Prices of basic food items — including maize-meal, rice,
cooking oil, sugar, salt, flour and bread — will revert to the levels of March 25, just before the lockdown, in an
agreement between producers and the Government, Vice President Kembo Mohadi
announced yesterday.
VP Mohadi, in the presence of the leaders of the involved
business organisations, made the announcement at a press briefing at
Munhumutapa Offices. The Vice President said the two sides had agreed that
prices of basic commodities would revert to the levels they had reached on
March 25.
This was when the Reserve Bank of Zimbabwe fixed the
interbank exchange rate at $25 to US$1 for the duration of the Covid-19
emergency, the level it had reached in free trading in a managed float.
The chosen date means that the price rises caused by the
rising rate during the managed float remain, but the extra price rises put in
by producers in expectation of further rises in the exchange rate now fall away
since for the time being there are no further rate changes.
The announcement followed the adoption of the price
moratorium by Cabinet on Tuesday.
“There was a general agreement among the multi-sectoral
partners that the price increase, particularly during the lockdown, was
speculative and unjustified,” said the Vice President.
“The multi-sectoral stakeholders committed to a price
moratorium to operate based on the prices, which were applicable on March 25.
The moratorium will also apply to all value chain players. This was supported
by Cabinet decision of April 21, 2020 and will take effect immediately,” VP
Mohadi said.
Speaking soon after the announcement by VP Mohadi, Oil
Expressers Association of Zimbabwe president Mr Roderick Musiyiwa welcomed
Government’s stance on dialogue.
“We as the OEAZ indeed welcome the spirit with which
Government is doing its business, the spirit of engagement, the spirit of
dialogue and with that kind of spirit any challenges, however big will be
resolved and solutions will be found.
“We welcome this move and on our part we will ensure that
the consumers continue getting their cooking oil at an affordable price,” Mr
Masiyiwa said.
The cooking oil manufacturers would also engage their key
value chain suppliers to ensure continuous supply of cooking oil.
Mr Tafadzwa Musarara, the chairman of the Grain Millers
Association of Zimbabwe, said the decision to freeze prices was collectively
made.
“On behalf of the GMAZ we would want to vouch that the
decision has been a product of consultation; it’s a collective decision that
has been reached at by both the Government and private players for the benefit
of consumers.
“As millers we are fully aware that food is a
constitutional right and we are fully aware of the need to ensure the
availability of our products in all retail shops,” Mr Musarara said.
Mr Denniss Wallah of the National Bakers Association of
Zimbabwe said the decision was supported by his organisation’s membership.
“We welcome the decision that Government has made and we
confirm that our members are willing to support the noble gesture and we are in
a position to supply the market with the required product,” Mr Wallah said.
Consumer Council of Zimbabwe chairman Mr Philip Bvumbe said
the decision had a buy-in from all stakeholders adding that there was need to
monitor the implementation of the agreement to prevent shortages.
“We would want to applaud the move by Government but taking
into cognition that this is a gentlemen’s agreement where the parties have
agreed through consultation,” he said.
President of the Confederation of Zimbabwe Retailers Mr
Denford Mutashu said the decision was made to cushion consumers. He said his
organisation took part in the negotiations that resulted in the agreement to
freeze prices.
“As the general public stays at home it deserve an
uninterrupted supply of basic commodities at affordable prices,” Mr Mutashu
said. “We will also ensure that as retailers we will fully implement and comply
with the price moratorium and ensure that the citizenry does not starve at this
critical time. It is our wish to work with manufacturers and suppliers to
ensure that there is supply of these basic commodities.” Herald
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