Minister of Industry and Commerce, Mangaliso Ndlovu, said that the government is wary of introducing price controls even though suppliers of goods and services have a tendency of profiteering.
In an interview with CITE, Ndlovu said that price controls do not work and are not sustainable. Said Ndlovu:
We are quite concerned really about the prices, well the temptation to put control as much as it might be there is something that we have been clear it is not sustainable, it doesn’t work so the other belief we have as we continue to stabilize the economy. The increase in prices is a reflection of a problem elsewhere.
We hope our economic stabilisation process will eventually address the issue of prices, we need to deal with the supply side as well and as supply increases, we hope prices would stabilise. But we also want to urge retailers to desist from profiteering.
It’s rampant as it stands now and we want to discourage that kind of behaviour. They are actually pricing their goods out of the market it really doesn’t make business sense in my view.