Shoppers feel backlash of forced price reductions

By Tererai Karimakwenda
16 July, 2007

Public euphoria over reduced prices has begun to turn into panic as the reality becomes clearer. Faced with long queues and empty shelves, Zimbabweans are quickly waking up to the fact that the government’s forced price reductions have destroyed business, as predicted by experts. Government’s Operation Dzikisai Mitengo (reduce prices) was welcomed by consumers three weeks ago when businesses were first ordered to reduce prices by 50%.

By the time the regulations were published by government a week later specifying profit margins, most shelves in the shops were empty of basics. Cooking oil, soap, sugar and bread were nowhere to be found. The shortage of fuel created a transport crisis and Zimbabweans began to suffer the consequencies of this latest government induced crisis. Critics say it has been just a ploy to get support ahead of the elections next year, in the face of growing discontent caused by the hyperinflation. Thousands of business executives have been arrested and many large shops such Jaggers were closed.

Meanwhile people bought everything in sight over the weekend and electronic goods were extreme popular. Widescreen televisions sold like hot cakes, some for as low as £20. Fearing arrest for failing to comply with government regulations shop owners reduced the price of all electronic goods. But by Monday many shops had nothing left and queues had become longer than ever. Suddenly consumers were worried.

It is believed the directors of many large super stores have decided to close their stores while they assess the damage so far and work out a way forward. Police are also accused of joining in the looting. The Makro shop at Woodlands in Bulawayo closed after massive looting took place there. Our Bulawayo contact Zenzele said he witnessed police looting there on Frida, as a journalist from the government owned The Chronicle newspaper took photos. He was arrested and later released after an editor from the paper showed up to defend him. Other contacts told us a police truck was seen on the Plumtree road loaded with furniture and headed for the Donnington Police Station. Police involvement in looting has been documented on several occasions.