eBusiness Weekly
HARARE – The Zimbabwe Government might consider removing import controls on some basic goods and commodities to ensure improved supply and stability of prices in the wake of widespread shortages and hikes, a cabinet Minister has said.
Zimbabwe has maintained import restrictions on certain products as a way of limiting consumer spending on luxury imports as well as protecting local industries and promoting their products, since the country is facing a huge trade deficit.
At the moment, many retailers are facing challenges to re-stock products such as cooking oil and sugar, following the recent panic-buying of basic goods by fearful Zimbabweans in reaction to recent government economic stabilization measures announced early this month.
The new policy measures, including a two percent tax for every dollar transacted electronically, triggered a dramatic increase in parallel market rates as well as shocking increases in the prices of basic commodities.
Finance and Economic Development Minister Professor Mthuli Ncube said the government would consider several other options to arrest the situation.
“In terms of dealing with those price hikes, we may have to re-consider some of the import protection (measures) that we have put in place so that we can have more supply coming through from outside the boarder,” he said.
“If you go to any shelf for goods in a shop, easily 80 percent if not more of the goods are imported, so clearly we are already a high importing country in-terms of goods, so we might as well open up.”
Ncube added; “I am not saying we will open up, I am saying it is one of the options if the prices continue to escalate we have to take action.
But also just to add that the retailers should not speculate in this way, it is hurting everyone.” – New Ziana
