Government bans bulk buying & cabinet meets with business leaders

By Tererai Karimakwenda
05 July, 2007

The buying frenzy created by government’s latest economic policy has quickly created shortages which the same government is now struggling to contain. Shoppers who have the money were filling up their trolleys with groceries the last few days, taking advantage of the 50% price cuts that were ordered by government last week. The desperate panic buying did not last for long though, because by Wednesday most perishable goods had disappeared from the shops and other basic commodities were almost impossible to find, even on the black market.
As the crisis deepened, members of the cabinet are reported to have summoned business managers from various sectors for an emergency meeting late Wednesday. We were not able to determine the outcome of that meeting, but on Thursday the authorities banned shops from selling basic items in bulk. The state’s Herald newspaper quoted the Minister of Industry and International Trade Obert Mpofu as saying: "Wholesalers and retailers should desist from allowing bulk buying of basic commodities," The Herald also said the Information Minister Sikhanyiso Ndlovu urged the public not to hoard products with reduced prices.
Meanwhile teams of police in Bulawayo are reported to be raiding small businesses, sometimes loading all their stock onto a truck and moving it to a warehouse somewhere in the city. Witnesses saw individuals at this warehouse help themselves to confiscated goods without so much as a receipt or record of the transaction being produced. It seems some priviledged people are basically stealing from businesses that have been raided for no fault of their own. The state media has reported that at least 200 business people have been arrested for failing to freeze prices. It is believed that the number is probably much higher. And businesses have lost billions in revenue in just a few days.

Petrol, meat and bread cannot be found in most cities around the country. Butchers and bakers are not producing any more and most other businesses will not restock as long the prospect of losing their money remains the only possible outcome. The authorities need a solution and rather quickly but so far all they have come with is the current forced price freezes, which are being dubbed “Operation Dzikamai”. This means Operation Stay Calm, but how long can hungry, oppressed people be expected to remain calm.

Last week Robert Mugabe said businesses that are raising prices were part of a Western conspiracy to remove him from power. However experts say businesses were forced to increase prices daily to keep up with the hyperinflation which they estimate to be close to 10,000%. Simply ordering them to reduce prices in half will not solve the country’s economic woes. And as a result of the government’s directive, the whole country has resorted to panic buying and hoarding any products they can find at a reduced price.