Thousands laid off as shops close due to price freeze anarchy
By Tererai Karimakwenda
06 July, 2007
The ongoing government campaign to monitor prices and arrest those who do not comply has resulted in thousands of workers being laid off as businesses shut down around the country. After being forced by the authorities to reduce their prices by 50% last week, many businesses ran out of stock within days. They have not reordered fearing further losses and this has meant nothing to do for the workers. Bulawayo businessman Eddie Cross said the large manufacturer National Foods has laid off all its casual workers. Unfortunately the situation there is being duplicated around the country. All butchers in Bulawayo have closed their doors and workers were sent home.
Our contacts on the ground say it is difficult to tell who is in charge of this Operation that has been dubbed “Operation Dzikamai” (Operation be calm). Some shops say they were raided by armed police and others by plain clothes intelligence or Prison Officers. On Friday Eddie Cross’s shop was monitored by a team from the local police. Cross described the situation as anarchy. He said one owner of a petrol station who dared to challenge the authority of the team that raided him was shown a loaded pistol and told: “This is my authority.”
Cross said the police are also helping themselves to some of the goods in the shops. At one location they removed the shoppers then shut the doors and picked out items that they wanted. They then paid for the goods in cash at 50% of the price. Cross said the informal sector and small businesses are suffering the most. The police are confiscating goods from street vendors selling vegetables and tomatoes and storing all of it in a warehouse at the Bulawayo police station. According to Cross there will be an auction at the warehouse on Saturday.
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