Address belly issues first! Bring back subsidies

By Daily Revelation Editor

“I hear of some citizens calling for the re-introduction of subsidies on fuel. If adopted, this of course means that we must cut expenditure elsewhere. In practical terms, it may mean abandoning the policy of free education, or failing to hire teachers or doing away with CDF. I don’t believe that such choices would be wise.”

These were the words from the Minister of Finance Dr Situmbeko Musokotwane as he presented the 2023-2024 budget last Friday. Much as we respect his opinion on a very important aspects of the Zambian economy, we disagree with him on his statement.

It seems Situmbeko is not living in Zambia; perhaps he is living on Jupiter and cannot see the economic shocks brought about by his government’s policy of removing fuel subsidy, or perhaps Situmbeko and his government are now blinded by the comfort they are enjoying; the lofty privileges they are being feted with, with their skins glowing while the ordinary people they are presiding over become more skinny from the prevailing hunger occasioned by the high cost of living caused by many factors, chief among them the high cost of fuel.

We do not wish to malign Situmbeko and his government in any way, but we would like to remind the finance minister about the challenges Zambians are going through, day and night; year in, year out on the hands of skyrocketing fuel prices in the country.

Firstly, our economy, like any other, is largely driven by petroleum products [fuel]; meaning fuel is the engine of this economy; the backbone and strength of our national life. This means that any upward adjustment of prices in petroleum products, automatically pushes up prices of almost all essential goods and services.

Any increase in the price, exacerbates the gap between non-subsidized prices and subsidized prices – and automatically raise the price of goods and services to unbearable levels across the economy, risking further inflationary pressures, and with that further worsening of the economic situation in the country.

Everything occasioned by high fuel prices, from raised cost of production, to increased prices on the streets will have the ordinary people bearing the brunt. That’s why governments usually introduce subsidies to minimize those shocks.

Situmbeko argues that the re-introduction of subsidies will take away money from free education and CDF. That argument again does not hold because that child going to school will need to get on a bus, and they will need to eat before and after they have knocked off from school. But how are you going to ensure their school performance and attendance if you can’t attend to their belly needs first, since the cost of transport food and mealie meal have all skyrocketed?

In short, the good you have achieved by providing free education is being negated by your own reckless actions through the cost of living you have caused to skyrocket.

Because economic growth is cardinal, we expect the government to understand that fuel and other petroleum products should not only to be accessible, but affordable to all consumers.

In other words, fuel should be cheap because it is a critical enabler for modern economies.

One wonders what economic approaches the UPND administration is using in implementing its policy on fuel. Are you really not seeing the untold suffering that kind of policy is having on the people? Can’t you see the suffering masses for God’s sake?

Just look at what is happening in the transport sector where bus fares are going up every now and then. Ordinary people are having to spend almost K50 daily to get to and from their work places. Meanwhile, the same will also be required to buy mealie meal now costing over K270 per 25 kg bags. Didn’t Hakainde Hichilema promise that the issues of ‘tu pamela’ will become the issue of the past once he assumed government? Tell us what, the ‘pamela issue’ is what is dominating society again because mealie meal for many has now become unaffordable. And they can’t even go for the alternative because the alternative too has become very expensive.

With your policy, businesses with big economies of scale are simply pushing the burden on  the consumer, hitting Zambians left, right centre with heavy blows.

Whether the UPND administration is using partial or general-equilibrium approaches, all that remains obscure. We say this because both approaches are at variance and not suitable for the Zambian case. This is because our economy is largely driven by fuel and majority of our people who run some businesses depend heavily on fuel to move and sell their products. Instead, the government is crushing down, killing, and relegating these small businesses to their early graves. Quite unfortunate indeed!

As if that is not enough, the monthly price adjustment of petroleum products is putting a nail to the coffin, for there is no price predictability. This is extremely obnoxious because prices, especially for critical products such as fuel should be predictable at all times. This is important for purposes of planning.

We therefore agree with majority of our people who are calling for the reintroduction of fuel subsidies because we feel the impact on their lives and general wellbeing is threatened and in danger. The cost of living has become unbearable and soon or later, if the situation is not addressed, majority of our people will live like slaves in their own land.

If the government does not attend to this potential economic bomb, they should not blame anyone when Zambians rise against them via the ballot in 2026.

Hakainde has the opportunity to change the tide before it’s too late, but if he turns a deaf ear and blind eye to the loud and clear cries of the majority of our people, he will only have himself to blame.

Wiser is he who listens to the cries of the people, and acts and wipes off their tears, for that is the embodiment of true leadership.