The National Bakers Association of Zimbabwe (NBAZ) has reassured the public that bread prices will remain stable, following the resolution of issues that could have prompted a price hike.
Last month, NBAZ had warned that a proposed increase in bread flour prices could push the cost of bread past the symbolic US$1 mark.
In a letter to Industry and Commerce Minister Mangaliso Ndlovu on 24 October, NBAZ president Elvis Ncube expressed bakers’ concerns over the Grain Millers Association of Zimbabwe’s (GMAZ) plan to raise bread flour prices by four per cent.
Ncube said flour already accounts for around 43 per cent of the total cost of baking bread, meaning the proposed increase could have added roughly two cents per loaf, likely passed on to consumers via higher wholesale prices.
Speaking to The Herald on Wednesday, 5 November, Ncube said that recent discussions with millers, the Ministry of Industry and Commerce, and the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development had resolved the issues, ensuring bread prices remain unchanged. He said:
“The Agricultural Marketing Authority (AMA) has since clarified Statutory Instrument 87 and published the import parity differentials that are supposed to be paid by grain importers.
“As a result, there will not be any bread price increase unless there are other significant changes to our cost structures.”
NBAZ has, however, appealed to the government to review the current tax framework on bread by reclassifying Value Added Tax (VAT) from tax-exempt to zero-rated. This change, the association said, would allow bakers to claim input VAT and help stabilise production costs.
The association said the industry has faced heavy cost pressures since January 2024, particularly after the government shifted bread from zero-rated to tax-exempt under VAT rules. This move blocked bakers from claiming input-tax refunds, further squeezing already thin profit margins.
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