Zimbabwe Business Watch : Week 39
A desperate, confused state still prevails throughout industry and commerce although business has settled into some recognizable pattern of survival. Operation Dzikisa Mutengo (Reduce Prices) has largely failed and the Finance Minister has described it as “chaotic” and “lacking proper leadership”.
Some price increases have been approved by the Price Control Authority which is largely made up of people without any form of business or economic skills. Anomalies abound and the economy is distorted and out of sync with itself. As local companies cannot produce at a profit, the shelves are beginning to fill with imported goods from tomato sauce to even perishables such as milk. Business can add 20% margin on any new item on their product listing and this has provided a loophole at the huge expense of local industry. Outside any supermarket in Harare shoppers are accosted by vendors selling what used to be on the shelves at inflationary-driven prices. Also it appears that the system of patronage has entered the Price Control issue as Zanu business people are being granted huge price increases on consumables at the expense of others as factories remain idle.
