Mugabe meets business bosses
27/07/2007 13:21  - (SA)  

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Harare- Zimbabwe's president Robert Mugabe on Wednesday met business leaders over his government's price controls in a meeting industry chiefs described as "very positive".

Confederation of Zimbabwe Industries (CZI) chief Calisto Jokonya confirmed the meeting saying the talks were "good and positive" although he could not shed more light on whether Mugabe had made any concessions to business in the meeting regarding price controls.

He said: "The meeting took place on Wednesday and it was very good and positive but unfortunately I can't give further details."

This comes after the CZI, a group representing business, wrote to Mugabe seeking an audience over price controls industry feels are not only hurting business but the economy as a whole.

It remains to be seen however, on whether Mugabe will grant business some kind of concession on pricing. Analysts believe Mugabe is not likely to change his stance on price controls saying it is the aged leader's last election gimmick.

Other business leaders present at the meeting said executives told Mugabe that the price war was doing more harm than good to the country's already fragile economy.

Faced by escalating inflation and evident economic meltdown, Mugabe, 84, ordered prices of goods be slashed by 50% accusing firms of profiteering and conniving with former colonial power Britain to oust him from power.

Zimbabwe's economy continues to decline owing to disastrous policies Mugabe's government has implemented since independence from Britain 27 years ago.

Mugabe has also threatened to seize and nationalise firms that do not comply with his order. Already groundwork to seize firms viewed to be defiant has been laid while an empowerment bill will be enacted by parliament.

The bill will give locals a controlling stake in mining firms.

The troubled southern African nation has the highest inflation rate in the world believed to be above 5 000%.

Release of inflation data has been suspended until next year, government officials said.

- written by Finweek's Harare correspondent Chris Muronzi

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