Shun profiteering businesses: CCZ
2 min read
By Walter Mswazie in Masvingo
CONSUMER Council in Zimbabwe (CCZ) leadership here has urged consumers to shun businesses that unilaterally increase prices in response to the outlawing of the use of foreign currency for local transactions.
Through Statutory Instrument 142 of 2019, Government last week announced that it was abandoning all local transactions in foreign currency and every business in the country would be conducted in local currency.
CCZ provincial chairman Mr Prosper Muzambi said it was disheartening to note that some unscrupulous business people had decided to punish innocent consumers by unjustifiably increasing prices to unprecedented levels.
He said the most disturbing thing was that this was happening in Masvingo when news filtering from other cities suggested that prices of some basic commodities were going down in response to the currency reforms.
“I think it is time for consumers to resist unreasonable price increases,” said Mr Muzambi.
“Real economics of supply and demand should be at play. The unscrupulous traders will price themselves out of business as consumers start to look for a fair value.”
Mr Muzambi said it was expected that prices would decrease in response to consumers’ compromised spending power.
“Given the fact that salaries of people are not increased, the spending power of consumers will obviously decrease and this by right should see prices decreasing,” he said.
“The new currency regime is meant to bring working order to the market and it is incumbent for the business people to respond accordingly instead of punishing consumers.”
Mr Muzambi underscored the need for business people in Masvingo to consider the plight of consumers who are subjected to depleting incomes if they peg their stock at unaffordable prices.
The local currency is now the only legal tender and means of exchange within the country, with those carrying foreign currency free to trade it at the bank on willing seller-willing buyer basis.
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