I am disappointed with local firms: President

PRESIDENT Emmerson Mnangagwa said he was disappointed by the behaviour of local manufacturers who abused laws meant to protect them from cheap imports, by holding the market at ransom.

BY BLESSED MHLANGA

Speaking at the commissioning of a $7 million ProDairy milk processing plant in Ruwa, Mnangagwa said his government had to suspend the Statutory Instrument (SI) 122 due to mischief by manufacturers, who had withheld their products to push prices up.

He said SI 64, which was replaced by SI 122, was his brainchild and was meant to encourage and capacitate manufacturers.

“I was greatly disappointed three weeks ago when some of the manufacturers were now hoarding and not releasing products to the consumers. This is why I have now moved to remove SI 122 to allow, temporally, the inflow of some of these goods,” Mnangagwa said.

He warned manufacturers against ambushing government with price hikes and withholding goods, and called on them to work to help improve the economy.

“If there is need to look at the cost drivers in your products, it should be done properly, have dialogue with the markets and everybody will sleep happy, no ambushes, the war finished in 1980. That’s when we had ambushes, no more ambushes,” he said.

The ProDairy plant employs 175 workers.

“This is a commendable response by ProDairy to my government’s thrust towards value addition and beneficiation of local resources. It is our hope that the company’s products will enter the domestic market at favourable prices, thereby, widening consumer choice,” he said.

19 Comments

  1. LOL Ambushing government !! So ed wants companies to make a loss because his government failed to run the economy correctly ? It appears his excellency is not very excellent after all….

    1. madofo monetsa hanti. Profiteering and loss making are two different worlds. How can a manufacturing company getting forex allocations from gvnt just woke up and claim that they have increased prices?. why not engage the authorities share your costs structures and agree on the way forward. ED is right. Chamisa supporters are too dull. cant even comprehend simple economics and accounting!!! ndanyara chaizvo

      1. It’s all profiteering. There is no justification for some of the prices charged. Go to Electrosales and see for yourself how they are ripping off people.

  2. ED needs to attend some lectures on basic economics for a couple of weeks or so even at Speciss College. Time is money and no sane manufacturer would be dumb enough to withhold goods & miss out on a profitable sale while he has fixed costs waiting for him at the end of the month all in the name of ‘fixing’ zanupf government. It’s very silly logic

  3. Proudly Zimbabwean

    Government and the private, lets move on time not our side.This is commendable by ProDairy.

  4. tendai chaminuka

    He said SI 64, which was replaced by SI 122, was his brainchild and was meant to encourage and capacitate manufacturers.Is the President the brains behind every programme here.Nezuro it was Command Agriculture,though at a certain period he categorically stated that it was Grace’s brainchild.Pakazoita maElections aya akambonzi ari kuitwa musi was 31 December kwakuzonzi 31 July zvikanzi ndini ndakareva zuva racho vamwe vese kungotevedzera.Some dictatorial tendencies

  5. josphat mugadzaweta

    bate chino morega hakusi iko kutonga nyika vakuru

  6. Still the fact is compnaies have overreacted and HAVE NO CLUE HOW TO COST PROPERLY! How do you suddenly put prices up according to parallel rate when the imported component of your goods will be relatively small! Large cost drivers like fuel, ZESA, Wages have not changed that much.

  7. shunguhadziurayi mangarayi

    Most of those who commented above were commenting not on what is happening but on political just to show which party they belong to. What economics do you want President ED to attend lessons for? Is it the duty of a whole President to craft policies in each and every ministry? What will the Ministers responsible doing if the President do that? You talk as if you are an Economist fine if you are one, where in this world have you seen prices going up over night and by more than 150%? Irregardless of whatever the cause there is nowhere this has ever happened. I am not an economist but simple logic tells me that the business people here are playing political games, which have nothing to do with the cost drivers nor proper business ethics. ED is not a dictator hence he leaves things to the people whom he delegated the responsibilities to run ministries. You want Ed to be in the forefront of everything so that you quickly call him names like dictator? ED is not chamisa your dictator you love so much for being one.

    1. To answer the question “where in this world have you seen prices going up over night and by more than 150%?” the answer probably would be wherever the exchange rate increase by more than 150%. Just fix the exchange rate and everything will come down by 150%.

      1. lol you are crazy ED is on the right track GDP is increasing and also remember we are in debt no country will go anywhere with a debt and ED is in the process also for those claiming they know economics prices are set by market forces that’s equilibrium of demand and supply so suppliers are wrong because they are holding stock to create artificial demand so as to increase prices and also the black market is a resultant so no blame to him because he fighting both corruption and black market. this is all the suppliers fault.

        1. you are not excellent as yo nt so excellent president..prices are pushed up by an extra cost of buying forex from the interbank market.remember some raw materials r bot out zim so dat extra cost is factored.

  8. No wonder why Zim will never achieve any FDI, primitive zanupf think any price rise is an act of sabotage against the party yet they were warned 2 years ago that the bond note was going to cause distortions & the mess that we are in today (everyone could see this). But as usual in their lack of wisdom they ignored good advice & are now crying like nursery school toddlers, pure EDiots

    1. Mmmmm.They need security and genuine funding

  9. I am quite sure local firms are even more disappointed with the president!!!!!!

  10. Dzungu hakusi kungwara

    Zvamaida zvakaramba!zvamaida zvakakonaaa! Singing system zvangu

  11. It is mind boggling how some shops managed to secure stocks by a mere annoncement that government was lifting the imports ban. How did such an announcement enable them to secure forex to restock overnight?

  12. Comment…that was pure subbotage by these

    manufactures. where have you heard manufacturing companies buying foreign currency from the street for them to import raw material? these companies are suppose to produce some for export to earn firex. this is what they used to do before the dollarisation era and they got relaxed on top being funded by rbz. the introduction of dollarization was suppose to be a blessing in desgise for them to retool and build enough for ex reserves.

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