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| Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa |
By
Farirai Machivenyika, Harare ZIMBABWE
Private sector producers and retailers have
agreed with the Government to freeze prices of essential foods as part of
measures to cope with the effects of the Covid-19 pandemic and lockdown
measures required to contain the threat.
The
envisaged moratorium, still to be formally announced and implemented, follows
recent steep increases in prices of basic goods, including bread, super-refined
maize-meal, cooking oil, flour and sugar, largely driven by a huge jump in
exchange rates, both interbank and black market, in the weeks before the
Covid-19 lockdown.
Many of
the inputs for most of these basics are still imported.
However,
exchange rates have now stabilised, the interbank rate being fixed at Z$25 to
US$1 for the duration of the Covid-19 emergency and the black market rate
stabilising after the Reserve Bank of Zimbabwe (RBZ) stamped on two bureaux de
change who had driven the rate up fast in a buying spree on behalf of a small
group of buyers just before th lockdown.
The
stable rates, coupled with lockdown exemptions for mining and tobacco auctions,
the two major export earners, means that a price moratorium is financially
viable without creating shortages and rates are likely to remain stable since
import pressure has been sharply reduced by travel bans and the difficultly of
moving non-essential cargo.
The
decision to halt further price increases was contained in a report to Cabinet
on the country’s preparedness and response to the Covid-19 outbreak presented
by Vice President Kembo Mohadi, who is also the chairman of the ad hoc
inter-ministerial task force on the disease.
Bread
prices rose by around 33 percent from an average $20 to $30 during the
lockdown, while cooking oil now costs anything between $120 and $160 for two
litres, up from $70 depending on brand and the retailer.
Sugar is
now selling for over $65 for 2kg while the price of refined maize meal is
averaging $230 per 10kg pocket although roller meal remains fixed at $70 per
10kg packet.
Presenting
the 12th Cabinet Decision Making Matrix yesterday, Information, Publicity and
Broadcasting Services Minister Monica Mutsvangwa said an announcement on the
moratorium would be made soon.
“Salient
areas where remarkable achievement has been made include discussions regarding
the proposed moratorium on prices of identified basic commodities that were
concluded and announcements in this regard will be made in due course,”
Minister Mutsvangwa said.
Industry
and Commerce Minister Dr Sekai Nzenza said her ministry had engaged the private
sector organisations, including the Grain Millers Association of Zimbabwe
(GMAZ) and the Confederation of Zimbabwe Retailers among others.
According
to a survey carried out by the consumer protection affairs section under her
ministry, the food basket for a family of six rose from $4 656 in February to
$6 660 as of April 11.
“We met
with suppliers and producers and this was a multi-sectoral meeting held on
April 11 and the people involved are those who produce, manufacture and
distribute food and the purpose of that meeting was to find out how we can put
our heads together and protect the consumer and the people involved include the
GMAZ, the CZR and others.
We came
to an agreement, which still needs to be announced and we intend to make the
announcement together in due course where everyone will be present,” Dr Nzenza
said.
The
minister added that consultations agreed that the producers would ensure that
there would be continuous supply of commodities.
Meanwhile
Public Service, Labour and Social Welfare Minister, Professor Paul Mavima said
his units had completed compiling the data base for vulnerable people expected
to benefit from the $200 monthly cash transfer.
Government
has set aside $600 million to be disbursed to vulnerable people over three
months up to June. - Africa
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