The Government through the Ministry of Finance and Economic Development has increased the price of subsidized mealie-meal from ZWL$50 to ZWL$70 in a move aimed at doing away with unwanted arbitrage by unscrupulous players.
In a statement released today, the finance ministry said the wide gap between the market and subsidized price had created unwanted arbitrage.
“In December 2019, Government introduced a roller meal subsidy pegged at ZWL$50 per 10kg bag in order to protect the vulnerable groups.
“However, the wide gap between the market and the subsidized price has created undesirable arbitrage opportunities for unscrupulous players, resulting in the market and supply distortions,” reads the statement
“In view of the above, I am pleased to announce that Government has reviewed upwards the subsidized price from ZWL$50 to ZWL$70 per 10kg bag of roller meal against the prevailing market price of the product.
“Implementation of the new subsidy price is with immediate effect. Government will announce a strengthened targeting system in due course such that deserving vulnerable citizens as intended by the subsidy policy benefit,” added the statement
Whilst the retail price of subsidized mealie meal was ZWL$50, the black market was charging at between ZWL$115 and ZWL$125 while the same bag was pegged at ZWL$80 cash.
