The Zambian government on Thursday called on businesses to lower prices following a sustained appreciation of the local currency, the Kwacha, saying the gains should benefit consumers rather than remain confined to corporate profit margins.
Minister of Commerce, Trade and Industry Chipoka Mulenga said the recent strengthening of the Kwacha reflected deliberate fiscal and monetary measures designed to stabilise the economy, rather than market coincidence. He urged traders to adjust their pricing structures to reflect lower import and production costs.
“The appreciation of the Kwacha has reduced the cost of importing raw materials, fuel, and finished goods. Businesses have a responsibility to pass these savings on to consumers,” Mulenga told reporters. He added that failure to do so could distort markets and weaken public confidence in the government’s economic reforms.
Mulenga said that while some businesses had yet to lower prices, the government expected prompt adjustments, particularly for products with high import content. He acknowledged that stocks purchased at earlier exchange rates could delay immediate reductions, but stressed that new inventory should reflect the lower costs.
The minister attributed the Kwacha’s performance to a combination of factors, including increased foreign exchange inflows, higher export earnings, and tighter fiscal discipline. Coordination between the Ministry of Finance and the Bank of Zambia was also cited as a key factor in stabilising the currency, managing liquidity, and controlling inflationary pressures.
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Consumer groups welcomed the government’s call, noting that transparent and timely price reductions would help ease household pressures and stimulate demand. “Currency stability should translate into real benefits for citizens, particularly for essential goods and services,” a spokesperson for a local consumer association said.
The ministry said it would continue engaging with business associations, suppliers, and retailers to encourage fair pricing practices. Mulenga added that while dialogue remains the preferred approach, enforcement mechanisms would be applied if necessary to ensure compliance with fair trading principles.
Zambia has faced persistent macroeconomic challenges in recent years, including inflationary pressures, currency volatility, and high import costs. The government’s policy interventions over the past months, according to Mulenga, have helped correct macroeconomic imbalances, restore confidence in the Kwacha, and provide a platform for sustainable economic stability.
The minister stressed that pricing adjustments should be guided by cost structures, rather than arbitrary decisions, and that businesses should act promptly to align with the improved exchange rate environment. Failure to do so, he warned, could undermine broader economic reform efforts.
Observers say the government’s call reflects a broader push to ensure that currency gains deliver tangible benefits to ordinary Zambians. Analysts note that sustained currency appreciation, if paired with responsible pricing, could enhance purchasing power, reduce inflationary pressures on imported goods, and improve living standards.
Mulenga also highlighted the government’s commitment to monitoring price movements across key sectors. He said the ministry would track compliance and engage directly with companies that lag in adjusting prices, while maintaining a balance between encouragement and regulatory oversight.
“The government remains committed to maintaining macroeconomic stability and ensuring that gains in the Kwacha benefit both businesses and consumers,” Mulenga said.
The recent measures come amid continued efforts to strengthen fiscal policy, manage liquidity, and support market stability. As the Kwacha strengthens, authorities say timely adjustments in the pricing of goods and services will be essential to translate currency gains into improved affordability for households across Zambia.
