PRICES of commodities continue spiralling out of control, pushing Zimbabweans further to the abyss of poverty, given that over 90% of them are unemployed while for those in employment, salaries remain static.
BY MTHANDAZO NYONI
A survey conducted by Standardbusiness and other organisations such as the Consumer Council of Zimbabwe (CCZ) last week, revealed that prices of basic commodities have increased by over 100% in some instances.
Notable price increases included those of products such as mayonnaise, mealie-meal, lotion, sanitary pads, baked beans, cooking oil, washing powder, margarine, sugar, flour, meat and laundry soap among others.
The survey revealed that before the September 23 price madness, a 500g of margarine was selling at 99c and it had increased to $2,99 by October.
Sugar (2kg) was selling for $1,85 and it now costs $1,95, flour (2kg) was $1,75 now its $2,10; meat (economy) was $4,25/kg now it ranges between $6,45 and $7, washing powder (500g) sold at $1,45, now $2,20.
A standard 2kg packet of rice which cost $1,80 in July has increased to between $2,65 and $2,99, while a 2kg packet of chicken now costs up to $8,70 from $6.
Shoe polish was $1,20 and now costs $1,99, Mazoe Orange Crush used to be $2,69, now its $2,79; tomato sauce (375ml) now costs $1,15 from 99c. Locally-produced 2-litre cooking oil which used to sell at around $3,18 before the price madness, is now selling in most shops at between $3,99 and $5,30.
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Washing powder which cost $4,80 for a 2kg packet now costs $7,15 and a bar of laundry soap which cost between $0,90 and $1 is now selling for $1,65. Similarly, bath soap has gone up from an average of $1,20 to $2 per tablet, while a 100ml tube of toothpaste has gone up from $1,05 to $1,65.
A 20kg bag of mealie-meal which was selling for $11,99 has gone up to between $14 and $15,25.
The Standardbusiness survey also revealed that even prices of products that do not require imported raw materials such as bricks have also gone up.
A good example of these are baked beans (Cashel Valley) and Mazoe Orange Crush.
On the parallel market, the survey found out that some products were selling at a lower price compared to formal retailers.
Most of the products available on the parallel market were imported or smuggled.
These include cooking oil, shoe polish, washing powder, bathing soap and baked beans among others.
A two-litre bottle of cooking oil on the parallel market was selling at $4, green bar soap at $1,20 while washing powder was selling at $5 per 2kg.
Due to the increase in prices of products such as rice, cooking oil and meat, most food outlets in Bulawayo have increased prices of budget meals from $1 to $2.
CCZ Matabeleland regional manager Comfort Muchekeza, said an increase in prices was not justified and very unreasonable.
“Our investigations have found out that most of the increases emanate from the middlemen,” he said.
“Most of the producers have not increased the prices of their products.
“What is more worrying is that most of those products that are too expensive are from Innscor Africa.”
Muchekeza said the consumer body would be forced to lobby for import restriction to be scrapped if retailers continued using Statutory Instrument 64 of 2016 to fleece citizens.
Confederation of Zimbabwe Retailers president Denford Mutashu said his organisation had noted a sharp increase in prices of imported goods, and retailers were citing shortage of foreign currency.
He, however, said they noted that many retailers were just profiteering.
“Some prices have increased by 100% or 200%. How do you justify that? It’s serious profiteering,” Mutashu said.
“We have been asking retailers to reduce prices to normal levels. Some reduced but just by half.”
He said inasmuch as retailers were allowed to increase prices, the increases should be in line with the cost of living and salary increases.
Mutashu said there was need for consumer education in Zimbabwe as people were being taken for granted.
“We have also seen prices of products that are farmed in Zimbabwe increasing. In any case, they are inviting the government to start controlling prices. It borders on greed,” he said.
He said CZR was engaging the central bank, Finance ministry as well as Industry ministry over the issue.
Mutashu said the solution to the prevailing price madness was to have an export strategy as a country, which will help the country earn the much-needed foreign currency and in the process reduce prices.
“The other solution is to support retailers that have opened shops outside the country by supplying them with our products. This initiative should be spearheaded by the private sector. It should be the one taking a leading role,” he said.
Mutashu said it was not fair for the manufacturing sector to continue using foreign currency generated by mining industry.
He said there was need for government to make sure that every business operating in Zimbabwe is registered.
“All unregistered businesses must be registered because you discover that those businesses calling themselves small are making more profit than registered businesses. Government should consider reducing licensing fees to lure small businesses to register operations,” he said, urging RBZ to be more transparent on foreign currency allocations.
Zimbabwe Congress of Trade Unions western region chairperson Ambrose Sibindi said salaries had remained static or reduced in some instances at a time prices of goods were going up, throwing workers into abject poverty.
“Some local authorities don’t even pay full salaries. We have also witnessed three different prices in some shops. There is a price for bond notes, price for plastic money and price for United States dollar,” he said.
“The highest price is when you are swiping and the least is when you are paying with US$.
While Industry and Commerce minister Mike Bimha was not available for comment, he told NewsDay on the sidelines of the Marketers Association of Zimbabwe ninth annual convention in Victoria Falls last week that government was working tirelessly to normalise the price situation in the country.
