Industry and Commerce Minister Nqobizitha Mangaliso Ndlovu
said yesterday that some big companies that were getting the lion’s share of
foreign currency when the Reserve Bank of Zimbabwe was allocating forex were
now frustrating the success of the interbank forex market system.
Addressing delegates to the Bulawayo Zanu-PF Youth League
one-day conference held at the party’s provincial headquarters, Davies Hall,
under the theme “Zimbabwe Economy, Industry and Youth Opportunities”, Minister
Ndlovu said the same companies who were big beneficiaries of RBZ forex
allocations were now working to frustrate the success of the interbank market
because they were thriving on the black market.
“We have sharks that are thriving on the black market and
are doing all within their powers to suppress a smooth migration into a formal
trading system where companies can access foreign currency from the interbank
market.
“These are the same big guys who were big beneficiaries of
the Reserve Bank of Zimbabwe system of forex allocation. They are now seeing a
situation whereby everyone is equal in the market and all that one needs is his
or her RTGS money to buy foreign currency on the interbank market. This is the
reason why they are now resorting to putting spanners in the works so that the
system fails,” he said.
Minister Ndlovu said what is disturbing is that it was the
private sector that pushed for the interbank system which some of them were now
working against.
Turning to incessant price increases, Minister Ndlovu said
Government was worried that the same companies that were continuously
increasing prices of commodities were not increasing workers’ salaries.
He said arbitrary price increases showed dishonest by
industry players because the increases were not justified. “We have seen an
unfortunate scenario where companies are trigger-happy to increase prices, but
are not doing the same when it comes to workers’ salaries even when Government
has maintained what the companies pay to it. That tells you that genuineness is
lost in the process,” said Minister Ndlovu.
He said industry must be responsible as Government does not
want to be heavily involved in the private sector operations as this stifles
economic growth.
Minister Ndlovu said instead of introducing price controls
Government would rather address factors fuelling price hikes such as the black
market currency exchange rates which result in price distortions.
“The economy cannot be run on parallel market rates hence
the need to instil discipline in the market place,” he said.
Minister Ndlovu said the interbank exchange rate presents
opportunities in terms of competitiveness of local products.
“As we speak our utilities are the cheapest in the region
unlike in the past when they were said to be the highest. Our labour costs are
the lowest and this has to be addressed. Many other input costs, overhead costs
are still lower than those in the region and this ultimately translates to the
competitiveness of our products,” he said.
Minister Ndlovu said Government, through its economic
blueprint the Transitional Stabilisation Programme, is working to address the
monopoly systems in the economy which has seen some industry players unjustly
increasing prices.
He said when prices are unjustly increased, Government is
blamed by frustrated citizens.
“This economy is run by six or seven companies that are of
the view that they can take Government head-on any time.
“We have a company that supplies sugar and they would have
a sister company and would like us to believe that they are different, when it
fits them.
“They can constrain the supply of sugar and people would
revolt against the Government. We have one company that controls the fast
moving consumer goods and when it suits them they control the prices and
increase them unilaterally and people would take their anger on Government.
Under the TSP we are taking decisive measures to address that,” he said. Herald
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