.bmp)
.bmp)
Harare - Bakeries in Zimbabwe remained closed on Sunday and shop shelves were empty of bread despite a 300% rise in the official price of a loaf.The state Sunday Mail, a government mouthpiece, said the National Prices and Incomes Commission allowed the bread price to increase to Zimbabwe dollars 100 000 (US20 cents) on Friday as part of a review to help businesses remain viable.The rise came after the government slashed the price of bread by more than a half in June aimed at fighting the world's highest official inflation.Chronic bread shortages would continue
Bread, meat and other basics disappeared from store shelves as businesses were forced to sell their goods at below production costs.The independent National Bakers' Association said chronic bread shortages would continue despite the price rise until flour supplies improved."Only a few bakers have flour stocks ... the rest are likely to remain closed," said Vincent Mangoma, chairperson of the association.Earlier this month, the agriculture ministry blamed daily power outages in the crumbling economy for disruption in production of irrigated wheat, with harvests two thirds of what was required.Acute shortages of hard currency have delayed wheat imports.
Mangoma said the new bread price remained insufficient and did not include soaring costs of scarce petrol that accounted for about 27% of the price of a loaf.Petrol is mostly sold by private dealers for the equivalent of $1 a litre.
Forced to hand over control of businesses
The value of the Zimbabwe dollar remained in free fall the past week, reaching up to 600 000 to $1 in black market deals. The official exchange rate is 30 000 to $1.The government has taken over about 5 000 white-owned commercial farms since 2000 in often-violent seizures that disrupted the agriculture-based economy in the former regional breadbasket.The government last month rushed through legislation forcing whites and foreign interests to hand over 51% control of their businesses to blacks.
As in the days of Noah....
