By KENNEDY MUPESENI –
THE Jesuit Centre for Theological Reflection (JCTR) has appealed to the Government to put in place long-term and sustainable measures to stabilise the cost of mealie-meal and other basic commodities.
JCTR media and information officer Mwinga Shimilimo said putting in place long-term measures was the sure way of stabilising mealie-meal prices.
“We fully support the Government’s intension to set-up milling plants across the width and breadth of the country. On the domestic consumption side, we appeal for consumption diversification which will
include rice and potatoes to thwart undue demand for mealie-meal,” Ms Shimilimo said.
The JCTR acknowledged several measures taken to curb the high cost of living including direct negotiations with millers, which resulted in the reduction of mealie-meal prices by K4 per bag.
She however noted that this was not the reality on the ground as retailers were still selling mealie-meal at the old prices, because they had to sell the old stock before replenishing the stock at the adjusted prices.
“Their justification is that they have neither benefited from the reduction in transport nor the cost of shop rentals hence the need to roll out milling plants as the long term measure,” she said.
On the performance of the Kwacha, she said the depreciation was causing a threat to the cost of living.
Ms Shimilimo called on the Government to tackle the matter gradually but steadily to ensure the local currency did not depreciate further against the United States dollar and other major international currencies from a holistic perspective.
“While short-term measures to stabilise the Kwacha are welcome, there is need to focus on long-term solutions that inspire confidence in the economy,” she said.
The Zambia economy being largely import driven on account of the size of the domestic economy implied that the continued depreciation of the Kwacha would exacerbate the already high cost of living as opportunity import costs would be transferred to consumers.
The cost of imported inputs that were used in various economic activities, such as the manufacture of goods and delivery of services would be more expensive, further eroding Zambia’s competitive edge on the international market.