Chronicle Editor
The Consumer Council of Zimbabwe has appealed to Government to urgently intervene and protect consumers against a tide of foreign currency pricing of goods and services. The council said most of the consumers are not earning the hard currency that is being demanded by businesses.
What has worsened the consumers’ plight is the wanton price increases and the three-tier pricing system based on parallel market rates. The CCZ said there was urgent need for Government to intervene and stop malpractice that has caused a lot of suffering to the consumers.
Industry and Commerce Minister, Mangaliso Ndlovu said Government had noted with concern a proliferation in the number of companies and businesses engaging in preferential currency practices. He said this is not only against the spirit of fairness, but is also an illegal practice.
“Government is very clear that this practice is unacceptable and has to stop forthwith and if not, the law will take its course,” he said.
Minister Ndlovu said Government had tried to ensure businesses operate in a free atmosphere but companies were now acting in bad faith.
He said the centre of the relationship between Government and business is the spirit of engagement and two-way communication. “This spirit is defeated when one of the parties unilaterally pronounce decisions against both the text and spirit of agreed principles,” said Minister Ndlovu.
President Mnangagwa has already said Government is crafting a law that compels businesses that receive foreign currency allocation from Treasury to charge their products in local currency. Addressing chiefs at the 2018 Annual Chiefs’ Conference in Kadoma last month, President Mnangagwa said Government will revoke licences of such businesses if they fail to comply.
Government has repeatedly stated that the prevailing prices are not justified but it seems businesses have not taken heed. There is a need for businesspersons to uphold business ethics and guard against speculative behaviour which in the past has seen some retailers and wholesalers hoarding commodities in order to create artificial shortages.
Businesses have joined the bandwagon of those abusing the democratic space ushered by the Second Republic. It is not a good working relationship for Government to always resort to crafting laws to compel businesses to uphold business ethics.
When captains of industry and commerce met President Mnangagwa last October, they made an undertaking to uphold business ethics and refrain from profiteering through fleecing consumers. What is however obtaining on the ground is contrary to their pledge because most retailers are charging prices way above manufacturers’ recommended prices. Business people have in fact been dishonest and are to blame for the consumers’ suffering.
Government has demonstrated that it is more than willing to engage businesses at any time hence the October meeting of business executives and the President. What businesses should understand and appreciate is that no responsible Government will allow people to be ripped off by businesses that are after making super profits.
It is time businesses respect the Government by upholding business ethics. In our view Government has been too lenient hence this impunity. Government should use the instruments at its disposal to send a bold and clear message that wayward and unscrupulous businesses have no place in Zimbabwe.
Online Reporter