Zimbabwean businesses told to halve prices
Saturday, 04 Oct 2008 03:00
Zimbabwean government orders businesses to halve prices as cost of basic goods and services rises further
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Zimbabwean government has ordered businesses to roll back prices by more than half in reaction to widespread increases in the cost of basic goods and services.
The rises have been sparked by the further fall of the country's currency on Wednesday after leaders failed to break a deadlock over the allocation of ministries.
The national incomes and pricing commission (NIPC) warned businesses risk being fined or having their license revoked if they did not revert to the prices from before September 26th, as the economic crisis in the southern
African state shows no sign of abating.
Prices of goods and services on Wednesday accelerated beyond reach of impoverished Zimbabweans after the local currency plunged to new lows, a day after president Robert Mugabe and prime minister designate Morgan Tsvangirai failed to break a deadlock over cabinet portfolios.
"A clampdown has started on all shops that are charging prices that had not been approved by the NIPC," Godwills Masimirembwa, the NIPC chairman said in a statement.
"Another serious issue that could see many shops being fined or risk having their licences revoked is having multiple prices."
Mr Mugabe, who blames businesses of conniving with the west to create a crisis in a bid to incite Zimbabweans to revolt against him, in 2007 reacted to ever-rising inflation by launching a crackdown on business to reverse their prices by more than half.
The controversial price blitz spawned shortages of basic commodities and left companies reeling on the brisk of collapse as they were left in a precarious financial position since they were restocking at much higher prices only to be forced to sell at low prices in line with government's price cut edict.
The country, once the breadbasket of Africa, is in the grips of a decade long recession outside a war situation. Hyperinflation has gone wild, topping 11 million per cent officially and sparking shortages of cash, food, electricity and water among other basic necessities.