By Fanny Kalonda
GOLDEN Party of Zambia president Jackson Silavwe says the new dawn administration needs serious economic help with regards stabilising the economy.
In an interview, Silavwe said the economic situation should not be politicised but politicians should help the UPND administration as it is clear that they do not know what they are doing.
Silavwe recalled that the new dawn administration was told not to continue with the 30-day review period for fuel prices but had ignored the recommendations.
He said it was now clear that they do not know what to do and where to start from in stabilising the economy.
On Monday, the Energy Regulation Board (ERB) increased the pump prices of petroleum products by K2.12 per litre for petrol and K2.61 per litre for diesel, while the price for kerosene has remained unchanged.
“The upward adjustment in prices is inevitable to ensure the sustained supply of fuel to the Zambian market in the short to medium term. Notably, there has been a steady rise in international prices of petrol and diesel recorded throughout the month of January into February 2022. This has had a major impact on local fuel prices, with the price of both imported products rising above the US $100 per barrel mark,” said ERB chairperson Reynolds Bowa. “As has been reported, the supply disruptions being experienced on account of the ongoing geopolitical tension between Russia and Ukraine have had an immediate adverse impact on oil prices. Further, compounding this was the continued depreciation of the kwacha against the United States dollar, between the last price adjustment in January 2022 to mid-February 2022.”
Silavwe said he seen the statement from the ERB. “The fuel price increase announced by the Energy Regulation Board on 28th February, 2022 is a clear and urgent call for economic help. It’s time for all of us to get involved. I don’t think the situation in Ukraine is the reason for the rise in the prices of fuel pump prices. I had a different view when I saw the statement from ERB. Now my view is that the UPND needs serious economic help as it shows that they do not know what they are doing. They do not even know where to start from,” he said. “This is serious. Politicians should not politicise the rise in fuel prices but offer help because the new dawn needs serious economic help. We warned them about against the 30-day review period for the review of prices but they ignored us. I am not even bashing them. I know this will not help. I think that the UPND needs serious economic help on how to manage the country. They clearly don’t know where to start from, they do not know what to do.”
Silavwe has since called for an economic indaba for stakeholders on the economic situation in the country.
He said he is aware that President Hakainde Hichilema has an economic council, but that what the country needs is beyond an economic team.
“With the high cost of living and doing business currently prevailing in our country, Zambia needs a grand economic reset urgently to save our people from poverty and protect industrial production. Our economic turnaround should no longer be a subject of politicking. President Hakainde Hichilema and the new dawn government needs serious help to turnaround the economic fortunes of our country. We call upon the Republican President and the new dawn administration to convene an economic indaba that would make critical recommendations to the government on defined aspects of our economy,” he urged. “…the President has an economic council advising him like Professor Oliver Saasa. But what we need is beyond an economic team. We need an economic indaba where stakeholders can come together to make recommendations to government on the economic direction of the country. An economic Indaba held in good faith can provide solutions for a more resilient local economy, for a prosperous Zambia. The government must move swiftly before we sentence our people to a life of poverty.”
Silavwe warned that by end of the week, the kwacha would trade at the same level as the fuel prices.
He noted that the economy was unstable hence needing urgent attention.
“Because of what is happening in the country, I feel a lot of our people are going to suffer. The economy is very unstable. Just yesterday (Monday) the kwacha jumped to K18 and my assumption is that by the end of this week it will be able to trade at the same number as the fuel prices,” said Silavwe.