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Vincent Gono, Features Editor
ZIMBABWEANS are riled by the continued unethical business practices displayed by some businesspeople who are increasing prices of basic commodities with Zanu-PF deputy secretary for youth Cde Louis Matutu describing them as mercenaries of economic and political sabotage with an affinity to frustrate efforts by the Government to resuscitate the fortunes of the country’s economy.
Cde Matutu said they were soon going to name and shame retailers that were profiteering at the expense of the Zimbabwean citizenry for reasons of political and economic expediency. He said the increase in prices was not in tandem with the current exchange rates, adding that businesspeople were expected to be lowering prices.
“What we are seeing in the market is unacceptable. The well informed move to abolish multi-currency was expected to bring sanity and end the rampant speculative behaviour in the economy that was punctuated by wanton price increases exposed those retailers that are agents of people’s suffering.
“We are watching them and following things on the ground. We are going to name and shame all those that are profiteering. We are going to make sure they are caught by their own petard and they will have no one but themselves to blame. We are giving them time to adjust, to choose whether they want to shape up or simply ship out,” said Cde Matutu.
He added that there were others even in Zanu-PF who were making a killing by supplying forex to the black market and were not happy with the recent move by the Government as it grossly affected their cash cow.
“We are not going to be cowed down by threats from anyone. We will continue calling a spade a spade and aid the Government in fighting corruption and economic cartels to the end. We are making the fight public and so should the results of our fights, we want results — the public demands that. They should know what happened to those that were fingered in corruption within and outside the party. We will back the President on his calls to end corruption, we are behind him and so is everyone in the party except a few who are benefiting from corruption and mendacity and malfeasance,” said the firebrand deputy youth leader.
He said it was unfortunate that there were some people in Government who were divorced from the tragedy of the common people — those that were cushioned from the vagaries of the harsh economic realities by their high positions who wanted the status quo to remain.
He emphasised the need for Government to improve its engagement and communication with the citizenry on developments on the economic and political fronts so that there is appreciation of the progress to remove speculation. He expressed gratitude to a number of retailers that had given heed to calls by the President for them to adopt ethical business practices that were aimed at stabilising the economy. Cde Matutu said the youths were going to take it upon themselves to ensure that austerity measures were felt by all and not the hoi polloi while others were enjoying the sweat of others adding that if the Government was slow to act they were going to take it upon themselves to rectify problem areas in the economy.
“There are alternatives that are being put in place so that people are spoilt for choice. All basic commodities are going to be made available through the Ministry of Small to Medium Scale Enterprises at affordable prices and that will create competition with those that are adamant on prices especially in the rural areas,” he said.
His sentiments were echoed by politician and businessman Mr Harry Peter Wilson who said the price hikes could no longer be justified when the Government was fighting to revive the economy whose weight was burdening the ordinary people.
He said Government is supposed to work on sustainable alternatives that would compete with those that were hiking prices so as to allow competition and market forces to determine where people buy. The only way of doing that, he said, is to increase production by working around the clock to revive the industry.
“I do not think it is good for Government to control prices. What the Government should simply do is to work hard to increase the production capacity of the industry. The Government should support the revival of industry so that there will be adequate supply of goods to compete in the market. It is good that we are seeing a gradual decrease of prices in relation to availability of foreign currency in the formal market which is something very positive.
“It is therefore prudent to give retailers time and see whether they are really pushing an agenda that is not genuinely business. Let’s also look at the source of their stock before we rush to conclusions. If the economic fundamentals are in place as we are led to believe by the Government them the market forces will compel the retailers to slash their prices. Gradually everything will fall into place,” said Mr Wilson.
Fort Group managing director and hotelier Mr Ernest Marima concurred with Mr Wilson that retailers were looking at stock replacement value where the current prices were a reflection of the prices they got their stock at.
He said it was not fair to blame the retailers for profiteering when producers who are the source of the products, the stock, were spared the blame.
“I would suggest we give them time, say 90 days at most so that they clear their current stock using replacement value. If they fail to lower their prices then we can accuse them of being unscrupulous. We have a situation where chicken feed was sold at more than $260 per 50kg bag, how much will a chicken farmer be expected to sell their chicken for to recoup their money? The situation is like that in pharmacies and elsewhere. I am happy that we have seen some supermarkets lowering prices and I think this is an ongoing process that is determined by consistent supply of foreign currency from a more sustainable and formal source.
“Pointers are already there as large corporates such as Delta beverages, Innscor and a few others have started adjusting the prices in line with the exchange rates and the availability of foreign currency. We need to adjust the prices from the source and then make noise about retailers profiteering without which we will not be arguing reasonably from an informed position but from emotions,” said Mr Marima.
He added it was not advisable to control prices but to increase competition and let people shun those that were setting prices beyond the reach of many in line with what President Mnangagwa has been advocating for. Industry and Commerce Minister Nqobizitha Mangaliso Ndlovu said last week that Government was surprised by local businesses and the time to treat them with kids’ gloves was running out.
“We are considering a number of options including reviewing the tariffs regime. I don’t know if we need to be charging duty for people who go and buy groceries outside the country for use when local businesses are killing the same people with high prices. If they continue with this we will remove duty and people can go and buy outside freely,” he said.
“How do you justify a sofa that is selling at R2 500 in South Africa going for $44 000 in our own shops and we say when you are coming into the country pay duty for it to try and protect the local industry. That cannot be acceptable.”
Minister Ndlovu said the Government thought when the exchange rates started going down, business would at least maintain the prices if not reduce.
“We have seen that prices are going up even when exchange rates are going down. Businesses were increasing prices every hour because they were justifying it on the exchange rate but now the exchange rate has gone down and their prices still go up, what then is the justification for this?
The minister said the calibre of some businesspeople belong to the old dispensation.
“I don’t know where it is coming from but it tells me that there is a lot of mischief going on, it tells me that we do not have any discipline in the market and people are taking advantage of our openness to engagement and our drive to create a market-based economy where market forces determine prices. They are used to a strict kind of approach where there is a heavy hand controlling prices. They belong to the old dispensation. It tells me that we are still to create businesspeople for this country.”
The minister said Government would not continue shielding the greedy businesspeople.
Online Reporter