Zambians not benefiting from improved Kwacha, fuel prices

By Daily Revelation Editor

Alliance Against Corruption executive director Noel Chisebe has expressed disappointment over the failure by manufacturers, wholesalers and traders to adjust their pricing mechanisms in response to the modest decline in fuel prices, improved inflation rate and the strengthened Kwacha.

He is therefore calling on the government to establish a regulatory framework to monitor and control price adjustments in order to ensure fairness and transparency.

Chisebe is not alone in expressing these views, as millions of other Zambians are asking the same, wondering why they are not seeing price reductions in the goods and services despite the improved fundamentals.

The millions are also wondering why there isn’t a corresponding reduction in the prices of goods when fundamentals are improving, as opposed to the almost automatic rise in prices consumers experience in times when the Kwacha depreciates and fuel prices as well as inflation rise.

Clearly, the consumers are not benefiting from the improvements that have been noticed in the recent past. This is something that should concern especially those in government. They are ultimately elected to serve the interests of the masses in the first place. But if the same masses can’t experience the benefit or improvements, the praises from those in government will only remain a song.

Therefore, they must get interested in ensuring that the benefits in improved fundamentals translate towards reduction in prices on the local market, especially in this country were consumer protection is very weak. And it also serves their own economic and political interests to ensure that they play a proactive role in ensuring the reduction in prices when fundamentals are improving.

They may argue that this is a free market economy where the government cannot force prices upon businesses. But even in a free market, policy initiatives can still be issued by those in government to ensure that their work is filtering through to especially the poor and marginalised. Otherwise, what is the essence of working hard to improve fundamentals if the same are not being felt by the ordinary masses?

We cannot allow this to be a society where businesses leap at the slightest excuse to hike prices when things are not looking good, while exhibiting troubling inertia in times when everything is pointing towards them reducing prices.

Chisebe correctly argues that when fuel prices rise, businesses quickly pass on the increased costs to consumers. However, when fuel prices drop, prices remain high, further exacerbating poverty and inequality.

Those in government will only fail to do something about this unfairness if they are uncertain that the improved fundamentals will hold, which should send more shivers down people’s spines. This is so because certainty plays a very critical role in the economic and in economic management. And the moment those in government seem to be uncertain over whether their own improved fundamentals will hold, the more reason people should actually be more worried.

Something definitely needs to be done to ensure that Zambians get the benefit from the improved Kwacha, inflation and fuel prices.