SANDRA CHUUNGU
A latest study by ActionAid Zambia has revealed serious challenges posed by the International Monetary Fund -IMF -Extended Credit Facility-ECF-reforms on Zambia’s economy, particularly for vulnerable groups such as unemployed youths, women, and children. 
Presenting the findings in Lusaka today, ActionAid Zambia Consultant Thomas Mwiimba says although the measures are designed to restore fiscal stability and promote sustainable economic management, they have had far-reaching implications for low-income households and small businesses.
Mr. Mwiimba says the study has also revealed that the absence of adequate social safety nets has left many households struggling to cope with rising costs.
He says in the energy sector, the reinstating of vat and excise duties on fuel, along with monthly fuel price reviews, has led to higher pump prices which has not only increased the cost of living for households but also created an unpredictable policy environment for businesses, affecting long-term planning and production.
Mr Mwiimba adds that the migration to cost-reflective tariffs in the electricity sector, while essential to attract investment, has placed additional burdens on residential customers and Small and Medium Enterprises-SMEs.
He is calling for increased funding to critical social sectors such as Education, Health, and Social Protection to cushion the effects of austerity while addressing tax loopholes and ensuring prudential fiscal management to maximize resources for national development.
And commenting on the study, ActionAid Country Director Faides Tembatemba says there is need to prioritize public service delivery that meets the diverse needs of women, and other vulnerable populations for a more inclusive and prosperous society.
