Inject export earnings into economy to reduce cost of living – Dodia

Inject export earnings into economy to reduce cost of living – Dodia
By NOEL IYOMBWA
THERE is a need to reduce cost of living for ordinary citizens by ensuring that export earnings are injected back into the country’s economy, economist Yusuf Dodia has said.
Speaking in an interview, Mr Dodia said that the cost of living has remained high because the country’s export earnings are not injected back into the economy.
He noted that despite huge export earnings being generated, the country is not benefitting and that the cost of doing business was still high.
Mr Dodia observed that the United Party for National Development has taken over government when the economy was not good.
He said that the inflation rate is at 24 percent, electricity tariffs remain high and the dollar was selling at a higher rate hence the need to introduce incentives that would reduce the cost of living.
Mr Dodia said the government should also find other sources of finance to inject into the economy.
“The UPND has taken over the government when the economy is in a mess because electricity tariffs are high, the inflation rate is at 24 percent and the dollar is at K17 so the government should quickly find other sources of finance to inject into the economy.
“We are seeing billions of dollars in terms of exports but the money is not coming back into the economy. If we can have the money injected back into the economy, we will see our banks reducing interest rates in that way the cost of living will be reduced” he said.
Mr Dodia also called on the government to scrap cost recovery fees from Zambians.
He said that collecting cost recovery fees means that the government is charging Zambians twice apart from taxes.