THE spate of new price increases noted on the market have negative effects of
reversing gains implemented by monetary authorities that saw market stabilisation
during the last quarter of 2022.
The consumer watch dog, Consumer Council of Zimbabwe, has called on suppliers
and manufacturers of goods and services to review their pricing structures to make
goods accessible to ordinary consumers as the family basket surged by 14,2
percent to $355 137 for December from $310 910 in November.
According to CCZ Executive Director, Rosemary Mpofu,consumers expect to see
prices of goods and services stabilising as demand for goods is now low after the
festive season, which had a major impact in driving prices owing to bonuses paid
and diaspora remittances.
Increases noted from service providers i.e. mobile networks on tariffs, Zimbabwe
Revenue Authority (ZIMRA) on standard Value Added Tax (VAT) by 0,5 percent
from 14.5percent to 15percent could also be a factor in price increases across all
sectors of the economy as businesses have a tendency of passing on costs to
consumers without absorbing any,” said Mpofu.
The Ukraine and Russian conflict could also be a major factor in pricing of goods
as it affects global supply chains, Covid-19 disturbances with new reported cases
on the rise having a potential of disturbing production in all sectors of the
economy.
With reports of the Reserve Bank of Zimbabwe Financial Intelligence Unit (FIU)
blacklisting 11 firms over black market dealings on pricing issues, some
companies were manipulating prices charged in Zimdollar in the process devaluing
local currency, trading foreign currency on the black market after getting contracts
from Government that pays in local currency.
FIU Director-General, Oliver Chiperesa, was quoted in the local media saying: So
far, we have identified six or so contractors that we have taken action against
including referring to Ministry of Finance and Economic Development for
blacklisting.
Last year in 2022 Government blacklisted 19 suppliers and contractors over
similar malpractices with some wholesalers charging ridiculous prices, while
others were charging forex only for selected products, in violation of exchange
control regulations.”
When the Government paid supplies and contractors substantial amounts in
December after embarking on value for money audits meant to ensure fair pricing,
some companies instead used those funds to mop up US dollars on the black

market, resulting in rates shooting up to over $1 000instead of interbank rates
which was slightly over $890.
Such unethical business practices have been going on in market with some
producers getting funds from the RBZ auction system pricing their goods and
services using informal market rates, thus prejudicing consumers who are lowly
paid and wiping away all their incomes.
While Treasury expects a 3,8 percent economic growth during 2023 market
discipline will be key in achieving this target.
*The article is produced by Consumer Council of Zimbabwe Media and
Communications Officer Ndumiso Mgutshini