Zambian Govt Hails Stronger Kwacha, Urges Businesses to Pass on Benefits to Consumers
Zambian Kwacha Strengthens as Government Calls on Businesses to Lower Prices and Support Cost of Living Relief
The Government has welcomed the continued appreciation of the Zambian Kwacha against major international currencies, describing the trend as a clear signal of growing confidence in the country’s economic fundamentals and the effectiveness of ongoing macroeconomic and fiscal reforms.
In a statement issued on Tuesday, the Minister of Commerce, Trade and Industry, Hon. Chipoka Mulenga, MP, said the strengthening of the local currency reflects deliberate and sustained policy efforts under President Hakainde Hichilema’s administration, alongside increased national productivity driven by the “Work After Work” agenda.
The Minister noted that a stronger Kwacha delivers tangible benefits to the economy, particularly in trade, commerce, and consumer welfare. Lower import costs for fuel, machinery, raw materials, and intermediate goods reduce production and distribution expenses, while declining inflation, easing fuel prices, and improved power supply further lower operating costs for businesses.
Against this backdrop, the Government has called on traders, retailers, manufacturers, and wholesalers to adjust their pricing to reflect favourable exchange rate movements. Hon. Mulenga stressed that aligning prices with current economic conditions is essential to ensure that citizens benefit directly from the appreciating Kwacha and broader economic gains.
“Businesses are encouraged to review their pricing structures and make appropriate downward adjustments in response to reduced import costs, improved foreign exchange availability, and lower input expenses,” the Minister said. “Passing on these benefits will help ease the cost of living, strengthen consumer purchasing power, stimulate demand, and support sustainable business growth.”
The Government further noted that a stronger Kwacha supports price stability, curbs inflationary pressures, and enhances market competitiveness. When businesses respond positively to currency gains, it promotes fair trading practices, boosts consumer confidence, and contributes to a healthier commercial environment.
Hon. Mulenga emphasised that responsible pricing benefits both consumers and businesses by increasing trade volumes, building customer trust, and ensuring long-term market sustainability. He added that the Government expects full cooperation from the private sector to ensure that the gains from the appreciating Kwacha are shared fairly and transparently.
The Government reaffirmed its commitment to working closely with the private sector to improve the business environment, promote local production and value addition, strengthen consumer protection, and drive inclusive economic growth across Zambia.
