Zim threatens manufacturers
2005-08-01 21:03
Harare - The Zimbabwe government has threatened to "descend heavily" on manufacturers it blames for causing shortages of basic commodities, reported the state-controlled Herald on Monday.
"Our ministry is concerned about the continuous shortages of commodities at a time when we have reached an agreement with manufacturers about price adjustments," said secretary for industry and international trade, Christian Katsande.
"Some measures are being discussed to ensure that operations of manufacturing firms are strictly monitored," he said.
Shortages of basic goods like bread, cooking oil, maize meal, sugar and soap are worsening in Zimbabwe. Imported substitutes are often available, but at a much-higher price.
Increasingly difficult economic factors
President Robert Mugabe's government sets the prices for these goods when locally-manufactured.
Katsande said his ministry's main aim was to ensure "manufacturers comply with production targets".
Fixed retail prices
Manufacturers say they are operating under increasingly difficult circumstances.
They say high inflation, fuel shortages and a critical lack of foreign currency - which forces many to turn to the expensive parallel market - make it difficult for them to continue producing goods for sale at fixed retail prices.
Where local goods are available like milk and soft drinks, many supermarkets in Harare now ration customers, allowing them only to buy one or two at a time.
Katsande said the government was worried that shortages of basic goods would lead to "unnecessary inflationary pressures".
Zimbabwe's inflation rate is one of the highest in the region, running at more than 164%.
Although the government has vowed to bring it down to double-digit figures by the end of the year, independent economists forecast it could reach 1 000%. - Sapa-dpa
- SAPA