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Government to force companies to bring down their prices positively responding to the appreciation of the kwacha

Government intends to start inspecting shops in the country aimed at questioning the motives of companies that have not positively responded to the appreciation of the kwacha by reducing prices.

Meanwhile, prices of some Carlsberg products were adjusted upwards on retail market on Wednesday following what the retailers said the increased wholesale prices while sugar and bread prices were reduced.

“Government will unleash proper penalties on companies that deliberately choose to ignore and disrespect the call and through the Ministry of Industry and Trade with Competition and Fair Trade Commission will immediately start inspecting shops and companies,” says the statement issued on Wednesday.

The government statement signed by Minister of Information and Civic Education Moses Kunkuyu has since called on Consumers Association of Malawi (Cama) to “wake up, condemn and indeed take action” against the companies.

“It would be naïve for the able leadership of Cama to remain silent now when it vehemently blamed government for the resultant negative effects of the depreciation of the kwacha,” says the statement.

However, Executive Director of Cama, John Kapito, said in an interview on Wednesday that government should not be excited with the slight changes of the economic situation.

He said there are several factors that need to be considered before the economy is described to be improved.

He said the fuel prices are exorbitant as the recent reduction was too marginal to affect retail prices of goods.

“When we called on government to intervene on the rising prices of commodities they said the situation was about market forces at its play (amid reform measures), now why should it take us to force companies?” wondered Kapito.

He added that their target was not on companies but the general situation that should make natural improvement of the situation.

But the Competition and Fair Trading Commission (CFTC) Chief Executive Officer Wezi Mesikano said in an interview that it was unreasonable for prices of goods and services to remain the same because that is creation of unfair trading conditions for the consumer which is prohibited under the competition and fair trading act. – By Kingsley Jassi

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