adminHarare-based economist Mr Christopher Mugaga has called on the authorities to urgently help manufacturers of basic goods to access loans in order to increase production. Mr Mugaga said while price reductions were favourable to consumers, capital injection was necessary to maintain prices at affordable levels.
“The country needs to give loans to the companies that are producing these local commodities. This will help increase production,” he said.
Mr Kumbirai Katsande, the managing director of Nestlé Zimbabwe, said local companies were being forced to reduce prices as imports had remained predominantly cheaper. “Local product prices are being reduced. Businesses are being forced to take such measures since imported products have for a long time been sold at lower prices,” he said.
Mr Katsande, however, said while prices were being slashed, salaries and wages were still low.
“The reduction in prices of local commodities is not much of help since wages and salaries are not going up.
“To stop a decline of the economy, we need to reduce the cost of doing business, grow exports and encourage foreign investment.”
Bongani Ndlovu
Online Reporter