Zimbabwe’s president Robert Mugabe has announced a fresh threat to freeze prices in the run-up to the March 29 harmonised presidential and parliamentary elections.

“On Tuesday, I was signing a new salary plan of hefty salaries for teachers and all civil servants in general."

"The salaries are expected to help a lot in this hyperinflationary environment.”

“However, the problem comes with businesses which tend to increase prices of goods and services each time the Government increases civil servants. This development quickly erodes the salaries,” he said.

The aging leader (84) said the salary increments to come are very good and the responsible authorities will announce the figures and more details soon.

Last year, Zimbabwean businesses went through a tough time mainly owing to price controls effected by Mugabe and his government. Many firms either closed down, scaled down operations, retrenched workers or forced workers to go on leave. Besides the 'traditional' operational challenges of persistent foreign currency shortages, escalating inflation, fuel shortages and power cuts, price controls also significantly squeezed profit margins.

Business and analysts are strongly against price controls and this year, the Reserve Bank of Zimbabwe (RBZ) governor, Gideon Gono also hinted price freezes are not good for the economy.

On Tuesday, Mugabe warned the Government would strongly punish businesses that were in the habit of profiteering.

“Prices of goods and commodities are not supposed to be hiked anytime the businessmen wish,” he said.

Since the halting of price increments, basic commodities disappeared from shops and supermarkets shelves and were only available on the parallel (black) market at exorbitant prices.

“We will effect price controls where necessary,” said the president, who is looking for a sixth term in office.

“The National Incomes and Pricing Commission (NIPC) will this time be tasked to closely monitor unscrupulous businesspeople,” emphasised Mugabe.

Also last year, a number of businessmen and businesses were arrested and prosecuted for breaching the stipulated prices control rules.

A Harare based analyst says the promised salary hike for civil servant is only meant for vote buying.

“Teachers and all other civil servants are languishing mainly because of the poor salaries they get.”

“This year, to a larger extent, the government has been ignoring civil servants’ pleas to have good salaries and better working conditions,” he said.

“Why offer them hefty salaries now, when we are just close to the elections. This is just a move to calm civil servants down so they may vote for Mugabe and ZANU PF. Infact, even the whole price freeze scare is meant to get people to support him,” adds the analyst.

The National NIPC has this year intervened in the gazetting of school fees, Medical Aid service providers' subscription fees. The Commission also managed to publish controlled prices of basic commodities in the government-owned media, and threatened business indicating a list of offenders has been handed over to the police for investigations.

---

Share This Story On:

Average user rating