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Conrad Mwanawashe Harare Bureau
The price of bread and other flour products is likely to go down significantly after the Grain Millers Association of Zimbabwe (GMAZ) reduced the price of flour by 10 percent. The move by the millers is in response to calls by the government for industry to adjust pricing models downwards. Innscor has already reduced the price of Bakers Inn bread from $1 to $0.90 and the latest move by the GMAZ is likely to see consumers benefit more.

GMAZ president Tafadzwa Musarara said the millers would continue finding ways to ensure fair and affordable prices for Zimbabweans.

“Pursuant to the previous meetings held with the Reserve Bank of Zimbabwe Governor John Mangudya on the reduction and stabilisation of prices of staple foods, particularly bread, I’m pleased to announce that the milling sector has reduced the price of bread flour by 5-10 percent,” said Musarara.

“We’re hopeful that our colleagues in the sugars, fats and baking aids industries will consider making similar adjustments so that bakers adjust prices of bread downwards with the same corresponding margins.”

The Bakers Association said they would meet to assess the situation on the ground and react accordingly.

“We welcome the price reduction on flour, but flour is one of the many components that go into bread making. As stakeholders, we will have to meet and assess the situation on the ground and react accordingly,” Bakers Association president Givemore Mesoemvura said on Friday.

If bakers respond by reducing bread prices, it will be the second time bread prices have been slashed this year. In March bread makers reduced prices to 85 cents from 90 cents in line with submissions from the government and the RBZ for the readjustment of prices.

The government’s call is part of wider mechanisms to enhance domestic economic competitiveness to curb pressure for increased wages.

The move followed similar cuts in the prices of beer, soft drinks and mobile phone tariffs.

The government is in the process of addressing the ease of doing business environment to enable enterprises to be competitive against counterparts in the region. The RBZ governor recently said the country should review its uncompetitive pricing model.