LUSAKA - The Zambia Chamber of Commerce and Industry (ZACCI) says improvements in Zambia's macroeconomic performance are expected to result in lower retail commodity prices over time, although consumers should not expect immediate reductions.
The remarks follow President Hakainde Hichilema's call on the business community to reduce the prices of commodities, citing the country's economic recovery, declining inflation, improved electricity supply and falling fuel prices.
Responding to a press query from Phoenix News, ZACCI Chief Executive Officer Emmanuel Mumba said the relationship between macroeconomic improvements and retail prices is gradual because businesses require time to adjust to lower production and operating costs.
Mr. Mumba noted that some companies have already begun responding to the improving economic environment, citing price reductions by Zambeef on selected products and adjustments by some millers as early signs that businesses are starting to pass on the benefits of improved economic conditions to consumers.
He explained that sustainable reductions in commodity prices will depend on continued exchange rate stability, reliable electricity supply, improved productivity, lower financing costs, efficient transport and logistics, and a predictable policy environment.
Mr. Mumba further stated that many businesses are still recovering from a period of high operating costs, expensive debt servicing, and elevated logistics and distribution expenses. As a result, he said many firms remain cautious about lowering prices until they are confident that the current macroeconomic gains can be sustained.
Source: Phoenix News | By: Elesani Phiri