Over 30 manufacturing companies in Zambia have announced or are in the process of reducing prices, with sectors such as agro-processing, milling, and pharmaceuticals implementing cuts ranging from 5 to 20 percent. The Zambia Association of Manufacturers (ZAM) has welcomed the move, attributing it to improvements in the country’s macroeconomic environment. Factors such as the appreciation of the Kwacha, easing inflation, and lower fuel prices have created conditions that allow manufacturers to adjust prices while maintaining operations.
Speaking at a media briefing, ZAM President Mohammed Umar highlighted findings from a recent survey showing that 76 percent of manufacturers have already implemented price adjustments. The survey indicated that gains in currency value, reduced fuel costs, and a stable electricity supply were the main drivers of these reductions. Umar noted that these adjustments reflect the sector’s commitment to responsible pricing and transparency, ensuring consumers benefit from improved affordability.
Despite the positive developments, challenges remain. Energy costs, high local input prices, interest rates, and tax adjustments introduced in 2025 continue to affect manufacturing operations. ZAM is calling for additional policy support to sustain the trend, including the suspension of Statutory Instrument No. 76, stable tax policies, lower capital costs, and streamlined licensing procedures. Such measures are seen as crucial for encouraging investment and maintaining price stability.
Mr. Umar emphasized that collaboration between government, manufacturers, and consumers is key to further reducing the cost of living. He noted that the Public-Private Dialogue Forum’s Technical Working Group on Manufacturing will meet in February to discuss progress and potential interventions. The engagement aims to ensure that price reductions are sustainable and contribute to long-term economic stability, benefiting both the industry and Zambian households.