PRESIDENT Emmerson Mnangagwa yesterday ruled out imposing price controls on retailers and manufacturers, but indicated that his government believed in engaging all stakeholders to correct the pricing distortions in the market.
BY XOLISANI NCUBE/TINOTENDA MUNYUKWI
This came as Industry, Commerce and Enterprise Development minister Mike Bimha met players in the manufacturing and retail sector and threatened to immediately withdraw licences for manufacturers, retailers and importers who wantonly increased prices without justification, punishing the consumers.
Addressing journalists at State House following the swearing-in of his two deputies, Kembo Mohadi and Retired General Constantino Chiwenga, Mnangagwa said government had engaged industry to bring down prices of basic goods and stop profiteering.
“We are very concerned as government about the prices of basic goods in the market. Yesterday, I had a meeting with the Minister of Industry, Dr Bimha to call both the manufacturers, wholesalers and retailers,” he said.
“We don’t think it is right to go for legislation at this stage to deal with prices, we need to go for an understanding, have the people in these categories to understand where we are coming from and where we are going.”
In the past few weeks prices of basic goods have sharply increased, at times by up to 100%, with the business sector blaming foreign currency shortages on the formal market as the major driver, saying they had resorted to buying the money from the informal market at premium rates.
Bimha warned that perpetrators of the price hike madness would soon be exposed and dealt with accordingly.
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“There are still some manufacturers and retailers, who in their quest to profiteer, are acting irresponsibly and charging higher prices using a three-tier pricing system and failing to display prices of their goods.
“I have issued a notice before, that those who do not comply, risk having their operating licences withdrawn and government will not hesitate to take these measures,” Bimha said.
He added that the National Competitiveness Commission was working on the cost build-up in the value chains of essential products which have gone beyond the reach of many, in order to identify the “culprits” within the value chains who were responsible for the unjustified price mark-ups.
Bimha did admit that in some instances where industry players had to meet the cost of production, price hikes were understandable.
He said government was willing to compromise and look for possible collusion on pricing, to avoid punishing everyone for the sins of a few rogue profiteering elements.
“The National Competitiveness Commission is already working with stakeholders on the cost build up in the value chains of essential products. This exercise will help us identify culprits within the value chains, who are responsible for the exorbitant mark-ups,” Bimha said.
The Ministry of Industry, Commerce and Enterprise Development during the past few weeks held meetings with various stakeholders, including bakery and meat industries, in an effort to curb the hiking of prices which have hit the economy negatively.
Meanwhile, Mnangagwa said his two new deputies had been tasked to supervise Cabinet ministers, to ensure they deliver on their set targets within the shortest possible time.
“They are expected to show results but of course, they have to drive the ministers. The performances of the ministers will be reflected by the supervision they give, so the assessment is upon the results of the ministers they drive,” he said.
Chiwenga, who recently retired as Zimbabwe Defence Forces Commander, to take up the VP’s post said: “The difference in our case is that we are united. We will wait to be given our tasks by the President.”
Mohadi, who until his recent redeployment was Defence, Security and War Veterans minister said: “It’s just another assignment. I have been in government for too long and I have just been assigned to do another job. Now more direct to the President.”
Yesterday, Zanu PF congratulated the two Vice-Presidents, saying their appointments would bring “the much-needed probity within the party and government”.
“Special congratulations go to Rtd General Chiwenga, for his appointment comes after he spearheaded the successful intervention efforts by ZDF on November 15, 2017 with the view of restoring normalcy within the Zanu PF party and government and which efforts were well cherished by the generality of Zimbabweans,” party spokesperson Simon Khaya Moyo said in a statement.
