Chronicle Editor
Thandeka Moyo-Ndlovu, Senior Reporter
PRICES of basic commodities continue to rise in Zimbabwe fuelled by the Russia and Ukraine war, amid revelations that a family of five now requires about $93 000 for basic goods.
Russia and Ukraine are major suppliers of food commodities such as wheat, soyabeans and barley to African countries, with a combined trade of US$6,9 billion in 2020.
Since the war broke out, there have been disruptions in access to raw materials which have also affected the value of the local currency, forcing many retailers to constantly hike prices using the black market rate.
As of yesterday, the parallel exchange rate ranged between $305 and $340 while the official rate is $141.
In a short survey conducted by Chronicle, it was established that prices have been on the increase since February this year, including fuel.
The Zimbabwe Energy Regulatory Authority (ZERA) recently announced that the price of diesel had risen by 17 cents and petrol by 16 cents, which was the second increase inside four days after ZERA on March 5 raised fuel prices to US$1,51 for both diesel and petrol.
Prices for cooking oil, mealie-meal, sugar, rice and milk have been on the increase.
Although retail shops charge using the local currency, their prices are dependent on the black market exchange rate which keeps changing.
President Mnangagwa recently said the Russia and Ukraine conflict, which has spawned a surge in global food prices and disruption of world markets and supply chains, is a wake-up call for Zimbabwe on the need to ensure food security.
“The conflict between Russia and Ukraine, with the resultant turbulence in global food prices, is a wake-up call to us all.
Global supply chains both for fertilisers and grains stand imperiled by that conflict situation.
The ongoing conflict between them has reverberated globally, including disrupting world markets and supply chains, all against post-pandemic fragilities already afflicting the world.
A new world order is emerging, and Zimbabwe must respond appropriately and creatively, so it is not sidelined or placed on the receiving end of these fast-paced global changes,” he said.
In an interview, Confederation of Zimbabwe Retailers chairperson Mr Denford Mutashu said the crisis will have devastating consequences, some of them already being felt in Zimbabwe and other African countries.
“The disruption in the global supply chain and the global currency structure rose after the elimination of the movement of wheat and important grains from Russia and Ukraine.
The fact that we are dependent on those first world countries for the importation of key grains means we are definitely going to suffer the consequences of that war,” he said.
“The movement of crude oil has been affected and to make matters worse, our exchange rate which determines pricing has been changing resulting in negative local shocks.”
Mr Mutashu said the Government should work on production of raw materials as a mitigatory measure as prices are likely to continue going up if no drastic measures are taken.
“Wheat and sunflower prices will be affected as well, meaning bread and cooking oil prices may be affected in the long run if we run out of raw materials which we were importing from the two countries.
In the past we had farmers who would produce so much and sustain the economy and that is all we need now so that we are safe from impacts of such wars.
The cost of living for a family of five people has been pegged at $93 000.
Mr Comfort Muchekeza, Consumer Council of Zimbabwe regional manager, said the changes in rates was also affecting residents who are failing to cope with the increasing prices.
“Price increases started with the very basic commodity like mealie-meal, whose price has been going up since January this year.
While there is a bigger element of profiteering, some of the causes include the fact that business people budget using the USD,” he said.
Mr Muchekeza said the multi-currency system does not work because other currencies are not as strong as the USD.
We need solutions that will ensure consumers get value for their money as prices are pegged using the USD,” said Mr Muchekeza.
– @thamamoe
Online Reporter