ZICA CAUTIONS AGAINST RISING FOOD PRICES AND ENERGY INSECURITY
By: Sun FM TV Reporter
The Zambia Institute Of Chartered Accountants (Zica) Has Urged Government To Sustain Prudent Fiscal Management And Enhance Budget Transparency To Ensure Long-Term Debt Sustainability.
Speaking At The 2025 First Quarter Media Briefing, Zica President Yande Mwenye Commended Zambia’s Fiscal Trajectory, Highlighting The Targeted Reduction Of The Budget Deficit To 3.1% Of Gdp, Down From 6.4% In 2024.
She Attributed This Shift To Successful Debt Restructuring And Emphasized The Need For Effective Project Selection To Maintain Stability.
According To The Zambia Statistics Agency (Zamstats), Zambia’s Annual Inflation Rate Dropped To 16.5% In March 2025, Marking The First Decline In Two Years. Despite This Positive Trend, Zica Cautioned That Rising Food Prices And Energy Insecurity Still Pose Significant Risks.
The Country’s Gdp Grew By 3% In Q1 2025, Compared To 2.2% In Q1 2024, With The Imf Projecting A 6.6% Annual Growth Rate.
Mrs Mwenye, Emphasized That Inclusive And Climate-Resilient Growth Is Essential, Advocating For Support To Msmes, Renewable Energy Investments, And Sustainable Mining Practices.
She Also Raised Concerns Over Zambia’s Prolonged Energy Crisis, Primarily Driven By Drought-Induced Low Water Levels In Lake Kariba.
With The Kariba Dam’s Water Levels At 4.5%, Zesco’s Hydropower Output Has Plummeted, Leading To Daily Rolling Blackouts Of Up To 21 Hours.
To Mitigate The Crisis, Zica Urged Government Support For Independent Power Producers (Ipps) And Accelerated Investments In Solar, Hydro, And Biogas Projects.
Notably, The Energy Regulation Board (Erb) Recently Reduced Solar Project Approval Times From Six Months To 48 Hours, A Move Zica Hopes Will Spur Private Sector Investment.
Additionally, The Bank Of Zambia’s K5 Billion Stability And Resilience Facility (Srf) Has Been Launched To Support Economic Recovery.
Zica Encouraged An Extension Of Its Eligibility To Allow Households To Invest In Solar Energy Solutions, Reinforcing The National Goal Of Achieving 1,000 Mw From Rooftop Solar Sources.