My good friend Sibbuku just said "First, Google the following definations; monopoly, pricing cartels, taxation and the wheel of retailing.
You will understand how Cement producers were economically raping the poor Zambian masses while smiling all the way to the bank.
The big question is - how come Chilanga Cement reduced their product from K95.00 to K56.00 and have continued functioning and yet they have not declared anyone redundant, they have not gone bankrupt???!!
How come?
The answer is that they may simply have reduced their unnecessary overhead costs,
Let go of the premium price they were charging as a cement cartel and joined DANGOTE in rendering a fair service to the poor Zambians who deserve a roof on top of their heads.
So, believe now that the price of fertiliser CAN come down by over 50%... resulting in an equivallent reduction on the price of mealie meal.
Same applies to the cost Electricity and fuel which are both primary ingredients into any productive business you can think of.
When we talk about reducing the cost of doing business, it is not rocket science... it is as simple as that - reduce input costs and demolish the TAX BARRIER so that raw materials flow in duty free! DANGOTE is enjoying a tax holiday, thus their production costs are lower! GRZ can level the playing field and apply that holiday across ALL manufacturers and the benefit will go to US the poor Zambians... simple as that!!
It requires GOVERNMENT to act, not some rich men somewhere, no. GRZ!!
Talkind about tax barriers - Doesn't it shock you that in Zambia we literally charge 100% duty on imported vehicles yet we do not even manufacturer a fuel filter - which is simply tin and paper??!! What does that import tax protect? If it is 'anti-dumping' (Google it) why not regulate the age of the vehicles we allow into the country and scrap duty on imported vehicles?
That law on vehicle import tax was enacted when Zambia had Livingstone Motor Assembly, Rover Zambia, LENCO, etc all assembling cars locally. These closed down decades ago but successive governments have maintained it as a source of income!
Now, to fulfill the need for mobility Zambians are forced to import 20 year old Toyota corollas which will attract the least amount of import duty (and may have excessive carbon emissions).
The head of GRZ is the President, so we do not expect the President to accuse citizens of managing (or mismanaging) the economy on his behalf. He is in charge and must be seen to know what he is doing.
e.g. When President Chiluba realised how bad the public transport sector was doing, he suspended duty on Buses for one year - immediately all old models like DCM, DAF, AVM and other 'death trap' busses dissappeard!!! In came nice new busses with TV screens on board! Passangers could enjoy free cold coke on board an Intercity bus as opposed to the slavery and brutality they endured from UBZ (hope you are old enough to understand what I am talking about).
Economics and Marketing is not rocket Science but not easy for everyone to understand... especially if you think GBM can reduce the price of mealie meal on his own."
