I urge the people of Zambia not to allow the Patriotic Front (PF) government with its planned project of fundraising using the subsidies removed from fuel and maize. I am aware that there will be a lot of money that will be realized from the removal of the said subsidies. The money will end up in the pockets of private individuals that hijacked the Patriotic Front who cannot be trusted.
They will squander the money from subsidies the same way, the MMD with the money that was realized from the sale of mines and other parastatals during the age of privatization on Zambia. Some of the ministers in this government held top positions at the time money from the privatized mines was misused or stolen at that time.
Another reason why we don’t want this government to have nothing to do with the issue of subsidies is the sudden change on the part of government. There is nowhere in the PF manifesto where it is indicated that subsidies on essential commodities will be removed. All that was mentioned was that, they will change the way to deal with subsides if they formed government. In line with this promise in their manifesto the removal of subsides is quiet suspicious.
[pullquote]There is nowhere in the PF manifesto where it is indicated that subsidies on essential commodities will be removed.[/pullquote]
I am also aware that, the removal of subsidies on maize and fuel will generate a lot of money. Regrettably, the money from the subsidies will be misapplied in areas such as by elections, funding the constitution in an adhoc fashion, meeting extra expenses in an over bloated government, funding of other countries’ internal affairs such as exporting of maize to countries like Tanzania, Malawi and Zimbabwe. Similarly, we have proved that at the moment the most compelling need for the PF government is to increase the tally in parliament.
Now, this government want to legitimize the removal of subsides by championing arguments in support of subsidies that it will use these proceeds for “resource security” or “access” or “social or trade protection.” All these are another set of lies. This government just wants to use the proceeds from subsidies to champion its political agenda of wanting to create a one state where only the top brass of the PF leaders will benefit. [pullquote]What has gone unnoticed in the PF explanation of the removal of subsidies is the fact that government is running out of cash .. [/pullquote]
Equally, what has gone unnoticed in the PF explanation of the removal of subsidies is the fact that government is running out of cash pure and simple and can no longer afford the KR2.3b ($430m) of subsidies as well as continue with its budget implementation and development projects.
Its debt nudges 4.3% of GDP and bond yields are rising. Let me make it clear here is that the disaster over the removal of subsidies hides the real predicament that the government is in.
The government claims it wants to shift spending to social sectors and infrastructure investment especially in poor rural areas. We advise the PF that “the era of being a consumer economy is over and now is the time for putting resources in real development” and that means the economy must be controlled by Zambians and not foreigners as it is today.
The end of the “consumer era” bluntly means the consumer pays more for fuel and virtually all transported goods and labor derived services and maize. Farmers will pay more for fertilizer and the consumer will pay more for food and unconditional maize buying by the state will cease food security.
[pullquote]Now, this government want to legitimize the removal of subsides by championing arguments in support of subsidies that it will use these proceed for “resource security” or “access” or “social or trade protection.” All these are another set of lies.[/pullquote]
What this PF government has failed to know is that, energy subsidies are costly to a national budget and crowd out other spending, including on much-needed infrastructure and social services.
My advice to this government is that, cut down on the overheads; deal directly with the suppliers of fuel and fertilizers, cut out all the middle men because they are responsible for the following activities. The cost of fuel taking into account both direct subsidies and foregone taxes, amounted to 1.4% of the region’s GDP in 2012.
For oil exporters, the fiscal cost was 3.2% of their GDP. The data for Zambia shows the 5% fuel subsidy totaled KR754m ($145m) or 0.7% of GDP in 2012 rising from KR100m or 0.1% of GDP in 2010. According to the Zambia Institute for Policy Analysis and Research (ZIPAR) the subsidy was projected at KR1.2b ($225m) or 1% GDP in 2013. The rise is due to 25% increase in oil prices as well as rising consumption.
When it comes to the electricity sector, the available information indicates that the substantial costs are incurred by fixing power tariffs below the costs of production. Currently Zambia experiences a shortfall of 200 megawatts during peak periods. Only 20% of the populations have electricity. Zesco, the state utility, is planning a substantial revision of tariffs of 26% next year. On this issue, the PF government claims the fuel subsidy of KR1.2b plus the maize subsidy of KR1.1b would be better spent on other social and infrastructure projects. This so called subsidies amount to $430m.
Therefore, I urge the people of Zambia not to allow the PF government to have anything to do with the removal of subsidies because it is not better place to address relevant concerns.
Issued by
Dante Saunders
Zambia’s Political activist
What are you telling us? Subsidies will only benefit the already rich chaps.We are in a hurry as PF to develop this nation so everyone can benefit.
ANOTHER FUUL SAUNDERS. ANYWAY, HE HAS STARTED TO FEEL WHAT THE POOR, WHO DO NOT BENEFIT FROM SUBSIDIES, FEEL.
Dante who ???
This is just wild speculation without a shred of evidence. How can you accuse anyone of a crime they have not committed? The PF goverment have mandate to run the show as they see fit till 2016. Only after they have failed do you get off your backside and cry foul, not before.
Mr Saunders, we are not moved by your sentiments however sincere. Please go fishing over the weekend – might relax you.
Mudala analysis is good. This is the whole whole issue> PF does not have the human capacity to make use of the subsidy to benefit people. It is quick for them to implement the idea from IMF.
If they need to raise money, let them sale off the remaining state companies as well. Zamtel, ZESCO, NATSAVE, ETC.
Dante rubish statemt!Do u realise tht HH ws at the helm of the ZPA team tht privatised national asets?Whts yr advice to him since he himself has taken the whole hog of himsef against subsidies bt the chap cant explain earnings fr privation.Its furthr anoying coz yr short sighted view point lacks strategy.Why? If pf mainfesto has no subsidy adres so they cant implement wht is gud fr the nation?Wht kind of thinkng is tht?Strategy is continous,its ongoing subject to reviews evaluations & implentation thru & thru.If u cant trust this govt then I pity u fr sure.Coz its a mandated govt upto 2016!U ve no choice otherwise if u push further against a constitutionaly elecyed govt,wow its another ofense.And I believ u understand the gravity & maximum sentence to mistrust the govt.Tel off HH to explai
So, HH, riches gives you sleepless nights. I THOUGHT IT WAS ONLY THE GOVERNMENT AND SOME INDIVIDUALS, LIKE YOU. TOO BAD FOR YOU.
This is a breath of fresh air. I was just getting really sick and tired of all this parroting from PF people telling us that the removal of subsidy is the best thing to happen to Zambia since independence
I will await the response from the usual suspect Chief Spokesperson Mr Nsekeni before I comment more. I hope his response will not be full of Ad hominems ( attacking Mr Saunders character or personal traits in an attempt to undermine his argument without actually having to engage with it). Lets have a sensible debate on this issue.
By the way Mr Saunders, expecting PF to follow their plagiarised manifesto is a long shot. Nobody in PF actually knows what is in their manifesto, not even the president himself.
THE ONLY REASON WHY PEOPLE LIKE YOU OPPOSES ANYTHING FROM THE PF IS SIMPLY BECAUSE THEIR PRESIDENT IS A BEMBA. EVEN PEOPLE WHO ARE EDUCATED HAVE BECOME SO EXCITED AT THE REMOVAL OF SUBSIDY AS THEY NOW STRONLY FEEL THAT THEIR UPND CAN CAPITALISE ON THIS IMPOTANT NATIONAL ISSUE TO GAIN POPULARITY IN AREAS WHERE THEY HAVE NO STAKE.
Continue suffering while MICHAEL is building new towns…. you are crying for fuel subsidies because of your many vehicles. it is not true that you are talking for the voice less.
“There is nowhere in the PF manifesto where it is indicated that subsidies on essential commodities will be removed” ? Is Saunders using his head or something else to think for him to come up with such a ridiculous point? So every action the government or a political party takes must be spelled out in its manifesto? In that case, where does it say in the UPND manifesto that they will expel any MP that accepts an appointment from PF specifically?
I believe a manifesto is a policy statement. It articulates the values and principles of an organisation. Definately not every action or decision to be taken can be spelled out in a mainfesto. However, its general principles will drive and direct the decisions of the organisation. As regards UPND, I believe one of their guiding principles is that of loyalty and total commitment to the ideals and beliefs of the party. As such the decision to expel those members who go against this important guiding principle. As for the PF, I believe one of the party’s giuding principle is that of working for and protecting the poor and vulnerable in society. The removal of subsidies appears to go against this principle as such the complaints.
Its time for sondashi to speak aloud for everyone he told to hold him responsible for advocating for the PF gvt to power, i remember you very well when you came to Unza and told us to try PF and that if it fails, we shall hold u responsible, now is your time till 2016 to ensure this govt is out of power. for now thumbs up sondash, way to go.
What tribe is Dante Saunders and which village does he come from? Does he genuinely care about us Zambians or he is parroting his master???
@Timbalife
dont end your questions on Dante Saunders!
Also ask Guys Scot… what his tribe?, village? and does he genuinely care about `you` zambians or is parroting for his master in the `white world`??
Some chaps are really dull. Even after a lecture from MMD chief you start attacking the person instead of his contribution. Koma ni ba kaponya zoona ba PF
He is broke,no one is giving him government contracts,these vultures survive on corruption via contracts.Yamonyonkola njala mambala
I find his argument shallow.It is not even worth commenting on this thread.
SELATUBOMBEKO!
HE IS JUST A LAST KICK OF A DYING HORSE THIS SAUNDERS
This gentleman is unbelievably shallow. He acknowledges that the Govt will yield a lot of money for infrastructure development but he is only worried that the money will be misappropriated. He should therefore let everyone know that removal of subsidies is a progressive undertaking and PF has to be made accountable on how it uses the money. While I agree that there are just too many bye- elections in Zambia all political parties are complicit in this. UPND blames the Govt that they are not being diverse enough but when PF appoints someone from their party they expel them. Do you really blame PF on this all heartedly? I would suggest the constitution changes to address this Bye-election issue.
WHO WILL PUT THE BELL AROUND THE CAT’S NECK?
Exactly his main worry is that PF will make that kind of money and he is not a part of it.These are greedy vultures,and Zambians must not entertain them.
Seleni tubuzazeko
Saunders is being childish! He says he will not trust anyone with a lot of money. What did he do in unip days? Mealie meal Coupons?
GRZ must shame this empty bucket!
@DOBO taula baila ulubangula? You are so zzzzzz
Pf, i beg u please do not listen 2 this st upids who think are wise wen dey are just worst fo ols.What this fack analyst has said is shallow indeed. However,the idi ot knows that we shall serve huge sums of money and make Zed prosperous. Go,go pf!
Dante Saunders you are a hopeless jobseeker normally but now what is your logic? Calling for your own unelected presidency, or whose then? Loser
I do not know if the PF is doing the right thing or not, I would say 40% of the tax payers money is coming from North western province but unfortunately nothing in return in terms of development. 98% of our sweated money is being deducted from our salaries but we are seeing nothing in return. Please ba PF do something for us we are tired of waiting for unseen projects in our area ( North western province). Do not be like a bad parent who would like to revange to his or her child. Because you might loose every respect, trust, confidence and faith you have in that same child. We would like to start seeing something so that we can know where our money is going.
Ba Zambians worry nt about subsidy removal….for now.What we need to focus on is the removal of PF from power and all else will be well and sibsidies will take care of themselves after that.
madness apo te
You just have to look at the way the man signs off on his own statement: “Issued by Dante Saunders, Zambia’s Political Analyst”. Lord, God have mercy!!! With political analysts of this calibre, are we surprised the country is where it is today?
He ‘s right , the money is going into wrong hands.
When we talk about the pros and cons of subsidies would we kindly please spare a thought about the real victim here, the tax payer. Who foots the subsidy bill? Now how does he directly benefit from removal of subsidies? Surely there must be some compensation like reducing his/her tax rate so he/she can have more money in their pockets.
Extremely bitter individual. He’s just jealous. He knows that the PF Government will do alot for the people. 49 years down the line, no street lights, no skyscrapers…….
Elected governments are trustworthy. Such governments are legitimate. They implement manifestoes for national development and stability. After completion of each mandate, elected governments seek public support for their programs. That is opportunity to prove need for regime change. Challenging subsidies is challenging government development strategy. That is strange. What happens when government program succeeds? An apology will be imperative.
Which wrong hands?A constitutioaly elected govt?Wht madnes is this?This is ia mandred govt upto 2016.Thereaftr general elections.Ar u arguing ?Hakahi votela Heka wil nevr rule always capaignig on age comparing himself to Obama.Why?Obama once became a counilor & senator bt ths chap straight frm Zambia Privatisation Agency to top postion a party branded only fr Tongas & evn braged abt it.With such pety minded u think he can sanction policy maters fr a country?Nevr wai lasha shamwari.
WHY PREDICT ‘THEFT IN ADVANCE”, ONLY A THIEF CAN THINK THAT WAY.
PF GO GO WITH REMOVAL WE HAVE BEEN EATING SINCE INDEPENDENCE EN OUR BELLIES ARE STILL SMALL. ITS TIME TO SEE REAL DEVELOPEMENT. A UNIVERSITY IN EACH PROVINCE, A SECONDARY SCHOOL IN MOST CHIEFDOMS, INCREASED HOSTELS AT UNIVERSITIES, MOST DISTRICTS CONNECTED BY TERRED ROADS.
WHEN MAIZE IS SUBSIDISED LESS FARMERS WONT GIVE IT AWAY CHEAPLY, SO IT WILL FETCH A HIGHER PRICE, EN BECAUSE FARMERS WILL KEEP THEIR MAIZE JELOUSLY FEW WILL BUY THE EXPENSIVE MAIZE MILL SO ITS PRICE WILL FALL.
PF GO AHEAD WITH REMOVAL. EATING HAS NEVER MADE ANY BODY PROSPEROUS.
The problem we have in Zambia is Christianizing everything. I am a Christian and I believe in the teaching of Jesus in particular. If Zambia is a Christian nation then we are expected to be radical like Jesus himself.
I must confess, Mr Dante Saunders is a man and as such, a good Christian. The removal of fuel, and maize subsidy is a direct insult to the poor majority Zambians. The government should provide equal education for all, good health facilities, that include good sanitation, good and sound agriculture policies, good communication in all communication sectors, good influstructures, good service delivery, access to safe drinking water and electricity for all, job opportunities based on the qualifications,(not on tribe or nepotism). “If no one goes, I will go.”
Fear of the unknown! That is why this country has not made progress with such type of thinking. Has subsidies made the poor any better? Talk of good accountability by govt on money saved from removal of subsidies. We need money to develop this country using our own initiative, not relying on donors. They have their own priorities and now there is donor fatigue syndrome.
I am waiting for the day when Zambians will raise their voices shrilly and in unison to protest the removal of donor “subsidies” of government by the international community. It seems Zambians are quite happy relying on, and using anything as long as it does not belong to them!
WHERE IS THE ECONOMIC ASSOCIATION OF ZAMBIA? I HAVE NOT HEARD ANYTHING FROM THEM, I STRONGLY BELIEVE THEY SHOULD HAVE COME IN TO EXPLAIN THE BENEFITS AND DISADVANTAGES OF SUBSIDIES TO THE ECONOMY OF OUR COUNTRY. I HOPE NO ONE IS PLANNING A SEMINAR TO DISCUSS SUBSIDIES. ESPECIALLY CIVIL SERVANTS.
The article is not making sense. You can see that the man was greatly benefiting from the subsidies. Now he is feeling the full impact. Fight your own battle man, we know that you millers were just receiving free money.
Peace and Prosperity to Mother Zambia.
Why do we tolerate such people whose wisdom is in their mouth? this man is speaking as though he has just woken up from a comma, after a year. Zambia had subsidies since independence and in between time there was even a period when mealie meal was given freely. How did that help Zambians in long run, poverty and diseases continued, unemployment was the call of the day. there have been talks of PF government having gone beyond budget as a result of capital investment in relevant infrastructure and resuscitation of companies and economic ventures that will benefit Zambians now and long run. Zambins do not need to continue investing just in the belly. There other direct subsidies e.g. through fertliser support programs that counter negative effect for the unemployed. For the employed, salary
Another ***** with nothing to offer to the nation except his hatred and jealous!