Africa-Press – Zambia. When the President of the Republic stands before the nation and says the prices of locally manufactured goods must now come down, Zambians have every right to ask: based on what? And more importantly: who’s responsible for the conditions that made those prices rise in the first place?
This week’s statement from President Hichilema, following his meeting with the Zambia Association of Manufacturers (ZAM), was polished — but disturbingly disconnected from economic reality. While we welcome genuine engagement with the private sector, the response from government leadership must reflect not only rhetorical aspirations but a grounded, honest assessment of the economic fundamentals
Let us unpack the key issues at stake.
1. What Are the Real Fundamentals Behind Price Reduction?
The President suggests that manufacturers are arbitrarily maintaining high prices “hiding behind old stock.” With respect, this statement oversimplifies and disregards economic realities faced by local producers. Prices in manufacturing are influenced by a basket of inputs:
Cost of raw materials – Many inputs are still imported, and despite recent Kwacha stability, the local currency remains fragile and volatile, having suffered major depreciation over the past two years.
Interest rates With policy rates still high (hovering around 22–24% as of Q3 2025), borrowing remains expensive. Manufacturers finance stock, operations, and expansion on these terms.
Electricity tariffs and load shedding – Energy insecurity, especially for industries like agro-processing and metal fabrication, continues to push up operational costs.
Taxes and compliance burdens – While the President says his government is not a proponent of high taxes, SMEs and local manufacturers still face a disproportionate tax burden, with only foreign corporates seemingly “enjoying” the benefit of tax holidays and customs waivers.
Logistics and infrastructure costs – Poor road conditions, border delays, and inconsistent rail freight services add to the cost of production.
Unless these fundamentals are directly addressed, any call for “price reduction” remains aspirational rather than actionable.
2. Fuel Prices Have Come Down – From Where?
We invite the President to be specific. Fuel prices in Zambia rose dramatically under his watch, reaching record highs in 2023 and early 2024. Any recent reduction is merely a partial correction from those excessive levels.
Consider this: In August 2021, petrol was averaging K17/litre. By mid-2024, it had peaked above K31/litre. Today, it’s around K26–K28/litre, still well above the 2021 baseline.
So, yes, fuel prices have “come down,” but only after going up far more under this government. A call for price reductions must acknowledge this full trajectory, not cherry-pick a recent drop in prices while ignoring the cumulative impact over the last four years.
3. The Taxation Paradox – Who’s Really Bearing the Burden?
The President says “we are not fans of higher taxes.” Yet ordinary Zambians and local entrepreneurs feel a different reality. Who then is carrying the tax load?
Mines, which continue to enjoy generous tax holidays and mineral royalty deductions, contribute far less proportionately than they should, despite booming global prices.
Meanwhile, ZRA pressures local businesses, especially SMEs and family-run enterprises, with audits, penalties, and compliance requirements that large multinationals easily circumvent through legal and accounting manoeuvres.
The Pay-As-You-Earn (PAYE) burden continues to fall on formal sector workers, while informal sector growth remains unsupported and untaxed.
If this administration is truly against high taxes, then why are relief measures skewed toward foreign capital, while local businesses continue to struggle under the weight of statutory obligations, import duties, and erratic policy implementation?
4. Empty Consultations Without Tangible Action
We support dialogue. We support stakeholder engagement. But let us not confuse consultation for transformation. The ZAM visit to State House is symbolic—but what has it yielded for the struggling medium-sized manufacturer in Ndola, the cashew processor in Mongu, or the agro-packager in Chipata?
The Zambian economy needs more than statements. It needs structural reform.
5. A Vision Grounded in Integrity and Practical Economics
The opposition, under our leadership, is not interested in bitterness or blanket criticism. We are not here to oppose for opposition’s sake. We are here to offer the Zambian people real economic alternatives:
A transparent tax regime that rewards local value addition and supports Zambian entrepreneurs—not just foreign investors.
A targeted industrial policy that reduces reliance on imports through strategic local production incentives.
A stable macroeconomic environment with affordable financing for industry, and not just handshakes at State House.
A fiscal policy that prioritizes productivity over punitive taxation.
The Zambian people are tired of soundbites. They deserve substance. We call on this administration to stop shifting blame to manufacturers, traders, or external factors. Leadership means accepting responsibility for the economic direction of the country and implementing policies that genuinely improve people’s lives.
The opposition stands ready with ideas, facts, and a patriotic vision, not just criticism, but a better path forward.
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