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President Emmerson Mnangagwa has said the government will create pathways for sustainable economic growth while protecting citizens from economic sabotage and greed-driven actions.
Addressing the 378th Ordinary Session of the ZANU PF Politburo at the party’s headquarters in Harare on Wednesday, 25 September, Mnangagwa condemned what he considers to be attacks on the economy that harm ordinary people and reaffirmed the government’s commitment to safeguarding Zimbabweans from economic disruptions.
Mnangagwa said the country is making significant progress despite challenges like sanctions, climate change, and global economic issues. He added:
<blockquote>
Acts of economic sabotage, and speculative and counter-productive tendencies by those who thrive on greed and profiteering have no place in our country.
Attacks on the economy to make the public suffer are unacceptable and my Government will protect the ordinary people.
</blockquote>
The warning comes in light of soaring prices for essential grocery items, particularly in formal retail outlets, alongside the rapid decline of the local currency, the Zimbabwe Gold (ZiG).
Mnangagwa urged ZANU PF structures to take decisive action against threats to the party’s unity. He said:
<blockquote>
Unruly elements abusing various media platforms to cause alarm and despondency, while also sowing disunity and advancing misguided, nefarious political agendas within the country and Party, stand warned.
I call upon this Politburo Session to once again introspect and give the requisite guidance so that our beloved Party, ZANU PF, and the people of our motherland, Zimbabwe, pick up pace towards building a stronger Party and the realisation of our shared national development agenda.
</blockquote>
Mnangagwa expressed his gratitude to the ZANU PF Youth League leadership from Masvingo Province, along with support from other provinces, for organising the inaugural Munhumutapa Day, which coincided with his 82nd birthday.
Wednesday’s Politburo meeting was also attended by First Lady Auxillia Mnangagwa, Vice Presidents Constantino Chiwenga and Kembo Mohadi, ZANU PF National Chairperson Oppah Muchinguri-Kashiri, and Party Secretary General Obert Mpofu.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

President Mnangagwa said he will protect people from greedy businesses and help the economy grow. He warned against actions that harm the economy and make prices go up. The government will take action to keep things stable. He thanked the ZANU PF Youth League for organizing an event for his birthday. He also met with other leaders to talk about important issues. Mnangagwa wants unity and progress for the country. He asked everyone to work together for a better future.

Mnangagwa Vows To Protect Citizens From "Greedy" Businesses

The government has announced that it will impose strict penalties on businesses engaging in unfair practices such as profiteering, manipulating the ZiG currency, and other forms of unfair trade practices.
This declaration comes amid reports of some shops and manufacturers using the unofficial exchange rate in their operations, with others deliberately resisting the use of the ZiG in preference for the US dollar.
Businesses have been citing malfunctioning swipe machines and mobile network breakdowns as justification for their actions.
During a post-Cabinet media briefing held in Harare on Tuesday, the Minister of Information, Publicity, and Broadcasting Services, Jenfan Muswere said:
<blockquote>
Penalties are being enforced against all perpetrators of unjust price hikes, manipulation of the ZiG currency, smuggling, and all forms of unfair trade practices.
The Government is going to review the fines from a minimum of US$200 Level 5 to a maximum of US$5 000 Level 14 or the ZiG equivalent for the various offences.
Licences will be rationalised and consolidated to be obtained in one office as a measure to enhance efficiency.
</blockquote>
Muswere also said the Reserve Bank of Zimbabwe (RBZ) will take measures to promote the uptake of plastic money. He said:
<blockquote>
In order to promote the uptake of plastic money, the Reserve Bank of Zimbabwe will strengthen the mandatory licensing requirements for all business operators to have a bank account and Point of Sale (POS) machine under the Shop and Shop Licensing Act, and deploy inspectors to curb misdemeanours that militate against price stability and availability of basic commodities.
The Government of Zimbabwe, going forward, will increase border patrols, increase the number of inspectors and implement a Whole-of-Government Approach to deal with the menace at border posts.
</blockquote>
A spokesperson for the Ministry of Finance, Economic Development and lnvestment Promotion told Bloomberg that the Minister (Mthuli Ncube) may make an announcement next week, without providing a specific date.
Zimbabwe is trying to shake off its heavy dependence on the US dollar, which has been the dominant currency since 2009.
The greenback now accounts for about 70% of all economic transactions in the economy, according to central bank data.
At the April launch of the gold-backed ZiG currency, US dollars were used in 85% of transactions.
President Emmerson Mnangagwa recently hinted at the possible adoption of the ZiG as the sole currency as early as 2026, ahead of an initial 2030 deadline.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The government is angry with some businesses for making prices too high. They want to stop these unfair things and they will give heavy penalties to those who do not follow the rules. They also want people to use the local currency called ZiG more, instead of US dollars. If people keep using US dollars for most things, the government will make it hard for them. The government also wants businesses to have bank accounts and machines to pay electronically. They are trying to make their own currency stronger and used more.

Government Threatens Heavy Fines For Unjust Price Hikes

Citizens’ Coalition for Change (CCC) leader Nelson Chamisa has blamed President Emmerson Mnangagwa and Finance and Economic Development Minister Mthuli Ncube for the country’s economic challenges.
Chamisa said Mnangagwa “changes like the weather” and that policy inconsistency has resulted in price hikes, erosion of salaries and the precipitous fall in the value of the Zimbabwe dollar.
Ncube, who was appointed Treasury boss in 2018, has struggled to reverse Zimbabwe’s economic downturn and recently threatened to hike the policy rate which at one point was at 200 per cent.
Speaking to journalists Chamisa on Tuesday, Chamisa said Mnangagwa and Ncube cannot resolve Zimbabwe’s economic challenges. <a href="https://www.newzimbabwe.com/everyone-is-hungry-says-chamisa-ccc-leader-blames-mnangagwa-ncubes-haphazard-policies-for-spiralling-prices/">He said:</a>
<blockquote>
Everyone is hungry, everyone is complaining, and everyone feels that the situation in the country is not okay.
This is the problem of having the wrong leader or being led by one who takes power illegitimately as Mnangagwa did.
You will realise none of the things that person will do would have been well thought out.
No one knows how he thinks, he changes like the weather. Nothing works and we want to fix all that by voting for the right candidate.
Look at how Mnangagwa and Ncube are behaving. Their tools box is empty, they cannot resolve the economic questions of the day, and they cannot understand that confidence, predictability and consistency of policy are everything.
The price hikes are an indicator of hikes in all other ill-spheres. We are not part of those that lead in corruption, unemployment, inflation, road accidents, reserves, politically motivated violence, poor road networks, arrest of political players and journalists.
</blockquote>
Over the past few weeks, Ncube has announced a series of measures to deal with price hikes including the recent suspension of duty on all basic grocery items for six months.
The grocery items are rice, flour, cooking oil, margarine, salt, sugar, maize meal, powdered milk, milk formula, tea, petroleum jelly, toothpaste, bath soap, laundry and washing powder.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Chamisa Blames Mnangagwa, Mthuli's Policy Inconsistency For Price Hikes

The Government has reportedly ordered representatives of business member organisations (BMOs) to desist from commenting on rising prices of basic goods and services.
In a survey carried out by <a href="https://businesstimes.co.zw/govt-gags-business/">Business Times</a>, business leaders from all BMOs said they could not comment on rising prices saying there are ongoing engagements with the Government and could only comment after the current crisis had been resolved.
The publication quoted a source as saying state security agents have warned business representatives that if the situation goes out of hand, they will be held accountable for their “reckless utterances”. Said the source:
<blockquote>
The government has taken the price madness personally as it sent state agents to business representatives to stop what it terms reckless utterances in the public as this triggered an unfavourable situation in the country which is already on edge.
The business leaders were told to speak at their peril as if the situation goes out of hand in the country there will be no one to blame but themselves.
</blockquote>
President Emmerson Mnangagwa on Sunday accused businesses of sabotaging the Government and warned that he was ready to take all necessary measures including painful ones to stabilise the exchange rate and the Zimbabwe dollar.
The Zimbabwe dollar fell by 25.5% on the official market on Tuesday, the biggest collapse in one day since the auction system was introduced three years ago.
The local currency now officially trades at 1 888 to the US dollar from 1 404 a week ago.
However, on the parallel market, the Zimbabwe dollar was trading at $3 500 to the greenback on Wednesday, according to <a href="https://www.newsday.co.zw/local-news/article/200012021/zimdollar-in-record-crashas-calls-for-us-salaries-grow-louder">NewsDay</a>.
Economists have blamed excessive money supply by the Government for recent price hikes and the rapid depreciation of the Zimbabwe dollar.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Govt Warns Business Leaders Against Making "Reckless Utterances" On Price Increases

President Emmerson Mnangagwa said that the Government will “take all measures necessary” to protect the consumer and ensure price stability.
Writing in his weekly column for <a href="https://www.sundaymail.co.zw/govt-takes-price-madness-head-on">The Sunday Mail</a>, Mnangagwa said the Government was aware some businesses were rejecting the local currency, abusing the foreign currency auction system and channelling goods to the informal market.
He said it didn’t make sense that the exchange rate has been highly unstable given the increased foreign currency inflows and use of the United States dollar in local transactions. He wrote:
<blockquote>
The more than US$11 billion foreign exchange earned last year is the highest ever done by this economy, and is certainly far higher than in most economies in Sub-Saharan Africa, outside South Africa. Sadly, this has not translated into a stable exchange rate.
</blockquote>
Mnangagwa noted that despite 80 percent of transactions being in foreign currency, with business allowed to retain most of it, the demand for foreign currency on the foreign currency auction has remained the same. He said:
<blockquote>
… Fourth and most exasperatingly, when 20 percent of our transactions were conducted in foreign currency, and 80 percent in local currency, the demand for foreign exchange at the auction averaged US$20 million weekly.
Today, when we find ourselves in an 80-20 percent reverse transaction equation in favour of foreign currency, the demand for foreign exchange at the same auction, and by the same Business now directly selling more wares in United States dollars, has risen to US$30 million a week! How does one explain such a paradox?
</blockquote>
Mnangagwa warned businesses that the Government will not hesitate to punish those that break exchange control rules or are involved in money laundering. He said:
<blockquote>
Above all, short-circuiting set rules and cutting corners in business attract very stiff sanctions.
Those who break our exchange control rules, or who money launder, will only have themselves to blame.
No one in business should doubt my Government’s resolve to correct blatant market failures, and to counteract and foil sinister moves to destabilise our economy.
Government’s responsibility is to protect the consumer, and to ensure stability in the market and inside the country.
We will take all measures necessary to ensure there is stability, including painful ones should that ever become necessary.
</blockquote>
The Government established a committee led by the Ministry of Industry and Commerce to monitor and investigate the recent spate of price hikes.
The committee expects to submit its recommendations this week before they are considered by Cabinet for implementation.
The week before last, the Government removed duty on 11 selected imported basic grocery items and allowed shops and other Zimbabwean businesses to keep 100 percent of the foreign currency they get from sales.
The products that will be imported duty-free include maize meal, rice, milk, flour, sugar, salt, cooking oil, petroleum jelly, toothpaste, bath soap and washing powder.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Ready To Take "Painful" Measures To Stop Price Hikes, Says ED

President Emmerson Mnangagwa has said his Government will soon come up with measures that will ensure that the bulk of local transactions are done using Zimbabwe dollars instead of US dollars.
Addressing thousands of ZANU PF supporters in the Muzvezve constituency on Thursday, Mnangagwa said his Government will punish businesses that manipulate the Zimbabwe dollar and wantonly hike prices. He said:
<blockquote>
We are saying to our industrialists such as Innscor, that any investor who comes into the country should buy whatever he wants in Zimbabwe dollars.
We are putting measures to make sure that we deal once and for all with companies that are manipulating the local currency.
We also have locals who are indiscriminately raising prices, punishing the people but we are going to put measures that will ensure that our currency will be sought after and that the US doesn’t dominate.
</blockquote>
Mnangagwa mocked the United States of America and its allies, saying they have met their match in Russian President Vladimir Putin and the dominance of the US dollar globally will soon end. He said:
<blockquote>
On the issue of price increases, we used to have our own dollar. When we were sanctioned, our country’s currency was attacked by Western countries who have powers in terms of controlling money.
The money lost its value and we adopted the US dollar which we have since left behind. 
Now they (the Western world) have met their match in (Russian President Vladimir) Putin who is demanding payments for gas and oil in (the Russian currency) roubles instead of the US dollar that has governed global trade for the past 60 years.
Russia is a big country whose economy affects the world economy, there is now a new world order that includes Russia and China.
</blockquote>
On Friday, Russian Deputy Prime Minister Alexander Novak said several buyers of Russian gas have agreed to switch to payments in roubles, reported Reuters.
The announcement came after Putin said last month that buyers of Russian gas from “unfriendly” countries should pay in roubles.
The move was rejected by European Union authorities under the bloc’s sanctions regime against Moscow.
<h4>More: <a href="https://www.reuters.com/business/energy/russian-deputy-pm-says-several-buyers-agree-pay-roubles-russian-gas-2022-04-15/">Reuters</a></h4>

Companies Manipulating Zimbabwe Dollar To Be Penalised - Mnangagwa

The Minister of Foreign Affairs, Subusiso Busi Moyo has warned businesses against the unjustified price increases that have been experienced over the past few weeks.
Moyo told Newsday last week that businesses show a lack of discipline, and that democracy and discipline are intertwined. Said Minister Moyo:
<blockquote>This is a very temporary phenomenon, what we are going through and sometimes also they say in a democracy there must be discipline.
We cannot separate democracy and discipline. If you lack discipline, then what it means is that people would want to maximise on profits, but in reality, profits are basically 10-15%. That is not exactly what is happening on the market.
We are saying we must be united in achieving the specific national interests, but if we behave in an undisciplined manner, unfortunately, it will pain a lot of people.
We could have ameliorated that particular pain if we were disciplined as a society, as a business, as different sectors of the economy.</blockquote>
Prices of goods and services have skyrocketed as businesses follow the depreciation of the local currency against the US dollar on the alternative market.
Moyo warned businesses that the government will be hard-handed to instil discipline. He said:
<blockquote>Definitely, as government, we are going to enforce discipline, but what we don’t want was to try and be hard-handed to our people, we want to talk to our people so that they understand that we are together and we are moving in a particular direction.</blockquote>
<h4>Related:</h4>
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<h4><a href="https://news.pindula.co.zw/2019/03/28/retailers-hike-prices-of-basics/" rel="noopener" target="_blank">Retailers Hike Prices Of Basics</a></h4>
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<h4><a href="https://news.pindula.co.zw/2019/04/09/price-increase-affected-retail-volumes-statistics/" rel="noopener" target="_blank">Price Increase Affected Retail Volumes – Statistics</a></h4>
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<h4><a href="https://news.pindula.co.zw/2019/04/17/full-text-consumer-rights-association-threatens-consumer-mass-action-over-price-hikes/" rel="noopener" target="_blank">FULL TEXT: Consumer Rights Association Threatens Consumer Mass Action Over Price Hikes</a></h4>
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<h4>More: <a href="https://www.newsday.co.zw/2019/04/govt-to-crack-whip-on-errand-businesses-sb-moyo/" rel="noopener" target="_blank">Newsday</a></h4>

SB Moyo Warns Businesses That Govt Will Enforce Discipline

Retail prices of basic goods have significantly gone up over the past month, with analysts blaming it on exchange rate developments.
The Daily News reports that prices of basics have gone up by between 20 per cent and 100 per cent:
<blockquote>… a two-litre bottle of cooking oil, which was selling at around $7 has increased to $11, 49, while two kilogrammes (kg) of flour now retails at $7, 19 from $5, 45. A 2kg packet of rice has also gone up from $5, 70 to $6, 49, with a kg of salt fetching $1, 89 from $1.
The price of sugar has also gone up from $2(sic) per 2kg to $5, 29 with 10kg of mealie-meal now going for $9, 99.</blockquote>
An economist, Kipton Gundai spoke to the Daily News on the development. He said:
<blockquote>The price of commodities is a result of the interaction between supply and market demand. Price increases can be best described under two scenarios: when there is a surge in demand and if there is undersupply of commodities.
In the Zimbabwean case, we discover that there is what we call pull-demand; there is a lot of liquidity in the market chasing too few goods.
This is because, since January, some companies have been adjusting their employees’ salaries, which has increased the buying power against disrupted production.</blockquote>
<h4>More: <a href="https://www.dailynews.co.zw/articles/2019/03/28/prices-of-goods-continue-to-go-up">Daily News</a></h4>

Retailers Hike Prices Of Basics

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