Ian Khama Commands Cuts in Food Prices
Posted by Labels: Botswana, Botswana meet Commision, Ian Khama, MmegiSource Mmegi Online 18.05.09
Monkagedi Gaotlhobogwe
Staff Writer
Addressing the annual High Level Consultative Council (HLCC) meeting in Gaborone last week, President Khama said he does not understand why prices should continue to escalate when fuel prices have gone down. "One of the positives that we have witnessed during the global recession is the reduction in oil and fuel prices. When fuel prices increase, food and other prices increase on the basis of increased transportation costs and when they reduce, the same should happen for food."
In the same way, the president expects that the reduction of fuel prices should help to facilitate reduction in food and retail prices of consumer items. "We would like Botswana Confederation of Commerce, Industry and Manpower (BOCCIM), in conjunction with the Consumer Protection Unit (CPU) of the Ministry of Trade and Industry to examine the reasons for any continuing price increases and address the cause of this phenomenon," Khama told the HLCC. Prices for basic food commodities in Botswana have shot up over the last five years. Beef and chicken prices have also been escalating at an alarming rate.
Last year alone Botswana's inflation rate rose to 8.4 percent year-on-year in January from 8.1 percent in 2007 due largely to higher food prices, according to the Central Bank records.
Data from the Central Statistics Office show that, in the month of February, the inflation rate stood at 11.7 percent, down by 1.1 percentage points from 12.8 percent in January 2009. Botswana imports food from neighbouring South Africa and food makes up 21.8 percent of the Consumer Prize Index (CPI) basket, according to the Bank of Botswana .
The influx of Zimbabwean immigrants into Botswana has also been associated with high food prices. Majority of Zimbabweans continue to buy basic food items and other consumables, transporting them to Zimbabwe to feed their relatives back home.
Botswana is estimated to have about half a million Zimbabwean immigrants.
The Botswana Meat Commission (BMC) also recently announced new lucrative prices for cattle, consequently causing butcheries across the country to hike selling prices in order to be able to match the BMC's new prices for cattle.
At the same HLCC meeting, President Khama also criticised BOCCIM saying the organisation needs to improve on research and the quality of its submissions in support of its recommendations. Khama said BOCCIM's recommendations in two sectoral meetings held before the HLCC were found wanting. BOCCIM last year spear headed lobbying to have the controversial 70 percent alcohol levy reversed.
He added that BOCCIM should be able to turn to bodies such as the Bankers Association, the Botswana Institute of Accountants, the Botswana Law Society and the Botswana Institute of Engineers for research assistance.
Khama also lashed out at BOCCIM saying it does not have exclusive rights to represent the private sector, especially after the Revised National Policy on Incomes, Employment, Prices and Profits approved by the National Assembly. "The redefined National Policy enables a quadrie-partite partnership involving Government, Labour, Civil Society and the Private Sector."
Regarding the global financial crisis, the president said following last year's HLCC meeting, an inaugural meeting of the Botswana Economic Advisory Council whose membership includes the President of BOCCIM, was held. "The Council's main topic of concern was the effect of the crisis on the economy of Botswana. Following the meeting, I set up a Task Force to further research on the strategies advanced by Council.
The primary goal of the Task Force was to look at ways and means of countering the impact of the global recession on the economy. The Task Force concluded its work earlier this year and the recommendations were approved by Cabinet for implementation by relevant Ministries," Khama said. Khama said that the recommendations are aimed at maintaining business confidence and employment, and repositioning the country for future growth in the medium to long term, and ensuring that the country will be better able to deal with the recession if it endures.
In the same way, the president expects that the reduction of fuel prices should help to facilitate reduction in food and retail prices of consumer items. "We would like Botswana Confederation of Commerce, Industry and Manpower (BOCCIM), in conjunction with the Consumer Protection Unit (CPU) of the Ministry of Trade and Industry to examine the reasons for any continuing price increases and address the cause of this phenomenon," Khama told the HLCC. Prices for basic food commodities in Botswana have shot up over the last five years. Beef and chicken prices have also been escalating at an alarming rate.
Last year alone Botswana's inflation rate rose to 8.4 percent year-on-year in January from 8.1 percent in 2007 due largely to higher food prices, according to the Central Bank records.
Data from the Central Statistics Office show that, in the month of February, the inflation rate stood at 11.7 percent, down by 1.1 percentage points from 12.8 percent in January 2009. Botswana imports food from neighbouring South Africa and food makes up 21.8 percent of the Consumer Prize Index (CPI) basket, according to the Bank of Botswana .
The influx of Zimbabwean immigrants into Botswana has also been associated with high food prices. Majority of Zimbabweans continue to buy basic food items and other consumables, transporting them to Zimbabwe to feed their relatives back home.
Botswana is estimated to have about half a million Zimbabwean immigrants.
The Botswana Meat Commission (BMC) also recently announced new lucrative prices for cattle, consequently causing butcheries across the country to hike selling prices in order to be able to match the BMC's new prices for cattle.
At the same HLCC meeting, President Khama also criticised BOCCIM saying the organisation needs to improve on research and the quality of its submissions in support of its recommendations. Khama said BOCCIM's recommendations in two sectoral meetings held before the HLCC were found wanting. BOCCIM last year spear headed lobbying to have the controversial 70 percent alcohol levy reversed.
He added that BOCCIM should be able to turn to bodies such as the Bankers Association, the Botswana Institute of Accountants, the Botswana Law Society and the Botswana Institute of Engineers for research assistance.
Khama also lashed out at BOCCIM saying it does not have exclusive rights to represent the private sector, especially after the Revised National Policy on Incomes, Employment, Prices and Profits approved by the National Assembly. "The redefined National Policy enables a quadrie-partite partnership involving Government, Labour, Civil Society and the Private Sector."
Regarding the global financial crisis, the president said following last year's HLCC meeting, an inaugural meeting of the Botswana Economic Advisory Council whose membership includes the President of BOCCIM, was held. "The Council's main topic of concern was the effect of the crisis on the economy of Botswana. Following the meeting, I set up a Task Force to further research on the strategies advanced by Council.
The primary goal of the Task Force was to look at ways and means of countering the impact of the global recession on the economy. The Task Force concluded its work earlier this year and the recommendations were approved by Cabinet for implementation by relevant Ministries," Khama said. Khama said that the recommendations are aimed at maintaining business confidence and employment, and repositioning the country for future growth in the medium to long term, and ensuring that the country will be better able to deal with the recession if it endures.
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