Zimbabwe Business Watch : Week 32
Confusion, fear and chaos continues throughout the business community. Arrests continue as those running businesses attempt to conform to ambiguous policies often imposed at the will of local “war lords”. In seeking clarification from ministry on just how to interpret the law, officials themselves are bemused. Some sectors are not specifically described in terms of permitted profit levels and then companies are told that a 20% margin will be shared between the manufacturer, the wholesaler and the retailer. Ugly threats from government officials continue and now the statutory instrument governing the price controls/freeze has been extended through to December 2nd.
However, profit making prices appear to be controlled but, on the other hand, input costs continue to rise by as much as 100% a month in some areas where price control is simply unpractical and illogical. Industry and commerce are bracing themselves for the next move by government in what appears to be a form of Nationalisation of business under the guise of state controlled and directed “indigenisation” .
