An Energy Expert Johnstone Chikwanda has backed the government’s decision to remove subsidies on fuel and electricity in 2022.
Mr. Chikwanda says he supports the decision because subsidies at the current size and the rate at which they are expanding will destabilize and cause heavy dislocations to the 2022 national budget performance.
He says the level of subsidies will make rebuilding the economy difficult.
Mr. Chikwanda told ZNBC News in an interview that the country will fail to attract major investors in the oil industry if the subsidies are maintained.
He has appealed to different stakeholders to support government reforms in the energy sector as they are well intended and keeping the subsidies is not sustainable.
Meanwhile Center for Trade Policy and Development Executive Director Isaac Mwaipopo said there is need to understand the reason behind the decision to remove subsidies.
He said the decision has been taken because the economy has deteriorated and is performing poorly.
Mr. Mwaipopo said it is difficult to sustain the subsidies considering the high level of public debt which has placed a burden on the government to finance.
He said citizens’ concerns are also understood because the cost of production and doing business will rise.
Mr. Mwaipopo said it is the considered view of the CTPD that once government restructures the debt, it frees up a bit of resource which can be used to finance some development needs.
He also appealed to the government to consider making reforms regarding access to finance saying most entrepreneurs and private sector players have challenges in accessing cheap finance.
Meanwhile, a Lusaka Resident who is a Welder by profession Saint Silwimba said electricity tariff increment is inevitable. He said the government must have a good reason to remove the subsidies and citizens will see the benefits in the future.
Another resident Patrick Phiri however, said the cost of living will likely go up after the removal of subsidies on fuel and electricity.
What is a government for, if not to subsidies for:
. enabling and stimulation or subsidising of production
. provide for or subsidising of social Products, namely rail lines, roads, airports, schools, hospitals, defense and security, et cetera?
Remember the Structural Adjustment Programme during MMD if you were living in Zambia at the time.
Same old stories, whn did we start the talk abt the investors, frm 1991 to date u still waiting for foreign investment, those called experts are jst bunch of fools, better u shut up.
Let’s think as us to start up same thing, not thinking abt foreigners. They won’t come, frm whr.
You cannot buy a chicken at K80 and sell at K40. Same way GRZ cannot buy fuel at K25 per litre and sell at K18. These subsidies were going to go no matter who won even if it was PF. The only reason they were subsidizing was just to gain votes and they knew immediately we win we remove so nothing out of the ordinary here.
The most failed minister of finance. He destroyed the economy and benefited himself. This man should just go away.
If HH was serious about subsidies, he should have scrapped the position of DC’s.
This position is a serious waste of money only meant to appease political cadres.
#3 Razor. That’s not the principle of subsidies. Even rich countries have ways to cushion the hardships of their citizens, even putting the unemployed on payroll (Dole). Last time we got loans from the West our people suffered a lot and it took organizations such as the Catholics to fight for debt cancellation ( many have forgotten). Yes the only reason subsidies will be removed is because we need the money and the lender wants us to use every dollar to service that loan. So it’s not like buying at ten Kwacha and selling at five Kwacha. Goverment raises money to partially pay for goods and services.
Who’re these investors waiting in the queue to invest in Zambia’s energy sector as soon as subsidies are removed? Take Alexander Chikwanda’s endorsement of the UPND government’s intended course of action with a very big pinch of salt.
Johnstone Chikwanda’s hidden agenda is to move in and profiteer once the subsidies are gone. This corrupt PF loser cannot be trusted!
@Nemwine (8)
Please don’t confuse Bashikulu Ba Alexander Chikwanda and this opportunist whose name is Johnstone Chikwanda, a self-styled energy expert with an ulterior motive of profiting from the removal of subsidies.
Some people have no shame at like Johnstone Chikwanda ..really laughable ..he said the same thing 5 years ago and remember this clown is Board Chairman for Rural Electrification Authority of Zambia, was the Past Chairman Indeni Petroleum, Board member – Energy Regulation Board & Chair Energy Forum…it is in his interest to beat the drum.
Facts – He is making noise trying to sound relevant as a lot of energy boards have been dissolved…he knows the govt is head hunting ..he has been eating this way since MMD time.