By Innocent Mphongolo:
Industry and Trade Minister Vitumbiko Mumba has proposed the establishment of price capping on essential goods to address the problem of rising inflation in the country.
Price capping, or price regulation, involves setting a maximum price that can be charged for a good or service, often implemented to protect consumers and ensure access to essential products.
Mumba made the proposal during a visit to Small and Medium Enterprises Development Institute (Smedi) incubation centres at Misewu Folo in Phalombe District and Chatha in Chileka Township, Blantyre.
During the visit, Mumba highlighted the division between the country’s formal and informal sectors, a situation he said was contributing to economic instability in the country.
“Our economy is largely controlled by non- Malawians, which is leading to instability. We need to work towards creating an economy that benefits Malawians,” he said.
While acknowledging that the country’s economy was liberalised, the minister emphasised that the government would move cautiously to ensure that any intervention aligned with the law.
“This is achievable. Take, for example, a house owned by the Malawi Housing Corporation—it is priced reasonably.
‘However, the same house, when owned by an individual, can be sold at a much higher price, even before any renovation or painting work. What justifies such pricing?” Mumba queried.
He further said the government planned to focus on capping prices for essential goods to protect Malawians from exploitation.
Mumba then expressed satisfaction with progress of work at the two Smedi sites.
He, however, urged the organisation to shift its focus from merely training cooperatives and individuals to also providing funds for them to venture into trade and help transform the country’s economy.
He emphasised the importance of standards, quality and consistency in production.
On his part, Smedi Chief Executive Officer Chezani Otanieli said they would work on all the areas the minister pointed at.
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