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GOVERNMENT needs to walk the talk on price distortions on the market by clamping down on businesses that price their products in United States dollars even though they access foreign currency from the Reserve Bank of Zimbabwe.

The pharmaceutical industry is one of the biggest culprits with most pharmacies in the country pegging their prices in US dollars even though Government is prioritising them in foreign currency allocation.

Most of the players in this industry also acquire their products from NatPharm — a Government entity which charges its products in bond notes and accepts all forms of payments including Real Time Gross Settlement.

That they go on to charge the public in US dollars is not only criminal but extremely cruel considering that they serve the sick who will be desperate for medicines.

A precedent was set when Government revoked the licences of some service stations that were charging fuel in foreign currency when they were getting forex allocations from the Central Bank and we feel the same should apply to pharmacies that violate the country’s laws by charging medicines in US dollars.

In fact, we contend that it is time Government flexed its muscles on all errant businesses that are profiting from the current price madness because they have proved beyond reasonable doubt that they don’t have the interests of the nation at heart.

Greedy retailers are pegging their prices based on the prevailing parallel market rates and if this is not extortion/daylight robbery we wonder what is.

The lives of ordinary Zimbabweans have been turned upside down with their salaries/wages losing value by the day.

They need protection from their Government and we are glad that even the highest office in the land is aware of the chicanery going on in business.

President Emmerson Mnangagwa has said pharmacies that demand foreign currency for medicine and medical provisions will lose their licenses and we hope action will soon be taken on those who do not heed his plea to stop their shenanigans.

Speaking at a Thank You Rally in Murombedzi, Mashonaland West at the weekend, President Mnangagwa said his administration would not stand by while the public was abused by greedy retailers who accessed foreign currency from the Reserve Bank of Zimbabwe, but then still demanded greenbacks from ordinary people.

He said Government was taking tough measures on businesses that promoted economic hardships while pursuing profits.

“These pharmacies are charging in US dollars but their employees are not paid in US dollars. We sat down as Cabinet and directed the Minister of Health and Child Care, Dr Obadiah Moyo, to tell them Government is not happy with what they are doing.

“The majority of you who were now selling medical provisions, asking for US dollars, it’s not proper because you go and queue at the RBZ asking for foreign currency to import these drugs.

“There is no reason why you should, therefore, ask the public to purchase these drugs in foreign currency when you yourselves get it from the Reserve Bank.

“Those of you who do not heed this caution: danger is coming, we will withdraw your licences,” he said, drawing loud cheers from the crowd. President Mnangagwa said he had told Industry and Commerce Minister Mangaliso Ndlovu to regularly engage business over pricing.

“Prices were going up left right and centre, but I called business leaders to State House, and immediately some of them reduced the prices. Fertiliser was increased from $35 to more than $100, but when I engaged with them, they said they would reduce it to $45.

“Most of the manufacturers and wholesalers are charging acceptable prices, but it is the retailers who have the biggest problem.

“I asked my young minister, Ndlovu, to meet with them and I am waiting for further details. But if they refuse to reduce prices then they will also lose their licences,” he said.

We welcome the Government’s tough stance on errant businesses and urge them to mend their ways before punitive action is taken.

President Mnangagwa has said his administration is open to engagement with businesses and we feel they should take him on his word and openly air their grievances so that an amicable solution is found to the price distortions.

Just as a solution was found to the fertiliser price issue, the same can apply to the prices of other products.

Retailers have been fingered as the biggest culprits in this price madness and we implore them to revert to ethical business practices before it is too late.

Surely Government cannot sit idly by while Zimbabweans are being ripped off left, right and centre.

It has a moral responsibility to protect the poor and vulnerable from the machinations of greedy businesses.

It’s time this price madness is put to an end once and for all.