Government rules out price controls

The government says it will not reintroduce price controls because there is a need to strike a balance between suppliers and consumers without the other party crying foul.

Industry and International Trade Minister Samuel Mumbengegwi said he was aware some companies were increasing prices without any justification but his ministry had to look at ways through which the supply side could be improved without antagonising consumers.

The government introduced wholesale price controls in November last year but they did not work. Instead, goods disappeared from shelves only to resurface at the black market at exorbitant prices.

Only a privileged few could obtain the goods at the controlled prices, something that provided fertile ground for corruption.

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