Zambia: IMF talks must not sacrifice fuel subsidies, manufacturing chief says

By David Whitehouse
Posted on Monday, 13 June 2022 07:00

International Monetary Fund logo is seen in Washington
REUTERS/Yuri Gripas

Bailout discussions between the Zambian government and the International Monetary Fund (IMF) must not lead to the sacrifice of fuel subsidies, Florence Muleya, CEO of the Zambia Association of Manufacturers (ZAM), tells The Africa Report.

The subsidies, in the form of tax breaks, are critical for the country’s manufacturing capability and play a key part in determining the overall cost of living, Muleya says. “Fuel is the basis of production” and higher fuel costs will drag up the prices of everything that is manufactured.