ZACA CALLS FOR LEGISLATION TO REGULATE COMMODITY PRICES BASED ON EXCHANGE RATE

 The Zambia Consumer Association-ZACA is calling on government to formulate a Statutory Instrument-SI requiring shops and manufacturers to lower prices when the kwacha appreciates.

ZACA Executive Secretary Juba Sakala has noted that improvements of the exchange rate do not translate into short-term or long-term downward adjustments in commodity prices, despite price increases when the kwacha depreciates.

Mr. Sakala says he is aware that most firms still have old stock that has to be depleted before any price adjustments are made, but is concerned with the sustained inability to offset the kwacha's gain with price reductions.

He contends that many businesses fail to adjust prices in response to new stock acquired at cheaper rates, instead taking advantage of customers by charging higher costs based on the previous exchange rate.

Mr. Sakala believes that developing an SI to govern how businesses respond to the kwacha appreciation will ensure that Zambians begin to benefit, especially given the current high cost of living.

PHOENIX NEWS