The Zambia Association of Manufacturers has noted with concern the continued rising cost of energy in the country and its potential negative impact on the sector.
Fuel and electricity are key production inputs and the sudden increase in fuel costs, though understandable, has come at a time of heightened load shedding which has further weakened the resilience of an already stretched operational environment for manufacturers.
ZAM Vice President South and Spokesperson Chipego Zulu says introducing additional energy costs at this time, must be undertaken with caution.
She said the recent increase in the fuel pump price will undoubtedly contribute to an increase in the costs of production and further translate into an increase in the cost of locally manufactured products.
Mrs Zulu said in light of the proposed tariff increment to facilitate the importation of power from South Africa, this cost is likely to be much higher and will make it unsustainable for manufacturers to continue production.
She said in a statement that ZAM will continue having dialogue with ZESCO management and look forward to receiving the utility’s proposal on how much importing power will cost the manufacturing sector in cost sharing terms.
Mrs Zulu said ZAM has raised concerns on the ratio of imported power vis-à -vis locally generated power to ensure that costs do not substantially increase so as to impede manufacturers’ capabilities to undertake their core business.
She said in this regard, ZAM will continue to urge the utility company to effectively communicate the cost sharing ratio and consult its stakeholders for consensus in order to ensure that the burden of the cost of importation is not so severe and does not bring the economy to a standstill.
Mrs Zulu said the Association does not expect the cost of imported power to be beyond the reach of the sector.
Thank pf. Me am here enjoying with my white wife. Life is good LG chabe
ZAM, are you not the same MFs who supported increase in electricity tariffs just recently? Keep quiet!
And soon after this, ZAM drops its jaws with the news of 200%. Who do you think cares about ZAM? Our pockets are top on the priority list.
This 200% increase in the cost of power for 6 months is meant to recovery the loss incurred during the period of loadshedding by Zesco.They should not even lie to us that they are passing on the cost to the consumers.Zesco is not able to meet some of its financial obligations adequately due to the loss in revenue caused by loadshedding.Don’t insult our intelligence
What ZAM has said will not be taken
Seriously.It is just waste of time.let
Them give solutions to the problem.
#KICKOUTPF!!!! THE COUNTRY THAT SOLD A MINE FOR $25 MILLION IS GOING TO IMPORT ELECTRICITY FOR $20 MILLION FOR ITS CITIZENS TO USE FOR I MONTH. THIS IS THE SAME COUNTRY THAT BOUGHT FIRE TRUCKS AT $42 MILLION.WHAT A SHAME!!EVERYTHING STINKS OF CORRUPTION.
We’re not interested in the idea of importing power at our own cost. The effect on the economy will not be reversed even after the so called 6 months. The commodity prices will sky rocket. We’re dealing with the government that does not have a task force to control prices on the market. We beg the government and ZESCO to leave us alone. We’ll survive the six months of loadshedding. God will see us through.
We don’t want to jump from a boiling pot to a frying pan. My fellow citizens let’s resist this importation they want to impose on us. We’re already financially strained. We don’t need any more stress. Though ZESCO management clarified in their memo, there was nothing different in their explanation. They’re just busy blowing big grammar but at the end of the day, the…
This is a very useless GRZ lead by lungu , who is almost totally useless and without vision…..
We have been telling these dullards to target 80% domestic solar use, at least.
This could have multiple benefits…..
Solar equipment made/ assembled in Zambia would create jobs and increase the tax base.
Exports can be earned from selling to niebouring countries.
The burden on the grid is less.
Bussiness can pay lower power costs to boost production.
Consumers of domestic solar power have more money to spend on the economy.
Less trees are cut for malasha.
But because lungu and his thieving gang will not earn commissions and are too lazy on top of fearing ZESCO their cash cow will lose customers , did not want to drive a domestic solar empowerment.
Now the whole…
Now the whole country is suffering….from the environment to the economy….
Poor South Africa, being milked to the bone.