| "Fuel Crisis inflicting damage to economy" |
| Written by Chibamba Kanyama |
| Saturday, 24 October 2009 10:47 |
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Additional Commentary The ongoing fuel crisis will most likely reduce the anticipated national output for 2009 by as much as K2 trillion, which is slightly half the monthly output. Worse still, October is generally the most productive month as industry seeks to load the economy with festive season consumables. This development is not good news to Dr Situmbeko Musokotwane who is already looking to the financial market to borrow extra funds to finance the budget deficit for 2009. There is increasing panic within industry that the continued shortage of petrol will impact on the cost of production. The price of diesel is, on the other hand, anticipated to rise and this is making the productive environment highly volatile. All this was not projected by economic agents at this time of the year. It also comes out clear that the perceived relaxation on the cramp on corrupt activities will filter into key sectors of the economy. The fuel saga is an indication that some players have dribbled authorities as they seek to exploit available opportunities to make money unscrupulously. Government has no choice but to send a strong signal that no economic agent, whether private or public, will be allowed to destroy the economy indiscriminately. It should also serve as a wake up call for authorities to manage economic processes competently if Zambia has to be a vibrant economy. |
