LUSAKA – Democratic Progressive Party (DPP) president Antonio Mourinho Mwanza has called for honesty and realism in the ongoing debate on the rising cost of living in the country.
His remarks follow recent calls by Getrude Imenda, Deputy Secretary General of the UPND, urging businesses to reduce food prices following the strengthening of the kwacha and easing inflation.
Reacting to the proposal, Mr. Mwanza said while cheaper food prices were desirable, the issue was more complex than it appeared.
“At first glance, this sounds good. Everyone wants cheaper food,” Mr. Mwanza said. “But the reality is not that simple.”
He explained that the strengthening of the kwacha did not automatically translate into lower retail prices because many businesses had already purchased their stock when operating costs were higher.
“Most businesses stocked their goods months ago when the kwacha was weaker, fuel prices were higher and transport costs were rising,” he said.
According to Mr. Mwanza, businesses could not immediately reduce prices because the goods currently on their shelves were bought at significantly higher costs.
“They cannot suddenly slash prices overnight when the goods on their shelves were bought at higher costs. Economics simply does not work that way,” he said.
Mr. Mwanza further clarified that the recent decline in inflation should not be mistaken to mean that prices were falling.
“When inflation goes down, it does not mean prices are dropping,” he said. “It simply means prices are rising more slowly than before.”
He noted that several structural factors continue to influence the prices of food and other essential commodities.
“Food prices depend on many real costs such as transport and fuel, farming inputs, electricity, storage and distribution, as well as the overall cost of doing business,” he said.
Mr. Mwanza added that as long as these operational costs remained high, food prices would likely remain elevated.
“If these costs remain high, food prices will also remain high,” he said.
He stressed that addressing the cost of living crisis required deeper economic interventions rather than simple directives to businesses.
“This problem cannot be solved by simply telling businesses to cut prices,” he said. “It requires serious economic solutions.”
Mr. Mwanza suggested that government should focus on policies aimed at improving agricultural productivity, reducing transport costs, lowering fuel and electricity prices, and strengthening supply chains.
He further urged leaders to approach economic discussions with greater responsibility.
“When leaders speak about the economy, the public expects clear thinking and practical solutions, not simplistic statements that ignore how markets actually work,” Mr. Mwanza said.
“The cost of living crisis is real,” he added. “But solving it requires sound economic policy, structural reforms and honest leadership.”
🚨 THE COST OF LIVING DEBATE: LET’S BE HONEST WITH ZAMBIANS 🚨
Madam Getrude Imenda, Deputy Secretary General of the United Party for National Development, has urged businesses to cut food prices because the kwacha has strengthened and inflation has come down. (News Diggers reports)
At first glance, this sounds good. Everyone wants cheaper food.
But the reality is not that simple.
⸻
📊 A Stronger Kwacha Does NOT Automatically Lower Prices
Most businesses stocked their goods months ago when:
• the kwacha was weaker
• fuel prices were higher
• transport costs were rising.
They cannot suddenly slash prices overnight when the goods on their shelves were bought at higher costs.
Economics simply does not work that way.
⸻
📉 Lower Inflation Does NOT Mean Prices Are Falling
Another important point.
When inflation goes down, it does not mean prices are dropping.
It simply means prices are rising more slowly than before.
So telling businesses to reduce prices simply because inflation has slowed misunderstands how inflation works.
⸻
🛒 What Actually Determines Food Prices?
Food prices depend on many real costs such as:
• 🚚 Transport and fuel
• 🌽 Farming inputs
• ⚡ Electricity
• 📦 Storage and distribution
• 🌧️ Taxes and Cost of doing business in general
If these costs remain high, food prices will also remain high.
⸻
📑 The Real Cost of Living Crisis
This problem cannot be solved by simply telling businesses to cut prices.
It requires serious economic solutions, including:
• improving agricultural productivity
• reducing transport costs
• reducing cost of fuel and electricity
• strengthening supply chains.
⸻
⚖️ Leadership Requires Serious Solutions
When leaders speak about the economy, the public expects clear thinking and practical solutions, not simplistic statements that ignore how markets actually work.
The cost of living crisis is real.
But solving it requires sound economic policy, structural reforms and honest leadership.
⸻
Antonio Mwanza
DPP President
09 – 03 – 26