Mnangagwa accuses business of sabotage

PRESIDENT Emmerson Mnangagwa yesterday accused business of sabotaging his government.

Officially opening the Zimbabwe International Trade Fair (ZITF) in Bulawayo, Mnangagwa said: "We must practise honest and ethical business practices. Businesses cannot purport to support the government by day and sabotage the same government by night and then after play the victim. It is imperative for us all to make strategic choices for the best interests of our country."

Businesses have been increasing prices of goods and services as well as selling goods exclusively in US dollars, citing rising inflation to hedge against losses and the cost of hard currency on the black market.

Prices of basic goods and commodities have spiralled this month, with bread now costing $480 per loaf and a 10kg bag of mealie-meal going for $1 300.

Inflation on Tuesday also spiked upwards to 96,4% up from 72,1% in March, raising fears of a possible return to hyperinflation.

But Mnangagwa said he was optimistic that the economy would turn around, despite analysts predicting gloom ahead.

Mnangagwa said Zimbabwe exports, at about US$10 billion last year, showed that his government was making strides in transforming the economy.

"Zimbabwe's economy has moved from stabilisation to growth, hence industry must accordingly go beyond merely staying afloat," he said.

"All sectors are, therefore, challenged to adopt entirely new business structures anchored on innovation strategy for the long-term benefit of our economy and higher quality life of our people."

He also said the National Development Strategy 1 was registering notable results, with the economy growing last year by 7% and is expected to grow 5,5% this year.

"Equally, we have to manage risks, reduce costs and improve efficiencies and overall competitiveness. Products and services of industry must continuously address the needs of our people and our economy," Mnangagwa said.