Tuesday, June 25, 2024

21 % hike in the price of petroleum products will not affect Zambia’s economic growth rate-Chenda

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Agriculture and Livestock Minister Emmanuel Chenda
Commerce, Trade and Industry Minister Emmanuel Chenda

THE 21 percent hike in the price of petroleum products will not affect Zambia’s economic growth rate which has been projected at 7.5 percent this year, Commerce, Trade and Industry Minister Emmanuel Chenda has said.

Mr Chenda said despite triggering an increase in the delivery of consumer goods and services, the removal of subsidies from the price of fuel would go a long way in fostering infrastructure development which in turn accelerated economic growth.

“The intention behind the removal of fuel subsidies was not to rundown the economy but to invest in infrastructure development so as to facilitate economic growth,” he said.

Mr Chenda said the Government had already outlined and was implementing sound macro-economic policies to ensure the country attained massive growth especially in viable sectors such as mining and agriculture.

“Infrastructure development is fundamental in promoting trade and our quest is to develop this infrastructure so that all parts of the country are interlinked to attract investors, who will come in to develop sectors such as agriculture and mining thereby creating job opportunities for our people,” he said.

Government recently removed fuel subsidies in a bid to channel more funds to infrastructure development to accelerate the country’s economic growth which was currently growing at a rate of 6.5 percent.

Having already spent KR1, 195 million on fuel subsidies in the first quarter of 2013, the Government would have spent a further KR1.1 billion on the same by the end of the year.

17 COMMENTS

    • No the PF have not failed. It is just that in Zambia we are used to receiving things for free. The reasons behind the removal of the subsidy on fuel are sound. What you need to do is to hold govt accountable so that the money saved from subsidy can go to develop Zambia in earnest. You people will be shocked by the end of the five years what PF will have accomplished for Zambia. Just wait and see!

  1. If Zambia depends on imports for most of infrastructure inputs and the Kwacha is veraciously weakening, how will the economic growth fail to respond to such an action…”I think i like pf’s thinking”

  2. PF are nonsense. all PF supporters must be deluded. how can you see all of this happening and love it? (unless one is benefiting corruptly/selfishly from all this).thats just not normal

  3. Voodoo economists with fake assessments.If a 3% rise in inflation affects our economy so much then i fail to see how a 21% rise in petrol won’t cripple our economic growth.

  4. I agree with the Minister…if we want development we have first of all to endure suffering…issues like subsidy are a burden to any gvt in world that might in turn negatively affect infrustructure development…gvt has given u money by lowering taxes and increasing salaries then removed subsidy to free gvt spending…its a kind of a fair game..

  5. What qualifications has Chenda?? Doubt if there is any substance in the issues raised by some of these politicians!!

    Even my Grade 3 son will know the implications of a 21% increase in future on an overall inflation rate for 2013.

  6. lets be pragmatic people, honourable minister, u have fuel allowance and free luxury vehicles,so for u there will be no effect in your economy. now consider a farmer out there in the remote area. the transporter will definetely hike fees for a bag of maize to be moved from point A to point B, he he was paying k3, he will pay k5. these are thing us as citizens who cant go and shop outside zambia because of the high transport fees can do, unlike u who dnt pay for fuel.
    this is a sad development coz also consider the financial calenders that have been affected because of this un foreseen major change. institutions planned for fuel at a lower rate bt u come and change meaning some activities may not be implemented due to this change as more money will hv to be rechanneled to fuels.
    pliz…

  7. Lunga you are right, these PF guys are not being realistic. Their fuel is free and rent is free, entertainment allowances are free, so they are living in cloud nine. This signals the end of their term. Simple economics, demand and supply vs pricing mechanism. Unless PF manipulate the voting system, You are going to hell with PF.

  8. These guys will live us in problems(debts).They just know how spend.Please PF just bring back windfall tax instead teaching us economics which you do not even know

  9. At times to be analytical in anything is important, removing subside from fuel does not only affect consumption but also production cost because fuel in many industry is part of production cost so for the person at the level of minister to say growth will not be affected really left many people to wonder the calibre of our ministers.

  10. All PF supporters just be realistic with yourselves.You are also being affected by the recent fuel increase isn’t?It had to come to this because someone has to fund these bye elections.What next ?Increase of user fees in hospitrals,school fees?Be the judge!

  11. This man is a proper failure and I do not know why he is still maintained. He failed in Ministry of Agriculture and now he is exposing his ignorance in commerce

  12. I think the new constitution need to be in effect now than later, MP’s creating bye- elections need to be taught a lesson. PF Mp’s giving reasons or justifications for the removal of subsidies SHOULD keep quiet if they don’t have convincing reasons. Meanhile PF Watch out!, days are numbered!!!!!!!!!!

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