eBusiness Weekly
Nelson Gahadza
Business leaders and the RBZ’s Financial Intelligence Unit (FIU), failed to reach a consensus at their Tuesday meeting in Harare on two major issues that were main on the agenda, it has been learnt.
The meeting which was attended by business leaders representing various sectors of the economy, sought to find out why businesses getting foreign currency from the auction system, are pricing their products at rates above the auction rate.
The other concern was why some companies; in particular retailers and wholesalers, are selling some products exclusively in USD terms.
Confederation of Zimbabwe Industries (CZI) president, Kurai Matshezha, told Business Weekly that while there was no consensus on the issues on the agenda, there was mutual agreement that the economy is in a difficult situation.
“ . . . we met the RBZ unit, the FIU . . . we discussed and they told us the concerns they had. They had two concerns. But there was no consensus; the only agreed concern is that we are in a difficult situation as a country,” he said.
Matcheza said CZI on its part highlighted that even if some members are receiving money from the auction, they are not getting 100 percent of their requirements.
“At most those who are getting money are getting up to 32 percent of their requirement, so it falls far short of what they require to operate,” he said.
Add to that there is also a backlog on the auction; hence this is forcing companies to also try and raise USD on the domestic market so that they can supplement their USD requirement to continue operating.
The engagement between the FIU and business was attended by manufacturers, suppliers, retailers, wholesalers, and many other representatives including the Grain Millers Association of Zimbabwe (GMAZ), Zimbabwe National Chamber of Commerce (ZNCC) and the CZI.
Confederation of Zimbabwe Retailers (CZR) president, Denford Mutashu, said the meeting was a reflection of the obtaining situation as far as pricing, inflation, parallel market exchange rate and general instability that has been seen prevailing in the economy owing to a number of issues.
“The current parallel market exchange rate is not realistic, but it is generally pushed by a few greedy people that would wake up each day and ensure to come up with a particular exchange rate of the day and shape the narrative of the day.
“We are for a stable exchange rate, that is market determined, it was one of the clarion call by business,” said Mutashu.
He said the exclusive USD sales especially on basic commodities is outlawed as doing so will exclude the general poor accessing the same.
He indicated that there is need to ensure that whatever challenges the businesses face, there is need to assure the public by manufacturers, suppliers, retailers, wholesalers and millers of continuous supply of key basic commodities like mealie meal, sugar, cooking oil, bread and others.
According to Mr Mutashu, the meeting discussed the general inflationary pressures across the country as well as the impact of the high informalisation of the economy.
He said the procurement of goods and services in USD from suppliers and manufacturers by retailers and selling them to the consumers applying the interbank market exchange rate has proved to be an Achilles’ hill, an area that requires further engagement between business and Government.
Mutashu indicated that business asked the Government to engage business on policies that govern them, especially those that have a bearing on stability, sustainability of business and affordability of prices.
Buy Zimbabwe President Alois Burutsa said there is need to re-look at the way the auction system is working because those who are accessing the foreign currency are getting an average of 30 percent of their requirements.
He said from a Buy Zimbabwe perspective, there is a need to push for the preference of locally produced goods and services for the creation of jobs, wealth and pride.
“For that to happen we need to create an environment that enables business to thrive and produce competitively,” he said.
Burutsa noted that as a country, we should come up with a working solution on the issue of foreign currency, because inflation in the country is being driven by the exchange rate.
“It is, therefore, important that we focus all our efforts to tame inflation and bring stability to our foreign exchange rate. What we require is stability,” he said.
Meanwhile, the FIU director, Oliver Chaperesa, said the bottom-line of the meeting was to address issues of price and goods that are exclusively sold in USD terms.
“We listened to what they had to say. But we then agreed that they should not be charging USD exclusively for goods and this was agreed on,” he said.
He noted that it is unacceptable because there are consumers who earn only local currency, therefore, there should be an option for anyone.
