Zim’s basic commodity prices lower than SA

Oliver Kazunga Senior Business Reporter
THE National Incomes and Pricing Commission (NIPC) says prices for some of the basic commodities in Zimbabwe are cheaper and more competitive compared to South Africa.Since the adoption of the multiple currency system in 2009, the country has become a net importer of basic commodities mainly from South Africa, which economists blame for the demise of local industry.

NIPC says it has carried out price surveys in Harare and Johannesburg in South Africa for selected basic commodities during which it converted prices from rands to United States dollars at $1: R11 rate.

The survey was conducted on commodities such as mealie-meal, bread, salt, cooking oil, cereals, chicken, milk, and beef.

“The survey shows that generally South African basic commodities prices are lower than those of Zimbabwe because we import most of our basic commodities from South Africa.

“Zimbabwe was found to be cheaper and more competitive in its prices of bread, salt, vaseline, Ingrams Camphor Cream, Royco sauces, Cerelac cereal, Sunstar cooking oil and beef,” said NIPC in a report for month ending October 31, 2014.

The price watchdog established that Lobels’ Super White bread average price was $1 a loaf in Zimbabwe while a loaf from Albany, a corresponding brand in South Africa averaged $1, 11.

Locally, a kilogramme of Redseal fine salt averaged $0,48 while a kg of Cerebos fine salt averaged $0,88 in South Africa.

The report indicates a 250ml of vaseline blue seal averaged $1,93 on the local market while in South Africa it was sold at an average price of $2,37.

Ingrams Camphor Cream was being sold locally at an average price of $2,15 for 500ml while in South Africa it was being sold at an average price of $2,67.

In Zimbabwe, a 75g packet of Royco soup was being sold at an average price of $0,43 while in South Africa the average price was $0,51. A 500g bag of Cerelac cereal averaged $4,60 compared to $5,08 in South Africa.

Two litres of Sunstar cooking oil was averaging $3,65 on the local market compared to $3,95 in the neighbouring country.

A kilogramme of prime rib beef averages $6,65 compared to $6,91 in South Africa.

NIPC also noted that Zimbabwean prices of sugar, OMO washing powder and shoe polish, while higher than South African prices, were relatively competitive.

A 2kg bag of Hullets brown sugar averaged $1,85 on the local market compared to $1,83 for Selati brown sugar in South Africa.

A kilogramme of OMO washing powder was being sold at an average price of $3,13 in Zimbabwe while in the neighbouring country it was sold at an average price of $2,98.

Locally, 50ml of Kiwi shoe polish is sold at an average price of $0,96 compared to $0,91 in South Africa.

NIPC senior price monitoring inspector Abel Mujoma told Business Chronicle yesterday that the commission did not have powers to control prices on the local market.

“Following the removal of price control systems by the government a few years ago, the NIPC isn’t empowered to control prices on the market,” he said.

The recent increase in the maize seed price by nearly 100 percent is a typical case in point which has dampened the spirit of farmers.

Farmer organisations have warned the price hikes would cripple the cropping season as it not affordable to many.