Amid the foreign currency exchange distortions coupled by unwarranted escalation of prices which have adversely impacted on workers’ earning, Finance and Economic Development minister Professor Mthuli Ncube has given nod to calls for wage increases in both the private and public sectors.
“In the current environment, both wages and purchasing power have taken a big hit. Government, therefore, has a responsibility to support consumers and the private sector as a whole,” Ncube said in his latest economic update this week.
“As part of the currency reform agenda, we have had inevitable wage compression. This is part of the liberalisation process. We have responded by propping up the wages of the civil servants, and we hope the private sector acts in kind.”
Ncube also bemoaned speculative parallel market activities which he said continue to pile pressure on the pricing structure of the economy.
Adamantly, Ncube expressed optimism that the country will be able to overcome the biting economic challenges facing the troubled southern African nation. He also attributed the prevailing economic challenges to the negative impact of climate change, and subsequent droughts, saying Zimbabwe is putting in place ‘climate-proof’ measures to bolster the economy.