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Central bank chief attacks price crackdown
Thursday 25 October 2007
 

Own Correspondent 

HARARE – Zimbabwe central bank chief Gideon Gono on Wednesday condemned a controversial government crackdown on prices that is blamed for triggering widespread shortages of basic goods around the country. 

Addressing a press conference in Harare, Gono said the government was working flat out to ensure that empty shop shelves are replenished. 

The Zimbabwean government last June ordered all shops to reduce prices by 50 percent after President Robert Mugabe accused business leaders of hiking prices in an attempt to foment rebellion against his government. 

The crackdown however backfired as it resulted in empty shop shelves as retailers failed to replenish stocks. 

“Of what use are cheap goods when they are not available?” said Gono, a trusted Mugabe lieutenant who is among the few government officials who have openly criticised the price crackdown. 

The Reserve Bank of Zimbabwe (RBZ) governor said the government was working flat out to ensure that goods are back on supermarket shelves and the return of viability in the business sector. 

“With the measures that we are putting in place and the close working relationship we are having, not just with manufacturers, but also with the retailers, Zimbabweans can expect to see a return to normalcy on their shelves. 

“There is going to be return to normalcy, but in an environment that respects the viability of producers of goods and services, and we must not be tempted to go back to the anarchy of the last three months," said Gono, who is regarded as among the few voices of reason in government. 

The Zimbabwean government was last August forced to make an embarrassing climb down on the price directive resulting in some essential commodities reappearing in most supermarkets. 

Zimbabwe, once regarded as a model economy in Africa, is in the grip of its worst ever economic crisis that has manifested itself in widespread shortages of basic goods, rampant inflation of over 7 000 percent and rising poverty. 

Western governments and the main opposition Movement for Democratic Change (MDC) party accuse Mugabe, in power since independence from Britain 27 years ago, of ruining the country, a charge Mugabe denies. - ZimOnline

 

 
  
    
    
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