FRIDAY, 4.30PM:
THE Zimbabwe government moved rapidly to diffuse a potential political bomb on Friday, by attempting to block a planned 18% hike in the price of mealiemeal, the nation’s staple, announced by the Millers Association on Thursday.
Behind the wrangling over the price rise, however, are fears of a repeat of nationwide rioting in January that erupted over a 30% mealiemeal price rise.
Commerce and Industry Minister Nathan Shamuyarira accused the Millers Association, which represents the three large milling companies, and the 49-member Small-Scale Millers Association of “behaving in a dishonest way” in defying its moratorium on an increase in the price of the staple imposed after the January riots.
On Thursday millers’ associations said their prices had to rise by up to 18% after the state-owned maize trading company, Grain Marketing Board, raised its selling price by 17% Z$2800 per ton. Shamuyarira on Friday, however, refuted the Association’s calculations, insisting that the GMB maize price is not Z$2800 per ton, but Z$2600.
“I am surprised the millers keep on giving people misleading information.” The price of mealiemeal is high enough as it is,” he added, “Millers should continue to sell at the current price.” Small-Scale Millers Association vice-chairman Titus Ncube, however, insist that they have been buying maize at the higher price for over a week, until Wednesday this week when the price was dropped to Z$2600 a week.
“The situation is that last week our members were buying for Z$2800 per ton, but we got a fax from the ministry on Wednesday to say the price has come down to Z$2600 per ton,” he said.
BUSINESS BRIEFS
SWAZI GETS AID
THE European Union has allocated R22-million to fund development in Swaziland’s private enterprise, the recently established Swaziland Investment Promotion Authority (Sipa) announced on Friday. Sipa chairman and former deputy prime minister Dr Sishayi Nxumalo said that the funds will be would be used to train small business managers in business skills and management techniques. Meanwhile, a Nigerian and a Burundian were arrested in Swaziland on Friday for allegedly using “confidence tricks” to con millions of rand out of unsuspecting victims. One businessman lost R4-million after the two allegedly persuaded him to put the money in a box, telling him the amount would double by supernatural means.
TRANS LUBOMBO OPENS
THE Trans Lubombo railway, a new passenger service linking South Africa, Swaziland and Mozambique, was launched in Durban on Thursday. The new service will cut the 50-hour travelling time between Durban and Mozambican capital Maputo by 26 hours. Main Line Passenger Services executive manager Bheka Manana said the service is expected to strengthen regional ties between the three countries and promote regional tourism and trade.
NEW IDT HEAD
SOBWABO Edwin Funde was on Friday elected chairman of the new board of trustees of the Independent Development Trust. Funde, who is also the deputy chairman of both the National Institute of Economic Policy and the South African Telecommunications Regulatory Authority, will replace Dr Mamphela Ramphele.
PUBLIC SERVICE PAY RISE
GOVERNMENT has tabled a wage offer that will see 80% of public servants receive wage increases of between 5% to 10% — an increase that will cost R3-billion this fiscal year alone. The government’s offer, tabled at the public service co-ordinating bargaining council on Thursday, will see nurses and police receiving 9% increases, and teachers 5% to 7%. It is also proposed that senior managers be put on a separate pay scale, and said their pay will be frozen unless they accept performance-linked contracts. Those accepting this will receive a 6% pay rise. The government’s offer has been accounted for in its budget.
MANUEL BATTING FOR EUROBOND
FINANCE Minister Trevor Manuel is batting against negative sentiment over emerging markets, pressure on the rand and poor economic data in South Africa as he closes his European roadshow to market the issue of South Africa’s R2,9-billion eurobond. It is expected that the launch of the bond, South Africa’s attempt to establish benchmark borrowing terms in euros, will not be a smooth one. Officials are now vacillating on whether the bond will be launched at all, or at what rate it will be set.
GRAIN IMPORTS TOO HIGH
THE Winter Grain Producer Organisation on Thursday warned that wheat farming in South Africa could face severe cutbacks as cheaper import stocks may harm local production. Currently carry-on stocks from last season are sitting at 800000 tons as the result of excessive imports. The South African Grain Information Service recently released figures that indicate that a further 338000 tons of wheat have been imported, despite a surplus of local wheat.