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Zanu-PF threatens to clamp down on big business

by Staff reporter
09 Jul 2020 at 07:23hrs | Views
ZANU-PF has threatened to clamp down on big business fond of disrupting government policies by inflating prices of goods and manipulating the black market.

Speaking at a policy meeting in Harare on Monday, secretary for administration Obert Mpofu said despite moves by President Emmerson Mnangagwa's government to stabilise the economy, business was working against the efforts.

"We still face an economic malaise as interventions on the monetary and fiscal policies are not yielding the desired effects due to the continued manipula-
tion of the black market even after the introduction of the foreign currency auction system in the past two weeks," he said.

"The black market has gradually moved away from the street vendors and is now being propagated by the most reputable formal supermarkets now providing lucrative rates on their goods and services on a higher rate as compared to the official exchange rate."

Mpofu accused the police of not acting against this manipulation of rates by big business.

"Yet again, the law enforcement agents are paying a blind eye on these nefarious activities," he said.

Zanu-PF acknowledged that people were earning nominal salaries which could not match the ever-escalating prices of goods such as bread.

"Prices of goods still remain high, prices are out of reach of the common people. The reduction of the price of bread from $77 to $66 is not enough to cushion people from their meagre incomes. A complete overhaul and lowering of prices is essential if the economic situation is to stabilise for our people," Mpofu said.

Business has over the past few months, been trying to nudge government into dumping the local currency, which it alleged was failing to hold value, thus threatening the viability of their entities.

Zanu-PF, however, accuses industry of sabotaging its economic policies and working to crush the local currency introduced last year.

Mpofu said the affinity and appetite for the United States dollar continued, with most retailers preferring the greenback over the local currency.

Mpofu said Zanu-PF needed to be continuously updated on economic developments by the Finance ministry and the Reserve Bank of Zimbabwe, calling on party leaders to remain vigilant and understand economic dynamics so that they are able to explain these issues to their supporters.

"Our economic cluster should be proactive and vigilant and be in a timely position to pursue these economic positions so that they have answers," he said.

Source - newsday