The Sunday Mail
Current cash shortages will not result in basic food insecurity reminiscent of the 2008 hyper-inflationary era as most retailers use wire-transfers and not cash to buy goods, experts have said.
This follows widespread reports in the private media that retailers had resorted to rationing basic food items due to shortages caused by the cash crunch. The reports surfaced after some cooking oil and margarine brands became scarce on the shelves as producers faced challenges in importing raw materials.
And the private media also reported that on top of causing food shortages, the obtaining cash shortage would spur inflation. However, experts have called for calm, saying shortages of the 2008 kind would not be experienced as there was little to link the cash situation and food-related imports.
“I can assure you that there won’t be any food shortages in the country in 2016 so people should not panic,” said Zimbabwe National Chamber of Commerce CEO Mr Christopher Mugaga.
“Most food items in Zimbabwean shops are imported and retailers use wire transfers to make imports instead of cash. Therefore, I do not see any link here between cash shortages and food shortages.”
Mr Mugaga said food shortage reports were unfounded, adding that cooking oil was briefly scarce last week but was now readily available. The private media claimed items such as cooking oil, butter and sugar had run out at major supermarkets like OK, TM and Choppies. The reports further alleged that interviewed supermarket staff and consumers had confirmed there was panic buying of the said commodities.
Confederation of Zimbabwe Retailers president Mr Denford Mutashu added: “There was a bit of panic after the messages started circulating on social media but there is nothing for people to be worried about. There was a bit of shortage for cooking oil and it so happened that it was the same period that the Reserve Bank announced the introduction of bond notes.”
Mr Mutashu also said the cash challenges were unlikely to cause food shortages.
“I am convinced that cash shortages will not lead to basic food commodities shortages because as retailers we met with the Governor and he assured us that measures have already been put in place to prevent the shortages.
“And I am also glad to tell you that the use of swipe cards in retail shops now accounts for 60 percent of revenue as compared to just 5 percent just a short while ago.”
Some experts say there is a possibility that cash shortages can affect basic goods supplies. They say it can be difficult to even make the wire transfers if the nostro account is depleted.
United Refineries Limited CEO Mr Busisa Moyo said cooking oil was still in short supply, adding that the situation was linked to the cash shortages. He said oil producers had difficulties in getting raw materials due to depleted nostro accounts.
“The supplies are still low because we are still struggling to procure raw materials. And if there are no supplies the production remains low. But we are happy because the (RBZ) Governor has intervened and showed interests to solve the issue. The problems is linked to the nostro account, the nostro account has been depleted and that has created problems for us.”
A snap survey by The Sunday Mail Extra showed that most retailers where adequately stocked. While some brands of cooking oil where not on shelves, most were available.
