20/05/2026
Dr Banda accuses government
Economist Ester Banda has accused the government of failing to effectively manage the country’s microeconomy, warning that rising energy costs and the absence of strategic subsidies are worsening the cost of living for ordinary citizens.
Dr Banda argued that while government has focused on stabilising macroeconomic indicators, little attention has been paid to key sectors that directly affect households and businesses.
“We are failing to understand that government has totally neglected to stabilize the microeconomic aspect of the economy,” she said.
She noted that electricity tariffs charged by ZESCO Limited have increased several times over the past few years, making energy increasingly expensive for both producers and consumers.
“I think when energy is expensive, that effect trickles down to the producer, and it also trickles down to the consumer,” Dr Banda stated.
The economist also cited rising fuel prices, particularly diesel, as a major contributor to inflationary pressures and increased production costs.
She criticized government’s handling of the energy sector, arguing that authorities made a strategic mistake by abandoning the Indeni Energy Company refinery at a time when global oil prices were rising due to international conflicts.
According to Dr Banda, Zambia continues to rely heavily on transporting finished petroleum products by tanker, a situation she described as costly and unsustainable.
“There has been no tax relief. We are only seeing tax relief on petrol,” she said.
Dr Banda added that despite debt restructuring and inflation reportedly standing at around six percent, the cost of living remains high, with the food basket now exceeding K4,600.
She further observed that prices of essential commodities such as cooking oil, sugar, and charcoal continue to rise, placing additional pressure on households.
The economist called on government to introduce more homegrown economic solutions, including subsidies in agriculture and fuel, to cushion citizens against inflationary pressures and global economic shocks.
“The job of government is to cushion citizens against inflationary pressure,” she said.
By Mwiya Mwiya,
Lusaka Reporters, May 20, 2026.