Does Mnangagwa Or ZANU PF Think They Can Bully Their Way Into A Better Economy?

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Posted by Read 16 Comments

Frightening or bullying people never works out well, does it? And threatening retailers will not bring in foreign currency in Zimbabwe right?

President Emmerson Mnangagwa has spoken again on price hikes by retailers and producers. This time the president went on to set up a ZANU PF politburo team which will be chaired by the party’s Second Secretary and Vice President General Constantino Chiwenga (Retired). Now everyone is aware of the role Chiwenga played for Mugabe to resign. Is Chiwenga supposed to frighten retailers and producers not to hike prices?

Now, has His Excellency suggested any concrete measures to curb price hikes? A measure that would work for both the people and retailers? Come to think of it, the president has been speaking much on dealing with price hikes, but has he actually offered any solutions? Here is what Simon Khaya Moyo said after the appointment of the task force:

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Politburo discussed the issue of rampant price increases in the country and has identified various strategies to curtail this phenomenon. During the discussion, the First Secretary and President, Cde Mnangagwa, warned economic saboteurs that their days are numbered. “The party is aware of those that want to cause confusion and inflict economic pain on our people,”

Seems there is no solution yet from the president as he hasn’t offered one yet. Is the politburo going to provide solutions? The government claim to be dealing with price hikes yet they have not yet administered any ? Will targeting retailers and producers generate foreign currency in Zimbabwe or ease the cash crisis? Even if these retailers and producers who hike prices were to be arrested today the country would still be in a cash crisis.

The issue of the three-tier pricing system was also discussed and measures to curb this will be announced in due course. A Politburo ad-hoc committee has been put in place to deal with these issues decisively and will be chaired by the Vice President and Second Secretary, Retired General Constantino Chiwenga

There are no measures. Khaya Moyo is saying measures will be announced in due course. When is the due course? So they have no plan yet they have already started targeting retailers and producers who go out of their way to buy foreign currency on the black market so that they import products and sell. So if these retailers are arrested will the government be able to get foreign currency to import the necessary goods?

Are you not tired of the talk and no action?

What is required is for the government to come up with solutions before targeting anyone. What do consumers get from a politburo of a political party targeting retailers if not shortage of products in the market?

 Minister of Industry and Commerce, Mike Bimha has blamed speculation, aided by misleading social media reports, as a contributory factor to the pricing madness. Social media, really?

Bimha then called for continued efforts to increase production, attract new investment and acquire new machinery for the productive sectors of the economy.

Now where is the money to increase production and acquire new machinery? Is there a budget set aside for the nation to accomplish all this? Isn’t this the time to leave out speculation and misleading social media reports out of this whole narrative? Prices are increasing because of simple principles of demand and supply period.

Bimha also said some items were removed from the list of goods that were protected under SI64, (these had been banned from being imported into the country). Products scrapped from the list include milk, cooking oil, rice, meat and soap, amongst others. Khaya Moyo said this would allow people to import the goods on their own at a cheaper price.

Isn’t that a bad move? And if people import goods for themselves will they be given foreign currency to do so or they will have to source it from the black market?

The government needs to come up with measures to source foreign currency and cash itself before targeting anyone right? We don’t want to waste time focusing on the wrong problems while ignoring the real problem: cashless nation.

Prices have doubled up because of shortage of foreign currency for retailers who buy it at the black market because the bank doesn’t have enough  foreign currency to import produce. The president himself and the politburo team should know that.

Another thing they should know is that price controls and price slashes didn’t work in 2008 and they sure won’t work in 2018. Please ZANU PF Politburo, focus on the real problem behind price increases before you usher us back to 2008.

Constantino ChiwengaPolitburoMike Bimha

Constantino Guveya Dominic Nyikadzino Chiwenga is the current Vice President of the Republic of Zimbabwe, the second secretary of Zanu-PF political party and the Minister of Defence Forces of Zimbabwe. He is also the former Commander of the Zimbabwe Defence Forces (ZDF) and also the... Read More About Constantino Chiwenga

The Zanu-PF Politiburo is the party's highest decision making body outside Congress . Read More About Politburo

Mike Bimha is a Zimbabwean politician. He is the current Minister of Industry, Commerce and Enterprise Development; and Member of Parliament for Chikomba West. Read More About Mike Bimha

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16 Comments

  1. Tjmugova says:

    I expect to see such kind of articles on newsday not here

  2. Lillian Chikara says:

    Some of the price hikes are cruel and unnecessary. Why is meat costing $20 and kg, is grass being sold in USD as well. Even if its not necessary retailers and producers are maximising on profits so a hand here and there is necessary for us the consumers to afford basic commodities.

  3. Wakey Wakefield says:

    Only a full fool can place his hope and confidence in Comrade Gukurahundi and General Dr Shananiguns

  4. Kairos says:

    Why are retailers no heeding the president’s call? Vendetta it seems you have a vendetta against Mnanagwa even if he does well (like tellng sellers not to increase prices willy nilly) you judgment on hiim is clouded. G40??

    1. Zuva renomwe says:

      Retailers do not set their prices basing on “heeding the president’s call”. There are factors that come into play when setting prices, like demand and supply, cost of production etc

  5. Kairos says:

    Why are retailers no heeding the president’s call? Vendetta it seems you have a vendetta against Mnanagwa even if he does well (like tellng sellers not to increase prices willy nilly) you judgment on hiim is clouded. G40??

  6. Tonderai says:

    This isn’t the calibre of articles we expect here. Leave these for your sister site Pindula.

  7. Nzuda says:

    Totally agree. Truth is the ED administration has a lot of the same people who failed to solve the county’s economic problems during Mugabes 37 year rule. Despite their reformative rhetoric their talk of economic saboteurs and conspiracy theories on price hikes are beginning to show a lack of understanding od how economics works. Its only a matter of time before they revert back to to what they know which is fear and intimidation.

  8. Brad says:

    Great read. We need more people who are not afraid to call a spade a spade. Keep em coming!

  9. nyasha says:

    Does this have anything to do with tech in zim? granted its a good read

  10. The Junta Is Failling says:

    The Junta and its Media Bullies are trying to silence TechZim.

    No one complained when TechZim Published

    https://www.techzim.co.zw/2017/11/not-tech-business-mugabe-resigns/

  11. Dypole says:

    I run short of words to describe these people, especially bimha making such statements, we have a government full of grade 2 droputs, fool yourselves if you think kutonga kwaro will bring even crumbs on our tables

  12. Disgusting says:

    The first mistake was SI64. Local businesses thrive on profiteering and do not deserve any statutory instruments to protect them. They are simply unethical profiteers. Open up the market and allow for stiff competition. It’s the practical thing to do. Academic economics disadvantages the consumers. We argue about building our own economic base yet the local business people are ruthless exploiters of the hapless masses.

  13. Gary says:

    There is no mention of that lethal BOND NOTE HERE. The cause of all evil in our country. Get rid of that please then stability will come. I earn a salary which I have to trade on the black market to go on holiday with. PLEASE GET RID OF THAT HORRID WORTHLESS MONEY.

  14. The mentor says:

    As in the past government is trying to deal with the symptoms instead of the cause

  15. Nice says:

    What I don’t understand is why retailers are being singled out…. It’s producers who hike prices first… Case in point coca cola they actually raise their price to the retailer then impose the retailer price… Si if you were making 10‰they make you take 5%and keep the rest… As a seller I just got coca cola off the black market from SA and actually made a better profit plus sold at cheaper than the local coke….win win for everyone…. We need to stop this profiteering

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