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Oliver Kazunga, Senior Business Reporter
THE Bulawayo United Residents’ Association (Bura) has written to the Competition and Tariff Commission seeking audience over price increases by retailers in the city on products produced by the millers.
In July this year, the Grain Millers’ Association of Zimbabwe (GMAZ) suspended its price monitoring programme and terminated contracts for 200 monitors after the Competition and Tariff Commission (CTC) condemned the initiative as restrictive.
According to a letter addressed to the CTC director Ms Ellen Ruparanganda dated October 14, 2019, Bura said: “We are aware that your commission recently made a decision to stop industry self-price regulation initiatives by GMAZ which were meant to protect consumers from unjustified price increases of maize meal.
“We, therefore, invite your commission to address Bulawayo residents on the 19th of October 2019, on these important national issues,” reads part of the letter.
Following its meeting with residents held in Mpopoma high density suburb on September 29, Bura said it had been tasked by residents to approach Government and inquire how residents could be protected against unrealistic price hikes of basic commodities, mainly maize meal.
Efforts to get a comment from Ms Ruparanganda were fruitless yesterday as her number was not reachable.
The CTC banned the setting of recommended price ranges within which retailers or wholesalers must trade their goods or services citing fears of a possibility of some producers colluding to increase the cost of products under the disguise of setting recommended price ranges.
At the time, the commission said while the practice seems to be aimed at cushioning consumers from likely exploitation by unscrupulous retailers, this was in violation of the Competition Act (Chapter 14:28), which gives the commission the mandate to promote and maintain fair competition in all sectors of the economy.
“While the initiative is deemed noble by consumers however, from the commission’s perspective such an initiative can be used as a platform of operationalising a cartel — the worst evil of all conducts in competition policy law and enforcement circles,” said the commission then.
Meanwhile, according to a survey conducted by an independent consultant, NHMK Capital, prices of goods and services in the country are pegged at an average 50 percent above those obtaining in South Africa.
This was despite relative convergence between the rand and the local unit on the interbank market over the last month.
While wages and fuel, which are the biggest contributors to production costs, are lower in Zimbabwe compared to the neighbouring country, local goods and services are priced exorbitantly higher than in South Africa.
Cabinet has of late expressed concern over the tendency by some businesses to wantonly increase prices of commodities. — @okazunga
Online Reporter