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Victoria Ruzvidzo In Focus
Wanton price increases experienced last month have come back to haunt the economy, with the sharp rise in inflation to 20,9 percent from 5,4 percent, sending the message home that tendencies to profiteer need to be discouraged firmly.

Meetings have been held, warning shots fired over price increases but these have largely fallen on deaf ears.

Fears are that the inflation rate for this November might rise even further if the price movements continue unabated.

Prices for goods such as sugar and cooking oil have stabilised over the past two weeks, but those for medicines continue to skyrocket in both US dollar and bond note terms.

We are all too aware of the effects of high inflation on the economy, it’s a situation we would not want to experience again but this means manufacturers and retailers need to sober up and be realistic in their pricing.

Such a high jump in inflation as experienced for October is quite scary, with potential to gallop to hyperinflationary levels if this continues unchecked.

I am sure Zimbabwe has enough challenges on its plate and is ill-prepared for the effects of high inflation.

A gain of 15,46 percentage points as reported by the Zimbabwe National Statistics Agency is not something that can be dismissed casually. Without being necessarily alarmist but rather looking at the issue realistically, this figure has to be watched and everything done to make sure the trend is arrested.

While the jury is still out on why prices rose sharply, many have advanced that the separation of bond notes accounts from US dollar accounts which saw rates tumble on the parallel foreign currency market is responsible while other economists posit that the two percent tax on electronic transactions was the cause.

However, the truth is that nothing really justified prices increases of such magnitude. A deeper analysis of the two policy interventions will show that they are both intended to bring solutions to the economy. Retailers and manufacturers just seized the moment and increased prices to track the parallel market rates.

Up to this day many products and services have remained too high while in many cases, particularly with most pharmacies, US dollar prices have become the order of the day. How does one justify the price of a syringe jumping from 20 bond cents to US$4 overnight?

What is the basis of such a price spike? A cough mixture now costs US$10 from $7 bond a few weeks ago while many are now doing without medication for such illnesses as high blood pressure and diabetes.

These are issues that require good corporate citizens who make decisions that benefit them without necessarily constricting the economy. We are made to understand that the pharmacies are accessing foreign currency at the official 1:1 rate but charging astronomically high prices for both prescription drugs and over the counter medicines. Where a patient is not in possession of US dollars, they are asked to multiply the figure by four or five if paying in bond notes.

We are made to understand that a private clinic in Harare woke up one morning demanding that the hospitalised pay in US dollars. Those that did not have were discharged regardless of their condition.

This situation cannot be allowed to persist.

A piece written by President Mnangagwa and published in the Financial Times on Tuesday was quite instructive.

“The process of change is not smooth. Some pain and discomfort along the way is inevitable. The arduousness of the path of reform can sometimes lead governments to stall or backtrack. But as a passionate reformer leading a reformist government, I know there is no other way. We cannot allow anything to slow us down,” he wrote.

The pain he spoke about must be shared but unfortunately some businesses have decide to pass all pain to consumers while they enjoy the huge profits accruing from the profiteering mentality that seems to blind them to the reality on the ground.

Zimbabwe’s economy has endured so much for the past two decades hence it requires hard work to undo all the challenges and get the system working again. Everyone needs to sweat. Playing around with calculators to cheat the vulnerable consumer is not a sustainable way of handling the situation. It’s all about rolling up the sleeves and taking up picks and shovels in both the literal and metaphorical sense to get the economy back up.

There is a lot of give and take expected of everyone for the economy to get better. We need to focus on the key objective of transforming the economy and this should provide the driving force for everyone. Rising inflation will only compound the situation and leave the economy poorer.

Such organisations as the Confederation of Zimbabwe Industries, the Retailers’ Association of Zimbabwe, the association for pharmacies and medical drugs procurers, etc, need to up their game and ensure their respective constituencies play ball.

The state of the economy is the sum total of our individual efforts and we believe no one would want to be held accountable for derailing current efforts. The Consumer Council of Zimbabwe must also not find peace or rest until the customer is treated  fairly.

We have not denied the need for price increases in some instances but a decent adjustment by a few cents or dollars is understandable. Converting the bond price straight to US dollar is rather cruel and it would be irresponsible of all stakeholders if we were to allow such practices to persist.

Something that was going for $27 bond now fetches US$27. That is criminal.

In God I Trust!