Zimbabwe News and Internet Radio

Chiwenga tasked to deal with price hikes

By Tendai Kamhungira

The ruling Zanu PF party has set up an ad-hoc committee led by Vice President General Constantino Chiwenga (retired) to deal with the thorny issue of skyrocketing prices.

Vice President General Constantino Chiwenga (Picture by © AFP/Wilfred Kajese)
Vice President General Constantino Chiwenga (Picture by © AFP/Wilfred Kajese)

The party’s spokesperson Simon Khaya Moyo said the committee, whose other members were not revealed to the media, will find ways on how to deal with the continued price increases.

“Politburo discussed the issue of rampant price increases in the country and has identified various strategies to curtail this phenomenon,” said Khaya Moyo, speaking to journalists at the Zanu PF headquarters on the sidelines of the party’s politburo meeting on Wednesday.

“During discussions, His Excellency, the president and first secretary of Zanu PF Cde ED Mnangagwa warned economic saboteurs that their days were numbered. The party is aware of those who want to cause confusion and inflict economic pain on our people”.

Khaya Moyo said the issue of the three-tier pricing system was also discussed and measures will be announced in due course to curb the practice.

“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 Guveya Chiwenga,” Khaya Moyo said.

Chiwenga doubles up as the Defence minister.

He successfully led the military intervention mid November that forced former president Robert Mugabe to resign.

The high prices of basic commodities resulted in thousands of consumers enduring a bleak Christmas last year.

This was despite the fall of foreign currency rates on the parallel market which manufacturers and retailers have previously cited as the main drivers of the price escalations.

There are fears that Zimbabwe could easily slip into another hyperinflationary crisis reminiscent of the 2007/08 period when soaring inflation obliterated the Zimbabwe dollar along with its pensions and savings.

To escape hyperinflation which had topped out at 500 billion percent, the country was forced to adopt the United States dollar in 2009, along with a basket of other currencies that include the British pound and the South African rand.

But the relative financial stability of the last eight years has unravelled in the last few months as acute foreign exchange shortages have led to sharp price increases.

Zimbabwe has been experiencing economic meltdown over the past few years, which has been exacerbated by the shortage of cash and foreign currency in general.

This further resulted in government introducing Statutory Instrument (SI) 64 of 2016 in a bid to protect vulnerable firms.

However, this did not achieve much, as there are no producing firms running viably at the moment.

Moyo yesterday also underscored that Industry and Commerce minister Mike Bimha had removed at least 14 items from SI64.

“Secretary for indigenisation and economic affairs Cde Mike Bimha reported that there were sudden price increases last year which picked up around September 2017. Social media of course also contributed to the problem through falsehoods on the subject. This resulted in retailers randomly increasing their prices. There is need for increased production and capacity utilisation. There is also need for retooling and new investment in the country.

“Cde Bimha also stated that 14 items were removed from the list of Statutory Instrument 64, these include milk, cooking oil, rice, meat and soap, amongst others. This was to allow people to import these goods on their own at a cheaper price,” Khaya Moyo said.

He said Agriculture minister Perrance Shiri had also briefed the politburo on the state of the country’s agriculture.

The politburo was briefed that the country has suffered shortages of top dressing fertiliser as a result of foreign currency shortages.

Of the projected 290 hectares under the Command Agriculture, it was reported that only 235 hectares were cultivated.

Khaya Moyo also told the media that Mnangagwa also took the opportunity to introduce new members to the politburo, appointed recently in various positions.

These are Chiwenga, Vice President Kembo Mohadi; retired lieutenant general Engelbert Rugeje (secretary of the commissariat); Lovemore Matuke (secretary for national security); Paul Mangwana (secretary for legal affairs); July Moyo (secretary for transport); Mabel Chinomona (women’s affairs); Pupurai Togarepi (youth affairs); Christopher Mutsvangwa (science and technology); Victor Matemadanda (war veterans) and committee members, Shiri, Sibusiso Moyo and Munyaradzi Machacha.

Cognisant of the divisions that consumed the party over the past few years, Rugeje is also said to have urged members of the party to shun factionalism and stop the use of hate speech. Daily News

  • ok

  • Revhorushnari Shenaniganzi

  • arrest all criminal shop owners

    • They source their forex on the black market because our banks have none. The final prices reflect this reality.

    • they hv to introduce the rand

    • Arrest arrest arrest…. and then what?

    • Kkkkkk

    • ko black market yatanga nhasi here…. why maprice akakwira drastically after mugabe abviswa pachigaro….. gvt should open the boarders n make people buy in other countries its better

  • Vachiwenga hero basa itai zviya zvamakaita kuna baba chatunga I know you can do it tanzwa nekubirwa mari dzedu muzvitoro

  • he should have been tasked to deal with the bond note instead.

  • He will shoot the prices down

  • Economy haiitike coup manje

  • “The general in a reported coup against the prices”.

  • The reason while prices are skyrocketing is that the retailers cant get money from the banks, so they go to the black market where they get it at a higher rate, then they ultimately pass the high costs to consumers. As long as business people and retailers can not get money from banks prices will continue to sky rocket untill Jesus comes

  • You can coup the government but you can’t coup the Economy.Economics is so stubborn,it doesn’t listen to the power of gun but to the proper implementation of good policies and strategies which will then have strong impact on market forces

    • thank for such a comment

    • Lol thats very true

    • Kkkkk can u say dat again

    • Kkķkkkkkkkkkķkkkk

    • For as long as businesses are importing goods in $USD and selling them in bond wat wat the problem is there to stay. U dont need committee’s and i believe and understand that a vp has better things to focus on. Gore rino …..

    • Dzokorodza kutaura. Izvi zviri kunakidza munyori

    • Maybe he has more to offer behind dat gun … A degree of some sort in economics

    • Pretty we both know that he doesnt

  • Simply because he can fire a gun and plan a coup kkkkkk

  • Mdara wacho auya,ishumba inoruma.

  • Zviçhakonzeresà kushaikwa kwezvinhu mumà shelf.vakàmbozviita 2002.zvinhu źvikashaikwa kusvika pa 2009 pakazopinda GÑU.

  • Realist

    Yes LACOSTE is in power now
    G40 bites the dust Bobo apera but miracles happen in politics
    For diaspora the good news is the rate exchange is again amazingly lucrative. Use it before it vanishes

  • Shortages coming soon…

  • The only thing left is to flush Zanu down the drain

  • HE IS GONA TARGET ALL CRIMINALS SURROUNDING PRICES,PRICE IS SAFE AND SOUNDS WELL

  • Yes bt look from yester day fuel to other sevicestions in harare since yesterday.

  • Zim need to be closng for renovation until fether notice.

  • Hahahaaa coup ichamuka ikawana mashops angove empty after all mabig shops belongs to the ministers uchaons vomanya kudzisira maprices e dairy products only bcz ndezvagushungo. U cant rig the economy

  • Coup pa economy hayishandi

  • And will wake up tomorrow wth empty shelves l bet there will be no cooking oil.

  • Dealing with prices cannot be compared to a coup

  • general mapapiii ndoda kutenga zvadzika

  • Itai tione…

  • Kkkk zvoda mdc

  • Economics 101: Law of Supply and Demand. If supply is low and demand is high, equilibrium price rises. The problem in Zimbabwe is that production in our country is very low, we have very low capacity utilization of our industries. As a result, the nation has to import most of its basic requirements, with a pseudo currency that is often in short supply. That results in high prices, so Mr. Vice President Sir, those are the issues you need to look at.

    • Soldiers addressing issues to do with economics? Kkkkkkk

    • Economics must be left to economists. Soldiers protect the country. Munhu ngaaite zvaanogona

    • Soldiers dont understand the laws of demand and supply they only understand the scent of ammunition

    • True but what surprises me is that last week the gvt was saying they enjoyed a favourable balance of trade w SA and bennefited us180m,these pple are habitual liars coz there is no any function in the industry therefore not producing anything for exportation.

  • Kkkk look who has been assigned to solve economic issues, its like sending Kapfupi to fix an ICT issue, zanu pf politicians are a joke

  • Lol 😂 prices are about to shot down 👇, literally

    • You can’t do a coup on the economy. I think I’m no time we will come to our senses and realise the Mugabe and the G40 weren’t the only problem…..the remnants of this failed regime are still with us

    • We were naive to assume that Robert was the only cancer, as you can now see

    • Brighton Marekera they had a coup-plan that had been in the making for years but didn’t have a plan on how to govern.

  • Mission impossible

  • He has no idea what he is up against.

  • Sir chiwenga looks smart in suits

  • Apa wairasa chiwenga ukabudirira I will give you 5rand wazwa

  • start with fuel price.eyeZimbabwe yona ke iyabheda

  • mumbouyawo nekubeitbridge vakakwidza zvakanyanya

  • the only way to deal with high prices is to reduce fuel price and make all groceries duty free then the prices will go down

  • have your own currency n industries then u cn control price

  • Uku hakushande pfuti uku kunoda Brain dziri sobber kwete dzembabvu

  • The general will simply use the bullet to bring the prices down?

  • basic goods are safe,He is going to only target prices surrounding basic commodities!!!!

  • Rtd Gen ……..not how you write …