Africa-Press – Zambia. 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.
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