Kanchibiya Member of Parliament Hon. Sunday Chanda has cautioned government against introducing price controls on essential commodities such as fertilizer, sugar, and cooking oil, saying the move would backfire and worsen Zambia’s economic challenges.

In a statement titled “Price Controls Are Not the Answer — Zambia Needs Structural Solutions to Lower the Cost of Living,” Chanda said while the high cost of living was a legitimate concern, price controls have historically led to market distortions, shortages, and loss of investor confidence.

He urged authorities to instead tackle the underlying causes of high prices by cutting production costs, investing in renewable energy, improving transport infrastructure, and strengthening market competition.

Chanda outlined several sustainable measures to ease the burden on households  including promoting local manufacturing, supporting smallholder farmers, reforming taxes, and introducing targeted subsidies for the most vulnerable citizens.

He warned that short-term political fixes would only mask inflation without addressing the structural weaknesses in the economy, adding that Zambia’s long-term stability depends on sound, evidence-based reforms that boost productivity and self-reliance.

Below is the full statement

🟥 PRESS STATEMENT

PRICE CONTROLS ARE NOT THE ANSWER — ZAMBIA NEEDS STRUCTURAL SOLUTIONS TO LOWER THE COST OF LIVING

The recent News Diggers headline, “Government Ponders Price Controls for Fertilizer, Sugar, Cooking Oil,” underscores the growing concern about Zambia’s high cost of living. While this concern is legitimate, resorting to price controls would be an economic misstep with long-term negative consequences.

Price controls may appear to offer short-term relief, but history and economic evidence show that they often create more harm than good. They distort markets, discourage production, and lead to shortages that hurt consumers even more severely. When producers are unable to recover their costs, they reduce supply, creating black markets and worsening inflation in the long run.

Instead of controlling prices, government should address the root causes of high commodity prices — including high production costs, import dependence, weak supply chains, and limited competition in key markets.

WHY PRICE CONTROLS ARE A BAD IDEA

1. They discourage local production.
   When prices are fixed below production costs, producers cut back or close, leading to shortages.

2. They cause artificial scarcity.
   Products disappear from formal shelves and reappear on the black market at inflated prices.

3. They erode investor confidence.
   Policy unpredictability deters local and foreign investment in agriculture and manufacturing.

4. They strain public finances.
   The state is often forced to subsidize losses, worsening the fiscal burden.

5. They only mask inflation.
   Price controls hide, but do not fix, structural inefficiencies driving up costs.

SUSTAINABLE MEASURES TO REDUCE THE COST OF LIVING

To provide genuine and lasting relief to households, Zambia must prioritize productivity, efficiency, and fair market competition over artificial pricing.

1. Promote Local Manufacturing and Agro-Processing

• Fast-track operationalization of fertilizer and feedstock plants.

• Encourage local processing of sugar, cooking oil, and other essentials.

2. Cut Transport and Energy Costs

• Invest in cheaper renewable energy and local fuel blending.

• Rehabilitate rural and feeder roads to reduce logistics costs for farmers and traders.

3. Strengthen Market Competition and Oversight

• Curb monopolistic and cartel behavior in commodity markets.

• Empower the Competition and Consumer Protection Commission to ensure fair pricing.

4. Targeted Subsidies for the Vulnerable

• Implement smart social protection mechanisms to cushion low-income households rather than imposing universal price controls.

5. Support Smallholder Farmers

• Enhance access to affordable credit, quality inputs, and extension services to boost productivity and lower farm-gate prices.

6. Tax and Policy Reforms

• Review VAT and import duties on essential goods and raw materials.

• Incentivize domestic value addition to build resilient local value chains.

CONCLUSION

Price controls may be politically tempting, but they are not a sustainable solution to the cost-of-living crisis. Zambia’s long-term stability lies in lowering production costs, encouraging local industry, and protecting vulnerable citizens through targeted support.

The nation must resist the lure of short-term fixes and instead pursue sound, evidence-based economic reforms that create lasting prosperity for all.

Signed:
Hon. Sunday Chanda, MP
Member of Parliament for Kanchibiya Constituency
Zambia National Assembly

Economics Association of Zambia (EAZ) President Oswald Mungule has noted that the high cost of living in the country has persisted despite the kwacha maintaining a stable exchange rate over the past six months.

Mr Mungule says this is because people’s income has been eroded by inflation, while productivity levels remain low.

Speaking in an interview with the media, Mr Mungule explained that although inflation has slowed down since 2021, the cost of goods and services has continued to rise, while salaries have largely remained static, reducing the purchasing power of most households.

“The main reason is that the income levels of the people have been eroded by inflation. Prices have continued going up while salaries have remained the same,” he said.

He further attributed the sustained high cost of living to structural rigidities in the economy, particularly low productivity levels, poor infrastructure and inefficient logistics and transportation systems.

“The more you produce, the more you supply to the market and prices stabilize. But when supply is limited, prices go up,” Mr Mungule explained.

He said inadequate road networks and high transportation costs as major contributors to price increases.

Mr Mungule stressed that monetary policy alone cannot address the cost of living crisis.

“Government must complement monetary policy with fiscal measures that support key sectors such as the MSME sector,” he stated.

Mr Mungule has since emphasised the need for joint efforts by both the government and the private sector to improve access to finance and ensure that taxation policies do not inadvertently increase production costs and inflationary pressures.

Chongwe District Senior Agriculture Officer, Whiteson Kasuba, has urged farmers in the district to adopt the Integrated Pest Management (IPM) model to effectively address pest outbreaks in their fields.

Mr. Kasuba noted that climate change has led to increased outbreaks of economically harmful pests such as fall armyworms and Tuta absoluta, which threaten the country’s food security. He therefore called on farmers to integrate the IPM model into their farming practices.

He explained that using sustainable agricultural practices under the IPM model, such as biological control methods, not only protects the environment from damage but also enables farmers to achieve higher crop yields, thereby enhancing food security.

Mr. Kasuba made the remarks during a bio-control field day organized by the Centre for Agriculture and Bioscience International (CABI) and the International Maize and Wheat Improvement Centre (CIMMYT) at Honda Agriculture Camp in Chongwe District.

He stated that the Ministry of Agriculture, through the government’s agricultural policy, is promoting IPM—implemented by CABI among farmers across the country—as a safer and more sustainable strategy to control pests and crop diseases.

Mr. Kasuba further encouraged farmers in Chongwe to be receptive to the innovative farming practices demonstrated by CABI and CIMMYT during the field day, as these can improve crop production and livelihoods.

“May I implore our farmers to be open-minded and embrace the innovations demonstrated and shared by CABI and CIMMYT, which will help you adopt sustainable food production methods, build healthy families, and contribute to a food-secure nation,” Mr. Kasuba said.

He thanked the two organizations for pioneering IPM and other pest control measures in the district.

Speaking on behalf of CABI Southern Africa Regional Director, Dr. Natasha Mwila, CABI Food and Safety Scientist, Andela Kangwa, said IPM remains one of the most effective pest management approaches as it leverages multiple practical pest control methods.

Ms. Kangwa explained that the indiscriminate use of chemical pesticides in farming contributes to the loss of biodiversity within micro-environments and poses risks to human health, underscoring the need for safer pest management alternatives.

“In instances where chemical pesticides are abused or overused, resulting in harm to both the environment and humans, the need for safer pest management alternatives cannot be overemphasized,” Ms. Kangwa said.

She added that CABI, with support from CIMMYT, is working closely with farmers in Chongwe through the Ministry of Agriculture to demonstrate practical IPM approaches that include the organization’s farmer biopesticide initiative at a demonstration plot where the field visit was held.

Ms. Kangwa further revealed that the organization is also promoting the first commercialized fall armyworm-tolerant hybrid maize seed in the country, developed by CIMMYT.

She commended farmers in the camp for their willingness and commitment to learning how to integrate IPM into their farming practices.

The Technical Committee on Amendments to the Constitution commenced its Provincial sittings as part of the nationwide consultation process aimed at revising the Republican Constitution.

The media reports that in Northwestern Province, the committee  paid a courtesy call on the Provincial Administration before receiving submissions from traditional leaders.

In his opening remarks Vice Chairperson and Spokesperson Landilani Banda said the Technical Committee has eleven (11) specific Terms of Reference.

“One of the terms of reference is to receive submissions from the people of Zambia with respect to provisions relating to the electoral process and the electoral system as a whole and specifically, provisions relating to the delimitation and delineation of constituencies and wards with a view to ensure fair, equitable and balanced representation and distribution of resources across the nation,” he said.

Dr Banda said the other term of reference includes the promotion and enhancement of effective participation of women, youths and persons with disabilities in elective positions and governance institutions in accordance with the principles of inclusivity, equality and equity.

He said the technical committee has also been tasked to receive submissions from the people of Zambia with respect to provisions of the Constitution relating to the term of Member of Parliament and office of Minister.

“Your Royal Highness we are also here to receive submissions from you before your subjects in later days with respect to provisions of the Constitution relating to the hearing of Presidential, Parliamentary and local government election petitions with a view to enhance the administration of justice in such election petitions,” he said .

He added that the Technical Committee will also receive submissions from the people of Zambia with respect to the definition of a youth, child and adult.

Dr Banda said the committee will also receive submissions from the people of Zambia with respect to Constitutional Office holders, specifically the tenure of office of Attorney General and Solicitor General and the qualifications of the Secretary to the Cabinet, among others.

Public sittings and receipt of submissions from various stakeholders will follow from Tuesday through to Thursday of the same week.

The second phase of the consultations will cover Muchinga, Southern, Copperbelt, and Luapula provinces from November 3 to November 6, 2025, before concluding with Lusaka Province from November 10 to November 13, 2025.

The sittings are expected to end on November 13, 2025, with the final report scheduled for completion on November 16 and official handover on November 26, 2025.

Earlier this month, President Hakainde Hichilema appointed a 25-member Technical Committee to spearhead the Constitutional Amendment process through broad-based public consultations.

The committee is chaired by retired Supreme Court Judge Christopher Mushabati, with Landilani Banda serving as Vice Chairperson and Spokesperson.

The nationwide exercise seeks to ensure that the constitutional review process is inclusive, transparent and reflective of the aspirations of all Zambians.

The Ministry of Labour and Social Security, through the sector skills bodies, in collaboration with cooperating partners, has announced a 12 months apprenticeship programme for priority skills.

states that the pilot programme will commence in January 2026 and will bridge existing skills gaps, demonstrate the viability of apprenticeships as a means of developing industry-ready skills, promote employability, and enhance productivity.

The media reports that speaking when she officiated at the opening of the Tripartite Consultative Labour Council Meeting in Lusaka, Ms Tambatamba said the programme will also provide lessons for scaling up the programme and attracting sustainable financing from both government and the private sector.

The Minister indicated that government recognises that changes in technology, climate change, and globalisation have transformed business models, necessitating a corresponding shift in skills to meet the evolving needs of the labour market.

“The skills advisory committee, with support from the International Labour Organisation (ILO) and the European Union (EU), working through the sector skills bodies, has developed a critical skills list for four priority sectors, namely mining, agriculture, energy, and tourism.

“The critical skills list is intended to address skills gaps and mismatches, while promoting competence-based skills development,” she explained.

Ms Tambatamba further expressed the government’s appreciation to the European Union for the financial and technical support.

And speaking at the same event, International Labour Organisation (ILO) Country Director, Wellington Chibebe, said the organisation is actively supporting Zambia in promoting employability.

Mr Chibebe noted that ILO stands ready to support the government on the designation of selected categories of workers as essential workers, the development of a Statutory Instrument to address the proliferation of trade unions and the update of the Critical Skills List and Support for the Pilot Apprenticeship Programme.

Meanwhile, Zambia Congress of Trade Unions (ZCTU) President, Blake Mulala, stated that Zambian employees remain steadfast in their commitment of driving the national agenda of economic development and productivity growth in all sectors of the country’s economy.

Mr Mulala acknowledged that workers have demonstrated a high level of commitment and discipline towards industrial peace.