ZAM urges More Prices CUTS as Macroeconomic Conditions Improves
By Daily News Reporter
The Zambia Association of Manufacturers (ZAM) has urged the manufacturing sector to support national efforts to reduce the cost of living in response to improved macroeconomic conditions in Zambia.
ZAM has noted that the appreciation of the Kwacha, easing inflationary pressures, and reductions in fuel prices have collectively created a more stable economic environment for businesses and consumers.
The association has indicated that over 30 manufacturing companies have already announced or are in the process of announcing price reductions to provide tangible relief to Zambian consumers.
A ZAM survey conducted in January 2026 has revealed that 76% of manufacturers have implemented some form of price adjustment in response to the changing economic landscape.
ZAM President Mohammed Umar has pointed out that sectors such as agro-processing, milling, paints, pharmaceuticals, and plastics have recorded price reductions of between 5% and 20%.
Mr. Umar has explained that these price reductions are largely driven by currency appreciation, lower fuel costs, and recent stability in the supply of electricity.
He has further observed that manufacturing prices are influenced by a complex cost structure that includes energy costs, the pricing of locally sourced inputs, domestic interest rates, and tax or excise adjustments implemented in 2025.
Mr. Umar has stressed that sustained price moderation is best achieved through coordinated and predictable policy action, including the suspension of Statutory Instrument No. 76 and a stable tax policy environment.
He has also emphasised that a lower cost of capital and continued improvements in the ease of doing business are critical to unlocking productive expansion and competitiveness in the manufacturing sector.
This came to light in Lusaka during a media briefing where ZAM outlined the manufacturing sector’s response to the improving macroeconomic environment and its commitment to responsible pricing.
The ZAM President has reaffirmed that reducing the cost of living is a shared national objective that requires collaboration between manufacturers, policymakers, and consumers through open and constructive dialogue platforms such as the Public-Private Dialogue Forum.
Meanwhile, ZAM CEO Muntanga Lindunda observed that the improving macroeconomic environment presents a critical opportunity for manufacturers to reinforce their contribution to national development.
Ms Lindunda noted that while many firms are already adjusting prices downwards, sustained reductions will depend on continued policy consistency and a reduction in structural cost pressures.
She underscored that ZAM remains committed to constructive dialogue with the Government to ensure that efficiencies achieved at the industry level translate into real and measurable benefits for consumers.
She further highlighted that platforms such as today’s engagement are essential for promoting transparency, accountability, and shared understanding between policymakers, manufacturers, and the public.
She reiterated that ZAM will continue to provide evidence-based insights to guide decision-making and to support a competitive, inclusive, and resilient manufacturing sector.
