WHERE IS ZNS DERIVING ITS AUTHORITY TO HARASS RETAILERS?
….asks Dr M’membe, as he reechoes that Zambia is a free market economy with no price controls
Petauke… Tuesday January 21, 2025
A debate has emerged regarding the Zambia National Service’s (ZNS) imposition of a uniform retail price on their mealie meal, raising questions about the policy’s alignment with Zambia’s free-market principles.
Dr Fred M’membe, President of the Socialist Party (SP), has called on the government to provide clarity and legal backing on the matter.
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In a statement, M’membe expressed concerns that the current approach contradicts the country’s liberal economic policies.
He explained that economic liberalism generally opposes government interventions that lead to inefficiencies, though it supports state action in protecting property rights and enforcing contracts.
“Zambia is a free market economy with no price controls,” Dr M’membe noted, questioning whether ZNS’s pricing policy undermines this principle.
Dr M’membe compared ZNS’s actions to hypothetical scenarios involving private retailers.
He asked whether ShopRite, for instance, could compel a small shop owner to sell products at a specific price despite varying overhead costs such as rent, transportation, and labor.
He argued that imposing a uniform price ignores these differences and may lead to unfair practices.
Highlighting the confiscation of ZNS mealie meal sold above the recommended price, M’membe questioned the legality of such actions.
He asked whether a statutory instrument or regulation exists to support price control in this instance.
“Is there a statutory instrument or regulation that has been issued to control ZNS mealie meal pricing? If not, is the confiscation of ZNS mealie meal priced above ZNS recommended price, not an illegality?” He questioned.
Calling for guidance, M’membe urged the Ministers of SMEs and Commerce, Trade, and Industry to address the issue.
“Traders need clear direction backed by the law,” he said, adding that transparency is essential to avoid confusion and harassment of small-scale retailers.
Dr M’membe pointed out that, unlike the fuel sector, where pricing is regulated by the Energy Regulation Board (ERB), no similar legal framework appears to exist for ZNS mealie meal pricing.
He challenged the government to clarify the legal authority under which ZNS enforces uniform pricing.