8 shop owners remanded in custody as price control chaos continues
By Tererai Karimakwenda
24 July, 2007

The state controlled paper The Herald reports that 8 shop owners were on Monday remanded in custody until Wednesday for sentencing, after they were convicted of over charging in the government crackdown on businesses dubbed Operation Dzikisa Mitengo (reduce prices). The shop owners were arrested on July 20th, allegedly for overcharging on items such as fruit juice, tea, soap and toothpaste. One business is based in Harare’s city centre and the other seven are based in the high-density suburb of Epworth.
The Herald report said prosecutor Patson Nyazamba described them as economic saboteurs and urged the magistrate to jail them. But most of them explained that they had bought the goods at high prices from wholesalers and pleaded with the court for a lighter sentence. Over the past 3 weeks housands of other business executives have been arrested and released on bail and are still to appear in court.
Nana Ampofu, an economic analyst with Global Insight, said from the point of view of the government of Zimbabwe failure to comply is a serious crime. But from an economic standpoint, businesses are obliged to maintain their prices at a level that allows them to make a profit.
Ampofu said the net effect of repressive policies being pursued by the government is that consumers will at first be enthused because they can access goods cheaply. But soon enough they would see fewer and fewer products on the shelves and eventually businesses will shut down. Ampofu described the economic situation in Zimbabwe as “messy” explaining that in the short term the current policy may reduce inflation, but in the long term it was not sustainable. Many businesses are reported to have already shut down and there are serious shortages of bread, meat and many other basic items.
In other price control news, three executives from the Meikles Africa Group appeared before a Harare magistrate on Monday charged with overcharging for clothes and cosmetics. The three were charged in their personal capacities for violations at one of their shops Greatermans, in Harare. They were remanded out of custody to August 7.