Zambia Manufacturers Cut Prices to Ease Cost of Living
The Zambia Association of Manufacturers (ZAM) has called on the manufacturing sector to support national efforts to reduce the cost of living, following improvements in the country’s macroeconomic conditions.
ZAM highlighted that the appreciation of the Kwacha, easing inflation, and lower fuel prices have created a more stable economic environment for both businesses and consumers. Over 30 manufacturing companies have already announced, or are in the process of announcing, price reductions to provide tangible relief to Zambian households.
A ZAM survey conducted in January 2026 revealed that 76% of manufacturers have implemented some form of price adjustment in response to the changing economic landscape. Sectors such as agro-processing, milling, paints, pharmaceuticals, and plastics have recorded reductions ranging from 5% to 20%, largely driven by currency appreciation, lower fuel costs, and more stable electricity supply.
ZAM President Mohammed Umar emphasised that sustained price moderation requires coordinated and predictable policy action, including the suspension of Statutory Instrument No. 76, a stable tax regime, and a lower cost of capital.
He also stressed the importance of improvements in the ease of doing business to boost competitiveness in the manufacturing sector.
Meanwhile, ZAM CEO Muntanga Lindunda noted that the improving economic environment presents an opportunity for manufacturers to strengthen their contribution to national development.
She added that continued price reductions will depend on consistent government policies and lower structural costs, and stressed that platforms such as the Public-Private Dialogue Forum are essential for transparency, accountability, and collaboration between manufacturers, policymakers, and consumers.
