INDUSTRY and Commerce Minister Mangaliso Ndlovu says the prices of most basic commodities in Zimbabwe have remained relatively stable despite a global surge in fuel costs triggered by the ongoing Middle East crisis.
Speaking at a dialogue on geopolitical risks hosted by a regional economic think tank, Africa Economic Development Strategies (AEDS), at the Rainbow Towers in Harare earlier today, Minister Ndlovu noted that most businesses have absorbed the rising costs and not passed them on to consumers, including those in logistics-heavy sectors.
Minister Ndlovu highlighted that the Government’s monitoring of a 14-product “basic basket” shows minimal price movement across the board.
“Most of these increases have been absorbed, prices have remained relatively the same,” said Minister Ndlovu.
However, the public transport sector has seen a “disproportionate increase.”
This trend is driven by the fact that fuel represents the most significant cost component in their operations.
Since the US and Israel launched military operations against Iran, Zimbabwe—which imports a third of its energy from the Middle East—has seen petrol prices surge by 43 percent and diesel prices rise by 35 percent.
To keep fuel prices accessible, the Government has implemented strategic tax relief.
While acknowledging the vulnerabilities exposed by global geopolitical shifts, Minister Ndlovu challenged local industry players to adopt an “inward-looking” approach to mitigate external shocks.
“A crisis should really drive innovation,” Minister Ndlovu said. “We need to talk about what should be the success story post this crisis.”
He suggested that citizens must adopt carpooling to reduce fuel expenses, while also emphasising the need for retrofitting and improved energy efficiency.
Furthermore, the Minister noted it is time to embrace electric vehicles (EVs)—given their currently low adoption rates—while simultaneously boosting investment in EV charging infrastructure. – Herald
