Shops empty as price war confusion intensifies

By Tererai Karimakwenda
04 July, 2007

Reports coming in from around the country indicate that shoppers desperate for reduced products have emptied the shelves in most shops since government ordered businesses to cut prices by 50% last week. Price-control units continue to force the shops to put out all their stock and price it as they watch. Forced to sell at a great loss, many businesses will not restock. And this has already caused shortages which are becoming more severe by the day. Everything that was reduced is now very difficult to find. And this includes bread, meat, salt, soap, mealie meal, milk and even mobile phone cards.

The price reductions have been criticised by financial experts who blame the government’s economic and political decisions for the hyperinflation currently believed to be about 10,000%. They say without broad reforms nothing will change.

In the last few days we reported on the situation in Harare, Bulawayo and Chiredzi. On Wednesday we spoke to residents of the eastern border town of Mutare where the local branch of the large supermarket chain called Farm & City is reported to be closing down because there is nothing left. One woman told us hoarding has become a serious problem. She said those who have a lot of money are filling up trolleys and leaving nothing on the shelves for the poor ordinary people.

Our Mutare contact described how mobs of shoppers are fighting each other to get the reduced products. She said the pressure from people pushing and shoving on the long queues is unbearable. She also alleged that minibus conductors commonly known as “hwindi” are being paid Z$10,000 each by some corrupt police officers to stand in the queues and buy as much of the reduced products as they can.
Many people are confused by the government’s actions. They say they like the reduced prices but do not understand how this helps if businesses are forced to shut down.