The Sunday News
RETAILERS across the country were warned against increasing prices of basic commodities during the lockdown period, with the Confederation of Zimbabwe Retailers saying those found on the wrong side of the law risked being penalised.
The association added that businesses found taking advantage of the lockdown period, meant to contain the spread of the Covid-19 pandemic, risked losing their licences.
However, we note that many shops hiked prices of most basic commodities, at a time when citizens were not engaged in any economic activities to sustain any increase in prices of basic commodities. Moreover, the increases were not supported by any valid reasons.
When the lockdown started on 30 March, the association said it had implemented a price freeze on all basic commodities to allow consumers to access the goods at affordable prices during the lockdown. Those defying the order will be immediately closed, officials said.
Confederation of Zimbabwe Retailers president Mr Denford Mutashu was quoted as saying retailers had been ordered not to increase prices.
“Basic commodity price increases are frozen as a sector contribution measure to Zimbabweans who have to date supported our businesses through good and hard times. Retail outlets that will increase prices of basic commodities during this difficult time will be closed indefinitely,” he said.
Mr Mutashu said goods covered under the directive are sugar, cooking oil, salt, mealie-meal, meat, sanitary pads, bottled water, pharmaceutical products, rice, masks, sanitary gloves, sanitisers and washing soaps.
However, what transpired on the ground was contrary to what was said by the business association, with some retailers increasing prices by as much as 100 percent.
And last week, Government had to intervene and order retailers to revert to prices obtaining before the lockdown started.
As a result multi-sectoral stakeholders committed to the moratorium which will apply to all value chain players and is supported by a Cabinet decision of April 21. The consumers’ council, businesses and workers’ unions welcomed the freeze, saying it addresses the plight of the majority of Zimbabweans.
Consumer Council of Zimbabwe southern region manager Mr Comfort Muchekeza, said the development was different from the price controls of the mid-2000s which led to a catastrophic shortage of basic commodities in shops.
“Unlike in 2006-2007 where it was not negotiated, as the Government just came up with that decision, I understand even the business community, the manufacturers and retailers sat down and agreed on the pricing this time. As we have been saying, there were no fundamentals that necessitated price increases save for speculation since the people know that we are in lockdown,” he said.
Confederation of Zimbabwe Retailers Association president Mr Mutashu added that the decision was not an imposition from Government but an inclusive decision from various sectors. He said the private sector agreed on the price moratorium as part of its contribution in fighting Covid-19 and ensuring that consumers get relief.
Bulawayo economist Mr Reginald Shoko said as Government and the business sector implement the price moratorium, consumers also need to be disciplined and avoid panic buying, another factor that contributed to prices of basic commodities shooting up. Mr Shoko said Government should also provide incentives to ensure constant productivity by the private sector.
While citizens hope that businesses will play ball this time around, we also call upon business associations and Government to punish errant businesses. Businesses have to be ethical and follow the law.
