Consumers on price freeze

Mashudu Netsianda and Nqobile Tshili, Chronicle Reporters
RETAILERS and consumers have embraced Government’s decision to freeze prices of essential goods at levels that were obtaining on March 25.

Multi-sectoral stakeholders committed to the moratorium which will apply to all value chain players and is supported by a Cabinet decision of April 21.

This follows recent steep increases in prices of basic goods, including bread, super-refined maize-meal, cooking oil, flour and sugar.

The consumers’ council, businesses and workers’ unions welcomed the freeze, saying it addresses the plight of the majority of Zimbabweans.

Consumer Council of Zimbabwe southern region manager Mr Comfort Muchekeza, said the development is different from the price controls of the mid 2000s which led to a catastrophic shortage of basic commodities in shops.

“Unlike in 2006-2007 where it was not negotiated, as the Government just came up with that decision, I understand even the business community, the manufacturers and retailers sat down and agreed on the pricing this time. As we have been saying, there were no fundamentals that necessitated price increases save for speculation since the people know that we are in lockdown,” he said.

Zimbabwe Teachers Association chief executive officer Dr Sifiso Ndlovu said the engagement between Government and the private sector was commendable as it protects workers.

Dr Ndlovu said prices of basic commodities needed to be tamed.

“Incomes have not been increased in line with prices that are increasing. Therefore, the price madness must find some sanitisation in the form of control. If that control cannot come as a result of self-discipline, then it has to be imposed by regulations and that will give relief to consumers. It is in itself a consumer protection strategy that we are welcoming as workers because most workers have had salary cuts or have lost jobs,” he said.

Confederation of Zimbabwe Retailers Association (CZRA) president Mr Denford Mutashu said the decision is not an imposition from Government but an inclusive decision from various sectors.

He said the private sector agreed on the price moratorium as part of its contribution in fighting Covid-19 and ensuring that consumers get relief.

Local economist Mr Reginald Shoko said the strength of the price moratorium is the fact that it is a social contract.

“If it’s from the tenets of social contract, that is an agreed position between business, Government and all other social partners it can be fruitful. But if it’s a price control mechanism, it’s a tricky art because price controls in their nature have never worked. They are actually an impediment to market forces which will lead us to seeing less of the products on the formal market as goods will be directed to the parallel market. For countries like ours, the social contract becomes the best option,” he said.

Mr Shoko said as Government and the business sector implement the price moratorium, consumers also need to be disciplined and avoid panic buying, another factor that contributed to prices of basic commodities shooting up.

Mr Shoko said Government should also provide incentives to ensure constant productivity by the private sector.

Mr Misheck Bonde of Makokoba suburb, a pensioner, said he survives on a $200 monthly pension pay out from the National Social Security Authority (NSSA).

“The money is not enough because I have five grandchildren that I am looking after and in total we are nine and money is just not enough. We, therefore, welcome the development, but my fear is that shops in the Western suburbs will not comply with this directive and we will continue to wallow in poverty,” he said.

“Today, a bag of 10kg mealie meal was going for $150 while a bunch of vegetables is being sold for $10, a single tomato is going for $10 and an onion is $5. There is also an issue of rentals and council rates and electricity.”

He urged Government to address the issue of NSSA payouts, saying the money can hardly buy anything in light of the escalating prices.

Ms Petty Sibanda from Njube said: “Government has done a good thing, but we also plead with authorities to reduce the price of mealie meal, cooking oil and sugar. The price of mealie meal should not exceed $100 for a 10kg bag because we won’t afford, especially some of us who are taking care of children and grandchildren.”

She said her meagre profits are eroded by food and other daily needs.

Mr Samuel Bvopfo, a nurse, lauded Government for directing retailers to revert to the March 25 prices, saying it was a relief to the generality of the populace.

“Our salaries are being eroded due to the escalating prices of basic commodities. I am struggling to raise enough money to buy groceries that last for a month and therefore, this move by the Government came at the right time,” he said.

Mr Bvopfo, a father of four, said in a month he requires at least $7 000 and is now struggling to meet daily needs.

He said they were now forced to have one meal per day because of the escalating prices of basic commodities at the shops.

Mr Kwanele Moyo who operates a shop at Nkayi Centre said the challenges that he is facing as trader is that he buys most of his stock using foreign currency.

Mr Moyo is taking care of six people and says he spends at least $3 000 to cover the monthly expenses yet he realises a profit of about $1 900. — @mashnets.