Government Calls on Business to Reduce Prices

Government has noted with satisfaction the continued appreciation of the Zambian Kwacha against major international currencies. This positive development reflects increased confidence in Zambia’s economic fundamentals and the effectiveness of the Government’s macroeconomic and fiscal management measures.
This gain is not accidental, but a strategic and methodical response of the hard-working Zambian citizens to the call of “Work after Work” by President Hakainde Hichilema’s administration.
The strengthening of the Kwacha presents tangible benefits to the economy, particularly in the areas of trade, commerce, and consumer welfare. A stronger local currency reduces the cost of imported goods, raw materials, machinery, fuel, and intermediate inputs that are critical to production and distribution. Additionally, a reduction in inflation and fuel coupled with power stability, lowers operational costs for businesses and create a clear opportunity for price reductions across various sectors of the economy.
In this regard, Government, through the Ministry of Commerce, Trade and Industry, calls upon traders, retailers, manufacturers, wholesalers, and the wider business community to pass on the benefits of the favorable exchange rate movement to consumers. Price adjustments that reflect current economic realities are essential in ensuring that Zambians fully benefit from the appreciation of the Kwacha and other economic gains like lower inflation, lower fuel cost and increased electricity supply.
Government urges businesses to review their pricing structures and make appropriate downward adjustments, considering reduced import costs, improved foreign exchange conditions, and lower input costs. Passing on these benefits will help ease the cost of living, strengthen consumer purchasing power, stimulate demand, and support sustainable business growth.
A bullish Kwacha also contributes to price stability, helps contain inflationary pressures, and enhances market competitiveness. When businesses respond positively to exchange rate gains, it promotes fair trade practices, protects consumers, and strengthens confidence in the marketplace.
Government wishes to emphasize that responsible pricing benefits both consumers and businesses by promoting higher trade volumes, improved customer trust, and long-term market sustainability. Government therefore expects full cooperation from the private sector in ensuring that the gains from the appreciating Kwacha are fairly and transparently shared with consumers.
Government remains committed 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.