocking bakers from claiming input‑tax refunds and squeezing already thin margins.
Although fuel, packaging, electricity, and distribution expenses have kept increasing and bakers have managed to hold the wholesale price steady throughout most of 2024 and 2025.
