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Norman Muchemwa
THE current disparity in prices of goods and services can be addressed through dialogue between various actors in the economy, economists have said.
Last week, Government introduced the local currency, a move that has curtailed the black market rates and removed the multi-tier price madness that had hit the country.
However, the move has resulted in price disparities for various goods and services.
In an interview with The Sunday Mail, economist Mr Prosper Chitambara said the price disparities can be addressed through dialogue.
“The disparity in prices is something that is affecting ordinary consumers. There is need for dialogue to address this anomaly through harmonisation of prices. Dialogue through the Tripartite Negotiating Forum is the way to go.
“Price controls do not work. There is need for price management through consultative frameworks and social dialogue.
“Most things happening on the market right now is through speculation and, as such, dialogue between producers, retailers and Government is the way to go,” said Mr Chitambara.
Another economist, Dr Gift Mugano, chipped in saying the increase of foreign currency on the market can address the disparities.
He added that there is room for harmonisation of prices.
“The price madness and adjustments in the economy are coming after the introduction of the local currency,” he said.
“The disparities are arising from the fact that some are using the interbank rate while some are using the black market rate.”
“Using one converging rate and increasing the money supply could address this challenge. The availability of foreign currency in the country will address this. Unfortunately, we are not producing enough at the moment.
“To say the least, some prices are ridiculous. However, there is room for price harmonisation so that we have one pricing range,” said Dr Mugano.
According to a snap survey conducted by The Sunday Mail early this week, prices for a 10kg bag of mealie-meal are ranging between $18 to $24 while a kilogramme of meat is going for between $26 and $37. A 2 litre bottle of cooking oil is going for anything between $17 and $28 while 2kg rice is ranging between $17 and $26.
We have a full analysis of the pricing regime in our next issue. Don’t miss out.
Online Reporter