The minister of Industry and Commerce minister Sekai Nzenza has attributed a surge in prices of commodities in local shops to the continued loss value of the Zimbabwean dollar against other currencies.
During Wednesday’s question and answer session in Parliament, she warned that prices of goods and services are likely to keep on rising as long as the exchange rate issue remains unresolved. She said:
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It is certainly true that we have witnessed prices continuously going up to the extent that we had a stakeholder meeting with retailers and in good faith, agreed to put on a moratorium of price rises.
I would like to admit Mr. Speaker Sir, that it was not as effective as we thought it was going to be.
The major problem, Mr. Speaker Sir, is that we are struggling with the exchange rate. We need to stabilise the economy and that is also impacting on the prices.
The minister was responding to MDC Alliance MP, Tapiwa Mashakada who had asked what policy measures government had in place to stabilise prices of basic commodities and stimulate domestic production so as to contain inflation.
Nzenza also highlighted her ministry was looking at import substitution and working closely with the agriculture ministry to try and increase the production of raw materials in the country.