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The government has called on businesses across the country to adjust prices downward in line with the continued appreciation of the Zambian Kwacha and improving macroeconomic conditions, saying consumers must directly benefit from recent economic gains.
In a statement issued on Tuesday, Commerce, Trade and Industry Minister, Chipola Mulenga, said price adjustments that reflected current economic realities were essential to ensuring that Zambians fully enjoyed the benefits of a stronger currency, lower inflation, reduced fuel costs and improved electricity supply.
Mulenga urged traders, retailers, manufacturers and wholesalers to review their pricing structures and make appropriate reductions, citing lower import costs, improved foreign exchange availability and reduced input expenses.
“Passing on these benefits will help ease the cost of living, strengthen consumer purchasing power, stimulate demand and support sustainable business growth,” the minister said.
The government has noted with satisfaction the continued appreciation of the Kwacha against major international currencies, describing the development as a reflection of growing confidence in Zambia’s economic fundamentals and the effectiveness of Government’s macroeconomic and fiscal management measures.
Read more: Cross-border traders lament cost of doing business, say stable Kwacha yet to impact operations
Mulenga argued the gains were not accidental but the result of deliberate and strategic efforts, as well as the hard work of Zambians responding to President Hakainde Hichilema’s call of “Work after Work”.
He explained that a stronger Kwacha briught tangible benefits to the economy, particularly in trade, commerce and consumer welfare, as it lowered the cost of imported goods, raw materials, machinery, fuel and other intermediate inputs critical to production and distribution.
The Minister added that declining inflation, lower fuel prices and improved power stability had significantly reduced operational costs for businesses, creating a clear opportunity for price reductions across various sectors.
Government appealed to the business community to pass on the benefits of favourable exchange rate movements to consumers, stressing that a bullish Kwacha also promoted price stability, curbed inflationary pressures and enhanced market competitiveness.
“When businesses respond positively to exchange rate gains, it promotes fair trade practices, protects consumers and strengthens confidence in the marketplace,” Mulenga said.
He further emphasised that responsible pricing benefited both consumers and businesses by encouraging higher trade volumes, building customer trust and ensuring long-term market sustainability.
The government, he said, expected full cooperation from the private sector to ensure that the gains from the appreciating Kwacha were fairly and transparently shared with consumers.
Mulenga reaffirmed government’s commitment to working closely with the private sector to improve the business environment, promote local production and value addition, strengthen consumer protection mechanisms and drive inclusive economic growth.
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