Zim News Blog -NEWS NETWORK

Source: Zimbabwe finance minister criticizes ‘profiteering’ price hikes as new currency falls | Reuters

HARARE (Reuters) – Zimbabwe’s finance minister on Wednesday accused local businesses of profiteering for linking price increases of basic goods to exchange rate movements of a new transitional currency.

Since the RTGS dollar was introduced in February, prices of staples including sugar, cooking oil and rice have risen as much as 60 percent, squeezing already hard-pressed consumers and fuelling resentment against President Emmerson Mnangagwa’s government.

The RTGS launched at 2.5 to the U.S. dollar on Feb 22 and now trades at around 4.3 on the black market.

Price changes should be determined by inflation trends, minister Mthuli Ncube said, adding that month-on-month inflation was slowing.

“It is actually bad economics to link price increases to the exchange rate. That’s not how you do it, it is profiteering,” Mthuli told reporters.

The southern African nation dumped its hyperinflation-hit local currency in 2009 and replaced it with the U.S. dollar, which has been in short supply since 2016. That has in turn driven shortages of fuel, medicines and other goods, hobbling the economy.

In February Zimbabwe scrapped a 1:1 peg between the dollar and the bond notes and electronic dollars it introduced to compensate for the hard currency shortage, merging the surrogate currencies into the RTGS dollar.

On the official market, the RTGS weakened to 3.03 per U.S. dollar on Wednesday, according to central bank data.

But some retailers in major cities have pegged their prices using the higher black market exchange rate, as well as offering discounts on U.S. dollar purchases.

Ncube, who was announcing a $400 million wage deal for public sector workers, said the treasury was monitoring price hikes but would not be drawn on whether it would impose controls.

Although trade in the RTGS is restricted, economists expect the currency to come under more pressure when Zimbabwe starts importing grain as a consequence of a devastating drought this year, likely triggering more inflation.

The year-on-year inflation rate climbed to 59.39 percent in February. Ncube has previously said annual inflation will fall to below 10 percent by year-end.

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The Thokozani Khupe-led MDC-T has expelled its spokesperson, Linda Masarira, on allegations of bringing the party’s name into disrepute and aligning herself with the rival Zanu PF party. A party standing committee meeting was convened [...]

Source: Fuel situation: Govt speaks | The Herald April 4, 2019

Minister Gumbo

Felex Share Senior Reporter
Energy and Power Development Minister Dr Joram Gumbo yesterday said he has engaged Finance and Economic Development Minister Professor Mthuli Ncube to facilitate for the importation of fuel by mining companies to ease the demand for foreign currency on the Reserve Bank of Zimbabwe (RBZ).

Minister Gumbo said current hitches in the fuel supply situation being experienced were being caused by forex shortages.

He also allayed fears that fuel prices will go up next week, saying Government had no intention of adjusting current charges.

To augment supply gaps in the market, Government has liberalised importation and given big companies with free funds the green light to import fuel for their own consumption.

A legal instrument is needed to effect the changes.

“I have also asked the Minister of Finance to allow mining companies with forex to import their fuel so as to ease the burden on the Reserve Bank of Zimbabwe,” Minister Gumbo.

“Cabinet has already taken a decision on that. The biggest problem is not about fuel per se, but provision of forex. We have facilities in place but those handling the finances have foreign currency challenges which were compounded by the cyclone disaster which happened recently.

“Resources and much fuel has also been going there. They are working on the allocation of finances, but they are a bit constrained, but things will normalise. I engaged the RBZ yesterday (Tuesday) and they have promised to pay for supplies to improve. We are also doing winter cropping and a lot of power is also needed and paid for to cater for that and this means the monetary authorities have to balance all this.”

He said pumping of fuel from Beira was going on smoothly and people should not panic as enough stocks were in the country.

“Our people should also not rely on social media,” Minister Gumbo said.

“Even after the cyclone, we resumed pumping on March 24 and fuel is coming into the country. Enough stocks are there in bond.

“We are negotiating with big companies like Trafigura and IPG with whom we have big facilities to understand our situation and give us a leeway as we mobilise funds to pay them. We have delayed and failed to meet our commitment because of the challenges we experienced recently.”

He said Government had no intentions of increasing the prices of fuel.

“Our people should also know that there is no consideration of increasing the prices at the moment,” he said.

“The only adjustments you will see are those determined by the FOB prices at Beira.”

The Zimbabwe Energy Regulatory Authority announced this week that there will be a slight increase in the free on board (FOB) price beginning next Monday.

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Popular Apostolic Sect leader Madzibaba Masango of the Johannes Masowe Kubata kweVapostori who recently lost all his three children in a horrific accident, has dismissed accusations that he sacrificed his kids for power and wealth. The distraught prophet bore his soul in an interview on with Phatisani Sibanda on Star FM on Tuesday, saying that […]

Source: Illegal pharmacy busted | The Herald April 4, 2019

Victor Maphosa Herald Correspondent
The Zimbabwe Republic Police has recovered pharmaceutical drugs, including ARVs, worth over US$500 000 that were stolen from State warehouses and stashed at an illegal pharmacy in Waterfalls, Harare.

The police arrested three suspects and were still withholding their names last night. The drugs were hidden in a warehouse at the back of the premises.

National police spokesperson Assistant Commissioner Paul Nyathi confirmed the arrests and said investigations were still in progress.

He said the pharmacy and drugs were neither registered nor cleared by the Medicines Control Authority of Zimbabwe.

“The Zimbabwe Republic Police would like to confirm the arrests of three suspects in connection with an illegal pharmacy which was discovered in Waterfalls, Harare, after our detectives received information that there was a pharmacy which was selling pharmaceutical drugs at very low prices which raised suspicion,” said Asst Comm Nyathi.

“A raid was conducted and the police discovered that the pharmacy was operating illegally, selling about 1 720 Part 4 drugs (dangerous drugs) and unregistered drugs. We cannot rule out that these dangerous drugs were given to people who engaged in all sorts of illegal activities, including the youths.”

Asst Comm Nyathi said the consignment was addressed to the Government of Zimbabwe from India, but was in the hands of the three suspects without proper documentation.

“These suspects had no proper documentation to support their possession of these drugs, which indicates that they obtained them in a suspicious way and we are investigating that,” he said.

“They were also in possession of family planning tablets that came from donors and were not supposed to be sold to members of the public and they were earmarked for the Family Planning Council of Zimbabwe, who, under normal circumstances, were supposed to distribute them.”

In 2015, people with various ailments were reported to have been exposed to deadly medication after police recovered over 420 000 tablets countrywide, including fake ARVs, during a regional operation, code-named, “Giaboia 11”.

The operation, which covered Zimbabwe, Angola, Malawi, Swaziland, South Africa and Tanzania, led to the recovery of lotions, cigarettes, soaps, bottles of Histalix and BronCleer cough syrups, among other drugs.

The operation code-named, “Giaboia 11”, was conducted by the Zimbabwe Republic Police and the International Police (Interpol).

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