ED threatens profiteering businesses

Source: ED threatens profiteering businesses | Newsday (News)

President Emmerson Mnangagwa has threatened to come down hard on shops that are refusing to slash prices after his government last week dumped the decade-old multi-currency system and re-introduced the Zimbabwe dollar as the sole legal tender.

By Everson Mushava

Addressing a meeting at Kondo Primary School in Chipinge, where he commissioned the rehabilitated Tanganda-Ngundu Highway on Tuesday, Mnangagwa said he was preparing punitive measures on the profiteering businesses.

“I have received reports that other shops are slashing prices. As for those that continue with the high prices, don’t buy from them,” he said.

“If there are businesspeople who are adamant not to slash prices, leave them alone. We have shops of those who have slashed the prices, just go and buy there. We are planning a package for those who are resisting slashing of prices. Their whip is being prepared nicely. It is being sun-roasted and hardened by salt. Their time will come.”

Mnangagwa last week introduced Statutory Instrument 142 which reintroduced the Zimdollar as the sole currency for internal trade, dumping the multi-currency system introduced a decade ago to arrest world-record inflation of 2008.

The Zimdollar return has triggered an outcry, with most people fearing it would take the country back to the 2008 hyperinflation era characterised by shortages of basic commodities.

According to Mnangagwa, the introduction of the local currency was aimed at “stabilising prices” that have gone beyond the reach of many people, pegged using the United States dollar as the reference point at a time the majority were being paid in Real Time Gross Settlement dollars.

The de-dollarisation doused a strike threat by government workers, who had given their employer an ultimatum in protest against the deteriorating economic situation.

Finance minister Mthuli Ncube on Monday told Parliament that he expected prices to fall, while allaying fears of the 2008 hyperinflation, insisting that this time around, the situation was different because there is financial discipline.

The post ED threatens profiteering businesses appeared first on NewsDay Zimbabwe.


  • comment-avatar
    Tendai 5 months ago

    How can anyone slash prices when the market price of the Zimdollar is sitting at 14:1 and not at the RBZ rate ?

    The crocodile is being dishonest and sneaky and we should be very careful of him , because if you dont lookout you will get eaten

  • comment-avatar
    HOMELESS 4 months ago

    HOW ABOUT DEALING WITH RENT PROFITEERING. LANDLORDS are now asking rents 200%+ higher than a month ago. US$300 NOW US$800 for a very ordinary fairly old house, no borehole or solar, and the biggest shock US$1100 FOR A TWO BEDROOM GARDEN FLAT in Greendale. Just where are Zimbabweans going to find these US$ or even the RTGS equivalent? Are there so many rich foreigners wanting to rent that they can ask for such high rents? I doubt it.

  • comment-avatar
    GoRobin 4 months ago

    ED is totally delusional? However, that’s what it seems like, but he certainly knows that Zim is well and truly bankrupt. So this is all just delaying the inevitible end result.