×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

AMHVoices: Zim should improve on global competitive rating

AMH Voices
A 2-litre bottle of Coke is R14 rands, just about $1, in South Africa, but $2,50 locally. That is how mad we are in terms of prices.

In response to VAT introduction slows economy, opens up black market: Prices in Zimbabwe are at least two to three times higher than what similar products cost in neighbouring and regional countries.

BY TANGAWAMIRA,OUR READER

Finance minister Patrick Chinamasa
Finance minister Patrick Chinamasa

We should tone ourselves down, become sane and place sensible charges on all goods.

Right now, it’s good business for local companies to bring in items from abroad, including cement, sugar, soap and others, and sell them locally at a nice profit margin because they are a lot cheaper where they come from, manufactured by the very same companies that import them into the country

Just imagine a 25kg bag of mealie-meal costs $8 in Zambia, which is the price of a 10kg bag locally.

A 2-litre bottle of Coke is R14 rands, just about $1, in South Africa, but $2,50 locally. That is how mad we are in terms of prices.

A two-piece gentleman’s suit, which goes for R500 in South Africa costs $100 in our shops.

Unless we work out a right pricing model, our products will remain relatively expensive compared to our regional competitors.

Local companies will remain on the fringes until such a time, as when our global competitiveness rating has significantly improved. Whether Finance minister Patrick Chimanasa has scrapped VAT on fast-moving consumer goods or not, we need to improve on global competitiveness.