PRESIDENT Emmerson Mnangagwa on Wednesday paved way for the reduction in the prices of mealie-meal and other basic commodities after he ordered government to re-introduce subsidies on basic commodities, Zim Morning Post can report.
He made the announcement during his address at the Zanu PF national youth convention held at Rimuka Stadium in Kadoma.
Last week, Zimbabweans woke up to shocking increases in the prices of mealie meal, with government having abruptly cut off subsidies by over a month than earlier proposed.
It is common knowledge that grain subsidies have kept in check the prices of maize meal and bread.
Finance minister Mthuli Ncube, however, pronounced that he would cut off support in January to drive down government’s budget deficit, which he has targeted at 1.5% of gross domestic product next year.
Surprisingly, last week, it was announced that the prices of mealie-meal had hiked from $55 to ZWL101.66 for a 10kg bag of roller meal .
“The government of Zimbabwe has, with immediate effect, removed subsidies on grain, resulting in the price of GMB maize going up to ZWL4 000 per metric tonne. In light of the price movement, the price of roller meal shall be ZWL89.96 per 10kg bag. The traditional margin for millerS to retailers is 13%, thus giving the retail price circa $101,66 per 10kg bag,”read a statement issued by the Grain Millers Association of Zimbabwe (GMAZ) .
This development was met with shock from citizens, who are already victims of salary erosion due to the hyper-inflationary pressures.
Mnangagwa’s announcement brought a sigh of relief to the majority of Zimbabweans who are struggling to make ends meet.
The drought currently prevailing in the country requires that large quantities of grain be imported, compelling government to lift import controls on grain.
Zim Morning Post, however, understands that a syndicate of Zimbabwean (names withheld) dealers has abused the facility and imports maize meal from South Africa, only to re-sell it at exorbitant prices in the Democratic Republic of Congo where there is a ready market.
Meanwhile, the convention was well attended and the youths from al provinces had an opportunity to discuss issues with the President, with a lot of business opportunities being unlocked.
