No improvement in supplies after government increases prices

By Tererai Karimakwenda
23 August 2007

Shelves are still empty in Zimbabwe’s shops, despite the fact that government has increased the price of some basic commodities. Workers continue to struggle to get transport in the morning and after work, and long queues can still be seen when shops get a delivery. It has also been reported that some government officials are benefiting from the shortages of meat by raiding the Cold Storage Commission and selling the meat at inflated prices on the black market. New records released by the Central Statistical Office Wednesday put Zimbabwe's inflation at 7,634.8
percent in July. Economic experts say it is actually beyond 14,000 percent, the highest in the world.

Journalist Caiphas Chimhete reported that on Wednesday government published a new pricing structure, increasing the price of some basic commodities. He said scarce items such as sugar, chicken, soap, car tyres and floor polish were among the items on the list. Blankets and farming inputs like seeds and fertiliser were also included. Although they have reviewed prices upwards, the authorities have not admitted that the price control exercise introduced back in March was a disaster. They continue to enforce price controls that are causing the very shortages that have gripped the country.

Chimhete said butchers have not started providing enough meat for everyone after government made a u-turn weeks ago and allowed some private abattoirs to operate. Meat has become a luxury for most Zimbabweans. The Harare based reporter revealed that people who are finding meat on the black market claim that it is actually top officials from the Cold Storage Commission who are selling it. According to Chimhete, the meat is available at two to three times the government stipulated price. And it is top officials who are making the money.

In other economic news, the Deputy Minister of Industry and International Trade Phineas Chihota, has said government will charge higher excise duty on imported goods that are also available locally. The Deputy Minister said this in the House of Assembly Wednesday in response to a question from Timothy Mubhawu, the MDC MP for Tafara/Mabvuku. Mubhawu had asked the Deputy Minister to clarify two contradicting Statutory Instruments issued by the ministry, one banning the importation of basic commodities and another that rescinded the ban.