Black market thrives

out two months ago, when the government decreed as part of its price control blitz, that companies should reduce prices of goods by 50 per cent, despite the country’s hyper-inflationary environment.
Many shops have since been reluctant to re-stock in protest at the non-viable prices they are being forced to charge, leaving shelves empty even in the country’s leading retail shops.
As a result, consumers have been forced to rely on the parallel market, which has the basics in abundance, albeit at exorbitant prices.
Parallel market traders, who mostly operate near retail shops, told The Zimbabwean this week that the ever-rising demand for basic commodities had forced them to raise their prices astronomically over the weekend.
“There have been very few deliveries of basic commodities in the past weeks. To meet the ever-rising demand, we are forced to raise our prices almost daily,” said Thando Mpofu, who operates outside Sekusile shopping centre in the high-density suburb of Nkulumane.
A survey carried out by this reporter revealed a 2kg packet of white sugar, which used to be sold for Z$350 000 now goes for Z$700 000, while the official price is Z$80 000.
A pint of milk which used to sell at Z$50 000, now goes for Z$100 000, against an official price of Z$30 000. A 2 litre gallon of cooking oil now costs Z$1,2 million, up from $700 000.
Zimbabweans earn an average monthly basic salary of around Z$2 million.
The dealers also break down their goods, like sugar, maize meal and salt, into very small sachets which are being sold for Z$50 000, Z$100 000 and Z$20 000 for the smallest sachets respectively.
“There is nothing we can do because there is nothing in the shops. We have children who need to eat and bath. We are now forced to buy what we can afford even if it means buying mealie-meal on a daily basis,” said Nobuhle Ncube of Makokoba high-density suburb.
Industry and International Trade Minister, Obert Mpofu, who also chairs the Task force on price Monitoring and Stabilisation, threatened to descend on the parallel market traders, whom he accused of hoarding basic commodities for resale.
“There is plenty of food, but these people, who spend most of their time running from shop to shop hoarding goods for resale are the ones causing artificial shortages. We will soon descend on them and find out where they get these goods. I suspect that some shops might be involved in this and we will also deal with them,” said Mpofu.