Former Finance Minister, Biti, Criticises Govt For Reintroducing "Failed" Price Controls
Zimbabwe’s former Finance Minister (during the Government of National Unity era) Tendai Biti who is also a leader in the opposition Movement for Democratic Change (MDC) has criticised the government for reintroducing price controls.
Biti says that the Robert Mugabe-led administration once introduced price controls and results were disappointing.
His remarks come after Vice President Kembo Mohadi on Wednesday announced that businesses were ordered to price their commodities using 25 March prices. Biti tweeted:
The regime s price control announcement obliging retailers to revert to 25 March prices is illegal,zany & unenforceable. Price controls can’t work ,won’t work.Regime must fix productivity &supply constraints. It must fix currency & FX mess. The level of incompetence are shocking.
VP Mohadi had argued that the move was meant to cushion members of the public from exorbitant prices which businesses were charging.
When the price controls were enforced around 2007, businesses hid their commodities leaving the shops empty.
The country already has a shortage of some commodities including mealie-meal and it is feared that the move might worsen the prevailing situation.
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