Social Anthropologist, Dr. James Musonda has charged that cabinet’s approval of the open access to electricity transmission and distribution lines toward the separation of the system operator function from Zesco Limited, all point to the privatization of the power utility.

Dr. Musonda believes this will enhance the argument encompassing the cost-plus profit and input mechanism of cost reflective electricity tariffs which will be passed on to individuals.

For mining, where cabinet also approved a shift from the dividend payment model for mineral resources in Zambia to a production-based sharing mechanism, Dr. Musonda is of the view that this is only good on paper and not in practice.

He tells Phoenix News that these two policies seem in conflict with the energy sector pushing to privatize more while the mining sector is pulling out benefits from private investors, adding that accountability of the special purpose vehicle will be difficult.

Dr. Musonda says the shift from the dividend system to one where the special purpose vehicle receives minerals and negotiates prices to gain money reveals inconsistencies in the country's mining policies and shows lack of trust between government and the private sector.


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