Zim industry captains allay shortage fears

Zim industry captains allay shortage fears
Published: 26 September 2017
CAPTAINS of industry yesterday slammed social media reports suggesting that the country will soon face basic commodities' price increases and shortages.

In separate interviews, business and industry executives condemned the false reports, which dominated the weekend, and accused perpetrators of inciting public panic and destroying business confidence.

Confederation of Zimbabwe Industries (CZI) president, Mr Sifelani Jabangwe, said such reports were tantamount to acts of sabotage in the country.

"The situation that we are in at the moment is not anything close to the past because companies are producing although there are challenges.

"The problem that happened last week because of social media reports that there are going to be some food shortages and price increases, the public was sent into a panic mode and with panic buying people start to buy more than they normally consume," he said.

"This means, because of panic buying, people were buying that which was supposed to be bought by others."

Mr Jabangwe dismissed reports on basic commodities shortage and price increases as unfounded, adding that local manufacturers were producing at the rate of average consumption.

"But if everyone starts buying in bulk than they normally do, it creates artificial shortage so it will take a week or two for supplies to be delivered and make — up for the supply gaps," said Mr Jabangwe.

Economist, Ms Wendy Mpofu said although the economy was experiencing challenges, economic indicators did not point to a situation where the country could have basic commodities' shortages and price hikes.

"It is admitted that local companies are facing challenges and it is those issues that have always been there when we adopted a multi-currency system, but I don't foresee the country being plunged into basic commodities' shortage and price hikes," she said.

"Despite the challenges facing the economy, the economic climate is better off than before the liberalisation of the economy in February 2009."

Ms Mpofu said the unfounded social media reports were coming from some rogue elements and economic saboteurs who are bent on retarding the economic gains so far achieved.

Zimbabwe National Chamber of Commerce chief executive officer, Mr Christopher Mugaga, said the prevailing speculation would not last.

"It's unfortunate the speculators who have hit the forex market are now spreading to the goods market and this is not a new phenomenon in Zimbabwe and it's also very pronounced in countries like Senegal and Nigeria.

"I think the situation will stabilise but the worrying thing is that these are warning shots but it's not something authorities should lose sleep over. This week or by next week, the situation would have come back to normalcy," he said.

Mr Mugaga said authorities should not introduce any measures into the system to control the artificial shortages or price increases saying doing so would worsen the situation and trigger unjustified price hikes.

"We don't expect authorities to put any control measures because at the moment the market is moving alone and the moment you put controls, it worsens the situation. Government at the moment does not have a role in threatening the unjustified price increases and once it says don't increase prices, it will spread even worse," he said, adding that Zimbabwe was still using a multicurrency regime and thus prices would remain stable.

The Government has also issued a warning to peddlers of such speculative reports and assured the country that the economy was on a stable footing and actually poised for growth on the back of improved agriculture, mining and tourism productivity.

Mr Mugaga said there was no way the country could have price hikes as present drivers of inflation were not necessarily the fundamentals.
- chronicle
Tags: CZI,

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