The Sunday News
Rutendo Nyeve, Sunday News Reporter
THE Government is investigating speculative and forward pricing behaviour that has seen most basic commodities going beyond the reach of many as there seems to be a conspiracy by retailers and some manufacturers to make local currency irrelevant.
The speculative behaviour has seen a number of goods costing an arm and a leg even in traditional supermarkets while the same goods are priced lowly in informal shops that sell them in forex only.
An official in the Ministry of Industry and Commerce said there were investigations that were being carried out and Government was going to put in place a raft of measures to give relief to citizens. The official said the ministry recently carried out a survey which observed that indeed people were preferring the informal market ahead of the formal retail shops due to cheaper prices.
Consumer Council of Zimbabwe (CCZ)
“How does one explain that the price of 2kg sugar is $12 000 and yet it costs US$2 in informal shops. 1kg buttercup margarine is above $15 000 and yet it cost less than US$4. These are the dynamics that we are investigating and I am sure results and measures will be announced soon,” said the official.
Sunday News carried out a survey in Bulawayo’s CBD last week and observed that people with US$ preferred to buy at informal retail shops while those with RTGS preferred formal retail shops particularly those using the exchange rate that is at least close to the bank rate.
Consumer Council of Zimbabwe Regional Consumer Protection Officer Mr Comfort Muchekeza said consumers were preferring to buy commodities in the informal markets ahead of formal retailers, not out of choice but desperation.
“While the prices at the informal markets are reasonable mainly because the informal markets have limited overheads, some of their products enter into the country without paying duty. While consumers are not much worried about this, their main worry is the challenge they face when the product fails to meet the minimum expected standards. The way in which the informal markets store products while waiting to be sold leaves a lot to be desired and consumers are fully aware of that but are just forced to buy because that’s where they can only afford,” said Mr Muchekeza.
Meanwhile, a high level Government committee set up to monitor and investigate the recent spate of price hikes is finalising its work and expects to submit its recommendations this week before they are considered by Cabinet for implementation. The committee, led by the Ministry of Industry and Commerce, is investigating developments that prompted businesses to increase prices of goods and services. It is also looking into reported stock-outs of basic commodities in some retail outlets.
