By Isaac Zulu
Private Sector Development Association chairperson Yusuf Dodia says the incessant price increments are hindering the development of the country.
The price of fuel has increased from around K17 during the PF reign which ended in August 2021 to over K29 for petrol, with diesel increasing from around K16 to K26 since President Hakainde Hichilema assumed office.
During his opposition times, the President famously came up with a formula of Y-C through which he was going to reduce the fuel price, boasting and castigating presidents from the MMD and PF reigns as visionless and failing to manage the economy when there were some upward adjustments in fuel and other prices.
Hichilema boasted that he was an impeccable economic manager, who had managed to make it in the private sector, and therefore would easily address matters the ‘other visionless failures’ in State House had failed to address, including reducing the price of mealie meal to K50 and reducing the electricity tariffs to aid what he said would result in the lowered cost of living.
However, commenting on the latest increment in petroleum products, Dodia said the price increase will lead to increased production in goods which will subsequently increase the cost of essential commodities thereby worsening the already deteriorating situation in the country.
“This then means that business has to move from trade towards manufacturing, escalating the cost of doing business. And as things stand, the continued hike in energy prices will hinder the development of our economy in this country,” he said.
He argued that even the cost of locally produced commodities will be increased owing to the high production cost, leading to the high cost of living among the general citizenry.
“Already the price of mealie meal is selling at about K230 to K300. Even the prices of confectionaries that we locally produce are likely to go up, that include detergent pastes; will need imported products for them to be manufactured,” Dodia said. “And the high cost of production will continue impacting adversely on prices of essential commodities. And if we are not careful, we are going to have skyrocketing prices of essential goods and services like a war torn country.”
He said all this will will simply hinder the development of our economy, adding that it will be difficult for private entrepreneurs to grow their businesses.
He said that the hike in energy prices will have a negative impact on the cost of essential goods and services.
Dodia observed that the continued increase in fuel pump prices would entail that business has to move towards trade; as opposed to manufacturing.
