ZFE lauds Lungu over power tariffs hike suspension
Written by Millennium on May 25, 2019
SIMON MUNTEMBA writes
PRESIDENT Edgar Lungu should be commended by all well-meaning Zambians for the bold decision he recently took to suspend the tariff review application by ZESCO, says Zambia Federation of Employers’ (ZFE) acting president Steven Sikombe.
In an interview, Mr Sikombe said the move by the President to suspend the proposed adjustment of tariff was timely and highly commendable.
“The move is timely and highly commendable as allowing the adjustment would have not only made electricity expensive beyond reach for a common person but also through the value chain reaction it would have increased the cost of production pushed by higher electricity tariffs, all other goods and services would have become very expensive,” Mr Sikombe said.
Much as ZESCO should operate on a cost recovery basis, he said, private sector considered ZESCO to be a strategic company that must not focus much on profit making but on stimulating
Meanwhile, Mr Sikombe said the federation was concerned about the rate at which the Kwacha was depreciating.
He said despite several statements from government that measures were being taken to address the depreciation of the Kwacha and to improve the general economic performance, things were getting worse every day.
“Much as some of the economic fundamentals such as inflation have been stable, the cash circulation in the economy is reducing and our view is that it is because government is not servicing the local debt and is contracting foreign owned businesses that are doing the big government contracts and the money paid is being externalized,” Mr Sikombe said.
He appealed to President Lungu to look into the matter of the general economic performance and put intervention measures without further delay.
Ends…
