Former lawmaker, Banda, blames Zambia’s economic challenges on govt’s energy policies

Former Kasenengwa Constituency lawmaker, Sensio Banda, has attributed the economic challenges facing the country to the energy policies being implemented by the government.

Banda said it was widely acknowledged that reliable access to energy was essential for driving economic growth, unleashing human potential, and advancing overall national development.

In an interview with Zambia Monitor, Banda stated that prosperous nations, both in the process of development and those that were already developed had made the development of energy policies a top priority to benefit their populations.

“While various factors influence economic performance and national advancement, the availability of dependable energy lies at the core and is a pivotal factor in shaping progress,” he said

Banda noted that while in opposition , the UPND government garnered support through pledges to make fuel and electricity more affordable and reliable for the people.

He stated that unfortunately, the UPND government’s energy policies had adversely affected Zambia’s economy.

“Rather than pursuing cost-effective fuel alternatives on a global scale, the government focused solely on importing expensive fuel through single-sourced AGRO-FUEL,” Banda claimed.

Additionally, despite facing a critical electricity shortage, they prioritized electricity exports, leading to widespread energy poverty.

He stated that the repercussions of their decisions were evident in the negative impact on the energy sector, the unstable economy, and the hardships faced by many Zambians.

“In a country grappling with AGRO-FUEL expensive fuel, unreliable access to electricity, and a host of other economic challenges, like inflation, drought, food insecurity, and currency instability, the impact on the national economy, businesses, and the daily lives of citizens are profound and far-reaching,” Banda said.

He noted that due to the high cost of fuel, transportation expenses had gone up, leading to an increase in prices for food and essential goods.

Banda stated that this in turn exacerbates inflation and contributes to a higher Cost of Living for everyone.

“Small and Medium Enterprises (SMEs) are feeling the effects of these challenges as well, with rising operational costs, lower productivity, limited growth opportunities, and some businesses even having to close due to power outages and expensive fuel prices,” he said.

Banda stated that due to the energy poverty worsened by the UPND government, economic productivity had decreased, making it harder for businesses to invest.

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