Chronicle Editor
Sukoluhle Ndlovu, Midlands Correspondent
THE Confederation of Zimbabwe Industries (CZI) says the recent wave of basic commodity price increases is as a result of shortage of foreign currency to import critical inputs.
Retailers have blamed the recent hikes on manufacturers while admitting that the trend has eroded consumer spending and negatively affected sales. Government has also accused the private sector of profiteering hiding behind parallel market rates.
In response to these accusations, CZI president Mr Sifelani Jabangwe said the interbank foreign exchange market facility has not provided the required forex and as such companies were resorting to buying the forex on the parallel market.
“We increased prices of imported goods because we rely on the parallel market for forex as the interbank hasn’t been able to assist us. We are forced to buy forex from the parallel market in order to import raw materials,” said Mr Jabangwe.
He admitted that the manufacturers had increased prices of goods produced locally in order to raise enough money to buy the required forex to import raw materials.
“Most manufacturers are importing raw materials and as such they need forex which can only be found on the parallel market where it is expensive,” said Mr Jabangwe.
He appealed to Government to intervene saying persistent forex shortages were crippling the manufacturing sector.
“As manufacturers we are appealing to Government to assist us in securing foreign currency at a reasonable rate so that we can import raw materials,” he said.
The Confederation of Zimbabwe Retailers (CZR) called on manufacturers to correctly price their products so that they remain affordable to the majority of consumers.
The CZR president Mr Denford Mutashu said many consumers could not afford the prices of basic commodities hence business was now very low.
“As CZR we have noted with concern that prices of some basic commodities have been increased by as much as 150 percent.
— @sukusinini.
Online Reporter