Now PF extends price controls to bread

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PF deputy minister for finance Miles Sampa has ordered bakers in the country to reduce the price of bread.

Sampa says the government has removed the 16 percent on bread related raw material the more reason bakers should reciprocate the gesture.

The minimum price for ordinary bread in Zambia costs K5, 000 (KR 5 rebased).

Sampa has warned that government will not hesitate to deal with bakeries that will not reduce the price of the commodity.

Zambia is experiencing a rise in prices for essential commodities with mealie meal, the country’s staple food, attracting double or in some case triple cost adjustments.

President Michael Sata was recently forced to summon millers to State House to reduce the price of mealie meal for a 25 kg bag to less than K50, 000 (KR 50 rebased) although not all millers in the country have done so.

Zambia Reports

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89 Responses to Now PF extends price controls to bread

  1. Hi there, just became aware of your blog through Google, and found that it’s really informative. I am going to watch out for brussels. I’ll be grateful if you continue this in future. A lot of people will be benefited from your writing. Cheers!.Check

    trendybrendy - January 22, 2013
    14:34

  2. The best way to make the cost of commodities go down is to lower the cost of production. Generally speaking, the cost of production in Zambia is quite high. We are not going to achieve anything by having PF cadres issuing threats to companies to reduce prices. The problem with PF is that their approach is that of eliminating symptoms and not dealing with the root causes. When a patient is being attended to by a doctor who thinks like PF, that patient is in danger.

    chishimba - January 22, 2013
    12:50

  3. Most Bakeries have already reduced prices in Lusaka, but the problem is the retailers themselves. Especially in Mr. Sampa’s area. They thought the reduction meant more money in their pocket.

    The Baker - January 22, 2013
    08:04

  4. ala ba Miles Sampa twalinabo pa UNZA, ba jobele AGRICULTURAL ECONOMICS………but I just cant tell how he became the presido’s nephew…

    Jeff Mwanza - January 22, 2013
    00:58

  5. Is this the same miles sampa who is busy bonking a young girl of Matero girls? can someone confirm.

    CHAMBOLI KITWE - January 21, 2013
    20:38

  6. Please sir, look into yandiyo as well. Some husbands leave zing’ono maningi at home. Make it at least KR18 per day minimum yandiyo. I trust you are a listening government bazimai twachula mumanyumba umu these men dont leave yandiyo.

    silu ni silu - January 21, 2013
    20:20

  7. LIKE UNCLE LIKE NEPHEW…SAME DNA

    Mpongwe here we come - January 21, 2013
    18:48

  8. At the end of it all, POLITICS IS ALL ABOUT FOOD !

    Renegade - January 21, 2013
    17:10

  9. Does Miles Sampa still remember the basics of economics? When there is imposition of tax or subsidy you don’t have to tell the market what to do provided their is competition in the industry the price will automatically move up or down depending on the nature of Government intervention. Some of the blogers who have little knowledge on the operation of a free market just google “the effects of a subsidy on flour” and you will see that the price can go down on its own. Let’s not destroy the gains we have achieved in the last 20 years. What I would propose to the PF government is to make an environment that would support competition in key commodities.

    The Matyr - January 21, 2013
    16:15

    • is he an economist? i dont remember him as an economist.update me where he did his economics from

      stone cold - January 21, 2013
      18:18

      • Some people says he is an Agricultural economist.

        The Matyr - January 22, 2013
        06:18

    • Well said mate. It boggles my mind why an ex banker who should be so knowledgeable in the field of economics is deliberately expressing his ignorance as to how a free market economy operates. Political appeasements should not be entertained at the expense of economic activity.

      Centre Back of Democracy - January 21, 2013
      18:23

    • He did economics at University of Matero I guess..

      Kopalaswag - January 21, 2013
      19:35

  10. are we not in free market let the market see the ups and down

    bharat - January 21, 2013
    15:28

  11. Nationalise the companies

    sipowasipo - January 21, 2013
    14:15

    • How do you nationalise my own bakery which I started?

      How - January 21, 2013
      15:43

      • & what are they going to call the bakery? Pabwato or 90days

        Carlos Anabu - January 21, 2013
        19:29

      • Ask him mwandi..

        Kopalaswag - January 21, 2013
        19:36

      • Sata National Bakery.

        The real Zambian - January 23, 2013
        15:02

    • Ukwa bakeries maybe..

      ray-ray - January 21, 2013
      22:53

  12. who is in control kashi? How can a deputy minister be giving commands in a country? PF what style of governance are you practicing? This is slightly above dochi kubeba slogan.

    Zed@crossroad - January 21, 2013
    13:38

    • As you know I’m the president nephew – what do yo mean

      Mile - January 21, 2013
      15:58

    • There is no control in PF. Any Kaponya can wake up and speak on behalf of Party and Govt. e.g. some party cadre called Mfula spoke on behalf of Govt. defending Masebo for appointing the boyfriend to the ZAWA board.

      Centre Back of Democracy - January 21, 2013
      18:29

  13. On this one, and perhaps for the first time, I am siding with Sampa (PF). If the government has reduced by 16% the inputs, be it in taxes (VAT) considering the writer is not indicating the base for the 16%. Surely, bread prices will then have to reduce. it is only logical. It is not like the bakers are to bear the difference. Come on people!

    M120983 - January 21, 2013
    13:29

    • Let’s do some simple maths, 16 Percent of KR5 is KR0.8 and bread becomes KR4.2… How much will you (M120983) be saving in a month? KR0.8 x 30= KR24 a month. What can you buy from KR24 or K24,000? Let’s talk about real issues!

      M30! - January 21, 2013
      15:50

  14. I thought that’s what Ukwa did immediately he came into office? If Ukwa failed to reduce price of Bread how will Mailes manage?

    Mailesi Sampa - January 21, 2013
    12:40

  15. KK-wamuyayaya-economics is back on the block. Uko uko uko uko uko!

    Plume - January 21, 2013
    12:39

  16. Zambia risks loosing on investors. Gawa Undi(Ukwa) shud admit he cant run the country. MMD did well in this regard were competition was promoted. PF runs their party as a closed shop and they think the same principle applies to the economy. Sata is analogue(incorrigible-cant b upgraded). We need digital leaders(open to developmental ideas and can b upgraded

    Movement of Multi-Doctors(MMD) - January 21, 2013
    12:30

    • What investors are we going to lose? let the go and invest in south africa were the minimum wage is 2,300KR per month (150 zar per day ) multiply by the exchange rate by 26 working days!!!

      Wild Dog - January 21, 2013
      13:32

  17. please u oppositions u should appreciate govt efforts to improve pipo’s lives.the mmd brought our economy on its knees. the free economy does not work to the interest of the poor.even the more democratic states like USA they don’t put their economy in enterprenuers hands.because they exploite the poor.mixed economy is ideal hence govt intervertion in reduction of bread prices is okay. bravo miles sampa

    Rodrick - January 21, 2013
    12:10

    • Rodrick, I agree with u

      Nationalist - January 21, 2013
      12:25

      • bravo nationalist ure wise these are logical brain we need in our country live long ZAMBIA

        Rodrick - January 21, 2013
        12:59

        • The two of you are clearly EMPLOYEES or STUDENTS. I’m a tax paying businessman. I know what it takes to set up a bakery AND a milling plant.

          Enjoy your jobs and ask your bosses to let you out @ 17h00….

          Industrial Giant - January 21, 2013
          14:20

    • it is not true that PF found this economy on its knees, please do not lie in the open day light. PF inherited a sound economy which just needs to be polished so as to ensure equitable sharing of the national resources. So far that is not the case. All powerful positions in this nation are going to one clan and few like Kabimba and company. PF if you want to practice a mixed economy do have a strategy on how you will do this and not following the 2030 vision which is pro-capitalist. What is the road map for PF?

      Zed@crossroad - January 21, 2013
      13:42

  18. This kama brat, Miles, should go back to school

    Vilifier - January 21, 2013
    12:08

  19. I tod u its donchi kubembwa!

    ukwa - January 21, 2013
    12:05

  20. How is it your business if people have a hatred fro this useless government it’s by choice why so you even care if the go to hell when there are abusing the opposition and citizens you think God closes his eyes when the government is doing evil don’t be stupid atase

    Lungu Eddie - January 21, 2013
    11:44

    • Iwe chi Eddie, you dnt knw what ur saying, I fi ur even a Zambian.

      Nationalist - January 21, 2013
      12:27

  21. I am lead to believe that Zambia is the most expensive country in the sub-Sahara Africa in terms of living costs…

    • Nope, Angola is. Luanda is in fact the most expensive city in the world.

      Loconino - January 21, 2013
      12:08

    • it is mudala, bt not for long! Things are getting better

      Nationalist - January 21, 2013
      12:28

  22. Oh please Ukwanites, theres nothing to support here . Miles is just being !diotic. Dont ruin the economy with your slash and burn system aka Chitemene. This is the problem of having a President , his relative Finance Minister , nephew etc who do not know were the beef, rice, bread , nshima comes from. For these goons food comes from the supermarket. The previous two Finance Ministers Magande and Musokotwane were farmers. Musokotwane never even moved into a ministerial house when he was Finance Minister. He opted to live in his own farm. They understood farming. Not these goons from ‘ku mayadi’ living in houses they stole from government institutions. RB and Levy were also farmers.

    Headman Kazimule - January 21, 2013
    11:29

    • Iwe chi Headman,cant you read that there is subsidising her by removing 6% of some tax on bread?
      how then is economy destroyed? this simply means every thing for bakers will be the same but the buying power for citizens will increase. this is a very good thing from GRZ.

      Nationalist - January 21, 2013
      12:32

      • actually 16%

        Nationalist - January 21, 2013
        12:32

  23. Where is Mumembe, he needs to ‘teach’ us to eat bread.

    White Robo - January 21, 2013
    11:21

  24. How about Bus Fares?

    kopala 1 - January 21, 2013
    11:19

  25. During Mwanawasa’s time at no time did he tell companies to reduce prices because of certain reductions.He had to let the economy work on its on through reduction in cost of production and everything was working like magic. People like Magande had to play their cards as required by the ethics of economics. So let just work towards things which we see as hindering economic growth not giving commands each time you fail to do your job properly…

    Donchi kubeba - January 21, 2013
    11:07

  26. We can as well start producing ‘Toba Mutwe’ for our people.

    Seleka Rebels - January 21, 2013
    10:53

  27. Minimum wage has its own implications.Only clever people can understand this.Everything thing has to go up inorder to meet the initial increase of payments.Period.

    Advocate - January 21, 2013
    10:53

  28. go and build yours

    joy - January 21, 2013
    10:46

  29. Good move by government. Sampa can afford even at k20 per loaf bt he speaks for that poor man in kalomo. Bakeries hvnt put to effect minimum wage policy yet their products are a above $1.0. Slush th prices! Very seldom do we get that in Zambia. Raise your glass to that.

    Swatz nigga - January 21, 2013
    10:46

    • In the bigger picture it is still his pocket that is likely to win and poor people will continue to suffer even more.

      Reduce prices and then what? Most likely that directive will result in further loss of employment for the poor who depend on those bakeries for jobs.

      On the hand if government has removed VAT then the price of bread, all things being equal, should come down by at least an equivalent amount of VAT. But it is not guaranteed because other factors will not remain the same.

      For example the exchange rate between KR and USD. If you note the kwacha has lost value in the face of the Dollar of late. There are other factors also such as the recent hike in the cost of labour etc.

      The problem with the price of bread may not be so clear cut out.

      The Deputy Minister of Finance must do his home properly before they (he) comes up with policies which result in the government losing revenue in this case VAT collections but in the end not solve the intended problem.

      kolwe ni kolwe - January 21, 2013
      12:03

  30. This is what happens when you do not consult on a wholesale wage increase. Now sampa give us feedback on your recent workshop in south africa on sector minimum wage increases? which if you ask any reasonable person, should have done earlier before invoking the SI to increase in the firstplace.

    Christian - January 21, 2013
    10:43

  31. Long term effects of price control include 1) businesses abundoning registered business to vending 2) job losses, 3) no money in people’s pockets. I hope the gov has options to counter these developments without hurting the overall economy. Lol

    Bob - January 21, 2013
    10:33

  32. mwabweza chabe bread nanga mabanzi?

    Lsk! - January 21, 2013
    10:18

    • What about Kampompo?

      Christian - January 21, 2013
      10:51

    • Ma banzi ni bread in rebased form.

      Scramble for zambia - January 21, 2013
      10:52

  33. GOVT HAS REMOVED 16% ON BREAD RELATED RAW MATERIALS. SO WHAT IS WRONG WHEN THE MINISTER DIRECTS THE BAKERS TO PASS THAT REDUCTIION TO CONSUMERS? DO WE HAVE TO OPPOSE EVERYYHING? YOUR HATRED FOR THIS GOVT WILL DRIVE YOU TO HELL.

    SHITANGWA - January 21, 2013
    10:11

    • But is it hatred, ZWD is just informing us that thy hv now extended price controls to bread which is a good development

      Nchelele Bula - January 21, 2013
      10:21

      • I think Shitangwa was pointing to some of the negative comments being posted but not an assault on the watchdog.

        Infamy'99 - January 21, 2013
        11:00

    • This 16% removal is to mitigate the wholesale wage increase forced on bakeries last year. These clowns do not seem to realise it a give and take industry this MARKET

      Christian - January 21, 2013
      10:45

    • That man i believe he is an Economist.So let the mechanism for Demand and supply work not forgetting to factor in the reduction of 16%.Why should they force them do reduce the price.Let the economy adjust itself then with time everything will get where it is supposed to be…

      Donchi kubeba - January 21, 2013
      10:59

  34. Now when are you going to control the rental issues in zambia,there is no way a two bedroomed house can cost more than non redased k1800000 and k1500000.Nooooooooo,twakana we need all those houses to come at less than 1 milion kwacha and rebased kr1000 as the most expensive with tiles around.The same house in kabwe and kafue its k5ooooo non rebased and rebased k500.pliz our man work in such things as everyone would like to be staying ku not KWA,PLIZ

    PEACE BA SATA - January 21, 2013
    10:10

    • I totally agree with you. Plse may the government intervene.

      Nchelele Bula - January 21, 2013
      10:23

    • The laws of supply and demand should not be interfered to any how. Just build your own house and stop renting….

      The Seer - January 21, 2013
      10:29

      • I totally agree with you! What some bloggers don’t take into consideration is the cost of purchasing a piece of land plus the construction cost of a structure. Build your own house and then speak!

        obama - January 21, 2013
        15:05

    • One blogger was saying life is now affordable in Zambia. And that people are building their own mansions. Adding that it is only those in the diaspora who are suffering. So imwe Ba Peace Ba Sata, can you enjoy your life with your PF!

      Mubanga - January 21, 2013
      10:51

  35. let govt reduce house rentals. Lets see who will cry loudest.

    double tobela - January 21, 2013
    10:08

  36. PF should focus on real issues such as creating Permanent jobs in the Government unlike sequeezing bakeries, millers everyday. The issue of creating employment through the Chinese Road Projects doesn’t benefit Zambians.

    Liswa! - January 21, 2013
    10:08

  37. Even chickend at soweto are damn expensive these traders in markets are exploiting and also buseko for timbers very very high and finally cement.

    zedian - January 21, 2013
    10:06

  38. let ilunda start makin bread and sell cheaply. My friend warned me that SATA would ruin the economy but went ahead and vote for PF. Am really sorry.

    double tobela - January 21, 2013
    10:06

  39. Shortages of bread loomimg. No one wants to sell for a loss

    Syber - January 21, 2013
    10:05

  40. Have you pipo seen how FAT , Miles Sampa has become?? He must be chewing from Mahtani be time!!!!

    Zedian - January 21, 2013
    10:03

    • Discuss the price of bread. Leave Sampa’s body make up out of it.

      kabwe - January 21, 2013
      10:13

    • Ni ma ARVs

      Christian - January 21, 2013
      10:53

      • So what if hes on ARVs? Stop descrimination!

        Bana Mpundu - January 21, 2013
        14:17

  41. Effects of minimum wage is price increase …period

    Pa Fyamba - January 21, 2013
    10:00

  42. Why not leave prices to be controlled by market forces. All we lack is prudent governance

    PJA - January 21, 2013
    09:46

    • not in zambia where you have cartels. government must intervene.

      i hate fornicators.... - January 21, 2013
      10:01

      • I agree with the above. Zambia is locked in a vicious neck choke hold by unscrupulous foreigners. The government should consider indiginous owned retail outlets at the expense of foreigners as a viable means of creating jobs for Zambians.

        Ur Right! - January 21, 2013
        12:49

    • 16% reduction on material is good action. But do not assume that the “market” will comply without enforcement and public sensitization. Especially with so many crooked business companies flooding zambia. cheating, abuse have always been the case to the poor consumer. I hope you are not OK with that. Market forces can be ignored.

      kudu - January 21, 2013
      10:06

    • PF should be ashamed of themselves that before they fraudulently came into power,they continue to harass business persons a thing that never took place during FTJ,LPM and recently RB.What will be the position at the end of their FIVE YEAR TERM?

      Tiyabonse - January 21, 2013
      10:11

  43. when is the government going to look at land selling also. Land is too expensive in zambia. a 30 by 30 going at KR90,000.00 bare land for that matter. government should also look at this issue maybe simusa is fast sleep.

    i hate fornicators.... - January 21, 2013
    09:44

    • True. Why should someone like Galaun who was given free land to settle now sell the land at exorbitant prices and make millions from the same owners of the land? How clever we can be!!!!.

      Kalaki - January 21, 2013
      11:11

  44. This is what one calls Pro Poor government. Well done Miles!

    Akamunofu Kalowa - January 21, 2013
    09:43

    • What about minimum vages impact on the cost of bread? R u going to reverse?

      Kipara Matata - January 21, 2013
      10:08

  45. IF THE FOUNDATION IS STRONG THEN THE HOUSE IS SECURE BUT IF NOT THEN DESTRUCTION FOLLOWS.
    IS THE PF FOUNDATION STRONG TO GOVERN UP TO 2016

    BASEBELE - January 21, 2013
    09:43

  46. how long will this nonsense go on..will you ever continue monitoring prices for food..?do something bena ukwa!!

    CNP-4U - January 21, 2013
    09:41

    • This is a good move u also try to be reasonable.Whats wrong with your brain?

      Ba Nswana - January 21, 2013
      09:53