Zimpapers Logo

Businesses responded to the Government’s announcement of Statutory Instrument 127 of 2021 by increasing prices of most basic commodities and services.

The SI was issued to plug abuse of foreign currency that companies were sourcing from the Reserve Bank of Zimbabwe Foreign Currency Auction system. The SI states that businesses can now be fined for issuing local currency receipts for goods bought using forex, pricing goods and services above the ruling exchange rate.

Businesses will also be penalised for pricing goods in forex only and using the forex obtained from the auction for other purposes other than what the supporting invoices on the bid stated. Soon after the announcement of the SI most businesses increased the prices of basic commodities and services, a move which has been condemned by Government.

Finance and Economic Development Minister Professor Mthuli Ncube said Government will soon meet the business sector to understand the rationale behind the spate of price increases in both local and forex.

Prof Ncube said it was disturbing that some businesses now had a tendency to abuse laws in order to profiteer.

“We will soon engage the business sector to try and understand what caused them to behave that way,” said Prof Ncube.

Consumers have said there is no justification for the recent price increases given that most manufacturers were sourcing their forex from the auction where it is cheap compared to the black market.

There is therefore urgent need for Government to intervene and whip these unscrupulous businesses into line. Some retail outlets are continuing to demand payment in United States dollars only which is illegal and the major culprits are hardware shops.

Most of these retail outlets claim they do not have swipe machines or their machines are down. The unscrupulous businesses that are fleecing consumers by charging exorbitant prices each time Government announces laws meant to protect consumers, are taking advantage of the fact that no action is being taken against them.

Consumers continue to suffer while the retailers and wholesalers make super profits from charging exorbitant prices. Government expects businesses to uphold business ethics hence it has been reluctant to introduce price controls.

We want to once again appeal to the business community to be sensitive to the plight of consumers who are struggling to put food on the table.

The economic challenges the country is facing demands businesses that uphold business ethics and value their consumers who give them business. It is also time measures are put in place to stop this price hikes madness.