Economist Lubinda Habaazoka has raised concerns over the practice of public players dumping cheap produce on the market, cautioning that it can lead to the erosion of the private sector and exacerbate demand imbalances. Speaking to Flava News in an interview, Dr. Habaazoka emphasised the importance of ensuring adequate supply without distorting market dynamics.
Highlighting the case of mealie meal, Dr. Habaazoka suggested that government intervention, such as subsidies, could mitigate price volatility and prevent adverse consequences. He warned against the scenario where uncompetitive mealie meal prices prompt millers to shift focus to more profitable ventures like animal feed production, potentially leading to food shortages.
Dr. Habaazoka expressed concern about the negative image created by queues for cheap food in a civilised economy, emphasising the importance of maintaining a positive reputation internationally. He has proposed a strategic pricing approach for Eagle Mealie- Meal, slightly lower than market rates, to incentivize continued participation of milling companies while safeguarding mealie meal supply.
While acknowledging the positive impact of cheaper mealie meal in addressing immediate food needs, Dr. Habaazoka underscored the importance of considering its implications on private sector involvement in the economy. And he advocated for a balanced approach that prioritises both short-term food security and long-term economic sustainability.
