eBusiness Weekly
Business Writer
GOVERNMENT has challenged retailers and wholesalers to advance the interests of customers ahead of profiteering as the prices of basic goods continue to spiral out of the reach of many.
Consumers have for long lamented the rising prices of goods and services, among other business tendencies that are diminishing their spending power.
Market watchers have apportioned blame on business who are reportedly exploiting consumers.
Prices have generally been rising as wholesalers and retailers continue to peg their prices on parallel market foreign currency exchange rate.
As of Friday (8 March 2024), the Zimbabwe dollar traded at $16 270 against US$1 while the parallel market rate ranged up to $18 000 and $20 000 for the greenback.
Government is, however, making efforts to arrest the scourge of these rampant price increases.
Speaking on behalf of Minister of Industry and Commerce, Dr Sithembiso Nyoni at the official opening of Edgars Complex in Bulawayo, Deputy Minister Raj Modi said the government was disturbed by the pricing regime obtaining in most retail shops across the country.
“Government is concerned by acts of indiscipline being perpetrated by some among us and calls on members of the business community to maintain discipline in pricing our goods fairly and remitting our taxes to support revenue generation by Government.
“Allow me at this juncture to challenge both retailers and wholesalers to advance the interests of consumers ahead of profiteering. After all, we are all consumers and no one is spared. I therefore, implore your sector to engage in responsible behaviour,” said Minister Nyoni.
Unfair price hikes lead to adverse customer experiences, loss of consumer spending and unnecessary rise in consumer cost of living.
Minister Nyoni said the ministry had been on a drive to ensure organised commerce, working closely with both established retail chain stores and upcoming commercial entities.
Government has been making efforts to promote ethical business conduct for both established and SMEs in their endeavour to grow and play a meaningful role in the economy.
The local business operating environment has not been without challenges, which Minister Nyoni said was aware of and that the government was doing all it could to bring normalcy in the market.
“We are aware that the formal retail sector has witnessed its fair share of challenges, including price escalations, exchange rate instability, power outages and subdued consumer demand.
“Some of these interventions include a tight monetary policy intended to curb inflation that Government is implementing and the commissioning of Hwange Unit 7 and 8 to increase power generation,” she said.
National Consumer Rights Association (NACORA) spokesperson, Effie Ncube, said the unjustified price increases were leaving ordinary Zimbabweans impoverished.
“Majority of people in Zimbabwe earn the Zimbabwean dollar, and the skyrocketing exchange rates are affecting them, this is worsened by businesses that are only accepting the USD which is making life tough for them,” said Ncube.
According to Zimbabwe National Statistics Agency (ZimStat), month on month inflation rate stood at 6,6 percent in January followed by 5,4 percent in February 2024.
