GOVERNMENT will not consider applications for financial
assistance from businesses that are wantonly increasing prices of commodities
and those found guilty of breaching the coronavirus (Covid-19) lockdown
guidelines, a Cabinet minister has revealed.
Following the outbreak of coronavirus that has been
declared a global pandemic, Government announced a small and medium enterprises
(SMEs) and informal sectors cushioning fund to assist companies incapacitated
by the lockdown.
Women Affairs, Community, Small and Medium Enterprises
Development Minister Dr Sithembiso Nyoni (pictured) said measures would be put
in place to ensure businesses with tendencies of profiteering through rampant
price hikes will not benefit from the cushioning facility announced by
President Mnangagwa recently.
“We are saying all rural and urban retail shops that are
fond of wantonly increasing prices of commodities should not bother to apply
for the cushioning facility, as their applications will be rejected.
“Even when we start the process of reviving and
capacitating small businesses, we will make sure they don’t qualify because of
their uncouth tendencies of exploiting our people,” she said.
Over the past two weeks the country has witnessed
unprecedented price increases of basic commodities that have kept eroding
consumers’ purchasing power.
Recently, the
Confederation of Zimbabwe Retailers ordered its members to immediately effect a
price freeze on all basic commodities to allow consumers to access them at
affordable prices during the 21-day lockdown.
Said Dr Nyoni: “We will only deal with businesses that are
complying with the President’s call on lockdown guidelines and those that open
shops to serve the public in a proper manner.”
It is an offence in terms of Statutory Instrument 83 of
2020 to be found breaching the lockdown guidelines.
Dr Nyoni said structures were already in place to identify
undeserving applicants.
The funding, whose quantum is yet to be made public, will
be administered by the Ministry of Labour, Public Service and Social Welfare,
which is tasked to provide social safety nets to beneficiaries.
National Consumer Rights Association advocacy advisor Mr
Effie Ncube said it was prudent for the Government to exclude unethical
businesses.
“There is no doubt that since the announcement and
commencement of the coronavirus lockdown, businesses have unjustifiably raised
prices of basic commodities to ‘punishing’ levels. With these new prices, food
has been placed beyond the reach of millions of Zimbabweans. This criminal and
unethical conduct requires stiff punishment. We have seen in South Africa, the
Competition Commission and Consumer Commission imposing hefty fines on
businesses that have increased prices in response to the lockdown,” he said.
“Government should therefore go beyond denying culprits
access to the SMEs cushioning facility. It should protect consumers. It must
actually punish and take perpetrators out of business. Government must be
robust in its approach and hit hard, not with kid gloves,” he said.
Following the lockdown some retail shops increased the
prices of all consumables with a shop (name withheld) demanding ZWL299 for two
litres Mazoe and same amount for two litres cooking oil. However, the average
prices of these products are ZWL110. Sunday Mail
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