The Consumer Unit Trust Society International (CUTS) Zambia says a price rise in commodities is expected following the rebasing of the kwacha.
CUTS programme officer Tommy Singongi said this is because most business houses have incurred extra costs following the changing of their systems.
Mr. Singongi however stated that what will be illegal is the manipulation of prices by the retailers.
Speaking to QFM, Mr. Singongi said it is important to ensure that all retailers and business communities display tallying prices, both in the old and new currency.
He further stated that the Bank of Zambia should not relax, but should vigourously continue sensitizing the public on the rebasing of the currency to avoid consumers being manipulated.
Mr. Singongi added that the Central bank should also not limit itself to the six months of sensitization but should continue with the sensitization programme even after June, when the old currency will be phased out completely.
[QFM]
ATMs are only dispersing Kr50 and Kr100 note
I agree that most business houses will increase their prices, ostensibly as result of re basing related costs. What I don’t agree with is the justification for the increment because the majority of our wholesalers and retailers have practically incurred no costs attributable to re basing. If anything financial institutions, who in actual fact already rake in millions of Kwacha are the ones who spent colossal sums in software upgrades. The majority of business houses are just riding on the software upgrades of bigger institutions and should have no reason to increase prices. Unfortunately every business house will be riding on the perception that re basing has affected their income, which to me is a total lie. I hope members of the public wont be taken for a ride. Lets open our eyes.
How can someone selling products manipulate there price in a free market economy? Am I not free to set a price that I feel is reflective of transport,storage and labour WTF?
#1, good points Mr. Chitalu.