by Rudo Saungweme
Minister of Industry and Commerce Mangaliso Ndlovu has blasted Delta Company for choosing to go against a Government directive urging companies to cease operating their businesses using the three tier pricing system.
Delta issued a statement to the effect that it will commence charging its products in United States Dollars effective 1 January 2019. Minister Ndlovu castigated this move arguing that Delta cannot unilaterally effect changes to its pricing system without consulting with government. He emphasised the need for dialogue between government and the business community to resolve challenges.
Ndlovu said, “At the centre of the relationship between government and business is the spirit of engagement and a two-way communication. That spirit is defeated when one of the parties decides to unilaterally pronounce decisions against both the text and spirit of agreed principles.”
Ndlovu added to say the move by Delta should stop forthwith warning that the law will take its course if Delta remains adamant.
“Government is very clear that this practice is unacceptable and has to stop forthwith and if not, the law will take its course,” said Minister Ndlovu.
“Government has supported business to operate liberally within the economy without interference but giving an intervening hand whenever it has been called upon to assist. In return, government has expectations that business will operate in good faith and responsibly.”
In October 2018, at a thank you rally at Murombedzi ground, President Emmerson Mnangagwa warned Pharmacists for pricing drugs in United States Dollars, warning that they risked losing their license if they continued the trend.
Making reference to the Pharmacists, President Mnangagwa said, “There is no reason why you should, therefore, ask the public to purchase these drugs in foreign currency when you yourselves get the foreign currency from the Reserve Bank at a rate of US$1 : 1 Bond.
“Those of you who do not heed this caution: danger is coming, we will withdraw your licenses,” he said.
Delta is getting foreign currency from RBZ to buy 20 percent of its imported products, 80 percent of its products are locally available.
Meanwhile Schweppes Zimbabwe Limited which is in the same business with Delta Corporation in a move to meet its demand is intending to expand its tomato and orange out-grower schemes. Schweppes continues to bolster participation of locals in product value chain. The development comes at a time when the firm began exporting Mazoe Orange Crush to Zambia in an effort to enhance foreign currency earnings.
