By Twink Jones Gadama
The High Court in Blantyre has ruled that no authority, including the government, can prevent businesses from adjusting prices when production costs increase.
The court’s decision favors Bakers Pride and Kingsmeal Limited, two companies that had been subject to an interim order obtained by the Competition and Fair Trading Commission (CFTC) on February 4.
The CFTC had sought to block the price hikes, but the High Court has now set aside the injunction, allowing the companies to adjust their prices freely.
This decision is expected to have far-reaching implications for businesses and consumers in Malawi.
According to the court’s ruling, businesses have the right to adjust their prices in response to changes in production costs.
The court’s decision is based on a review of the current economic conditions in Malawi.
The ruling is likely to affect many businesses in Malawi, particularly those in the manufacturing and retail sectors.
With the court’s decision, businesses are now free to set prices in response to economic realities, without fear of government intervention.
The Competition and Fair Trading Commission (CFTC) had argued that the price hikes would harm consumers, but the court’s decision suggests that businesses have the right to adjust their prices to reflect changes in production costs.
The High Court’s decision is final and binding, and it is expected to shape the business landscape in Malawi for years to come.
As the country’s businesses adjust to the new reality, consumers can expect to see changes in the prices of goods and services.
