Commission raises flag on price hikes
“As companies struggle to bring in raw materials due to liquidity challenges, this will continue. “Some companies had employed people and brought in machinery to ensure the cover the gap created by import restrictions. This programme is now under threat if left unabated.
“The banking sector must prioritise raw materials, machinery, spares and follow the priority list given by the Reserve Bank and in particular those companies under import substitution or export generation,” said Mr Moyo.
He said the banking sector continues to fund non-essentials, luxuries and trinkets at the expensive of the productive sectors of the economy.
“It is this doubt in our own capacity and programmes that continues to hurt our own ability to create jobs, increase productivity and cross over into a growing economies. It seems we have faith and find solace in supporting imports which create jobs in other countries.
“Solve the issue of foreign payments, liquidity and you solve the issue of prices.”
Economist and chief executive officer of Mtilikwe Financial Services Mr Kingstone Khanyile, however, said it is hardly surprising that the same retailers that were arbitrarily raising prices during the hyperinflationary era are the same retailers that are currently guilty of the same offence.
He added that the present trend tends to soften consumer demand and work against Government’s broad objectives to promote local industry and economic growth.
“The upswing of local prices is merely a case of history repeating itself. Again the Zimbabwean producer and retailer have shown that once they find themselves cushioned from competition, they tend to excessively profiteer.
“Unfortunately, the local consumer has no option but to resort to the local producer.
“In an environment where prices increase, consumption does not increase; in fact, it does the opposite,” said Mr Kanyile.
He said there is need for Government to use scientific methods in policy making.
Setting a ceiling and floor price by using the import price parity as a guide could be helpful, he said.