By Daily Revelation Editor
Economic analysts Yusuf Dodia says the prices of goods have not dropped despite the Kwacha’s appreciation against the US dollar and other major convertible currencies because of local factors such as high electricity tariffs and high fuel prices
”Now the impact of this is that a lot of goods imported external prices are coming down. Whether it is imported cars, if you are looking at hardware, cosmetics, clothing, electricals and electronics,” said Dodia. “All these prices are coming down. Unfortunately, this does not impact on the price of locally produced products which are depending on local factors such as high electricity, fuel cost, insufficient electricity to be producing 24 hours a day. To that extent, we continue to see prices rise locally.
The observations by Dodia deserve careful consideration, because the expectation of the millions of Zambians is that they should see a trickle down in terms of the benefits from the appreciating Kwacha.
It is appreciated for those in the government – and they should be encouraged to do so – to call on the businesses in the country to reduce the prices of goods to correspond with the appreciating Kwacha, as they always do when the local currency depreciates.
However, what are those in government doing to control factors which are in their own control? Dodia for instance said that the electricity tariffs are very high in the country. He also said that the prices of commodities such as fuel remain too high at K30 per liter for petrol. While, the businesses should not be allowed to use the same as cover for maintaining the sky high prices, however, it does not take a rocket scientists to know that high electricity tariffs and high fuel prices are critical inputs in the process of production, and invariably have a huge say also in terms of pricing in the economy.
However, for the electricity there is already little hope as the tariffs were increased in advance in 2023 to last until 2027. Adding to that, the country has in the last three years experienced historical blackouts where millions were only having access to three hours of electricity supply daily, a situation which has only shown signs of normalcy in the last month. As for the fuel prices, Zambians should demand meaningful reductions from the government in view of the appreciating Kwacha and international pricing of the commodity.
Zambians deserve to see a benefit from the stable, or appreciating Kwacha. But they will only do so if the government and the businesses played a more proactive role in terms of addressing fundamentals that are in their control.
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By Daily Revelation Editor
Economic analysts Yusuf Dodia says the prices of goods have not dropped despite the Kwacha’s appreciation against the US dollar and other major convertible currencies because of local factors such as high electricity tariffs and high fuel prices
”Now the impact of this is that a lot of goods imported external prices are coming down. Whether it is imported cars, if you are looking at hardware, cosmetics, clothing, electricals and electronics,” said Dodia. “All these prices are coming down. Unfortunately, this does not impact on the price of locally produced products which are depending on local factors such as high electricity, fuel cost, insufficient electricity to be producing 24 hours a day. To that extent, we continue to see prices rise locally.
The observations by Dodia deserve careful consideration, because the expectation of the millions of Zambians is that they should see a trickle down in terms of the benefits from the appreciating Kwacha.
It is appreciated for those in the government – and they should be encouraged to do so – to call on the businesses in the country to reduce the prices of goods to correspond with the appreciating Kwacha, as they always do when the local currency depreciates.
However, what are those in government doing to control factors which are in their own control? Dodia for instance said that the electricity tariffs are very high in the country. He also said that the prices of commodities such as fuel remain too high at K30 per liter for petrol. While, the businesses should not be allowed to use the same as cover for maintaining the sky high prices, however, it does not take a rocket scientists to know that high electricity tariffs and high fuel prices are critical inputs in the process of production, and invariably have a huge say also in terms of pricing in the economy.
However, for the electricity there is already little hope as the tariffs were increased in advance in 2023 to last until 2027. Adding to that, the country has in the last three years experienced historical blackouts where millions were only having access to three hours of electricity supply daily, a situation which has only shown signs of normalcy in the last month. As for the fuel prices, Zambians should demand meaningful reductions from the government in view of the appreciating Kwacha and international pricing of the commodity.
Zambians deserve to see a benefit from the stable, or appreciating Kwacha. But they will only do so if the government and the businesses played a more proactive role in terms of addressing fundamentals that are in their control.
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