Ex-mine contractors’ official calls out govt on high cost of doing business

The high cost of production will adversely affect local and upcoming businesses while driving away foreign investment, Augustine Mubanga, says former Association of Mine Suppliers and Contractors (AMSC) president.

Mubanga also feared that the current high cost of production may force some foreign investors to migrate to other countries such as Tanzania where fuel and electricity were relatively more affordable compared to Zambia.

He said this in response to the increase in fuel pump price and the electricity tariffs.

He noted that these developments were likely to deal a heavy blow on many local businesses and might push them out of business because of the high cost of production arising from upwards adjustment of fuel prices and electricity tariffs.

“Many local businesses contributed to the development and growing of the private sector, hence needed to be nurtured to grow and contribute to economic recovery by addressing issues of high cost of production and others that affect the growth of the private sector.

“The increase in the fuel pump price and the electricity tariffs will adversely affect local and upcoming businesses and even force some foreign investors to migrate to other countries like Tanzania where fuel and electricity was affordable compared to Zambia,” Mubanga said.

He claimed that Zambia was in a crisis and that government must find appropriate measures to save the local businesses from collapse due to high cost of production arising from fuel and electricity tariffs.

He urged government to reconsider the monthly review of fuel prices and revert to the quarterly option of fuel prices to help give relief to the local and upcoming businesses and other major businesses.

“Fuel and electricity drive production in any sector hence whenever there is an upward adjustment in the pricing of these commodities, even production costs go up. This is a serious concern for the private sector which includes the local businesses and foreign investors. If this situation is not addressed, many local businesses will collapse,” he said.

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