Govt rules out price controls

The government has ruled out price controls in the economy saying it is instead focusing on cost reduction mechanisms for industry in line with regional and global trends.

The Minister of Industry and Commerce Mike Bimha says the government will not interfere in the pricing structures as modalities are being put in place to facilitate the restoration of product competitiveness to regain lost market shares.

His sentiments come in the wake of speculation that the government might resort to price controls in an effort to facilitate price reduction for several commodities and utilities in the economy.

"The pricing reduction structures are being made to create a platform to unlock productivity and boost competitiveness," said Bimha.

The government is also in the process of implementing a cost reduction policy that will enable local industry to improve the quality of products.

It is anticipated that such a plan will, in the long term, result in the reduction of the high import bill averaging more than US$2 billion yearly.