BULAWAYO – The government late Friday blocked bread companies from doubling prices.
Bakeries had announced that starting Saturday, a loaf of standard bread will cost $2.20 up from $1.10, citing a crippling shortage of wheat in the country.
In a memo to OK Zimbabwe leaked on social media, Lobels regional sales manager Zenzo Malunga said the sharp price increase “has been necessitated by the constant rise in inputs costs.”
Proton and Bakers Inn, the other major bakeries, had also announced similar increases.
Industry and Commerce Minister Mangaliso Ndlovu said he had directed the bread companies to hold the planned increases as he called an emergency meeting with them on Monday.
“The bakeries called me to advise me of the development. I told them to hold on until we meet on Monday, that is my position. I want to believe they will adhere to the position I communicated to them,” he said.
“I don’t know how they are going to proceed.”
On Saturday, the bakeries appeared to have been cowed into going back on their decision with bread still selling for $1.10.
The Reserve Bank of Zimbabwe has been subsidising wheat imports by paying for them in hard currency, while the bakeries sell the bread in bond notes and RTGS.
But with the country’s exports remaining depressed, the subsidies which also extend to fuel, soya for cooking oil manufacturers and even air tickets have put a strain on the government’s foreign currency reserves.
Of late, the government has simply been unable to meet the foreign currency requirements of manufacturing companies causing widespread food shortages.
