REMOVAL OF FUEL SUBSIDIES
By Kabwe Central Lawmaker Mrs Chrizoster Phiri.
I have been interviewed time and again via text messages, phone calls and social media to dispose my sincere view with regards to one of the most fundamental topics of mordern day politics *FUEL SUBSIDIES*
The removal of electricity and fuel subsidies have been received with mixed feelings amongst the Zambian citizenry.
I believe we are all aware that we have not hiked the price of fuel rather, we have discarded the expensive and cumbersome subsidies on the commodity.
REALITY
– Zambia has been spending over $800,000,000 for electricity and fuel subsidies.
– More than 60% of the electricity and fuel subsidies are consumed and enjoyed by Mining firms and other Commercially owned foreign Companies.
– Foreign Petroleum Tankers used to find their way into Zambia to purchase subsidized oil thereby benefitting foreign Nationals at the expense of our ailing coffers.
– Zambia is highly indebted and is currently unable to pay the the huge and mountainous debt that was incurd unsustainably.
– The sustainable solution to the resuscitation of our diseased Economy is to engage the the International Monetary Fund (IMF), for debt restructuring.
– Our Creditors have stoutly put it that they can only allow us to delay with repayments if we engage IMF which oversees and supervises economies world over.
– Our Creditors believe and have faith in the IMF and loan repayment can only be delayed if we heed to supervisions by the IMF. Our creditors agreed to delay repayment, but have attached a condition that their sacrifice must be matched by Zambia’s sacrifice of subsidies removal. The rationale is if Zambia is able to finance subsidies then they can without fail manage to repay loans.
If we deter our loan repayment we will delay loan repayments and have ample time to improve and add value to our manufacturing industry thereby making the kwacha to be of extreme demand through the export of finished goods hence strengthening our kwacha. If the kwacha appreciates against the dollar then money spent on imports will be less, hence controlling inflation to low levels which will result in the average prices of commodities going low and manageable.
CONCLUSION
The removal of subsidies will help actualize the following amongst the many progressive components of the 2022 budget,
1. Financing free Education from grade 1- 12
2. Increasing the health budget by over k4 billion.
3. Increasing CDF allocation from k1.6 Million to k25.7 Million, youth and women empowerment encapacitating k5 Million of the CdF.
4. Financing the removal of domestic borehole tax thereby substantially substituting the challenges of water shortages.
5. Recruitment of over 30,000 teachers and 11,200 healthcare workers thereby improving service delivery in both sectors.
6. Increasing social cash transfer to k3.1 billion to support over 1 million vulnerable households.
7. University budget to be increased by over k1 billion.
8. Recruiting youths in all constituencies and taking them to skills training centres.
9. Next year June will see the supplementary budget which will support meal allowances being re- introduced.
We need your support fellow countrymen and women, we cannot build an ideal Zambia without your shoulder. Our success story is resident and heavily dependant on your art, ability to work with us