ANTONIO MWANZA OPPOSES PROPOSED PRICE CONTROLS AS GOVERNMENT CLARIFIES POSITION
By Nelson Zulu
The Opposition Democratic Progressive Party-DPP has opposed Governments proposal to introduce price controls on essential commodities, describing it as ill timed.
Party President Antonio Mwanza says this approach will adversely affect the cost of living and the viability of local producers.
Mr. Mwanza argues that price controls are a short-term, populist measure that will lead to shortages, black markets and reduced investment in production.
He says fixing prices below market levels removes incentives for retailers, farmers and manufacturers to produce and supply essential goods, thereby worsening availability and harming jobs.
Mr. Mwanza has accused government of policy failures which have resulted in high prices, and alleged under-investment in the national refinery.
He however proposes measures aimed at boosting local production and reducing input costs such as reviving the Nitrogen Chemicals of Zambia-NCZ- to ensure local fertilizer supply, lowering taxes on production inputs and investing in renewable energy and infrastructure.
Meanwhile, Commerce, Trade and Industry Minister Chipoka Mulenga has clarified that government is not pondering on introducing price control measures but is urging manufacturers to pass on the benefits of the fuel price drop and inflation reduction among other economic factors, to consumers.
PHOENIX NEWS
We have a big problem in Zambia. Let’s compare with our bread basket South Africa. Commodities on the retail averages a profit of 15-20% including essentials. They’ll not make a 100% profit compared to Zambia.
Now let’s come back to our motherland ZAMBIA where retailers aim for over 100% profits, is this normal? Even locally produced items attract the same margin levels of profits. When you step into Shop Rite compare items from South Africa to those from Trade Kings. You’ll notice that Trade kings prices are guided and competitively priced to those from SA. A locally produced Sunlight dish washer will cost say K45 and the import will cost K48. Do you see how these so called local manufacturers are generally in price collusion and are reaping huge profits from the people. And how do we proudly support our locals when they don’t pass on the benefits to the people? They are driven by greed. In SA despite electricity charges that have gone up so exponentially their local items are very much affordable. Fuel prices in SA are just k5 difference or thereabouts.
We would like to support our locals but they must not rip off the masses as the case now. Even locally produced peanut butter is now averaging k80, where’s the rationale here? Look at the average salaries of our people hovering around k5,000, people can’t just afford essentials. It’s impossible to survive no matter how you tighten up your belts.
I would suggest the Government takes initiative and engage our local producers so that prices can be normalised and balanced for end users to have a breather. Otherwise it’s dog eats dog out there. Maybe it’s the reason Government would like to initiate some price control on essentials, though I don’t support this direction. But some action needs to be taken.