GOVERNMENT has begun enforcing a combination of strategies
to break monopolies and foster competition among companies in key sectors
providing basic commodities, which have come under siege from price cartels so
pushing products beyond the reach of many.
This comes as Parliament has invited Industry and Commerce
Minister Mangaliso Ndlovu to furnish it with a comprehensive explanation on the
wave of price increases plaguing the economy.
The Sunday Mail has gathered that authorities are urgently
finalising reforms to the Competition and Tariff Commission (CTC) that will
usher a new environment for fair business practices whilst introducing punitive
action against unethical profiteering.
The development also comes amid indications the much
awaited Consumer Protection Bill, to enhance and safeguard the rights of
shoppers, will be signed into law within the next month.
In an interview, Minister Ndlovu said a report by the CTC
had uncovered monopolies to be behind the price distortions particularly of
sugar, poultry and dairy products.
“Monopolies are a big problem in our economy. They stifle innovation. You can see what is
happening in our economy in terms of monopolies,” he said.
“CTC did a snap survey and the full report, at the moment,
is confidential. However, they found out that the food sector, in particular,
is monopolised to the extent that some control and manipulate prices on the
market.
“They have also given recommendations which we have started
instituting. That is why you see that the Government recently approved the
Zimbabwe National Industrial Development Policy to promote competitiveness.”
Minister Ndlovu said the major measure to break monopolies
was funding for other players to set up shop and stimulate competition.
He said the approved principles of the amendments of the
CTC included empowering the commission to levy companies that violate
competition laws.
The introduction of the Zimbabwe National Industrial
Development Policy last week would also help bring competitiveness in the
economy.
He said the Consumer Protection Bill was expected to become
law next month and that seeks, among other objectives, to criminalise retailers
and manufacturers who sell goods on condition that customers buy other products
from the same shop
According to the Bill, it is an offence for retailers; “not
to display prices of goods on shelves.”
The initiatives to arrest unwarranted prices comes as
Parliament this week seeks explanations
from Minister Ndlovu on the pricing models for goods and services.
Last week, National Assembly members condemned businesses
for wanton price hikes.
Responding to a point of privilege raised by Chegutu West
legislator Dexter Nduna, Deputy Speaker of the National Assembly Cde Tsitsi Gezi
invited Minister Ndlovu to discuss the pricing issues.
”We will call the Minister of Industry and Commerce to come
and give us a ministerial statement on the issue of prices,” she said.
Cde Nduna said Minister Ndlovu should explain why
the increase in prices of goods and services had persisted unabated.
“I ask if the Minister of Industry and Commerce could come
to this House. It would be prudent for him to come and favour us with a
ministerial statement as to why the arms of industry, industry players and
business people, in particular those big businesses, are sky rocketing prices
of cooking oil for instance; which they buy at a very low wholesale price,” he
said.
“I am quite shocked that some basic inputs and necessities
such as cooking oil, sugar and other needs are changing in price each day. Cde Nduna said businesses should be
challenged to provide empirical evidence justifying the price hikes.
He proposed that those that fail to do so should be
arrested and prosecuted. Sunday Mail
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