ED Fumes Over Price Hikes, Retailers Blame Exchange Rate

5 years agoFri, 12 Apr 2019 12:21:21 GMT

ED Fumes Over Price Hikes, Retailers Blame Exchange Rate

President Emmerson Mnangagwa has warned retailers and companies against what he called unjustified price increases.

Addressing the Zanu PF youth assembly at the party’s headquarters in the capital Harare on Wednesday, Mnangagwa said:

The government notes the present wanton, upsurge and ever-escalating unjustified increase in prices.

We urge compatriots in industry, business and commerce to desist from this inhumane trend which has brought untold suffering and misery to our people.
We cannot have the continued exploitation of our people by those who exhibit rent-seeking behaviour.
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However, retailers argue that the rise in prices is linked to the recent hike in grain producer prices and the surging illegal foreign currency rates.

Confederation Retailers of Zimbabwe (CZR) board member Alois Burutsa said:

Basically, the suppliers are increasing their prices in relation to the movement of the foreign currency black market…even distributors who import finished products.

Confederation of Zimbabwe (CZI) president Sifelani Jabangwe said that retailers will not suffer is their pricing does not reflect the exchange rate. Said Jabangwe:

Instability is not good for all of us and business is concerned about the movement in prices… and the concerns are related to the past.
If the rate moves and you are pricing wrongly you actually then suffer from inadequate working capital. This is a genuine fear that is in business and we need to see how we can address this.