Business must complement Govt economic initiatives
THE Government has in the past two months been putting in place mechanisms to ensure that fuel prices are on a downward trajectory. Businesses have in the past said they were forced to increase prices for goods and services in relation to the prevailing prices, and expectations were that they would then reduce their prices when fuel prices go down.
However, what has been prevailing on the market shows that businesses are not playing ball.
They are not adjusting their prices as per the reduction of prices in the fuel sector - which forms a major component of their inputs - which points to unjust business practices.
Confederation of Zimbabwe Retailers president Mr Denford Mutashu told our sister paper, Chronicle last week that prices for goods generally remained unchanged, despite the fall in fuel prices.
“Some commodities are responding to the constant fuel drop in the market, but others are not. For instance, we are noticing that every week sugar pricing is increasing at a time when consumers are expecting a reduction,” he said.
However, he acknowledged that there has been decisive interventions from Government in the fuel sector, and also through other economic policies meant to better people’s lives and contain inflation.
And as President Mnangagwa has always counselled, there is need for the private sector to play ball and complement initiatives by Government to push the economy to a recovery and growth trajectory.
Last week, he warned companies that were pegging their prices against the foreign currency black market.
“In the same spirit of taking bold, corrective measures, we have acted against big companies participating in lucrative Government tenders. In future, we will not hesitate to blacklist such wrongdoing companies from Government tenders. Their association with Government must place their actions above any reproach.
“No public resources will be used to finance economic hitmen and women. This week, my remedial searchlight beams on the public sector. Many things have been going wrong in that key sector, which must show the way, and whose buying power accounts for over 70 percent of the demand for goods and services in our economy. Much worse, it is the governing sector!
“With such a preponderant procurement role in the economy, and such high responsibility to show exemplary conduct, it goes without saying that what the Public Sector does, or fails to do right, impacts the whole economy, whether for better or for worse. I am determined that the impact of the whole Public Sector on the National Economy remains wholesome and supportive, indeed inspiring to all actors,” he said.
He reiterated that the public sector will not accept invoices pegged against the parallel market rates. He said it had been noted that the huge demand for goods and services by the Public Sector has in fact been stoking the black market, leading to currency and price instability in the whole economy.
“I have now directed the Fiscal Ministry to send back all invoices from Government ministries, departments and agencies for thorough re-validation before payment.
“Any accounting officer who allows such pricing malpractices to escape their gaze will be deemed criminally negligent and thus personally liable in terms of our Public Finance Management Act (Chapter 22:19).”