13 July 2009
THE proposed 66 per cent electricity tariff increase will negatively affect the agricultural sector thereby retarding growth of the industry, a commercial farmer has said.
Lwimba Ranch director Chris Club said if the tariff increase was implemented, the agriculture sector in the country which already has suffered from the consequences of the global recession would be affected.
"We hope the proposed Zesco tariff is merely a proposal because if this is implemented, it will negatively affect production, considering the difficulties farmers have been facing in the last few months," he said.
Mr Club said that this on Saturday when a group of journalists under going training on reporting women in agriculture organised by the International Women Media Foundation (IWMF) based in America toured his farm.
He said most subsistence and commercial farmers had in the last few months faced a lot of difficulties owing to the high cost of inputs and other requirements saying any increment would impact negatively on the farmers.
Mr Club who owns more than 3,000 cattle was on an annual bases exporting between 50 and 80 bulls to Malawi and Tanzania. Apart from exporting to the two countries the farm was also selling in Mumbwa and Namwala. He further complained about the increased cases of thefts of cattle in the area but commended the police for assisting combating the act. The farm also produces maize, tobacco, wheat and Soya beans.
Last month, the Energy Regulation Board (ERB) conducted a hearing in selected parts of the country on the proposed electricity tariffs, which most consumers rejected. ERB chairperson Sikota Wina during the discussions said Zesco's application to review the tariffs has been made at a time when the electricity sector was facing supply challenges because of the power deficit in the southern African region
And former Zesco managing director Robinson Mwansa advised the power utility firm to come up with a business proposal to enableit access loans from commercial banks.
In a written submission to the ERB on the proposed 66 per cent electricity tariff increase by Zesco, Mr Mwansa said that the utility firm needed capital which could only be accessed from commercial banks.
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