RBZ avails $10m to manufacturing sector

RBZ avails $10m to manufacturing sector
Published: 23 October 2018 (134 Views)
THE Reserve Bank of Zimbabwe (RBZ) last week released over $10 million to the manufacturing sector to address the shortages of basic commodities and wanton price increases, NewsDay reported.

Industry and Commerce minister Mangaliso Ndlovu last Friday held a crisis meeting with other government departments, including Treasury and the central bank as well as captains of industry and commerce to find a solution in dealing with commodity and price distortions.

Speaking to NewsDay after touring manufacturers of Zimgold cooking oil, Pure Oil Industries as well as wholesaler Trade Centre and OK Ardbennie supermarket on Friday in Harare, the minister blamed panic buying for the current shortages.

"I think they (RBZ) have released in excess of $10 million to the manufacturing sector that is going towards production," he said.

"Most products are available, excluding some basic commodities that seem to be in short supply like sugar. They (retailers) are telling me the sugar they had would last the whole month, but now it was being bought in a record three hours. Today (Friday), they (OK Ardbennie) received bread which normally lasts them the day, but by 11am it was finished. The same goes for all these basic commodities where the moment they are delivered there is a run-in, queues, which makes them (retailers) having to limit the quantities."

He said his assessment was that generally, goods were available and that the price increases and basic commodity shortages were due to panic and speculative buying.

According to sources, the panic buying has created a higher demand from producers who now needed more forex to meet the growing requirement.

Industry and Commerce deputy minister Raj Modi, who is also a businessperson, tweeted on microblogging site Twitter on Friday that some of his liquor was now being sold in strictly United States dollars.

"I would like to inform my valued clients that only alcoholic drinks bought in USD are being sold in USD to allow us to restock. Our suppliers want USD, nothing else. For all other goods, Liquor Hub accepts any form of payment. Bond notes and plastic money are legal tender," he said. Ndlovu said most basic commodity shortages were on sugar, cooking oil and bread, but blamed it on panic buying rather than on forex shortages.

"What I found today (Friday) for most of these businesses, the retailers and wholesalers, was that prices of most commodities have remained reasonable except for a few. I mean I saw compound D fertilizer going for $50 and I thought that was exorbitant because of the speculative behaviour I am talking about," Ndlovu said.

"Unfortunately, my schedule could not allow me to visit the tuckshops because we wanted to also visit them which is where the prices seem to be increasing at a much higher rate because they will go and buy these commodities at fairly normal prices and go out there to sell them at a much higher price."

Ndlovu said those heavy spenders at wholesale or retail supermarkets were doing so for speculative reasons to resell at much higher prices.



- newsday

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Twelve MDC MPs arrested as army continues crackdown

by Mandla Ndlovu | 21 January 2019 | 107 Views

Ramaphosa could use Davos to apply pressure on Mnangagwa

by Staff reporter | 21 January 2019 | 129 Views

Road accident claims five near Chinhoyi

by Staff Reporter | 21 January 2019 | 87 Views

Is it back to normal in Harare?

by BBC | 21 January 2019 | 104 Views

Mnanagwa speaks on DRC ConCourt decision

by Staff reporter | 21 January 2019 | 80 Views

Accident kills five

by Staff reporter | 21 January 2019 | 47 Views

PHOTO: Mthuli Ncube dumps Mnangagwa's scarf?

by Mandla Ndlovu | 21 January 2019 | 99 Views

'Mnangagwa govt riots explanation laughable'

by Staff reporter | 21 January 2019 | 54 Views

Zimbabwe faces bleak future, claims IMF

by Staff reporter | 21 January 2019 | 51 Views

'Zimbabwe electricity imports to continue until 2027'

by Staff reporter | 21 January 2019 | 50 Views

ZRP auctions 200 bales of clothes

by Staff reporter | 21 January 2019 | 44 Views

Chamisa prays for violence victims

by Staff reporter | 21 January 2019 | 45 Views

Chamisa's MPs flee govt terror

by Staff reporter | 21 January 2019 | 54 Views

'Evil little bishop' saddened by the current repression in Zimbabwe

by Staff reporter | 21 January 2019 | 62 Views

Church calls for GNU

by Staff reporter | 21 January 2019 | 52 Views

ZANU PF bribes MDC officials to oust Chamisa

by Mandla Ndlovu | 21 January 2019 | 152 Views

Private media now working against the government of Zimbabwe

by Chrispen Chebundo | 21 January 2019 | 94 Views

When selfish goals stand in the way of national interests

by Mapozho Saruchera | 21 January 2019 | 61 Views

The horror behind Zimbabwe's internet shutdown

by NoViolet Bulawayo | 21 January 2019 | 111 Views

Malema should mind his own business

by Nobleman Runyanga | 21 January 2019 | 114 Views

'I almost killed a man in church' Prophet Chiza confesses

by Mandla Ndlovu | 21 January 2019 | 101 Views

WATCH: Business as usual in Bulawayo

by Staff Reporter | 21 January 2019 | 87 Views

PHOTO: Mnangagwa in bizzare ritual?

by Mandla Ndlovu | 21 January 2019 | 204 Views

I'm looking for the Mkwananzi family from Mgungubani

by Obina Sibanda | 21 January 2019 | 72 Views

Why Matabeles must not die for Zimbabwe

by Israel Dube | 21 January 2019 | 67 Views

These bloody days have broken my heart

by Fungayi Mukosera | 21 January 2019 | 62 Views

The impeachment of President ED is long overdue

by Don Chigumba | 21 January 2019 | 107 Views

Mnangagwa's $1.2 billion loan request rejected

by BBC | 21 January 2019 | 112 Views

Latest on MDC Chairperson Tabitha Khumalo

by Mandla Ndlovu | 21 January 2019 | 180 Views

Zimbabwe police ready to deal with demos

by Staff reporter | 21 January 2019 | 117 Views

Zimbabwe High Court to rule on Internet suit

by Staff reporter | 21 January 2019 | 133 Views

Calling for talks from burning anthills

by Elliot Ziwira | 21 January 2019 | 94 Views

Econet's ZSE market value hits $4bn

by Staff reporter | 21 January 2019 | 72 Views

Zimbabwe to televise high-profile court cases

by Staff reporter | 21 January 2019 | 83 Views

Violence witnesses scared to testify

by Staff reporter | 21 January 2019 | 73 Views