Zambia: Minimum wage leads to steep food price rises

The euphoria that greeted the government’s imposition of minimum wage increases has quickly soured, with prices of food and other essential commodities escalating as higher wage costs are passed onto consumers. In July 2012, President Michael Sata’s government upped the minimum monthly salary in line with the 2011 election promise of “more money in the pocket” for poorly paid workers. Wages for domestic workers increased from US$30 to about $105, while general workers such as office orderlies, shop assistants, sweepers and farmworkers saw their monthly earnings more than quadruple from $50 to $220. In the past month, the cost of 25kg bag of the staple ground maize meal has increased by $1 to $8.50, while other farm produce prices have also risen.