More trouble for Zimbabwe firms
Dire consequences if they use the forex black market to finance imports
By Nelson Banya
Harare – Zimbabwean companies face dire consequences if they use the foreign currency black market to finance imports, state media reported on Tuesday. In its latest bid to tame the world’s highest inflation rate, the government will now require companies to provide proof of their import costs before they set their prices, the official Herald newspaper quoted National Incomes and Pricing Commission Chairman Goodwills Masimirembwa as saying. “Companies and individuals caught violating price management legislation will face the full wrath of the law,” he said. Food shortages have worsened in the southern African nation since President Robert Mugabe’s government ordered businesses to roll back prices to mid-June levels. The move triggered panic buying and emptied shop shelves. Price controls led to a slowdown in inflation in August but the official figure shot to a record 7,900 percent last month.
Although the government has allowed retailers to set prices as much as [continue reading]