Tuesday, June 25, 2024

Mealie Meal prices set to go up as Government announces removal of Maize subsidies


Agriculture, Cooperatives and Livestock Minister Bob Sichinga
Agriculture, Cooperatives and Livestock Minister Bob Sichinga

Agriculture and Livestock Minister Bob Sichinga has announced that cabinet has approved the removal of Maize subsidies

The move means that the price of Mealie meal, the country’s staple food will go up.

Mr. Bob Sichinga announced in Lusaka that cabinet had no choice but to do away with the maize subsidies.

“It was a very difficult decision to take, unpleasant as it, it is inevitable but I know something has to give,” Mr. Sichinga said.

“Therefore following intense and very passionate deliberations by cabinet, cabinet very reluctantly has authorized the removal of the miller/consumer subsidy,” he said.

“The implication of this removal is that the price of our staple food commodity, Mealie meal will have to rise, unfortunately for me I have the unenviable as well as unpleasant duty of been the bearer of this very difficult but in my opinion unavoidable task of announcing on behalf of government that with effect from the forthcoming marketing season, the very costly subsidy on Mealie meal will be removed.”

Mr. Sichinga explained that Government has been spending huge sums of money to support subsidies at the Food Reserve Agency.

He added, “A multi-sectoral and multi-disciplinary team comprising all stakeholders is been constituted to work out the pricing modalities and that a new pricing structure will be announced in due course.”

He tabulated how much the FRA original budget had been exceeded by extremely high percentages from 2009 to 2012 rising as high as 2,632 percent.

In 2009 the FRA budget exceeded by 21.6 percent, in 2010, it was 2,632 percent, in 2011 2,114 percent and in 2012 it was 732.7 percent.

[pullquote]“Therefore following intense and very passionate deliberations by cabinet, cabinet very reluctantly has authorized the removal of the miller/consumer subsidy,” he said.[/pullquote]

He said if the current subsidy was to be maintained, it would mean FRA would continue to be in a loss making position and for it to survive it had to stop depending on Government to support such subsidies.

Mr Sichinga said currently the FRA had been buying maize at KR65 and selling it to millers at KR60, with a resultant loss of KR5 for every 50 kg bag sold or KR100 per tonne.

He said a multi-sectoral and multi-disciplinary team comprising all stakeholders was being constituted to work out the detailed modalities and the pricing structure mealie meal.

He said the FRA would this farming season purchase 500, 000 tonnes of maize and any maize that would be left after the private sector buys the maize from the farmers.

He said the floor price for maize would, however, be maintained at KR65.

He said the restriction in the purchase of maize was meant to buy enough to cater for the strategic reserve space that FRA had.

He said the move would also encourage the private sector to buy and for millers not to rely on the maize released by the FRA but buy enough to stock for themselves.

He said under the re-aligned FISP programme the price for a bag of fertiliser had been adjusted from KR50 to KR100 and that Government would give the seed pack under the programme for free.

Government has also introduced a barter system under the programme where 659, 000 out of the 900, 000 farmers would be allowed to barter for fertiliser.

“This would work as follows, two 50 Kg bags of grade A maize grain in exchange for one bag of fertiliser both basal and top dressing. Government will offer to subsidise 100 percent the 10 Kg seed pack. In other words seed would be provided for free,” Mr Sichinga said.

He said the remaining 241, 000 farmers under the FISP programme would be incorporated in the implementation of the E-Voucher system, a subsidy management system aimed at responding to the weaknesses identified in the programme.

He said the E-Voucher system would allow for the private sector participation in the input marketing system and enable gradual withdrawal by Government from the physical supply of inputs.

And Mr Sichinga announced that the official crop production for the 2012/12013 farming season had declined by 11 percent and stood at 2,532,800 tonnes which was marginally lower than the estimated national annual maize requirement of 2,534,000.

He, however, noted that though the maize production did not perform well in some areas other crops like Soya beans, sunflower and mixed beans performed well.

He encouraged farmers to diversify to other cash crops besides maize and consider engaging in conservation farming for a long lasting solution and in line with the continued weather pattern changes.


    • why keep the price of maize at KR65 when fuel and transportation costs have gone up. these costs are current and will not wait for the next farming season.

      PF surely a one term govt.

      Thank you for being aba bufi.

    • Mwalyako nafimbi.Imwe kanofye lyonse mulesuna ichimutaka ? There are so many foods apart from maize.Cassava,Millet,Sorghum and Millet can come in handy.Muleke ati ifwe kanofye akabwali.Well done mwebuteko.

    • Mwalyako nafimbi.Imwe kanofye lyonse mulesuna umutaka ? There are so many foods apart from maize.Cassava,Millet,Sorghum and Millet can come in handy.Muleke ati ifwe kanofye akabwali.Well done mwebuteko.

    • PF promised 8 bags of fertilizer,but they only give 4 bags.When Sata addressed a public rally in Chipata in the run up to 2011 General Elections,he castigated RB for having reduced the number of bags and promised to increase the figure once voted into office.This is WUFI,WENYE,KUBEPA,KUBEJA,BOZA!!!

  1. PF = Paya Farmer

    Pressure from World Bank obviously. The stage could be set for the much feared 1991 revolution that ousted KK. More so if these massive savings in fuel and maize subsidies are just used to create more by elections and more Deputy Minister posts with each getting free 800 litres of fuel a month when all they need is 80 litres a month

    These guys really better develop the country otherwise come 2016 they will be toast. People now realise how it was good under RB and for a silly song like BUFI to go viral shows that there is some shifting happening on the ground

    • I had wished you read the minister’s full story. Clearly you didn’t. This problem started in 2009 that sharp increase, so this is what MMD did to blind us that the nation was doing fine?
      And by the way, why were the millers refusing to bring down mealie meal prices when Government was toping up.
      To me the enemy or the devil is the miller.
      Maybe this will help

  2. its good to know that someone is committed to do away with subsidies….lets Chanel those funds to priority developmental projects,not by-elections!! lets build more schools,hospitals,roads,better housing for civil servants and ordinary citizens using that money….am glad to see our market being let to freely run on demand supply principles** hope its is for the better not the worse.

    • for people like you…. you don’t care….. it will be for worse as the masses will surely face real hardship…if with mealie meal at K50 people struggled, what will be the case K85? bus fares are also up, Zesco will soon be up, and the market forces will force all commodities to raise while salaries and wages are staginant… God help us

  3. This is the waste government in Africa. I feel cheated by PF. RB was great. Definitely the country is already missing him. Thanks to Petersen and Pilato for the song “Bufi”. How was MMD managing with subsides? While this Patriotic Fools (PF) government is failing.

  4. PF..hahahahah
    fuel cost has gone up,, and now mealie meal… i tell you, PF is walking on very thin ice!.. can someone say something to the zombie!!

    • Its a welcome spanner in the works(actually two) due to its political dynamics.In effect its a political subsidy for us MMD due to the rising cost of living.

  5. Anything free always has tendency of being oversubscribed and abused. When something is not free whoever gets it will carefully utilize it. There is no sense of ownership for anything that comes free, but careless use of free issues.

    • yes nothing is for free in today`s world,,, but what is stupid, kupusa! about the PF government is the false impression making food cost appear`cheaper` or affordable ,fuel cost and many others things,, by inducing subsidies.. why put subsidies there in the first place when you know its a cost,,, give people the true value and cost on everythings from the start.. not BUFI! !!!!!!!!!

    • Ndobo….
      Actually,its MMD who have lied to people that things are cheap by subsidzing.Its always good to give a true reflection of the prices……Dont u think the monies will be used to develop other sectors of the country?Think twice my man!!

    • Spoken like a true Bemba tribalist who will suppor PF at all cost, even when it is clear that they are headed in the wrong direction. If at all you have a brain, you will know that the funds from subsidy will not go to development but to bye elections and financial benefits for a bloated cabinet. Do you know that 69% of the national budget now goes to national emoluments (salaries) leaving only 30% to fund development. Just accept that we are doomed and unfortunately even your fellow bembas will feel the hit from the govt-induced high cost of living. MMD never removed any subsidies but still managed to run the economy. If l hear another false justification from another bemba carder l will puke mwe, these guys really think Zambians are fools ka

  6. While I understand the rationale behind the removal of subsidies, am not just sure if this Government has proved that it can prudently manage these extra resources they are creating. I think the Jury is still out on this one.

    The Government hasn’t made a strong case for the removal of subsidies to justify expenditure on infrastructure development. That case is weak because truth be told this Govt has the most money than any other Govt in the history of Zambia if you exclude UNIP. Inherited huge foreign reserves, got Eurobond, high copper revenue tax, with subsidies out of the window, this is a mighty wall of cash.

    So far they have not convinced me that they are using cash prudently. Bloated cabinet and induced by-elections serious raises questions

    • Reading your comments is always a pleasure sir! Add to that the fact that whilst the Eurozone is embracing austerity (which, by the way is almost a blueprint of the experiment they ran in the third world in the 80s), they have a safety net of sorts that is still keeping their citizenry above the water. In Zambia we seem to embrace things piecemeal. The effects of all these measures are immediate and will impact a wider swathe than even their masters intend. I wonder if we have a ministry of social services anymore? Or that is just another job creation stunt for appointing more deputy ministers.

    • you are a fair commentator and l like your rationale thoughts even though you are mmd.l fully support the removal as painful as this maybe as they are unsustainable and according to a report by a committee in the house of commons last year Zambia was spending $300m just on maize subsidies

  7. I’m going off topic but, this man is a minister ? Talk about recycling! When will the highly educated young Zambians with innovative ideas ever get a chance to occupy these positions???

    • @Cosmo Mentis, there are various areas one can apply his innovative ideas without being a minister. All young innovative Zambians cant be ministers. Such thinking shows that you imagine that they are plundering and you cant wait to be there so that your hands in that cash till.

    • Sit down and have some water you depressing f@@k (and YES that is a personal insult).
      And then read my post again. You clearly have a comprehension problem.

  8. cost of feed staff for livestock will also go up meaning that one broiler chicken will be K60, beef from feedlot 100/kg, soybeans prices up meaning cooking oil up possible 70/ 750 ml bottle.
    Mayo Mayo. Results are more people joining the corruption club, some gangsters club, more prostitutes on road, more children failing going to school.
    Hunger and poverty smiles closer to our noises. Milling companies will now exploit poor farmers over their maize and charge high prices 200/25kg.
    Why did this man say he will put more money in our pocket. this was corruption to it is highest degree. Obtaining a job through deceit.

  9. it is time to ask PF it they actually cheated Zambians and if so let them face the law or Zambians now

  10. We all know how the money from subsidies will be used, so let us not cheat ourselves that the money will be channelled to developmental projects. More by-elections will be created. PF will do everything possible to consolidate itself for 2016. We are not strangers to Zambian politics, we have seen these tricks before, so dreaming that PF will spend the extra income on development is very dangerous.

  11. You better give it to the MMD. The MMD chaps knew what they were doing . MMD cared for the people. Satan and his PF only care for themselves. These maggots are raising money for their upkeep, what with 800 litres of petrol for every pig with a flag on his vehicle. Foreign missions have also quadrupled their staff numbers. All these parasites have to be paid for by overtaxed Zambians. Let the revolution be broadcast live!

  12. Haha,now the PF is finding out that campaigning and governing are totally different games.In effect,removal of maize subsidies + the recent 21% fuel hike means less monies in your pocket and the PF killing its own campaign goose.Good for us MMD loyalists.

  13. It is a fact that removal of subsidies on fuel and maize will substantially raise the cost of living in Zambia. But, how long are we going to subsidize these commodities? It cannot be forever. We must just bite the bullet and accept the fact that subsidies must go. This will free resources for the infrastructure development which will bring more jobs and reduce unemployment. I like the present government because it is able to take bold decisions. In Bemba we say ” Uwakwensha ubushiku, bamutasha ilyo bwaca”. When a person has malaria ++++, Doctors do not prescribe Coaterm. They instead give the patient Quinine, the most potent anti-malaria drug.We need the most potent medicine to cure our economy. That medicine is the removal of subsidies. As a nation, let us swallow this medication.

    • dude, your comment would have made a whole lot of sense if we didnt have an 80 man cabinet that needed to be paid every month and not to mention all the crazy allowances that go with these offices and the increment in salaries for the civil servants and bye-elections. Money has to come from somewhere to fund all this and if u were really true to yourself u wud admit that the talk of diverting this money to developmental projects is just that – talk. Developmental projects will be there but they will be cosmetic and designed to hoodwink dudes like you. U have to admit that as much as MMD were corrupt, at least they had a plan everyone was aware of. This hand to mouth kind of living and taking each day as it comes without anything strategic in the positive sense is really starting to irk…

    • when you earn a few millions you forget that the gardener gets only K350 if you work out all the life essentilas you wounder how the manage and dont end up killing one of your kids to sell the heart and other parts for muti

  14. Cont’d
    Secondly, let us move away from ubwali to other foods. Let us consume a lot more rice and let us learn from East Africans where foodstuffs like potatoes, Capati, vegetables and rice are the main meals. A 50 kg bag of rice will cost more but will take a family of 6 about three months to consume. In East Africa where I am resident, People do not buy sacks of maize meal. they instead buy potatoes, wheat flour for their Chapati etc and as a result, farmers produce a lot of Irish and sweet potatoes for the market. Let us change

    • My Friend, nobody has issues with the removal of subsidies. We are understand the rationale. Stop beating a dead dog.

      What we are concerned about is where were taking that money which is being saved. That is the question we need to be convinced about. Strong indication shows that this Government has began to spend more money on itself than any other Government in the history of Zambia, with UNIP included. Savings made from a lean government could go a long way in developing infrastructure. If we are serious about saving money , lets start from there ..lean government , then go to subsidies

    • I fully support subsidies removal and food diversification but the problem we have is that the gov’t itself has not given us a clear and concise roadmap…given that they were elected on a pro poor ticket. FRA is corrupt and in shambles why not reform it first. The EU is currently debating whether to remove its complex subsidies to farmers but have hit a brick wall as none of them are bold enough to make that decision.
      Its very difficult to support a party that is not stable and the president is nowhere to give public assurances via a press conference on vital issues.

  15. My word!!! the barter system will not work, sounds like broken hill stone age days. With the high levels of corruption in Zambia all maize will be grade A.
    I am one of the few that fully read and analyzed the 2013 budget and my first comment was that it will really call for Zambians to sacrifice coz it is indeed an ambitious budget.

    • How long are you going to continue with this docility….how can you sit there and just say “ndelolesha”.
      Wake up!!

  16. It is not just a matter of stating that subsidies need be removed. First of all, have we ever managed our agriculture properly? With such abundant land, food should have been basic by now, not a luxury. Even developed countries who dictate those economic prescriptions for African countries have subsidies. The EU subsidizes a lot of farming activity in Europe. There are also forms of safety nets for those most at risk of the extremes of poverty. Do we have such in place? What about the recent analysis of Zambia’s economy that shows an alarming widening of the gap between the ‘haves and ‘have nots?’ Most resources (especially monetary) are going into a few hands. Bloated cabinet, K72million rents per month for some officials, 800 litres of fuel, e.t.c Who will benefit from the…

  17. Great Job PF!! Now even the little (Mealie meal) the underprivileged had, is taken away from them. I don’t even have time to understand the logic behind the removal of such subsidies, correct me if am wrong, but i thought that such schemes was one way of helping the majority of Zambians benefit from their vast natural resources. So whether done in good faith or not, I just feel the PF government is at the helm of Resource Mismanagement – just too many haphazard project pronouncements than what available financial resources can support really. Congrats PF!! You’re officially destined for hell, you’ll rot in their u maggots…!!!

  18. uku ekufilwa ukuteka, 2 bags of maize to one bag of fertilizer, @ kr65 by2 bags of maize 2 one bag of fertilizer at kr100 per bag of fertilizer, nd u Cal it barter system, this mins a farmer will be paying kr130 for a bag of fertilizer which costs kr100, its like twasangamo ukufilwa muli PF.Chapter is closed 2016 u ar out.

  19. subsidies are unsustainable. ZCCM went down partly because of subsidies. Government need to explain clearly how the intend to use the savings.

  20. These savings won’t reflect anything to a poor Zambian. but to those making such stupid announcements. why is it that every step the government makes benefits the rich nd those in government?

  21. I wonder where the heart for the poor is.This Government is up to No good people…..Don’t we have a president?where is the pro poor Government.Before subsidising what mechanisms did they put in place to lessen the impact..mwatiiii ma ministers think properly imwe bantu

  22. The PF government has embarked of major projects roads, capitalising ZRA and NCZ but it has no money what worse it can not borrow further after issuing a ten years Euro bond . The only way to raise money is to do way with unnecessary expenditure such as subsidies to save for these projects.We may not appreciate the PF decision now but its good move for a better future for Zed.

  23. Ba kamba ba Sata are we safe? Much as we appreciate the rationale behind the removal of maize subsidies, the decision is draconious considering the fact that majority of Zambians entirely depend on the same commodity for survival! How can you justify such a decision especially that you have just recently removed the fuel subsidies which have negatively impacted on majority poor Zambians? How can you justify such a decision if you realy claim to be a pro poor government!
    Frankly, you are off side ba sata and you have betrayed the same poor people who had so much confidence in you. Why should we be buying m/meal at k70/25kg bag? of course some of us can afford and possibly manage 20 families but what about those in malota compound, chief shimukunami, chipupushi, chipulukusu,dundumwezi and…

  24. Cont’d
    other poverty striken areas! Muchibemba tulanda ati ‘ichikwanka, bachimwena ku mampalanya’ elo ‘umulembwe wa chupuba, upwila muli tumfwe’! Elo kabili tulanda ati ‘Ichisosa, chipa mano, elo ichibosa, chipwa mano’! Bushe twabosa ifi twasosa! Ba Sata i hope you remember all these sayings!

  25. Its better to sacrifise now than later, we’ll soon forget and learn to live within our budget. This would have happened eventually whether HH or Mulongoti’s time. So the Sata led GRZ has chosen to bite the bullet. Tiyeni nayo more money in the hands of Western Union tiyeni tule tumafye money kwapwa

  26. I hope Zambians are learning that you need more that charisma and slogans to run a country.Some education helps in making good decisions also.Now I know why RB wept.He saw this coming…Well more money available for by-elections.who else is resigning to join PF ndalama shamoneka. Please Zambians is there a way to protest or stop these by elections…Sata wants majority in parliament at all costs and we know that will give PF free reign to destroy the country faster than they are doing now.Meanwhile first lady is just improving her CV by travelling all over getting awards.Big Pharma is cashing in also by selling us controversial vaccines through her.

  27. I concur with @MMD BOOTLICKER he has raised serious issues.Where is the money that is sustaining the bloated goverment coming from?@ 8 leadership will never come 2 the youths on a silver platter.The youths should stand up and b counted.where is siulampwa?The last tym i checked the Guy sold his soul 2 the (RB) devil.Where is Cosmo Mumba?The last tym i checked the bloody nigger has turned himself as a vuvuzela 4 PF.These are the youths that we are talking about fellow citizens.Lets jst brace ourselves 4 the high price crisis era.

  28. Unpleasant it may be to endure but the better.Zambia’S micro-economy have been very dependent on subsidies no wonder things havent improved since independence.It’S time we need to expand the roads,hospitals,schools and other social amenities.Let us just sucrifice for a while.

    We want the next generation of politics not talk about building roads,we want them now to work on policies like one child birth control.It’s not easy indeed but lets give it a try,there is light at the end of the tunnel.These are bold stances govt is taking.

  29. Our generation need to sacrifice for the future of our children and children’s children to leave a comfortable life.Free things has been the downfall of this country for a long time.
    With all due respect to our first republican president,if free things were not given to Zambian’s like they did after independence maybe by now we could have been the one enjoying but they enjoyed without thinking about tomorrow.
    Therefore someone needs to sacrifice at some point and I want to be the one to sacrifice for my children to live a better life.

    Again when you look at the new minimum wage to be implemented soon for government workers the upward adjustment of commodity will be cushioned.
    Therefore it will remain the duty of the private sector pay well as well.

  30. Developed countries still pay their citizens even if there are not working. USA still heavy subsidies it agriculture esp cotton. Who can leave in their countries without subsidy. Fake”””””””” Why are people still giving scholarships……..
    What are you talking about. For so many years now you not felt the effects of food shortages. we used to sleep in ques waiting for cooking oil, sugar, soap meal mill etc. You will see.

  31. Here comes the revolution. Why should our money go to judge chikopo, 80 ministers, induced bye elections, unplaned D/Commissioners,useles commisions of inquiry. wapya muzi!

  32. WTF? How can a cabinet “…very reluctantly authorise the removal of the miller/consumer subsidy…”? Bob take a hike! The level of incompetence and beggarman-thief behaviour in this govt has pushed the dial on the pressure-valve for holding peace in Zambia into the RED ZONE…Jesus wept, but muzalila, your time will come !

  33. Sata and his PF corrupt leaders are busy barking like DOGS, while Zambia SUFFERS as if there is no leader.

    Sata should know that, even Kadaffi of Libya used his intelligence agents to torment Libyans but he was killed

    Sata is busy tormenting innocent LEGITIMATE Chiefs like Mwamba & instructing his ritual killers like PF Ngoma to terrorise Zambians.

    I really love what am seeing coming to Sata and his evil henchmen & his family tree relatives in his GOVT
    Zambians wont spare u guys, they are angry because they are HUNGRY from lack of Money & FOOD which they cannot afford

    Policemen, Soldiers, Intelligence officers, Guards, poor people are all suffering & dying! The only people who are not suffering is Sata and his PF criminals leaders like LUO & Chief INJUSTICE Chibesakunda

  34. You dont need anyone to critise PF to fail. It will destroy itself. It is in competion with itself. it will be interesting to see how those who are leaving their parties will behave when the ship hit the icebug

  35. the timing of this removal is very wrong especially that, it is being done afew days after the Fuel prices were adjusted upwards. Though the move sounds better, many poor Zambians’ may not Understand why the Government which promised to champion pro poor policies has suddenly backtracked. Additionally, there are bye elections which the state has bitterly justified. The question many may ask is, in whose interest is this being done? This move will surely come with a cost to the politician unless remedial measures are put in place.

  36. Zambia must end maize subsidy: MPs

    The Government should urge Zambia to stop subsidising maize growers, MPs said, after discovering the initiative cost the African nation more than four times the British aid it received last year.

    Published: Thu, September 6, 2012


    A Commons’ committee has dubbed the Zambian government’s maize subsidy as excessive

    A report by the Commons International Development Select Committee found £225 million – 8% of Zambia’s government budget – was spent on trading maize at a loss in 2011. This figure dwarfed the sum received in aid from Britain, Zambia’s biggest donor, which stood at £55m last year.

    The committee dubbed the subsidy, which was introduced by the last Zambian government, as excessive…

  37. . Abolition could deliver free secondary education to 300,000 children, build 50 new high schools and recruit 10,000 more teachers, it said. Currently, education is only free until the age of 14 for Zambians.

    The committee said: “Zambian revenues could be used much more effectively on public services if a number of significant inefficiencies in public expenditure inherited from the previous government were removed. The maize subsidy is one of the biggest issues which the Zambia government has to confront.”

    But the report conceded that withdrawing the subsidy would meet with great public opposition. Aid Minister Stephen O’Brien told the committee in evidence: “The question is what to do about it, and it is difficult, because it is ultimately a political decision within Zambia…

    • Eh data iyo, I read that article after reading you comment above. Thats a lot of money being spent on subsidies lets just sucrifice a bit and things will only get better. Thanks for the article

  38. The recommendations came as the committee advised the Department for International Development to focus its spending on Zambia’s poorest, who do not benefit from the maize subsidy.

    A spokesman for the Department for International Development said: “Although the Government supports reforms of financial management programmes in Zambia, this valuable report from the Select Committee clearly demonstrates the challenges of working with developing countries.

    “Securing real value for money for the British taxpayer is a key priority for all our aid programmes.”

  39. Pipo pliz rebase your stomach with a by pass surgery.Meali meal will hit KR100 by end of the week,so come reduce the size of your stomach to eat less.My address is here.

  40. Are the pigs at Parliament sacrificing as well? lets do it the Kenya way, we as Zambians are too too docile. MMD never lost but Zambians defeated themselves: WE LOST… more nyonyo in the nyonyo!!!!!!!!!!!!! Atabaaaneeeeee!!!!!!!!! I miss ZIT days coz nganatuvivuka apapena!

  41. These are pro-poor policies. Yet its the poor getting poorer. I will find it hard to believe should the PF win the coming by elections. Then we Zambians ninshi twalikosa imitwee..

  42. MMD is back. Liberal market without a human heart.

    Maize in Zambia is like air, water and medicine.

    Hopefully PF are not eroding the ground on which they are standing by doing this.

    “More money in your pockets” is a long forgotten philosophy.

    Is everything becoming “politics as usual”?

  43. Its good to hear chief bootlicker blogging in a sober way. I see a country called Zambia going above its peers in the few years to come.
    If we survived the FTJ tightening of the belt and the Mwanawasa HIPC why not the removal of the subsidies? The only important thing is to make sure the Govt channels the savings to real infrastructure growth

  44. Hey leave PF alone where do you think the money to pay Chikopa is coming from? They also need to pay for the commission of inquiries,also they need money to bribe more MMD Mps and fund the by elections.Not forgetting the many court cases against the corrupt RB,Thandiwe,Shikapwasha,Chanda Chimba ,Nevers Mumba and HH….Well done PF you are exceeding our expectations everyday..Please increase Electricity also…Zambians won’t mind…thats why they voted for PF in the first place…,please lower Presidential and MP qualifications to nursery level.Viva Kaponya’s ABASH intellectuals

  45. It appears the problem is with “Bad Budgets”. You cannot be having a monthly home budget for US$500 when your actual expenditure is US$1000.

  46. But the byelections money will be found? I would rather they stop the byelections nonses and channel the money to maize as subsidy.

  47. Why is gvt still keeping fertilizer subsidy of about K130 per bag? Thats too much. Gvt must remove this subsidy with immediate effect. Removal of these subsidies means more money available for GVT. If the gvt was well meaning it should have reduced Tax on petroleum products which is at 85% on petrol and probably 80% on disiel to about 20%. Tax on Petrol in the DRC is only 20% and therefore fuel is cheaper in the DRC than Zambia. In Zambia cost of petrol is K10 per litre and DRC cost of fuel is equivalent of K6 per litre meanwhile fuel tankers from Dar. and Beira pass through Zambia to DRC. In addition DRC has no refinery. Income tax must also be reduced from 35% to 15%.

  48. We have to dance to the tune of the western music..in Europe and America, unemployed people get paid to help them have something to eat. In Africa we provide subisdies to help the poor man farm and the lowly paid buy food. It is sad that we are now not doing any of the 2. why not reduce tax on fuel? Sad indeed!
    I hope that this also means I can sell my maize at my own price.

  49. perhaps its time to face the facts..soon in sept pF is 2 yrs in office….Chili ekotuleya ..Again i dont see a capable person in the opposition..they are all in slambers..

  50. The problem guys is that even our minister who are doing this removal of subsidies don’t understand what they are doing. how can a minister say fuel increase will only affect a few zambians, that is very disappointing because when they increased fuel the following day transport fare also increased poor people were paying these increased fares. we don’t need school to understand this logic.

  51. It’s a good move BUT only if they can subsidise production not consumption. Subsidize the farmer not the miller through cheap inputs & farming equipment, free dips for livestock etc. then Govt can reap off from taxes on boosted production. Even in Europe, farmers are subsidized.

  52. This is pressure from external bodies such as the IMF and World Bank. I read a few months ago that a House of Commons committee was concerned about the money Zambia spent on subsidizing Maize. Whilst this might seem like a good thing to those of us who believe in pure economics and free markets I cant help but feel that this was a move forced by some one else. No credible explanation has been given for the removal. I see a U turn. Just think about it people. All governments around the world are involved in subsidizing agriculture products. Common Agriculture policy in the EU the Indians with their rice etc. Yes a lot of money is spent but the benefit is that food is cheaper. In Economics agriculture policy is one of the most difficult things to tame. Not sure if free market schemes work.

  53. Just keep barley at the same price, with these expenses, we could use a pint to feel better about our miserable lives. BUFI!

  54. Stop posting “Ndeloleshyafye” – Your passiveness is unproductive – and you are making the blog BORING! That’s why you are taken advantage of. It’s not clever to just write “Ndeloleshafye”. You are mentally lazy and relying on other bloggers to discuss issues for you.


    Stop it! You are mental parasites.

  55. Come January 2014 Brace for more belt tightening untill you tight no more.This is just a fraction of what lies ahead….The prophecies say to the one who got little even the that little he owns will be taken away from him.

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