Govt Solution To Delta’s Issue Similar To Price Control, It Will Not Work- Economist

Speaking to The Standard, Economist and CEO Forum chief executive Kipson Gundani said government has no role in business and what it did on Delta’s issue was akin to price control.

He said the solution will not work but will result in more problems. Said Gundani:

Government has no role in business. It is the role of business to do business. In other words, government is controlling the prices of Delta products. Government is going against the market forces. History has shown us that such battles are never won. The obvious will happen. Delta products will disappear and there will be shortages. It is common knowledge that government does not have forex. They cannot subsidise everything from fuel to beer and drinks. That is going against the basic laws of economics. The solution offered by government will not work.

Zimbabwe National Chamber of Commerce chief executive Christopher Mugaga said government could reverse Delta’s move but at its own peril as that would lead to massive job losses. Independent economist Eddie Cross said legally Delta could trade in any of the currencies that are a legal tender and the move to block it was going to drive inflation.

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