adminthe shelves.
We have come far as a country in reversing the misfortunes that pained the country for over a decade to lose those same gains because we fail to agree on effective pricing of goods.
Price wars will result in a messy economy once again and the country’s previous experience should guide us in making the right decision.
By the right decisions I am referring to decisions that will benefit the Government, manufacturers, retailers, consumers and indeed the entire economy.
However, indications are that the recent price hikes that have dominated the media have been a result of different constituencies seeking to reap huge rewards at the expense of the consumer.
They are taking advantage of the absence of reliable, accurate economic or market data.
In an effort to remedy this potentially harmful situation Buy Zimbabwe and the National Economic Consultative Forum are calling for an all-stakeholder meeting which shall be an opportunity to interrogate where the problem is.
At present there are divergent views on the pricing situation from different stakeholders which include Government, manufacturers, retailers, consumers, media, research institutions and many other interested parties.
On Monday the Buy Zimbabwe team was invited to a Press conference that was organised by the Grain Millers’ Association of Zimbabwe where the association announced a recommended retail price of US$4,70 for 10kg of roller meal against a producer price of US$4,25.
The president of the association also announced to the media that these prices have remained constant over the past 18 months and will remain contained for a long time to come.
I would like to congratulate Mr Tafadzwa Musarara and his colleagues in the Grain Millers’ Association for setting a trend, which I feel should be emulated by every sector.
For Buy Zimbabwe the issue of prices charged on goods and services is as important as it is to our partners at the Consumer Council of Zimbabwe and in Government as this affects the competitiveness of various local goods.
We are also concerned when foreign products are priced at thresholds that price local products out of the market.
We are even more concerned when inferior foreign products, some of which are harmful to the consumer, come into the country disguised as price sensitive products and then not only harm the consumer but destroy our industry.
It is also worrying to see a low-income earner spending their hard-earned money on products that do not offer them value for money.
Real indications are, however, that if a consumer practises a little bit of smart shopping they are more likely to get value for their dollar.
Retailers across the country are charging different prices on similar products be they foreign or local. The general trend that I have observed in some shops is that since the prices of foreign products have increased due to the restoration of duty, the prices of local products in shops have also gone up despite the fact that local producers have maintained their prices.
This has a negative net effect on the competitiveness of local products. The entire country has a role to play in ensuring that we support our products.
Emphasis should be placed on the importance of the “multiplier effect” because clearly every dollar that is spent in Zimbabwe should circulate a significant number of times if we are to grow the economy.
Till next week . . . God bless our nation
l For comments, contributions and membership contact Buy Zimbabwe on: [email protected], [email protected], Cell: 0772 714 233 or visit 22 Broadlands Road, Mount Pleasant, Harare, Website: www.buyzimbabwe.org.zw
Online Reporter