Retailers 'must raise prices'

Retailers 'must raise prices' - Mpofu

ZIMBABWEAN shops had emptied after the government fixed prices of basic commodities

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THE Zimbabwe government has authorised retailers to raise the prices of basic goods in order to ease widespread shortages which followed the imposition of price cuts, state media reported on Wednesday.

Shops and businesses, which were ordered to slash their prices two months ago as part of a controversial crackdown on so-called profiteers, will now be able to increase their charges for commodities such as sugar, cooking oil and soap, as well as phone bills by up to 20 percent, The Herald reported.

Agriculture retailers would also be able to hike their charge to farmers for maize seed and insect killer, the daily added.

Obert Mpofu, the country's industry minister, acknowledged the need to increase the availability of goods, saying "more concerted efforts should ... be put on improving the supply of basic commodities to the market".

"Stakeholders are, therefore, urged to have a common sense of purpose, direction and focus for the benefit of all Zimbabweans," he told the paper.

It is the first time the government has allowed retailers to increase the cost of basic commodities since the launch of Operation Dzikiza (Operation Reduced Prices) when they were effectively forced to halve their prices.

While the price crackdown was initially welcomed as it enabled Zimbabweans to stock up on goods which had been out of their price range, it has led to widespread shortages with manufacturers unable to cover the cost of production.

When he announced the pricing edict in June, Mpofu claimed some businesses were colluding with veteran President Robert Mugabe's foes in the West to plot his downfall.

Retailers and manufacturers, grappling to cope with an inflation rate now believed to be well over 5000 percent, had been raising their prices several times a day.

Police have so far arrested more than 12 000 retailers and manufacturers since June, most of whom have been slapped with fines. - AFP

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