Rumbidzayi Zinyuke-Senior Reporter
THE Government has engaged the private sector over the arbitrary escalation of prices which has put most basic commodities beyond the reach of many.
There has been a significant increase in the prices of basics such as mealie-meal, sugar, bread, cooking oil, among others. While prices in the US dollar have relatively remained stable, prices of goods pegged in local currency have increased, with many retailers using the parallel market rate to determine prices.
Yesterday, Industry and Commerce Minister Sekai Nzenza appraised the Cabinet of the situation with regards to the price and basic food supply situation.
To mitigate the situation, the Ministry of Industry, along with the Finance and Economic Development Ministry and the Reserve Bank of Zimbabwe on Monday held a meeting with concerned stakeholders including manufacturers, wholesalers, retailers and other associations on the matter.
“The nation is being informed that the Cabinet is concerned by the spiralling prices of the 14 basic goods, especially bread, flour, cooking oil and mealie-meal. Cabinet has set up a committee to quickly investigate, monitor and make appropriate recommendations to Cabinet with a view to bringing sanity to the situation. The Committee will comprise the following ministers: Industry and Commerce, Finance and Economic Development, and Information Communication Technology, Postal and Courier Services. Cabinet wishes to assure the nation that corrective measures will be taken in order to protect the transacting public,” Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa reported at the post Cabinet meeting yesterday.
The move to engage with the captains of industry is an effort to ensure that solutions come from all concerned parties to ensure sustainability.
Giving an update on the situation, Minister Nzenza said the Government should not be the only one offering solutions.
“Cabinet met and observed with deep concern the artificial shortages and recent increase in the prices of basic commodities. These prices have a negative impact on consumer welfare and the economy. Government has therefore opened up its doors for continuous dialogue with manufacturers and retailers who are the key players in supplying locally produced goods in the market,” she said.
She said the ultimate aim of the meeting was to engage in dialogue to interrogate the market irregularities and jointly come up with a solution.
During the meeting, she said, Finance and Economic Development Secretary Mr George Guvamatanga had explained some of the current issues affecting the market.
“It was therefore agreed that another meeting is to be set up next week and at that meeting we have asked captains of industry and their associations to come up with solutions so that solutions do not just come from the Government alone, but also from the industry and business communities, hence the creation of a platform for dialogue.
“The ministry of industry would like to assure the consumers that there are no shortages of basic commodities in the market and that the Government will continue to engage the private sector with the ultimate goal of ensuring that consumers continue to access basic commodities at affordable prices,” said Minister Nzenza.
She said specific policies in response to the current situation would be issued by the relevant arms of Government after extensive consultation with the private sector. – The Herald
