Biti’s party: You can’t command prices to go down, attacking businesses ridiculous

Denis Gwenzi

PDP leader and ex-finance minister Tendai Biti

Own Correspondent

THE command reaction by the government to recent price hikes and the intimidation of businesses will not work, the opposition People’s Democractic Party (PDP) has warned.

Zimbabwe has lately seen a wave of price hikes for basic commodities with bread going up by about 10 percent as inflationary pressures buffet thee economy.

The authorities condemned the price hikes and accused businesses of profiteering.

Wrong approach, said the PDP party which is led by former finance minister Tendai Biti.

The party said the price hikes exposed the myths in the 2018 national budget recently presented by finance minister Patrick Chinamasa which projected inflation at around 3 percent.

“Inflation is already way above 3 percent due to the high cost of the US dollar,” said PDP in a recent statement.

“With the existence of multiple exchange rates, real inflation is above 40 percent and some commodities are as high as 240 percent, the framework is therefore not legitimate.”

The party said President Emmerson Mnangagwa’s government needs to address fundamental problems affecting the economy instead of intimidating businesses.

PDP warned against a return to totalitarian price controls, a remedy which backfired badly in the past.

“The challenge we face as a nation is not that of inflation but that of a leadership in denial who fail to appreciate the need for structural, fiscal and monetary changes as the situation requires,” the party statement reads.

“We want to state that threats on business actors will not solve inflation challenges neither will they resolve the economic crisis.”

It added; “We urge the government to address the multiple exchange rates situation as it is one of the drivers of inflation.

“Repayment of funds that were raided by Minister Chinamasa in NOSTRO accounts at the RBZ must be done, this will ensure the businesses are able to import and resale on normal profit margins.

“More importantly the government must demonetise the bond note as a matter of urgency, the pseudo currency is the key source of distortions in the financial markets which are ultimately resulting in inflation.”

About Us

Denis Gwenzi
United Kingdom
Phone & WhatsApp number +44 7710897502
Twitter @ZimNewsNow

Patience Duncan Dubai (UAE)
Phone & WhatsApp +971 52 980 5692
Twitter @PatienceMDuncan



Subscriber Login