By Vincent Gunde
The Competition and Fair Trading Commission (CFTC) says it has been conducting price monitoring exercises on goods and services in the major cities and towns of the country to gather evidence of the violation of the Competition and Fair Trading Act through excessive price increases following the devaluation of the local currency by 44 percent on November 7, 2023.
CFTC says while it is obvious that any devaluation of the currency may trigger an upward adjustment goods or services prices, the organization has noted that some of the price increments are aimed at using the devaluation as a scapegoat to exploit consumers.
In a statement dated November 22, 2023 signed by its Executive Director (ED)Lloyd Vincent Nkhoma, the CFTC has warned suppliers that any supplier of goods and services found to be engaging in excessive pricing contrary to the CFTC Act, it will not hesitate to issue relevant penalties and sanctions for such conduct.
The commission Says it approached 19 manufacturers and suppliers of products and services to explain the rationale behind such high price adjustments and also engaged the relevant regulators on the same saying it is now expanding the price monitoring exercise to the districts and rural trading centres of the country to establish and gather evidence of possible violations of the CFTC Act.
“The CFTC is encouraging consumers and the general public to report any suspected violation of the CFTA through toll free line 2489 or send a WhatsApp message to 0987738749,” reads the statement in part.
Giving his reaction, a Malawi Congress Party (MCP) diehard for Mvera area in Dowa Rodgers Kamphangala, has accused government of not consulting the citizens to be alert on the devaluation of the Malawi Kwacha by 44 percent describing this as a big margin which has never happened in the country’s history.
Kamphangala said it is sad that President Chakwera and his Vice Saulos Chilima promised Malawians of servant leadership, and that he was expecting that the two leaders would be coming to the citizens to seek their views on matters of national importance but the opposite is happening.
He said even though the Competition and Fair Trading Commission (CFTC) is monitoring prices in cities, towns, districts and rural trading centres, this will not stop price adjustments to goods and services.
The MCP diehard has however, advised government to reduce levies on fuel observing that this is the only way for prices of commodities to be reduced but if this is left as it is, Malawians should bless for tougher times, Government do run stores, prices will go up beyond the reach of everyone in Malawi.
“Reduce fuel levies, all adjustments in price are basing on fuel increase, once the levies are reduced, prices of goods and services will be at least reasonable,”said Kamphangala
