Prices of locally produced goods are seen rising as manufacturers pass the cost for excise duty on fuel to consumers, analysts have warned.
"Our view is that the revenue measures, from Treasury, paint a murky picture of Zimbabwe in the short to medium term. The increase in excise duty on fuel will likely increase the cost burden for most companies. Companies, under normal circumstances, will have to pass that cost to consumers in a bid to maintain profitable margins. In Zimbabwe, however, consumers are already reeling under falling disposable incomes, hence presenting challenges for companies to increase their selling prices," MMC Capital says in its weekly market report.
...