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Mr Bvumbe

The Interview Tichaona Zindoga
Zimbabweans rightly feel hard done by a predatory business that puts the prices of goods and services beyond regional and international pricing regimes. Government recently had to give an ultimatum for the fuel sector to slash prices to accord with the global fall in the price of oil, which was done reluctantly. The Consumer Council of Zimbabwe says the best shield for the long-suffering Zimbabwean consumer lies in a Consumer Protection Law. CCZ President Phillip Bvumbe (PB) speaks to our Political Editor Tichaona Zindoga (TZ).

TZ: There has been controversy over fuel prices in Zimbabwe where we have not seen a reduction in fuel prices against a global drop. What is your comment on this?
PB: If consumer interests are not catered for and what they have asked is not done in these instances the reduction of fuel prices against global pricing model, consumers should not hesitate to resist and boycott the product in response to suppliers not conforming to principles of fair play. However, let me hasten to say that fuel is a tricky commodity with no substitute. If consumers boycott fuelling their cars it might be harmful and strenuous to both the consumers and the economy. Our role as CCZ is to encourage dialogue and provide guidance by issuing explanatory notices to educate the consumers in respect of the bridge by the suppliers contrary to the notice of compliance that would have been issued by the relevant ministry. We as consumers can voice our concern without resorting to protest and total boycott of the commodity. Our historical experience is that total boycott does not work, we tried boycotts during the 20th century and it did not work then and it will not work now because of the low membership of our constituency. Bearing in mind that the “greater our membership the greater our voice and impact” we do not encourage consumers to direct their energies into protest that might turn into violent demonstration.

We must be vigilant enough to provide the consumers with the prices that the various suppliers are providing to the market place. This information will assist the consumers in making a decision and right choices from the supplier from whom they want to purchase the fuel from. We are actually in the process of making a market survey which will be released soon for the benefit of the consumers.

At the moment we are concentrating on the Consumer Protection Bill which in due time will be passed into an Act and it will be a weapon for generations to come.

TZ: Are Zimbabwean businesses driven by greed. And do we get value for money?
PB: Business people whether Zimbabwean or not are always self-serving meaning to say, that is the nature of the world we live in today. Businesspeople including our own have a natural interest to make profit because that is their motivation to remain in business.

Currently, the consumers are not getting value for their money due to poor service delivery and the high costs of goods and services which do not respond to market forces for example the shrinking of the South African rand against the United States dollar must result in the adjustment of prices by suppliers, but we do not see this happening. Which is totally unfair to the consumer.

TZ: This brings us to the idea of Government protection and regulation. Government recently had to move in and declare an ultimatum on the reduction of fuel prices. What role should Government play in the protection of the consumer?
PB: Yes, in accordance with Section 8 and 9 of the Constitution the Government is obligated to take the leading role in the establishment, enhancement and promotion of a sustainable, free and just society were the rights of consumers are protected. Currently we are working with Government to bring about the Consumer Protection Act which will result in an equitable market place for the protection of consumers.

TZ: But price controls also have their downside as industry may retaliate and hold back goods and services, and we noticed that a few years back. How can a balance be struck?
PB: The balance can only be achieved through leaving the market forces to determine the price rather than by stipulating the prices of goods and services. Productivity is an issue that needs to be critically addressed to avoid the economy relying on imports and being a consumptive market rather than produce goods for both the domestic and export market. If this market enabler is addressed then there will not be a need for frequent Government intervention as the Government will have adequate resources to rely on for the welfare of the consumers.

TZ: In cases where the retailers fail to abide by say instructions to lower prices, what are the resorts of the consumer?
PB: Failure to comply with such an instruction is in itself a form of abuse to the consumer. Our remedy lies in coming up with legislation that backs up enforcement compliances in cases where suppliers defy ministerial directives, thus we are currently pushing for the Consumer Protection Act as you are aware. Consumers and the Government together with other stakeholders must work together to enact comprehensive consumer legislation. As consumers, we must fight together in solidarity for a better and fair marketplace. In order to achieve this, we need consumer groups that are effective, with the right focus and dialogue with the consumers in order to create strategies to find solutions against the abusive practices.

TZ: Don’t you think Zimbabwe’s consumers are what one could describe as passive because there has not been any major price resistance?
PB: Zimbabwean consumers are not passive as perceived by your question. For example the consumers voted the Zimbabwean dollar from the market place during the hyperinflationary period. There was resistance by the consumers because the Zimbabwean dollar was no longer credible. It was voted out, therefore can you conclude that consumers are passive? No, when local products are expensive and of poor quality the products and services of such suppliers have been voted out from the market that is one of the reasons why we find many of our manufacturers closing down showing that consumers are active and striving for high quality goods and services for value of their money. Period

TZ: Telecomms is one industry that has seen people complaining. What is your analysis of the pricing regimes in the sector?
PB: Compared to other regional countries, mobile phone charges in Zimbabwe are very high and we are mindful of the fact that the regulatory authorities are aware of this and working towards rationalisation of such pricing models. It must be recognised that Information Communication Technology is a key determinant of economic development and if the cost of computers, the price of fixed internet packages and other related costs remain high it will inhibit development as the internet remains the faster, easier and cheaper alternative to telephone and postal services. Given the importance of this sector CCZ has an important role in ensuring that such networks are accessible, affordable, reliable and safe and that the telecoms industry is held to account for improvements in this sector.

That is the reason why in 2014 CCZ joined its counterparts in the world to draw attention on the home front to spearhead the advocacy and awareness for consumer rights in the digital age.

Having prepaid fixed charges for a service also becomes unfair to the consumer in a case where they do not use all the data bundles but they expire on a certain date. Also on the fixed monthly prices some consumers will use less data than others but they still pay the same amount. So I think this must be looked at and sorted out.

TZ: What has the CCZ been doing to fight for the rights of the consumer?
PB: We have been making consumers aware of their rights and responsibility so that they can protect themselves and resist market exploitation as you are aware we have lobbied and advocated consumer legislation, the Consumer Protection Bill of which currently we are carrying out consultative workshops with a view of making recommendations to the government. This will give relief to consumers if it passes through parliament and is enacted into law. The problem has been that the current consumer legislation lacked in enforcement and the current bill addresses that loophole.

TZ: And how fair and factual is it to describe, as some people do, CCZ as a “toothless bulldog”?
PB: Yes, the bulldog must have teeth but our role is not to bite, we strive for a fair, transparent, efficient and accessible market place for both the consumer and the business community as both parties are critical in the purchase chain and cycle of goods and services. We have consumers to protect but however, they have to be a balance in ensuring responsible consumption for the survival of both players.

We saw this happening during the hyper inflationary period, we have been through the mill, we do not want the marketplace to be left with maputi. This was a painful experience for consumers and business and we do not want a repeat of this. Our role is to protect the welfare of consumers.

TZ: Lastly, where is the family basket standing at now and how do you assess people’s incomes in comparison with the same?
PB: The basket is at $490 and many people are earning below this figure. This affects their standards of living. The cost drivers of the basket are tariff charges of utilities, rentals, medical expenses. Many of the service providers like municipalities have had an unrecoverable debtors book for a long time.

This should compel a reduction of tariffs to levels in line with the extend of economy recovery. The tariffs should be discounted to the level of GDP, for instance, for 2014 by 20 percent and 2015 by 30 percent. This could moderate to reflect the insufficient liquidity in the market and bring about a rationalisation of prices of these commodities. Thus, reducing the standard of living to match the current salaries. Therefore there is need to change our behaviour and go back to basics.