By Hjoe Moono
Earlier this year on this forum we warned the Zambian citizenry to prepare for impact as the economy was falling. I argued that the happenings in the Zambian economy signalled negative impacts which we all ought to prepare for. I leave you readers to look back and around you, and I can bet that the negative impacts have started hitting us earlier than we could have imagined.
Just last week, the Energy Regulation Board, as expected, increased the pump price of fuel by an average of 8% due to the poorly performing kwacha which seems to have attained new poor levels of K6.2 per 1 US Dollar. Increase in price of almost commodities is a natural outcome of a depreciating and poorly performing currency, especially for an import dependent country like ours. Now that the price of fuel is higher, let us expect and brace for the following:
1. Higher transportation costs: Both cargo and commuter transports costs will now be higher than last month as a result of the high fuel price increase. Cargo that is transported will also attract a higher final consumer price to take into account the high price of transportation: Higher Non-Food Inflation
2. Higher food costs: Food has to be transported from the production point to the market, e.g., from a farm to a grocery store or to Soweto market. With higher transportation costs, food price will have to increase too to take into account the costs of transportation: Higher Food Inflation.
3. Higher Electricity Costs. With ERB’s announcement for fuel, soon we should expect a similar announcement telling us that ZESCO’s tariffs have been adjusted upwards too, further fuelling even higher costs of living.
Is this PF’s offer to Zambians?
So let us ask, is this the PF’s offer to the Zambians: Hammer us with high mealie meal prices. Hammer us with higher housing prices. Hammer us with higher fuel prices now and later. Hammer us with higher transport costs year after year?
How should we put it? Zambia can do better than that. It can do better than the deal it is currently getting. And the PF better get its economic act right. I remember when the PF were in opposition, it made uncosted commitments and unworkable promises to address things like high fuel costs and electricity costs and load shedding. However, the governance experience and outcomes so far shows just how not credible and fake they are, or perhaps it is too early to ‘judge’ their performance? Such an argument would make a good joke!
One would ask, after all these years in power, what is the PF’s economic policy? I have searched hard and found none yet, perhaps it is still under construction? But wait, more and more borrowing and more debt seems to be the only one and remains their major economic policy. Atleast they are consistent in borrowing. Maybe it is the new form of governance: Governing by indebtedness.
Higher borrowing. Higher living costs. These aren’t the solution to the problems of the Zambians. These aren’t going to improve the lower living standards. They are the cause of lower living standards. And the people are crying for these problems to be minimised, not maximised.
At 50 years after independence, we need a serious plan for a grown-up country like Zambia. The foundation of any sustained improved living standards is economic stability. Our country’s economy is not stable. We need to address stability before we can celebrate any high levels of growth in debt accumulation as is happening with the daily praises on the newly acquired USD1 Billion nkongole just acquired.
As government continues its ruthless quest to finish all available credit in the local banks by its massive borrowing, we should further brace for lower access to finance for SMEs, the very engine of growth in Zambia. BOZ recently increased its policy rate to about 12%, so we should legitimately expect higher and higher cost of capital for business in Zambia. I will reiterate that gluttony on the part of PF as evidenced by its active domestic borrowing is a ripe recipe that will cripple the economy in the future.
I have stated before, that though we have all these huge debts earmarked for roads, let us be careful not to take our country into something worse. We should therefore not underestimate the gravity of the situation ahead of us: A highly Indebted Country with Higher Costs of Living.
I had hoped, apparently incorrectly, that under new management, we would have a Zambian economy freed from excessive debt, both domestic and international, growingly strongly and spreading prosperity to all its people. Alas, I thanked my maker too early.
What we need is a provisional government to take over till a new constitution is in place.Then under the new constitution the country goes for elections.PF has failed and should not be allowed to continue ruining Zambia any more.
Another unnecessary, nonsensical article designed and printed to massage the lazy people.
The country has amazing resources for the people that work hard, are determined and who perseverance and finesse is no question. like me for instance
Look here is the thing, articles like this are unhelpful and serve no purpose to the needy people who are lazy and can not get a decent job. Their egos gets bludgeoned and offers this idea that even when one works they are problems designed not to reward them.
Of Course this is far from the truth.
This trend must stop, how about an article on how well and good life is under PF. Certainly it wouldn’t be lying at all will it.
People are driving better cars now than at any stage in Zambia’s economy. hello?
Thanks
Mushota,
As every one say, you no longer talk sense as you can no longer distinguish sense from nonsense. You are so dull that you cant even notice that fuel price increased 2 days ago is as a result of poor mgt of govt resources. You are so dull that you don’t that know that the increase of fuel will increase cost of life and doing business in Zambia. Your are so foolish because your fathers gong’ed you that raiding gvt resources is proper governance. You are even stupid to misguide people that depleting local financial reserves in 2 years and over borrowing has no future implication on Zambia’s economy. Mushota you are so stupid…
Mushota actually I find your comment to be unnecessary. The article is just OK. Laziness has got nothing to do with the cost of living has we are experiencing now. High cost of living is felt by both lazy and hard working people.The cost of Living in Zambia is increasing at at alarming rate that is if you understand simple economics. Very soon we shall be hammered by impact of excessive borrowing!!!!
Mushota
I think Mushota is some sort of a virus or program designed by lusaka times to keep conversation going. Itt doesn’t sound human.
You can’t measure the economy by the number o used cars emmiting exhaust gasses forbiden in Japan
@HRH
Of course you can say Mushota is intelligent because the whole lot of you are are a bunch of idi0ts. Its a case one blind man with a walking stick leading other blind men without any. Even then the fact still remains they are all blind.
HRH can you imagine the day when Sata will sack you and you become an ordinary citizen. No more hefty allowances. Will u still praise Sata the way you are doing right now like a head less chicken.
Even during KK we had f00ls like you who saw nothing wrong with the way KK ran the country. To make matters worse, the flow of information was hugely controlled, but people said enough was enough and rose up to defeat KK.
Just like the way people brought KK down, so it shall be for Sata not long from now.
Most Zambians know that HH is the…
@HRH
We all know that Mushota is an LT clown seeking a lot of attention from minions like you. But in your case you you are a complete f00l who will praise Sata even if he demands to bonk your wife. For you this will be like a blessing to your family.
Sata is an agent of destruction. What ever he has ever laid his hands on has crumbled. He is good at using his loud mouth to scare his enemies. But when that fails he uses violence instead. But its just a matter of time when he shall meet his match who will beat him up hands down.
Thank God that come 2016 people will tell him enough is enough. If he fails to accept defeat we shall do a “Gbagbo”on him.
Not long from now, the police and soldiers will start revolting because they are more affected than ordinary people .
PF Ma pwelekete yeka yeka ….Zambians lets wake up we cannot e ruled by fossils for ever ………
God help us .
hahahahaha. wanisekesa Mbuzi iwe
Mbuzi Meee!
if you want to listen to voices of reason, I mean national voices, I meant to say voices representing Zambians….listen to Milupi, Magande, Nawakwi and Mutesa. Students of Development Studies in Universities, please pay attention to what these true Zambians say. not the “pwetete pwetete” language Mbuzi is using.
All the other Politicians, you can listen to them during election time. Not just now.
Great strides have been made by Zambia in the direction of economic development. Therefore we cant allow anyone to take us a back just because they are in a hurry to rule. Milupi, Magande, Nawakwi and Mutesa are always trying to show Zambians the direction to go. Some of you are so divisive!!
This development is not for the benefit of Sata but Zambians across the nation.
This is the result of having a leadership that is narrow minded and with no appreciation for and think through of effect on the economy of populist decisions they make. the cabinet is an incompetent cabal of cronies and relatives that responsible for mismanagement of the economy. We are also paying the price for voting a leader into office who is not a “man manager”, one who will not let the professionals advise him on issues for which he is out of depth and they are many issues!! The promotion of cadres is sure way to slide for their understanding of the world order is limited or non existent at best!
Its time to change or we are sunk as a nation.
The clowns took over an economy that was thriving and worked in into the hole! It is treasonable.
This aircraft is flying on autopilot brace yourselves for anything!!
Educate me on how higher fuel prices translates into higher electricity tariffs.
All machines/transformers to run they need diesel
Operation cost are related to the cost of fuel – though they have never reduced the tarrif due to low fuel prices.
Diesel generators etc.
@Cr
..just look out thru the window..every 7 vehicles u see on the road one is ZESCO utility vehicle…..Those machines at Kariba/Kafue gorge tho driven by water, humans monitor and maintain them, spare parts have to be taken there…people go to these sites using vehicles.. fuel comes into play..
Got it ..!!
The article is just reminding us…as an individual to review our status as at present..is the livelihood better off than it was Three years ago..? is there hope for improvement in the next Two years…?? The answer is either YES or NO..Now lets add the YES and the NO and divide each by the total….the resultant percentage will gives us the idea were we are and were we are going as a people.
Ofcourse, as an individual my answer to both question is YES, sorry I meant to say…
….ofcourse I meant to say NO
In order for the increase in expenses due to fuel prices, since fuel prices are at the inception of an economic production cycle the final product of many companies will have to be increased to address the increase in an input (fuel). Its like ubwali pa market, if prices of relish and mealie meal ( major inputs) go up then the price for Ubwali and … say fish… will go up.
Thanks for the education…though no one liked my ignorance (question).
It’s a pity we’re heading the wrong way in our lives as a Zambian people. Looks like we’ll never get to have meaningful savings ….
What is remained of PF is all talk, nothing but yapping like they know everything, in fact, they don’t know anything apart from being choked up by their own 90 days mystery.
Nakonswe iliko na value????.
The major problem we have is that PF has not realized that they are failing the people and the economy. Hence finding a solution to a problem not accepted is difficult if not impossible. One needs to refer to the pronouncements made by ministers, a huge percentage will be targeted at individuals, like bloggers, online publications, opposition leaders, in fighting within PF; and when do they address national issues? not time, hence the trouble we have.
Zed@crossroads
Please use your own glasses to see Zambia. The glasses you are using belong to HH. They are not yours. Take them back to him.
ALL people know nowadays is criticise without offering concrete solutions. For a change I want to agree with Mushota. You see, Zambia does not produce oil, meaning that imply is that when market forces are at play, there is little the govt can do sometimes. Let us run away from thinking politicians will give us all solutions we need. We are custodians of our own destiny and direction of Zambia, govt of the day will not change Zambia for us, no matter who is in the office.
Imwe naimwe how many times have you read about people offering solutions to this dull government and when have you ever heard them agree to these solutions and implement them? When Edith tried to advise them, they called her a street economist who should shut up. So in your thinking this is a government people should continue trying to advise to? in my thinking, its better now just to insult and critisize them until they leave mu 2016, kaili they know everything.
Dear kamokamo2, I wish to address myself to your comments and those of Mushota. Let me start by stating that you don’t deserve the insukts you are being hurled with simply because you have a divergent view. This said, I also want to advise that before you write anything for public consumption, you must always research widely. This way you will avoid making people angry with you especially when your name or names are associated with people perceived to have contributed to either real or perceived economic downfall of this potentially economically viable great country. I will continue because I have exhausted the allowable quantity of characters in one posting. See next posting…..
God bless Mushotas’ comment
Mushota is an internet junkie, never objective and seems detached from realities, 50 years after independence we should not be celebrating about debt, don’t forget we are still a poor country not to be judged by a few driving nice cars, rising prices is no joke
ask Zimbabweans, your grandpa Sata is doing a very bad job, he needs to do performance review before we give him a red card, he shouldn’t be sitting on his lazy ass, he is the laziest than most Zambians who have to fend for themselves and pay his 3 times raised salary, it will take years to reverse the damage being done by this clown and poor Zambians will be left to suffer
Mushota I noted u were trying to glorify your family legacy?. I hope you are genuinely not aware of the infamous “ministerial incident” of attempting to collect cash in suitcases at the top bank in the early 1990s?. I believe you express yourself well without insulting- and its your indelible right, however, its not simply right to attempt to re-write history in an attempt to glorify oneself.
The way I am seeing most of you guys on this list, Mushota is too intelligent you guys.
The best you can offer in this debate is insults and I cant blame you.
Typical of illiterate political party cadres!!
He is ruling very well. You people are just jealous!
This is not the “beginning” of darker days, it is a return to them!
Those of us old enough can remember life under 27 years of dictatorship, where KK inherited a rich country and turned it into a nation of beggars. Levy reversed this with HIPC initiative, but in two years we are falling right back into the hole!
Sata and his PF came to power through LIES and DECEIT, and after squandering the National treasury they found, they are now borrowing more kaloba! This rape and pillage of our national resources is criminal. As @Ngoshe says, it is treasonable.
The first mistake Zambia made was not prosecuting KK for his wholesale destruction of the Zambian economy without the peoples consent. We must learn from our past mistakes so that future governments realize they WILL BE HELD…
Bemba Bimbo
Lies and deceit?
But you personally did not vote for Sata. So what is your complaint?
Why do you think you can love Sata now when all along you have been praying for the man to fall dead?
the economic problem we are having in are not entirely internal. of course the government might be doing 1 or 2 things wrong…… but external pressures are the ones making economies fall…. even bigger economies like that of Zambia are going down…. an example of Greece they relying on external debts…. sometimes we don’t just need to write comments at least we reason a bit then post.
I am tired of hearing comparisons to Greece. People must understand there is a huge difference.
Greece borrows in EUROs and uses this as its own currency. Inflation of the Euro is controlled by the ECB (European Central Bank), run by professional economists.
Zambia borrows in US$ but uses the Kwacha. Inflation is out of control because of political appointments of incompetent IDl0TS like Satas fossilised Uncle Chikwanda as finance minister! So we now have to repay KALOBA!
The writer has very narrow perspective and seems not to be reading the trend all over the world. Is there any country where prices are going down in this world? No, every where prices are going up, in some countries, worse than in Zambia. What has it got to do with Zambia and PF? Read widely and update yourself on the real issues. Even in America, Britain, Australia, Malawi, Botswana and South Africa just to name a few, prices are going up.
You see if you know anything about Problem Tree Analysis (PTA) you will understand that an increase in fuel prices, an increase in food prices, freezing of employment for the public service for two years, freezing of salary increment for public servants for two years, borrowing a Euro-bond at 9% interest are all emanating from poor governance and bad leadership strategy. Whether we like it or not our per capita liability is increasing by the day. In development there are immediate, intermmediate and long term development activities. Our government has ignored this classification and concentrated only on long term. While the intention is good, the marketing strategy has lamentably failed and it is bound to facilitate the departure of PF from government in 2016. Take heed.
Hey Bwana!
Can you please tell me what comes first; an egg or a chicken. There are many ways to kill a snake. If you know one, don’t rush to condemn others. What is important is the snake will die.
There is no sweet without sweat. Better suffer now for the future Zambia. We may not be there that time, but the foundation shall have been laid. If PF loose for doing positive things, they will walk away with raised heads. If Kaunda did not sacrifice, Zambia would not have been where it is now. Please focus beyond your nose!!
It’s a very difficult proposition for any Zambian Government to wean off the Zambian People from the “donor teat”. Zambians are way too comfortable with the current import oriented economy. Just read Mushota’s comment “People are driving better cars now than at any stage in Zambia’s economy. hello?” and you’ll understand why (pure ignorance). Wouldn’t it be better to brag about manufacturing those very same cars in Zambia and exporting them to our neighbors?
Actually would like to know how the country ecomy is measured.