Stagnant salaries push workers into debt – ZACA

Zambia Consumers Association (ZACA) president Juba Sakala has noted that the stagnant salaries and rising costs of living are forcing some Zambian workers to borrow money to meet basic expenses, with loan repayments further straining their already limited incomes.

Speaking in an interview with Zambian Business Times -ZBT, Sakala said many workers were struggling to cover food, transport and other essential expenses with salaries that had not kept pace with the rising cost of living.

“These people are working. Their salaries have been stuck for years, and things are going up. How do you expect this person who gets a third of the food basket to survive?” he said.

Sakala said some workers were turning to lending institutions to bridge the gap between their incomes and monthly expenses, leaving them with additional financial pressure from interest and loan repayments.

He explained that a worker earning K3,000 could struggle to repay a K5,000 loan within a few months while still meeting daily expenses, including transport to and from work. Sakala called on the government to strengthen productive sectors of the economy to increase exports, stabilise the currency and ease pressure on the cost of goods and services.

He said economic progress should translate into better living conditions and stronger purchasing power for ordinary Zambians.

Article by Karen Ngulube