Businesses Urged to Reduce Commodity Prices as Kwacha Strengthens
The Government has welcomed the continued appreciation of the Zambian Kwacha against major international currencies, describing the trend as a sign of growing confidence in the country’s economic fundamentals and the effectiveness of ongoing macroeconomic and fiscal reforms.
In a statement issued on Tuesday, Minister of Commerce, Trade and Industry, Hon. Chipoka Mulenga, MP, said the strengthening of the local currency is the result of deliberate and sustained efforts under President Hakainde Hichilema’s administration, coupled with the commitment of Zambians to increased productivity under the “Work after Work” agenda.
The Minister noted that a stronger Kwacha brings direct and measurable benefits to the economy, particularly in trade, commerce and consumer welfare.
He explained that reduced import costs for fuel, machinery, raw materials and intermediate inputs lower production and distribution expenses, while declining inflation, reduced fuel prices and improved power supply further ease operational pressures on businesses.
Against this background, Government has called on traders, retailers, manufacturers and wholesalers to reflect the favourable exchange rate movements in their pricing.
Hon. Mulenga stressed that price adjustments aligned with current economic conditions are essential to ensure that citizens fully benefit from the appreciating Kwacha and other positive economic developments.
“Businesses are urged to review their pricing structures and make appropriate downward adjustments in light of reduced import costs, improved foreign exchange availability and lower input expenses,” the Minister said. “Passing on these benefits will help ease the cost of living, enhance consumer purchasing power, stimulate demand and support sustainable business growth.”
The Government further observed that a bullish Kwacha supports price stability, curbs inflationary pressures and enhances competitiveness in the market. When businesses respond positively to currency gains, it promotes fair trading practices, strengthens consumer confidence and contributes to a healthier marketplace.
Hon. Mulenga emphasised that responsible pricing benefits both consumers and the private sector by encouraging higher trade volumes, building customer trust and ensuring long-term market sustainability.
He added that Government expects full cooperation from the business community to ensure that the gains from the appreciating Kwacha are shared fairly and transparently.
The Government reaffirmed its 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 across the country.
