By Arnold Tutu
The Government has urged traders and businesses to reduce the prices of goods and services following the continued appreciation of the Kwacha against the United States Dollar and other major currencies.
In a statement issued to ZNBC news today, Commerce, Trade and Industry Minister CHIPOKA MULENGA said the strengthening of the local currency reflects growing confidence in Zambia’s economic fundamentals and the effectiveness of the Government’s macroeconomic and fiscal policies.
Mr. MULENGA said the gains recorded by the Kwacha are the result of deliberate and sustained efforts by Zambians responding to President HAKAINDE HICHILEMA’s call for hard work and productivity under the “Work after Work” mantra.He noted that a stronger Kwacha brings clear benefits to the economy, particularly in trade and commerce, as it reduces the cost of imported goods, raw materials, machinery, fuel and other critical inputs used by businesses.
The minister added that the combination of a stronger currency, lower inflation, reduced fuel prices and improved electricity supply have significantly lowered operational costs for businesses, creating a clear opportunity for price reductions.
Mr. MULENGA has since called on traders, retailers, manufacturers and wholesalers to pass on the benefits of the favourable exchange rate to consumers.
“Price adjustments that reflect current economic realities are essential in ensuring that Zambians fully benefit from the appreciation of the Kwacha,” Mr. MULENGA said, adding that responsible pricing would help ease the cost of living and strengthen consumer purchasing power.
He urged businesses to review their pricing structures and make downward adjustments in line with reduced import and input costs, saying this would stimulate demand, promote fair competition and support sustainable business growth.
Mr. MULENGA also said a bullish Kwacha contributes to price stability and helps contain inflationary pressures, while positive responses from the private sector would enhance market confidence and protect consumers.
The Government, he said, expects full cooperation from the business community to ensure that the benefits of the appreciating Kwacha are fairly and transparently shared with consumers.
Currently, one United States dollar is trading below 20 Kwacha.
