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Zim bans import of groceries
13/07/2007 20:50 - (SA)
Harare - As shortages of basic goods worsen in crisis-hit Zimbabwe, President Robert Mugabe's government has decided to ban the import of groceries for resale, it emerged on Friday.
The ban, which will come into effect on August 1, will cripple the businesses of thousands of cross-border traders who make a living out of buying and selling goods currently in short supply in Zimbabwe.
Under new government regulations published earlier this month, it will no longer be possible to import groceries like beef, butter, cooking oil, tea, flour and sugar without a permit, said the Zimbabwe Independent newspaper.
Individuals and companies wanting to import groceries will have to apply to the Industry Ministry for a permit.
Inflation-weary Zimbabweans
Mugabe's government has until now had little control over cross-border traders, who stock up in neighbouring countries like South Africa and Botswana and resell their stock to desperate Zimbabweans.
Because much of the trade is done from door-to-door or on flea markets, the Zimbabwean authorities have not been able to control prices at which the goods are sold.
Police last month launched a blitz on soaring prices in Zimbabwe, forcing businesses to off-load their stock at half-price or less to the delight of many inflation-weary Zimbabweans.
The Zimbabwe Independent said on Friday there were stampedes in downtown Harare when police and price inspectors forced electrical shops to sell televisions at 2 million Zimbabwe dollars down from 50 million.
'Law of unintended consequences'
But the blitz has provoked a storm of controversy as shop shelves steadily empty and there's no sign of restocking.
Reserve Bank Governor Gideon Gono, a close Mugabe ally, has reportedly ruffled feathers in government by warning that the blitz could have unintended consequences in the shape of shortages and political instability.
"Let's avoid the law of unintended consequences in the action government has taken which will leave the country in a worse-off position than now," the Zimbabwe Independent quoted Gono as saying.
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