Oil prices have continued to rise, reaching an all-time high of US$110 per barrel, triggering waves of price hikes in oil importing countries, including Zimbabwe.
Here, commuter operators pushed up the cost of fares, with a one-way trip to the high-density suburbs within the 10 kilometre range now costing Z$10m. Journeys to satellite towns such as Ruwa, Chitungwiza and Norton now cost upwards of Z$15m.
Over the weekend, the price of petrol rose from Z$30m a litre to more than $45m.
The rise in fuel prices has also had an impact on the price of goods. Cooking oil rose from Z$90m two weeks ago to around Z$120m; bread from Z$3m to Z$7m.
The biggest oil-exporting bloc, OPEC, has ruled out increasing output, triggering fears of a shortage – a situation exacerbated by growing fears of US economic recession.
SA businesses examine ownership act
The South African Government is scheduled to meet the country’s business leaders to discuss their business interests in Zimbabwe, after the signing of the Indigenisation and Economic Empowerment Act into law this week.
South Africa’s Deputy Foreign Affairs Minister, Aziz Pahad, told the South African media that his Government was still studying the contents and implications of the Zimbabwean law.
“We are studying this Bill more carefully and then will initiate discussions with the South African business community to get an understanding of how they interpret the bill and how we work together to protect, in the broad sense, South African interests in Zimbabwe,” he said.
The Act seeks to ensure that local Zimbabweans own 51 per cent shares in all companies operating in the country.
Timber profits grow
Border Timbers has seen turnover grow by 28,800 per cent to Z$970.8bn, according to interim results to December 31 last year.
Profit after taxation increased 12,857 per cent to $109.8bn.Â
The company is now hoping for new orders for transmission poles in Mozambique and Botswana.
New gold price set
The Reserve Bank of Zimbabwe has increased the gold support price by 600 per cent to Z$700m from Z$100m with effect from March 1.
The Bank said it would “continue to assess the operational viability concerns of this critical sector on an ongoing basis”.
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