Published by the government of Zimbabwe
7 October 2008
Harare — SOME shops and garages, licensed to sell goods in hard currency, in Harare began trading with the Reserve Bank of Zimbabwe and the National Incomes and Pricing Commission closely monitoring the situation yesterday.
Among the shops are Spar Borrowdale Brooke, Spar Helensvale, Spar Athienitis and Spar Eastlea.
At Spar Borrowdale Brooke a 20kg bag of Gold Seal roller meal was selling at US$18,90, 2kg Gold Seal flour US$3,50, 2 litres Citrade orange drink US$3,20, 500g Nestle Cerelac US$3,50, 2 litres Gold Seal cooking oil US$8 and 2 litres Sunflower cooking oil US$9 (see table).
Some products like Gold Seal roller meal and Gold Seal cooking oil were priced in foreign currency even though they are produced locally by National Foods.
Gold Seal cooking oil was a dollar cheaper than Sunflower cooking oil, which is imported from South Africa.
In the same shop a 2kg packet of rice was selling at US$4,90, 1kg iodised salt 85 cents, Gold Seal fine salt 50 cents, 2,5kg cake flour US$5,60, a packet of six candles US$2,70, 1,5 litres Sunlight dishwashing liquid US$8,00 and a bar of laundry soap US$4,00.
A 100ml tube of Colgate toothpaste cost US$1,50, 1kg Surf Lemon washing powder US$6,00, Lifebuoy Herbal bath soap US$1,70, Lux Even Glow 95 cents and Protex US$1,00.
Spar Borrowdale Brooke general manager Mr Sipho Ndebele said the shop was certified to sell goods in forex on Friday last week following an inspection by the Reserve Bank of Zimbabwe the previous day.
"We duly started trading on Friday after we met all the RBZ requirements like having fake money detectors and demarcation of the shop into local currency and foreign currency zones."
The queue of customers buying with foreign currency was longer than of those using Zimbabwe dollars.
Mr Ndebele said the shop was selling goods like maize-meal in foreign currency because it was bought from National Foods, which is also licensed to sell in foreign currency.
Three RBZ officials were checking the prices and monitoring the sale of the goods.
At Spar Eastlea, prices of goods like cooking oil and Surf Lemon washing powder were similar to those at Spar Borrowdale Brooke save for a packet of candles which was going for US$3,00.
NIPC chairman Mr Godwills Masimirembwa was also monitoring the situation at Spar Eastlea.
He hailed the RBZ for licensing shops to sell goods in foreign currency but decried the high prices of goods being sold in Zimbabwe dollars.
"What is clear is that local prices are definitely extortionate. All prices in Zimbabwe dollar terms are just too high and above those stipulated," he said.
Spar Eastlea was selling goods at prices above those approved by the NIPC with a kilogramme of beef pegged at $30 000.
The approved price is $18 750.
The shop manager told Mr Masimirembwa that they were buying the goods from local suppliers at high prices and at times in US dollars, citing chicken as an example.
According to an invoice produced by the manager, the shop bought chickens weighing 2,4kg for $10 million each.
The supermarket bought beef from Major Meats at US$3,50 per kilogramme, but Mr Masimirembwa pointed out the supplier was not licensed to sell in foreign currency.
He took the invoices for onward transmission to the RBZ.
At Fife Avenue Shopping Centre, Spar Athienitis has also begun selling goods in foreign currency with 100ml Colgate Triple Action going for US$2,00, 750ml Savemor cooking oil US$3,50, 2kg Savemor rice US$5,00, 250g Soft margarine US$2,50.
Mr Masimirembwa expressed shock that 250g of locally produced Meadow Maid Butter was selling at $328 339,38, well above the US$2,50 for imported Soft margarine.
The supermarket was selling beef -- bought from Carswell Meats for $5 250 per kilogramme -- at $31 000 per kilogramme, which Mr Masimirembwa felt was too high.
A Sakunda Energy filling station in Highlands was selling petrol for US$1,20 a litre and diesel for US$1,30 a litre.
Motorists had the option of buying coupons but those with hard currency could buy direct from the pump.
Afrofoods, whose products were priced in local currency, was selling a 1kg bar of laundry soap at $7 000, 2 litres cooking oil $29 000, 2kg rice $25 000, a packet of six candles $15 000 and 1 litre Mazoe Orange Crush $9 500.
A 100ml tube of Colgate was going for $8 500, Palmolive bath soap $4 800 and 500g Nestle Cerelac $15 500
Another supermarket, Food King, was selling 2kg rice at $38 605, 2 litres Mazoe Orange Crush $23 600, 1kg fine salt $5 920, 1kg bar of laundry soap $13 000, a packet of six candles $37 200 while a 750ml bottle of imported cooking oil cost $27 134.
At Rolen supermarket 2 litres of imported cooking oil was being sold at $28 000, white locally produced version was going for $14 000. In the same shop a packet of six candles was priced at $14 720, 1kg Surf washing powder $33 600, 2 litres Mazoe Orange Crush $20 000, 1kg fine salt $3 840 and 2kg rice $28 000.
A kilogramme of flour cost $11 400, 100ml Colgate toothpaste $8 500 while a 2kg packet of sugar was going for $8 000.
The shelves of major chain stores like OK Zimbabwe and TM were still empty although some of their branches have been licensed to sell in foreign currency.
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