HARARE
–
The
National
Bakers
Association
of
Zimbabwe
(NBAZ)
has
warned
that
plans
to
increase
the
price
of
bread
flour
will
push
the
retail
price
of
bread
above
the
symbolic
US$1
mark,
worsening
the
cost
of
living
crisis
for
millions
of
urban
households.
In
a
letter
to
industry
and
commerce
minister
Mangaliso
Ndlovu
dated
October
24,
NBAZ
president
Elvis
Ncube
said
bakers
were
alarmed
by
a
proposal
from
the
Grain
Millers
Association
of
Zimbabwe
(GMAZ)
to
raise
the
cost
of
bread
flour
by
four
percent.
Ncube
said
flour
already
accounts
for
about
43
percent
of
total
bread
production
costs,
and
the
proposed
hike
would
immediately
add
two
cents
to
the
cost
of
producing
each
loaf,
forcing
a
corresponding
increase
in
the
wholesale
price.
“The
sector
does
not
have
the
capacity
to
absorb
any
further
increases
in
input
costs
without
compromising
business
viability,”
Ncube
wrote.
“If
a
four
percent
increase
in
bread
flour
is
permitted,
it
will
translate
to
a
two-cent
rise
per
loaf,
effective
the
same
day
the
flour
price
goes
up.”
Bread
is
Zimbabwe’s
second
most
important
food
item
after
maize
meal,
used
to
cook
sadza/isitshwala,
and
serves
as
a
daily
staple
in
most
urban
homes.
The
bakers’
association
said
since
January
2024,
the
industry
had
absorbed
significant
cost
pressures
—
particularly
following
the
government’s
decision
to
reclassify
bread
from
zero-rated
to
tax-exempt
under
value-added
tax
(VAT)
rules.
That
change
prevented
bakers
from
claiming
VAT
refunds
on
inputs,
eroding
already
thin
margins.
Despite
rising
costs
of
fuel,
packaging,
electricity,
and
distribution,
Ncube
noted,
bakers
had
kept
the
wholesale
bread
price
unchanged
for
most
of
2024
and
2025.
The
latest
flour
price
proposal,
he
warned,
would
trigger
a
five-cent
pass-through
effect
per
loaf
at
retail
level,
likely
pushing
the
price
of
bread
above
the
US$1
threshold
from
November
1,
2025.
“We
remain
hopeful
that
the
undesirable
effects
of
such
an
increase
can
still
be
averted,”
Ncube
said,
appealing
to
the
government
to
intervene.
If
approved,
the
flour
price
hike
would
mark
another
blow
for
consumers
already
grappling
with
rising
prices
of
basics
and
frequent
currency
volatility.