• The market still remains uncompetitive with less players on board.
• With high supply on the market, the prices will automatically drop.
• Entities will seek ways of being cost efficient in order to beat the high competition.

An Economist has called on government to promote competition in different sectors of the economy in order for citizens to see a reduction in commodity prices.
Speaking to Money FM News, Emmanuel Zulu noted that the reduction in fuel pump prices as well as minimal appreciation of the Kwacha have not benefited citizens in terms of low commodity prices.
Mr. Zulu also stressed the need to introduce policies that will reduce licensing costs and increase access to cheap capital through the Constituency Development Fund (CDF) and other empowerment facilities, and ensure national trade policy promotes local product competition with foreign products.
He further said this is likely to see prices of essential commodities drop as entities will seek ways of being cost efficient, innovative and ensure quality in order to beat the would be existing high competition.
“With high supply on the market, the prices will automatically drop as each trader will strive to make sales amidst high competition. The motive for a business venture is profit making and not only that but maximization.”
“As it stands, the market still remains uncompetitive with less players on board, we do not see prices going down and this is a very serious concern. The remedy therefore is to ensure that cartel behaviors or conducts, procedures as well as policies that restrict competition are well communicated and prevented with the general aim to promote supply on the market,” Mr. Zulu said.
Meanwhile, Mr. Zulu appealed to government to fund agencies that are responsible to promote competition for them to raise awareness among the business community on the need to embrace competitive conduct.
“We need government to come on board to fund agencies that are responsible to promote competition for them to sensitize the business community on the need to embrace competitive conduct as well as fund them to be more pronounced on the ground for people to know that they can report uncompetitive conduct such as cartels and other vices that foreclose market entry.”
“Once they see more players, more entrepreneurs going into sectors increasing the supply of basic goods and services the competition stiff such that the trading community will be compelled to compete on prices which we want to see,” he added.