RBZ speaks on recent drug price hikes, says they are unjustified

In an interview with The Herald yesterday, Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said the recent drug price hikes by up to 70 percent were unjustified because the central bank was allocating $4 million to pharmacies weekly to import drugs.

Said Mangudya:

This country’s economy is not a huge economy, this is not justified at all; it’s abuse of consumers and bad business practice. We need people to behave because there is no way prices of drugs can rise by up to 70 percent. How much did they buy the foreign currency for on the parallel market to justify their prices? People get money from the banks and they abuse the system and use the parallel market to peg their prices.

Mangudya’s comments come after a statement released by the Association of Healthcare Funders of Zimbabwe (AHFoZ) stating that some pharmacies increased drug prices by up to 70 percent early this month, while others are demanding payment in United States dollars only.

More: Herald