2015 difficult for most households-JCTR

The Jesuit Centre for Theological Reflection has observed that 2015 was generally not an easy year for most Zambian households.

It said that at the tail end of 2015, the country saw ZESCO adjusting upwards electricity tariffs for both commercial and residential customers.

JCTR says the move ignited much outcry among consumers, a move that prompted President Edgar Lungu to order ZESCO to revert to old tariffs.

“Releasing its Basic Needs Basket for December 2015 and looking back through most months in the course of the year, the Centre observes that, the year saw steady increases in the cost of living for most months,” JCTR said in a statement.

It said that at the year- end, there was a general increase in the cost of living for most towns.

The Basic Needs Basket for Lusaka, for example, stood at K3, 715.47 in July but as at December, it stood at K4, 371.76 representing a K656.29 (17.6 percent) increase.

The Kitwe Basic Needs Basket stood at K2, 768.69 in July and K3, 919.58 in December representing a K1, 150.89 (41 percent) increase.

The JCTR identified some increases in prices of essential food items such as mealie meal and Kapenta and increases in prices of essential non – food items such as charcoal and wash- soap as among contributing factors to increased cost of living.

“The JCTR observes that the increase in the cost of living was taking root amidst other challenges the country witnessed and experienced. A growth in the deficit of the national budget from about K8bn to K20bn created by among others, a reversal by the PF government of the proposed mine tax regime for 2015 and the unplanned 2015 presidential election.”

This, the JCTR believes, more likely had a negative impact on the implementation of other programmes.

“For example, provision of quality health care on the part of government. It has been observed that the increased load shedding during 2015 has had a negative impact on household incomes as most people in the country earn their living in the informal sector and depend on small businesses like welding, tailoring, salons and barbershops, etc. for survival that depend on power from ZESCO. Further, there were high levels of unexpected retrenchments witnessed especially in the mining sector which eroded families of much needed incomes for survival.”

It added, “Looking through the situation in 2015, there were instances where the government put in efforts improve living conditions of the people, for example through infrastructure projects in education and road sectors and the assent to the amended Employment Act No. 15 of 2015 by President Edgar Lungu to bar casualization.”

“It is however felt that the government would have done a little bit more, especially in areas such as mining, agriculture and entrepreneurial promotion that would have had meaningful direct benefit and impact on lives of most citizens and the country.”

The JCTR said the issue of policy inconsistencies and weak stakeholder engagement by the government and their impact in reviewing 2015 cannot be overlooked especially on issues of the mining tax regime and electricity tariffs.

It said the uncertainty caused by the policy shifts have had an influence on the country’s investor confidence and economy as a whole.

“The depreciating Kwacha that managed to stabilize at the end of 2015 and closed at ZMW 10.97 to USD 1, also contributed to the hardships experienced and inflicted on families in 2015. This demeaned the human dignity of these families as most people faced challenges to access essentials that safeguards human dignity like nutritious food following for example the rise in prices as depicted by the JCTR Basic Needs Basket and much retrenchments witnessed.”
Looking forward, JCTR urges the Government in 2016, to identify and implement programmes and policies that would have direct positive benefit and impact on lives of majority poor Zambians.