SICKENING EXPLOITATION OF ZAMBIAN CONSUMERS BY BUSINESSES

By Daily Revelation Editor

The local currency has been relatively stable for the past three months, appreciating from as high as K23 to US$ 1 to as low as K15 something to $1 at one point around the time President Hakainde Hichilema was sworn-in as President.

Although some noticeable depreciation has been experienced where the local currency is now selling at K17.75 to $1, almost threatening to hit the K18 mark, much against President Hichilema’s own promises of a sharp appreciation as something that was going to come about due to investor confidence in his administration. However, the fact is the local currency has not reached the K23 highs it was at at one point.

But what is most fascinating about this whole scenario is that in this country, prices for goods and services almost instantly see an upward adjustment when the Kwacha depreciates. There are almost instant price adjustments in retail goods like bread, butter, meat, drinks etcetera etcetera, prices of paid television like MultiChoice DSTV see an upward adjustment and in most cases the pump price of fuel usually follows suit. The arguments about stock having been imported at the lower Kwacha rate to other major convertible currencies doesn’t arise in this scenario.

The same excuse is nonexistent during the period the Kwacha appreciates. As we have already mentioned, despite seeing some deprecation, the local currency has been relatively stable for close to four months now, but consumers have not seen the benefit of that appreciation. They are still bearing the brunt of high prices, making their everyday living very expensive and unbearable. The cost of bread, cooking oil, mealie meal, fuel has remained the same. The prices for MultiChoice DSTV are still the same, as is the price of fuel.

Which begs the question. Does it mean that businesses are still holding the same stock they had close to four months ago? In these last four months, haven’t they imported newer stock at the appreciated Kwacha? Does it mean they are still holding on to the same stock they imported or purchased at K23 to $1? No! They haven’t. Four months is such a long time to hold on to the same stock.

It’s just that in Zambia, in this liberalised free market economy, businesses feel free to exploit consumers. They recognise that consumer protection in this country is very weak, safe to say nonexistent, and that no one is willing to do anything about that. No wonder these businesses almost instantly increase their prices at the slightest depreciation, using the same depreciation as a pretext. It seems as if they actually pray for the Kwacha to depreciate so that they can use that as an excuse to increase prices. Yet the same doesn’t hold in times of Kwacha appreciation. Sometimes they even audaciously increase the prices during the periods of appreciation, using other arguments like the cost of production occasioned by say load shedding etc.

Zambia is indeed a free market economy, but even in free markets the country models itself upon, there are very strong consumer protections. In some countries businesses can’t even increase the price bread by 5 cents, without seeing protests on the streets, including consumer protection bodies intervening to speak on behalf of the consumers. Not in this country! Everything is business as usual, each one for himself and God for us all.

Something is definitely wrong somewhere.