By Daily Revelation Editor
Commerce minister Chipoka Mulenga has urged businesses to reduce the prices of goods and services in the economy, following the rapid appreciation of the Kwacha against the United States of America (USA) dollar and other major convertible currencies.
Mulenga’s urge is right on point because the appreciation of the Kwacha has not resulted in the reduction of prices of goods and services in the economy, resulting in the same high cost of living being endured by millions of Zambians. This is a clear departure from what usually happens in this country in times when the currency has rapidly depreciated against other major convertible currencies. During those times we have seen how businesses instantly adjust prices upwards even while still selling the stock held before the Kwacha fluctuations.
And they can’t claim to be in a wait and see to see how the Kwacha will perform as the local currency has fairly been stable for some months now, leading to its rapid appreciation, especially in the last month where it has ranked as the world’s best performing currency.
Just as businesses pass on the costs of a weakened Kwacha to the consumers so should they be compelled to pass on the benefits of a strengthening Kwacha to the same consumers. Otherwise, what is Kwacha appreciation if the same can’t speak in consumers pockets?
While, it is a given that this is a free market economy where government should not be expected to influence decisions of business, however, certain policy drives can still be undertaken to compel the businesses to respond to public demands. The government should not merely end at issuing passive commentaries for businesses to reduce prices, but must be more proactive in ensuring that the same is effected through certain policy drives.
The weaker consumer protection in this country will also need to be addressed. In other countries, businesses cannot be allowed to continue exploiting consumers when obtaining conditions are speaking otherwise. For people to truly appreciate the benefits of the appreciating Kwacha they will need to see the benefits of the same accruing into their daily lives. The Kwacha should be able to speak in the price of bread, tomatoes, cooking oil and transport costs.
But while the government is urging businesses in the country to respond to the appreciating Kwacha, they too must be seen to be taking the lead in that endevour in reducing prices that are in their control. For instance, the prices of petroleum products, even with some adjustments that have taken place here and there, are still too high for the majority Zambians. People cannot continue buying petrol at almost K30 in an economy where the local currency has been appreciating. Probably businesses have seen that those in government are all talk and no action and have therefore taken advantage of the situation to continually exploit consumers.
Related
By Daily Revelation Editor
Commerce minister Chipoka Mulenga has urged businesses to reduce the prices of goods and services in the economy, following the rapid appreciation of the Kwacha against the United States of America (USA) dollar and other major convertible currencies.
Mulenga’s urge is right on point because the appreciation of the Kwacha has not resulted in the reduction of prices of goods and services in the economy, resulting in the same high cost of living being endured by millions of Zambians. This is a clear departure from what usually happens in this country in times when the currency has rapidly depreciated against other major convertible currencies. During those times we have seen how businesses instantly adjust prices upwards even while still selling the stock held before the Kwacha fluctuations.
And they can’t claim to be in a wait and see to see how the Kwacha will perform as the local currency has fairly been stable for some months now, leading to its rapid appreciation, especially in the last month where it has ranked as the world’s best performing currency.
Just as businesses pass on the costs of a weakened Kwacha to the consumers so should they be compelled to pass on the benefits of a strengthening Kwacha to the same consumers. Otherwise, what is Kwacha appreciation if the same can’t speak in consumers pockets?
While, it is a given that this is a free market economy where government should not be expected to influence decisions of business, however, certain policy drives can still be undertaken to compel the businesses to respond to public demands. The government should not merely end at issuing passive commentaries for businesses to reduce prices, but must be more proactive in ensuring that the same is effected through certain policy drives.
The weaker consumer protection in this country will also need to be addressed. In other countries, businesses cannot be allowed to continue exploiting consumers when obtaining conditions are speaking otherwise. For people to truly appreciate the benefits of the appreciating Kwacha they will need to see the benefits of the same accruing into their daily lives. The Kwacha should be able to speak in the price of bread, tomatoes, cooking oil and transport costs.
But while the government is urging businesses in the country to respond to the appreciating Kwacha, they too must be seen to be taking the lead in that endevour in reducing prices that are in their control. For instance, the prices of petroleum products, even with some adjustments that have taken place here and there, are still too high for the majority Zambians. People cannot continue buying petrol at almost K30 in an economy where the local currency has been appreciating. Probably businesses have seen that those in government are all talk and no action and have therefore taken advantage of the situation to continually exploit consumers.
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We paid all farmers before January 10, 2025 deadline – FRA
Local factors such as high electricity tariffs, fuel prices negating Kwacha appreciation – Dodia
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