Mugabe threatens takeover of companies who ignore price directives

By Tererai Karimakwenda
27 June, 2007

Speaking at the burial of the late Army Brigadier General Armstrong Gunda on Wednesday, Robert Mugabe threatened to take over all foreign companies, which he accused of hiking prices in a campaign to sabotage the economy and remove him from government. Mugabe is quoted saying: "All companies, we will take them over if they continue with their dirty game. Take note, we will be equal to the challenge. We are capable of playing that game too." The ruling party leader said mines were included.

The threats came as shops in the capital ignored a government directive to cut prices by 50%. While Mugabe ranted, consumers who rushed to the shops Wednesday hoping to find prices reduced by half were disappointed. In fact some products had not only gone up in price, but they had doubled. The authorities had directed manufacturers, retailers and wholesalers to cut the price of basic commodities by up to 50% with immediate effect. But economic analysts blame daily price increases on hyperinflation. With inflation officially at 3700%, businesses have no choice but to increase prices to keep up with rising costs.

Mugabe did not address the hyperinflation that experts say is the result of the government’s bad policy decisions, corruption and mismanagement. We spoke to two women from Harare’s high-density suburb of Epworth to whom his words mean nothing as they said shops in their area were almost empty. One of them had just received her salary, yet she left the shops with no groceries. The bar of soap she had hoped to buy now cost Z$416,000. Bread had gone up from Z$22,000 a loaf on Tuesday to Z$49,000 Wednesday. Our contact said a 500 millilitre container of milk was selling at Z$32,000.