It is interesting to note that Zesco, a power utility firm has intentions to hike the electricity tariffs or they have already done so during this critical phase of our economic transformation. As a Chamber and private sector, we would have desired to see sustained stable tariffs for a much longer period of time because energy or electricity is one of the key ingredients of economic growth and any ripples effected to it leads to unstable economic landscape and slows private sector expansion. Again from where we stand, we also realise that Zesco is equally operating as a business and as such would need to get return on it’s investment but this should not be done at the expense of the sluggish growth of private sector players, especially the Small and Medium Scale Entrepreneurs who are in the majority in our country.

It is therefore our considered view that before Zesco makes such tariff hikes, there is need for them to undertake a robust and inclusive consultative process so that they do an empirical cost-benefit analysis and assess the magnitude of the likely adverse effects of increasing tariffs on an economy like ours which is currently on the positive trajectory. In short, stakeholders need to be consulted very widely and at the same appreciate and embrace their concerns and suggestions so as to make the tariff adjustment reasonable and cost- effective in practice.

Again, we appeal to policy makers to consider reviewing the policy framework for tariffs adjustment so that it is progressive in nature and fair to all. For instance, those that consume should be paying accordingly to their level of consumption and ability to pay. We believe Zambia has a comparative advantage in hydro power and as such, access to electricity for Zambians should not be highly contestable because this is our staple food in the economic landscape and our people should have ease access to such natural resource. We therefore come upon Zesco to actively and widely engage the private sector before effecting the proposed tariff hikes so that the end results of such consultations is an optimum tariff rate that yields a win-win situation for all players in the economy.

Issued by: Namakau Siyanga

Livingstone Chamber of Commerce

president