PRICE CONTROLS NOT THE ANSWER
….Zambia needs structural solutions to lower cost of living, says Kanchibiya MP
Lusaka…Tuesday, October 28, 2025
Kanchibiya Member of Parliament Sunday Chanda has cautioned government against introducing price controls on essential commodities, warning that such a move could backfire and worsen Zambia’s cost-of-living crisis.
Reacting to reports that government is considering regulating prices of fertilizer, sugar, and cooking oil, Hon. Chanda said price controls may appear to offer temporary relief but would ultimately harm both consumers and producers.
“Price controls may seem like a quick fix, but history shows they often create more problems than they solve,” Hon. Chanda told Smart Eagles.
“They distort markets, discourage production, and lead to shortages that hurt consumers even more.”
He noted that when producers are forced to sell below their production costs, they reduce supply, leading to artificial scarcity and the emergence of black markets where prices are even higher.
“When you fix prices below production costs, producers cut back or close entirely. Products vanish from the shelves and reappear on the black market at inflated prices,” Hon. Chanda warned.
“We have seen this story before, and it never ends well for ordinary citizens.”
The Kanchibiya lawmaker urged government to instead focus on addressing the structural challenges driving high commodity prices.
These include high production and transport costs, import dependence, weak supply chains, and limited competition in key markets.
“Zambia needs solutions that strengthen productivity and efficiency, not policies that only mask inflation,” he said.
“We must focus on cutting energy and transport costs, promoting local manufacturing, and supporting smallholder farmers.”
Hon. Chanda further proposed reforms such as tax adjustments on essential goods, investment in renewable energy, improved feeder roads, and targeted subsidies for vulnerable households instead of blanket price controls.
“If we truly want to bring down the cost of living, we must build a resilient economy where goods are affordable because they are efficiently produced not because prices are artificially fixed,” he added.
He emphasized that while political pressure to act on rising prices is understandable, sustainable solutions lie in sound economic reforms, stronger competition, and local value addition.
“Price controls may sound popular in the short term, but they are not sustainable. The focus should be on lowering production costs, supporting our farmers and manufacturers, and protecting the most vulnerable through targeted support,” Hon. Chanda said.
SE
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.
The answers to profeteering in Zambia may lay in the following questions:
1) who own and manufacture the goods in Zambia? Profile them: Are they indigenous Zambians or otherwise? And these Owners of Production: where is their loyalty between Zambia and their countries of origin?
2) what is the mixture of inputs between imported and locally sourced inputs in the production process in Zambia compared to SA’s Production process?
I think that government must tell the retailers/shops to reduce their prices considering that the Kwacha has gained nearly 30% in the last few months..
They are quick to increase when Kwacha is devaluing but not reducing prices..
This is not good and we and government should talk to those shops that are not reducing prices..