Why Another Bacossi Initiative Will Not Work

A NewsDay article has suggested that there are a number of factors that will impinge on government’s plans to reintroduce cheap shops under the Silo brand, popularly known as Bacossi, for purposes of easing the soaring inflation. 

The editor observed that Zimbabwe was not learning from history as it is reintroducing the same concept that failed under former Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono. Part of the article reads:

As he tried to stem the tide Gono introduced the Foreign Currency Licensed Wholesalers and Retailers, but the Zimbabwean economy was far too gone and dollarisation had set in.
Shortages did not end and prices continued to rise in spite of Gono’s interventions.

In the end, his motto failure is not an option, sounded quite hollow and meaningless.

The article further suggests that the government creates a conducive environment for the private sector to operate in as State interventionist policies have failed to produce desired results. It added that Zimbabwe also needs to open space for innovation, and entrepreneurship. It also advises the government to ensure policy consistency by pursuing one path, either neoliberal policies or interventionist policies.

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