Africa-Press – Botswana. The Vice President and Finance Minister Ndaba Gaolathe has warned businesses against using recent exchange rate shifts to justify price hikes, while Business Botswana president, Neo Nwako hit back, accusing government of pushing through reforms without proper consultation or regard for economic realities.
The Vice President and Minister of Finance Ndaba Gaolathe has cautioned businesses against using recent exchange rate adjustments to justify immediate price increases, saying the changes do not, on their own, warrant such actions.
In the days following the July 10 announcement by the Ministry of Finance on changes to exchange rate parameters, some retailers displayed notices on their shelves attributing the price hikes on the recent exchange adjustments. Messages such as “Due to Pula devaluation, we are busy updating the prices. Some prices on the shelf might be wrong at the till point. Sorry for the inconvenience!” were seen in stores across the country.
CCA Investigating retail practices
Addressing the nation in Parliament yesterday, Gaolathe criticized the trend and thanked the Competition and Consumer Authority (CCA) for taking swift action by warning businesses against what it described as unethical practices. He emphasized that relevant authorities remain committed to ensuring price stability and protecting consumers.
“The authorities are monitoring market behavior closely and will act to maintain orderly conditions for the benefit of all Batswana,” Gaolathe said.
In a recent statement, the CCA confirmed that it is conducting inspections and investigations. The Authority noted that it had found some suppliers placing disclaimers indicating that they may charge customers more than the shelf price.
The CCA warned that such practices contravene Section 11 (3) of the Consumer Protection Act of 2018, which states that suppliers must not charge consumers more than the displayed price.
Government defends exchange rate move
Gaolathe said the exchange rate adjustments are part of a broader government strategy aimed at addressing structural and policy challenges that limit productivity and economic growth. He stressed that the success of the initiative depends on how well the private sector responds to support economic diversification.
“These policy adjustments are proactive, short-term measures designed to avert a far more severe economic crisis that could result from an unchecked decline in foreign exchange reserves,” he said.
Gaolathe noted that the Ministry of Finance and the Bank of Botswana will continue to monitor the situation and respond to any unintended effects, with a focus on protecting the most vulnerable groups.
Business Botswana not pleased
In an interview regarding the Vice President’s recent caution to businesses, Business Botswana President Neo Nwako said they “remain deeply concerned about the current state of the economy and the recent policy pronouncements and reforms implemented without adequate consultation with the private sector”. He added that “businesses have been adversely affected by these adjustments, which have placed additional strain on operations”.
In a statement released earlier, Business Botswana stressed the importance of meaningful stakeholder engagement, arguing that policy decisions must be informed by balanced risk assessments and aligned with the realities faced by businesses. The organisation warned that, ultimately, it is consumers who will suffer the consequences.
Among the issues raised were several recent policy shifts which, they argue, have had far-reaching implications for the business environment.
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