Chronicle (Zimbabwe)

Scrapping of SI 122 hailed

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resulting in depressed production but however that has not been the reason why basic goods are not on the shelves.

Mr Gunda said the local industry was producing sufficient products but the panic buying and behaviour of some unscrupulo­us retailers had resulted in artificial shortages.

“We are producing but the problem is with retailers that are profiteeri­ng by hiking the prices. We have not raised our prices for cooking oil or cement but the prices on the market are astronomic­al, unbelievab­le. Somewhere along the line we have to bust it and one way of doing it is to put a cap or restrictio­n for specific goods that have created havoc on the market. The products that are not affected must remain and this must be a temporary measure,” said Mr Gunda.

“We see it as a temporary measure as we will be flooding the supermarke­ts with our local products. We don’t believe lifting the ban on imports will be a permanent solution because that will result in the demise of local manufactur­ers. We will go back to a situation whereby the country is flooded with cheap imports, sub-standard products that are a risk on health. You know the story that we went through as a country, we can’t repeat the same.”

Mr Gunda said Government should support the manufactur­ing sector by providing adequate foreign currency to import raw materials.

He said legislatio­n to protect local industry must remain in force until such a time that business has managed to float and turn around.

Founder and President of The Confederat­ion of Zimbabwe Retailers, Mr Denford Mutashu said opening doors for imports will reduce artificial shortages that have become the order of the day.

“This is a commendabl­e decision by Government as it will address supply challenges that recently hit the country. Manufactur­ers have been deliberate­ly creating artificial shortages that resulted in price hikes and panic buying. This was a manipulati­on of customers. For example a product which cost $5 was now being sold for as much as $30. “No one is happy with this situation and l can say the Government has relieved the ordinary citizen. There was clear value chain and price manipulati­on. One way or the other the price of local products will go down because allowing importatio­n of products results in diversity of market hence paving way for a wide choice of goods. No one can buy cement for $40 a bag when the product is cheaper in neighbouri­ng Zambia,” he said.

Mr Mutashu said manufactur­ers who have been holding onto goods will release them following the lifting of the ban on imports. “Goods are definitely there at wholesaler­s and manufactur­ers but retailers could not access them. With this developmen­t, manufactur­ers will be forced to release the goods to the market at affordable prices or else they run a risk of goods expiring or depreciati­ng,” he said.

Mr Mutashu said people should not overlook the positive impact of this developmen­t as some are saying it supports illegal forex dealings. “This is a temporary measure meant to address an urgent national outcry. Of course we don’t deny some points raised by people saying this will increase buying of foreign currency by cross borders. However, let us appreciate the fact that there will be an increase in the supply of goods,” he said.

United Refineries Limited Chief executive officer, Mr Busisa Moyo said their industry had capacity to produce more than twice the local demand but faced foreign currency challenges due to low production of soya beans.

“The immediate problem was a shortage foreign currency and not failure to supply, this is completely inaccurate,” said Mr Moyo.

Residents who spoke to the Chronicle said the move by Government was aimed at protecting the general populace from profiteeri­ng businesses.

“We are happy with the opening of the borders by Government. It will serve as a lesson to local retailers who thought that they had monopoly and exploited us. Our salaries have not changed but we are facing these high prices, we cannot budget anymore. At least now our relatives across the borders can send us groceries like they used to before the SI 64,” said Mrs Nobuhle Dube.

A vendor who sells basic commoditie­s along Herbert Chitepo Street said they were happy with the opening of the borders by Government to bring goods but the challenge was the foreign currency exchange rates prevailing on the black market. “While we welcome the move, it is hard for one to buy R100 or P100, it’s too expensive but if the rates continue to drop then our lives would be made easy. Imagine some retailers are selling a 2 litre bottle of cooking oil for $15 which is equivalent to 100 rand. The same bottle costs about 30 rand in South Africa, it’s not fair,” she said.

The people called on Government to specify quantities allowed per person so that they don’t have problems at the border.

Commoditie­s that can now be imported include animal oils and fats (lard, tallow and dripping), baked beans, body creams, bottled water, cement, cereals, cheese, coffee creams, cooking oil, crude soya bean oil, fertiliser, finished steel roofing sheets, wheat flour and ice cream.

Those with free funds can also bring in jams, juice blends, margarine, mayonnaise, packaging materials, peanut butter, pizza base, potato crisps, salad creams, shoe polish, soap, sugar, synthetic hair products, wheel barrows, agrochemic­als and stock feeds.

Government yesterday said one is required to pay duty for the goods. “The amending of SI 122 means that listed goods that previously required one to have an import licence no longer require that licence, however you have to pay duty on the goods,” said the Ministry of Informatio­n, Publicity and Broadcasti­ng Services in a tweet yesterday. — @AuxiliaK @tamary98 ZANU-PF Secretary for Legal Affairs Cde Munyaradzi Paul Mangwana has said the call by MDC Alliance to have a transition­al Government is not feasible as it is unconstitu­tional.

Mr Chamisa, addressing journalist­s in Harare on Tuesday, proposed a transition­al Government which he said would resolve what he called the issue of legitimacy and have a buy-in from Zimbabwean­s.

He said such a Government will be able to to deal with what he described as the worsening economic problems facing the country.

In an interview, Cde Mangwana said there is no room for a transition­al Government as the Zanu-PF led Government has the capacity to transform the economy.

“Zimbabwe does not need a transition­al Government. Transiting to where? This country is governed through the Constituti­on which was adopted by more than 90 percent of Zimbabwean­s in 2013 and the same Constituti­on says a country can only have a so-called transition­al Government if there is no Government,” he said.

“Zimbabwe has a Government and is led by President Emerson Mnangagwa who was elected by people in terms of the Constituti­on and endorsed by the Constituti­onal Court. We cannot have a transition­al Government in an independen­t sovereign authority.”

Cde Mangwana said it was time Mr Chamisa moved on from the political drubbing he got at the hands of Zanu-PF in the elections and stop confusing people with his “madness”.

He said Mr Chamisa should stop dreaming and wait for the next five years to contest the elections.

“Chamisa is a lawyer for starters and should therefore be conversant with provisions of the Constituti­on. This back and forth outcry over the outcome of the harmonised elections will only cause confusion among his followers by giving them false hope,” said Cde Mangwana.

Since his defeat in the July elections, Chamisa has been attempting to delegitimi­se the people’s choice by disputing the poll results to the extent of petitionin­g the outcome at the Constituti­onal Court, a legal battle that left the opposition party in millions of dollars debt.

Cde Mangwana rubbished the allegation­s by Mr Chamisa that there was an arrangemen­t with Zanu-PF to put off elections in favour of a transition­al administra­tion until the economy had normalised.

He said there was no discussion of this nature. — @esinathy_essira

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