high commodity prices amid appreciation of the Kwacha
Dear Editor,
THE kwacha, appreciated just after the August 12 general election. This follows the election of Hakainde Hichilema of the United Party for National Development (UPND) as the seventh republican President.
The appreciation of the Kwacha can be attributed to the peaceful transition of power following the Patriotic Front’s electoral defeat in the general election. However, there was anxiety from the foreign investors and the local entrepreneurs before the polls as to what would ensue.
People thought that there could be chaos after the general election. This compelled the foreign investors and the local entrepreneurs to hoard the dollars and other convertible currencies prior to the general election.
Whatever economic fundamentals contributed to the appreciation of the Kwacha are greatly appreciated as it signified the trajectory of Zambia’s economic recovery whose benefit will trickle down to the ordinary Zambians through the low prices of goods and services.
But unfortunately, this is not the case because the prices of goods and services have remained unbearably high for the majority Zambians. They are wallowing in abject poverty,
The most unfortunate part is that the price of goods and services are still high amid the appreciation of the Kwacha. The consumers are not appreciating the recent appreciation of the Kwacha because it does not translate into lower prices of the essential commodities on the market.
All said and done, the appreciation of the Kwacha will remain irrelevant as long as the appreciation does not lead to a reduction in the price of goods and services.
ELEMIYA PHIRI,
Lusaka.
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