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Chain stores have pledged to work with suppliers to reduce prices of essential commodities such as sugar and cooking oil within the next month, following reported appreciation of the country’s currency, the Kwacha.
This followed Commerce, Trade and Industry Minister, Chipoka Mulenga’s concern over high prices despite seemingly favourable economic conditions, including a stronger Kwacha and lower fuel prices.
On Monday, the Minister convened a meeting at his office in Lusaka which brought together chain store representatives, manufacturers, and other stakeholders to address the persistent rise in food prices.
During the meeting, Mulenga expressed concern that while the Kwacha had appreciated steadily over the past three months and fuel prices had dropped, the prices of basic goods had remained high.
“We have seen fuel prices go down and the Kwacha strengthen, but no corresponding reduction in commodity prices. In fact, prices continue to rise in Lusaka while on the Copperbelt, millers have reduced the price of mealie meal due to a bumper harvest,” he said.
In response, the General Manager of a leading store, Charles Bota, said talks with suppliers were ongoing, and that some price reductions could be seen soon.
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Bota assured that chain stores were already engaging suppliers, though price adjustments typically take time.
Zambia Association of Manufacturers (ZAM) president, Ashu Saga, reaffirmed the association’s commitment to working with Government to ease the cost of living.
“Nothing happens overnight, but there’s a positive trend, and we will engage manufacturers to see how people can benefit. It’s not in anyone’s interest to keep prices high,” Saga noted.
Zambia Institute for Policy Analysis and Research (ZIPAR) interim Executive Director, Zali Chikuba, added that industries react differently to economic fundamentals, but that the food sector, especially with good harvests and lower fuel costs, can adjust faster.
On its part, Zambia Chamber of Commerce and Industry (ZACCI) Chief Executive Officer Elvin Nasilele commended Government for stabilising the Kwacha, inflation, and fuel prices.
“We would like to see a corresponding drop in commodity prices. It’s concerning that three months into the Kwacha’s appreciation, prices remain high. We urge our members to respond positively to these economic gains,” Nasilele said.
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