• The advice is timely and long overdue.
• This is because of poverty and vulnerability levels.
• When a country begins to subsidize the cost of living government is relieved of the pressure on other public services.

Civil Society for Poverty Reduction (CSPR) says Zambia must respond to International Monetary Fund (IMF)’s call for governments to subsidize food and energy prices for the poorest members of society.
Organization Board Member Partner Siyabutuba told Money FM News in an interview that the IMF advice is timely and long overdue because of the high poverty and vulnerability levels in most developing countries.
Mr. Siyabutuba stated that when the majority of people are poor, while the cost of living continues to rise and government does not intervene, the situation tends to undermine the development efforts being made because citizens will not be able to afford medical care and this may put pressure on the healthcare system.
“So as a government, you will require to pump in more money in the health care system to be able to provide the services, hence it becomes very unsustainable and it also ends up running what looks like a curative healthcare system as opposed to preventative,” Mr. Siyabutuba stated.
He added that when a country begins to subsidize the cost of living so that citizens can afford good nutrition and other basic requirements, government is relieved of the pressure on other public services.
“So the IMF advice to developing countries to subsidize on cost of living, fuel and food is timely and we are hoping that it is going to be done now,” he added.
On Sunday, Head of the International Monetary Fund (IMF) Kristalina Georgieva told BBC that Governments need to subsidize the cost of food and energy for the poorest members of society.
Ms. Georgieva said people around the world are struggling with the rising cost of living, adding that support needs to be provided in a very targeted manner, preferably by providing subsidies directly to people.
She added that many governments are providing some help but critics argue that it’s not enough.