HH Promises Government Action on Cost of Living

The issue of the cost of living was front and centre of President Hakainde Hichilema’s Labour Day address in Mansa on Thursday. Despite the frustrations of many Zambians regarding rising prices for everyday goods over the last few years, the President insisted that meaningful progress is being made.

President Hichilema began his speech by paying tribute to Zambian workers whose efforts, he said, were indispensable in achieving 4% economic growth last year, despite contending with a severe drought.

“Without you doing what you did, with food and electricity shortages, the support you gave your government, the partnership that you rendered to feed our people, we could have never done it without the support of you the workers, so thank you, thank you very much”.

The President then declared that lowering the cost of living is among his government’s top priorities. To this, end, he highlighted two developments that are cause for optimism.

Firstly, he welcomed recent reductions in the cost of fuel, now standing at just K27. He noted that bringing fuel costs under the K30 benchmark was a notable achievement. “This is psychological”, he said, “it will help lower the cost of doing business because fuel is the mover of the economy”.

Secondly, he thanked Zambian farmers for their hard work throughout the drought, and shared pleasing news that a bumper harvest is expected this year. An increased food supply will, it is hoped, lead to lower prices, easing the burden on consumers.

The government’s action on the cost of living is already paying dividends. On Wednesday, the Jesuit Centre for Theological Reflection, a charitable organisation, published research which showed that average living expenses for a family of five have decreased by K130. While meagre, this news indicates progress in the right direction, and that the government’s economic model is working.

The government’s acknowledgement of the need for a coordinated policy response to the high cost of living, as well as welcome news about fuel prices and food harvests, mean that Zambians can be optimistic about the future of the economy.