Operation Dzikisa Mutengo (Reduce Prices)

President Robert Mugabe's government launched Operation Dzikisa Mutengo (Reduce Prices) in June 2007, forcing shops and businesses to halve their prices.

Zanu PF 'price wars' create shortages and more hardship in Zimbabwe

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The Robert Mugabe regime continues to turn logic on its head in its desperate efforts to stay in power. In trying to avert street protests over its management of the economy, the regime has decreed a slash in prices of up to fifty percent for all businesses. Officially, the regime says business must revert to prices that were current on 18 June 2007.

Businesses in Zimbabwe operate on a replacement costing basis; which means they factor in inflation and estimate what it will cost them to replace stock, and price their goods on at basis. The logic is simple enough: if they do not do this, they will be the cheapest in town for a week or a month, but their businesses will go bust shortly thereafter.

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