Zimbabwean consumers can rejoice. Essential household goods remain readily available and affordable throughout the country, dispelling initial anxieties surrounding the introduction of the new ZiG currency. This positive update comes from a recent Cabinet report presented by Industry and Commerce Minister Mangaliso Ndlovu.
Stability Prevails: Prices Remain Under Control
The report, covering the second quarter of 2024 (April-June), highlights the government’s success in maintaining stable prices and ensuring the availability of essential commodities. Minister Ndlovu attributed this achievement to the government’s tight monetary stance, which has fostered a stable exchange rate. This, in turn, has prevented price hikes for basic goods. Interestingly, the report also reveals a growing acceptance of the ZiG currency, with its value appreciating slightly against the US dollar during the period.
The report provides specific examples to illustrate price stability. A 10-kilogram bag of maize meal, a dietary staple in Zimbabwe, remains affordable, ranging between ZiG100.01 and ZiG103.8 (US$5.30-US$8.50). Similarly, the prices of cooking oil and bread have shown remarkable stability. Furthermore, sugar supply has improved nationwide, with prices holding steady throughout May and June 2024.
The report indicates a positive trend: prices in the formal and informal sectors are gradually converging. This suggests the effectiveness of government measures implemented to address price increases witnessed earlier in the year. Additionally, some basic commodities like cooking oil and maize meal have even seen price reductions, offering further relief to consumers.
Increased Use of ZiG in Formal Retail
The report highlights a growing consumer preference for the ZiG currency. Transactions conducted through Point of Sale (POS) machines using ZiG are becoming increasingly dominant in major formal retail outlets. While some shops still display prices in US dollars, most allow payment in both currencies. Notably, the report estimates that 80% of transactions in formal retail shops are now conducted in ZiG, indicating a significant shift in consumer behavior.
The Zimbabwean government’s efforts to maintain a stable exchange rate and ensure the affordability of essential goods appear to be yielding positive results. The increased acceptance of the ZiG currency is another encouraging sign. However, continued monitoring and adjustments to economic policies may be necessary to sustain this progress. Long-term economic growth will likely hinge on the government’s ability to foster a robust and stable business environment that attracts investment and promotes job creation.
Source: New Zimbabwe
