Price Controls won't work - Ziyambi

Justice Minister Ziyambi Ziyambi has said the government would not revert to the old system of price controls to arrest sky rocketing prices in the country as the exercise is not useful.

Zimbabwe is undergoing a hyperinflationary period reminiscent of the 2008 crisis.

The US$ rate has also spiraled and is trading at 12 against the local RTGS$12.

Ziyambi said the government would instead continue engaging businesses to ensure stability.  
 
"Yes, prices are going up.  Some just wake up changing their prices but the Ministries of Finance and Economic Development and Industry and Commerce are engaging those who sell that they should come in agreement because price hikes are not good," said Ziyambi.

"Allow me to say that option of price controls that we once used does not work."

Ziyambi said the government plans to establish "people's shops" that would sell products at reasonable prices.

"So what we are going to do is that when we are engaging the retailers, we agreed that we should come up with people's shops there will be competition with those hiking prices so that if they have bread and we also have our cheap bread, theirs will rot," said Ziyambi.  
The country faces a shut down in the coming weeks with workers from a number of key sectors either engaging or giving notice of job actions.

The opposition has also threatened to mobilise people to engage in demonstrations over the government's failure to address the country's economic challenges.