tendai biti finance minister 2 29-08-10.jpgGovernment says the business community should adjust its mindset and manner of business to the prevailing stable macro-economic environment under the multi-currency system.



Addressing the business community at a business breakfast meeting aimed at enhancing discourse between government and industry, Finance Minister Tendai Biti said business should now shed off bad practices adopted during the hyperinflationary era in order to stay afloat, citing the 10% bread price increase as unjustified.


“We traditionally import wheat from South Africa. If a businessman says ‘I’m increasing price of bread’ – he is being dishonest.


“You were making margins of US$4 000 during the hyperinflation period, but you still want to do that. If you make a profit of 8 percent you should be celebrating,” said Mr. Biti.


Government is optimistic that by improving dialogue with the business community, it will gain useful insights into the sector’s expectations and input on ongoing efforts to recover economy growth.


Recently, the Ministry of Finance began consultations for the forthcoming national budget expected to be presented this November.


The budget will address short-term as well as mid-term requirements of the economy.


However, the major constraint facing government according to the Finance Minister is limited resources to address many competing needs.