Economist Kelvin Chisanga has raised concerns over the monthly review of fuel prices in Zambia, emphasizing that this approach is detrimental to the business and investment climate.
Mr. Chisanga argues that the frequent fluctuations in fuel prices hinder predictability and create insecurity for businesses, impacting various sectors due to the crucial role of fuel in production.
He highlights the need for Zambia to restructure its fuel supply chain, especially in the wake of the depletion of the strategic fuel stabilization fund.
Economist Chisanga attributes recent price interventions to the depreciation of the Kwacha against the declining international cost of fuel.
Despite the global trend of lower oil prices in the past months, he notes that the continuous depreciation of the Kwacha has offset potential benefits for Zambia.
He underscores the importance of addressing the energy policy, particularly in the fuel sector, as it poses a significant threat to the local economy.
The lapses in the sector, according to Mr. Chisanga, hinder the country’s ability to maintain a secure supply of oil, creating an additional risk factor for the economic recovery process.
Expressing his consistent concern for the country’s energy issues and currency depreciation, he calls on stakeholders to actively listen and collaborate on developing effective policy ideas.
Mr Chisanga stresses the necessity of creating flexible models that support both business and investment, fostering an environment conducive to economic growth.