NATIONAL ECONOMIC SUMMIT REPORT EAZ SUMMIT REPORT FOR IMMEDIATE RELEASE.pdf · invitation of His Excellency Hon. Uhuru Kenyatta, President of of the Republic of Kenya, and His Excellency,

25th to 26th July 2019

Theme: The Future of Economic Diplomacy- Supporting Inclusive Growth and

Sustainable Development in Africa

NATIONAL ECONOMIC SUMMIT REPORT

Economics Association of Zambia

© July 2019

ED

Typewritten text

THIS PUBLICATION IS PROUDLY SPONSORED BY

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EXECUTIVE SUMMARY

This report highlights the deliberations and key recommendations of the

inaugural Economics Association of Zambia National Economic Summit (NES)

held at Avani Resort, Livingstone from 25th to 26th July 2019. The Summit was

officially opened by His Excellency, Mr Edgar Chagwa Lungu, President of the

Republic of Zambia on 26th July 2019.

The NES drew both local and international participants. A total of 750

attended the NES. Among the delegates were regional government leaders,

EAZ members, Cabinet Ministers, senior government officials, captains of

industry, policy think tanks, private sector, cooperating partners, academia,

students, and civic leaders.

The theme of the Summit was “The Future of Economic Diplomacy: Supporting

Inclusive Growth and Sustainable Development in Africa”. The theme was

conceived in respect of the current economic development thinking. The

theme was in line with the United Nations’ Agenda 2030 that focused on

SDGs and the African Union’s Agenda 2063 - “The Africa We Want” - and also

at a national level, it fitted into the Seventh National Development Plan and

the Vision 2030.

Main Objective of the Summit

The main objective of the Summit was to offer a unique avenue as well as

present a platform where key stakeholders could gather to discuss, evaluate

and develop strategies aimed at strengthening the economic environment in

Zambia in particular and across Africa in general to achieve sustainable

economic development.

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Specific Objectives of the Summit

The specific objectives of the Summit were to:

I. Promote economic dialogue between the state and non-state actors;

II. Develop mechanisms that support the effective use of local products

to stimulate economic growth through value addition;

III. Provide crucial information that could assist governments in supporting

national efforts at diversifying and increasing the export base,

attracting foreign investments, and promoting the tourism and

hospitality sector, among other things;

IV. Create a platform that supports the exchange of ideas and innovative

thinking among researchers, development practitioners, and

policymakers at all levels (local, national, regional and global);

V. Encourage and enhance research on economic and policy issues

related to the development of the Zambian and African economies;

VI. Create avenues through which the African economy would be

boosted; and;

VII. Promote evidence-based policy planning and implementation.

Expected Results

The expected results of the Summit were to have:

I. Improved working relationships between state and non-state actors;

II. Peer learning, information sharing mechanisms and collaboration

among key players at all levels;

III. Enhanced awareness of better economic practices at all levels ;

IV. Effective coordination, planning and implementation of plans and

policies;

V. The insights and analyses presented at the Summit would provide

important analytical milestones for achieving the Vision 2030 without

leaving anyone behind, especially as Zambia’s Seventh National

Development Plan unfolds; and

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VI. Provide important opportunities for key policy makers to develop new

partnerships and deepen networks

Conduct of the Summit

Key discussion topics focused on the broad theme of the Summit and also

comprised deliberations on a broad range of economic issues in Africa.

Furthermore, the Summit focused on and provided meaningful insights for

improved policy making in Africa.

The Summit featured keynote presentations and discussions by local

academics, policymakers, the private sector, opinion leaders, government

officials, and representatives from the country’s developmental partners. The

Summit also had plenary sessions that provided more in-depth discussions

and technical analyses of pertinent topics related to the thematic focus of

the Summit.

Key Recommendations

1. To enhance contribution of SMEs to employment and economic

growth, there was need for SMEs to change through:

Innovation, graduation from informal to formal setups for ease

access to funding and becoming more competitive; and

Integration into domestic and global supply/Value chains by

building partnerships with companies with similar products.

2. To deepen financial inclusion especially for SMEs, there was a need to

explore the other financial financing mechanisms such as pension

funds and capital markets;

3. Government of the Republic of Zambia to communicate to

stakeholders and investors on the ZESCO reforms and to share plans

and progress made towards financial recovery of ZESCO. Introduction

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of new business models in the energy sector. New business such as that

of introduction of creditworthy intermediary offtakers and power sellers

in the market (as proposed by GreenCo Power Services Limited under

the leadership of the GRZ) for renewable energy should be

encouraged and approved in Cabinet as soon as poossble in order to

provide comfort to financiers of renewable energy Independent Power

Producers (IPPs), promoting growth in the sub-sector at a lower

generation cost, as well as reducing fiscal risks that emanate from

government issuance of sovereign guarantees to IPPs. The model

strategically aligns with the GRZ’s aspirations for increasing supply

availability, improving security of supply in the country through diversity

in the generation mix; increasing efficiency through facilitating open

access in the market; improvement of ZESCO’s supply through a

cheaper supply portfolio; movement closer to cost reflective tariffs in

the country; increasing access to clean energy; and enhancement of

the Energy Regulation Board’s position as a consumer advocate in the

country.

4. There is need to create a vivid Eurobond debt redemption strategy

given the maturities on the horizon. It is advised that some projects that

are commercial in nature be transferred to the private sector. Such

projects include the current airports under construction, the

hydroelectric power stations and many other projects whose cash

flows are able to meet financing costs. It is also advised that

government transfers major highways such as the Ndola-Lusaka, and

Kapiri-Nakonde into dual carriageways but under Public Private

Partnerships (PPPs).

5. Government should emulate countries such as Botswana, Mauritius and

Seychelles that are reforming their banking systems to resemble those

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of offshore banking centres. Doing so would attract forex deposits into

the country.

Ms. Mirriam Nachilima

EXECUTIVE DIRECTOR - ECONOMICS ASSOCIATION OF ZAMBIA

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ACKNOWLEDGEMENTS

On behalf of the Economics Association of Zambia (EAZ) Board, I wish to

acknowledge the contribution of various organisations, partners and

members who contributed to the successfully hosting of the National

Economic Summit (NES).

Particularly, I wish to thank His Excellency, Mr Edgar Chagwa Lungu, President

of the Republic of Zambia for honouring the EAZ’s invitation to grace the first-

ever National Economic Summit under the umbrellaship of the Association.

We also wish to thank His Excellency President Lungu for facilitating the

invitation of His Excellency Hon. Uhuru Kenyatta, President of of the Republic

of Kenya, and His Excellency, Dr Jakaya Kikwete, former President of the

United Republic of Tanzania. I also extend the gratitude to the government of

the Republic of Zambia for the overall support towards the successfully

hosting of the Summit.

The EAZ also wishes to commend His Excellency President Uhuru Kenyatta

and His Excellency Dr Jakaya Kikwete, for accepting and honouring the

invitations to participate at the Summit. Their participation and insightful

contribution at the Summit has contributed to key policy recommendations

and strengthening of bilateral and regional ties.

We also extend our profound gratitude to all well-wishers especially our

sponsors who included: ZANACO, Stanbic, ZESCO, NAPSA, ZISC Life, Trade

Kings, Copperbelt Energy Corporation, Standard Chartered Bank, ZRA, the

EU, Mahogany Air, ZCCM-IH, Tomorrow Investments, Africa GREENCO, Neria

Investments, Indo-Zambia Bank, National Breweries, National Road Fund

Agency, NATSAVE, and Astria Learning for the invaluable support we

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received. Further, we applaud our partners The Bank of Zambia, the

University of Zambia, Copperbelt University, Development and Investment

Infrastructure (DII-SUMMIT), Mulungushi University; ZCAS University; Springer,

London Business School, Harvard University, Zambia Institute For Policy Analysis

And Research, Policy Monitoring And Research Centre, and University of

Johannesburg among others for their support towards hosting of the Summit.

EAZ also extends its gratitude to its membership for supporting the hosting of

the Summit. The EAZ implores all its members to continue actively supporting

the implementation of all the key programmes in future.

EAZ acknowledges that without the invaluable and selfless contributions from

the sponsors and partners, the Summit would not have been hosted

successfully. The EAZ looks forward to the continued partnership in

implementing its mission and also collaborations in hosting similar events in

future.

Dr. Lubinda Haabazoka

PRESIDENT - ECONOMICS ASSOCIATION OF ZAMBIA

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ACRONYMS AND ABBREVIATIONS

AfCFTA African Continental Free Trade Area

AU African Union

BPC Botswana Power Corporation

BOZ Bank of Zambia

CEC Copperbelt Energy Corporation Plc

CEEC Citizens Economic Empowerment Commission

CBU Copperbelt University

COMESA Common Market for Eastern and Southern Africa

CSOs Civil Society Organisations

CSPR Civil Society for Poverty Reduction

EAZ Economics Association of Zambia

FDI Foreign Direct Investment

FISP Farmer Input Support Programme

GRZ Government of the Republic of Zambia

ICT Information Communication Technologies

IDC Industrial Development Corporation

IFMIS Integrated Financial Management Information System

MTC Ministry of Trade and Commerce

MoA Ministry of Agriculture

MSMES Macro, Small and Medium Enterprises

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NAPSA National Pension Scheme Authority

NATSAVE National Savings and Credit Bank

NRFA National Road Fund Agency

PMEC Payroll Management and Establishment Control

PMRC Policy Monitoring and Research Centre

REA Rural Electrification Authority

SADC Southern African Development Community

SDGs Sustainable Development Goals

SMEs Small, and Medium Enterprises

SZI Smart Zambia Institute

TSA Treasury Single Account

UNICEF United Nations Children's Fund

UNZA University of Zambia

UMCIL Universal Mining & Chemical Industries Ltd

ZAEDP Zambia Aquaculture Enterprise Development Project

ZANACO Zanaco Bank Plc

ZACCI Zambia Chamber of Commerce and Industry

ZCAS ZCAS University

ZCCM Zambia Consolidated Copper Mines

ZCCM-IH ZCCM - Investment Holdings Plc

ZESCO ZESCO Limited

ZESA Zimbabwe Electricity Supply Authority

ZIAMIS Zambia Integrated Agriculture Management Information System

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ZILMIS Zambia Integrated Land Management Information System

ZIPAR Zambia Institute for Policy Analysis and Research

ZSIC Zambia State Insurance Corporation

ZRA Zambia Revenue Authority

7NDP Seventh National Development Plan

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TABLE OF CONTENTS

EXECUTIVE SUMMARY .............................................................................................................. 2

ACKNOWLEDGEMENTS ........................................................................................................... 7

ACRONYMS AND ABBREVIATIONS ......................................................................................... 9

TABLE OF CONTENTS ........................................................................................................................ 12

CHAPTER ONE…………………………………………………………………………………………………………...17

1.0 Overview of the National Economic Summit .......................................................... 17

1.1 Introduction ....................................................................................................................... 17

1.2 Arrangement of the Report .......................................................................................... 18

CHAPTER TWO ................................................................................................................................... 19

2.0 Background ....................................................................................................................... 19

2.1 Objectives and Rationale ............................................................................................. 21

2.1.1 Main Objective of the Summit ................................................................................... 21

2.1.2 Specific Objectives ........................................................................................................ 22

2.2 Expected Results .............................................................................................................. 23

2.3 Format of the Summit ..................................................................................................... 23

2.4 Expected Outputs and Inputs ...................................................................................... 24

CHAPTER THREE ................................................................................................................................. 26

3.0 OFFICIAL OPENING OF THE SUMMIT ............................................................................ 26

3.1 Keynote Speech - H.E, Mr Edgar C. Lungu, President of the Republic of

Zambia ............................................................................................................................................ 26

3.1.1 Key Economic Sectors ................................................................................................. 28

3.1.2 Revision of Key Economic Policies ............................................................................ 31

3.1.3 Provincial Expos ............................................................................................................. 31

3.2 Keynote Speech – H.E, Hon. Uhuru Kenyatta, President, Republic of Kenya . 32

3.2.1 Fundamental Realities - Economic diplomacy in Africa ................................... 33

3.2.2 Policy Recommendations ........................................................................................... 35

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3.3 Keynote Statement - H.E, Dr Jakaya Kikwete, Former President, Tanzania .... 36

3.3.1 Realising the AU Vision of Political integration ................................................. 36

3.3.2 Maximising Benefits of Economic Diplomacy .................................................. 36

3.3.3 Significance of Smallholder Farmers .................................................................. 37

3.3.4 China Engagement with Africa ........................................................................... 37

3.3.5 Debt Contraction and Sustainability. ................................................................. 37

3.3.6 Addressing Youth Unemployment in Africa ..................................................... 38

3.4 Keynote Statement - Dr Lubinda Haabazoka, President, EAZ ............................ 38

3.4.1 Reflections on the Theme for the Summit ......................................................... 38

3.4.2 Policy, Interventions and Recommendations .................................................. 40

CHAPTER FOUR ................................................................................................................................. 50

4.0 SALIENT ISSUES FROM THE DELIBERATIONS OF THE SUMMIT.................................... 50

4.1 THE ROLE OF THE FINANCIAL SECTOR IN ZAMBIA’S ECONOMIC DEVELOPMENT 50

4.1.1 Overview .................................................................................................................... 50

4.1.2 Financial Sector and Growth ............................................................................... 50

4.1.3 ICT and Financial Inclusion .................................................................................... 51

4.1.4 SMEs and the Economy ......................................................................................... 52

4.1.5 Financing SMEs - Hindrances to SME growth ................................................... 52

4.1.6 Recommendations .................................................................................................. 53

4.2 THE ROAD TO SALES TAX ................................................................................................. 55

4.2.1 Overview .................................................................................................................... 55

4.2.2 VAT Performance in Zambia ................................................................................. 55

4.2.3 Challenges to VAT Administration....................................................................... 56

4.2.4 Strategies to Redress VAT Challenges ............................................................... 57

4.2.5 Sales Tax as a Policy Intervention ........................................................................ 57

4.2.6 Sales Tax: Scope and Imposition ......................................................................... 58

4.2.7 Common Features between Sales Tax and VAT ............................................ 58

4.3 INTRA AFRICA TRADE - A FOCUS ON THE AFRICA FREE TRADE AGREEMENT .... 59

4.3.1 Overview .................................................................................................................... 59

4.3.2 Intra Africa trade and Africa Free Trade Agreement ................................... 59

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4.3.3 Major Factors Affecting Intra Africa trade ....................................................... 61

4.3.4 Making Companies in Africa more Competitive for Trade ......................... 61


4.4 ZAMBIA, THE HUB OF ELECTRICITY TRADING IN THE REGION ................................. 63

4.4.1 Overview .................................................................................................................... 63

4.4.2 Zambia’s Energy Generation Prospects in Southern Africa ......................... 63

4.4.3 Regulatory Challenges Limiting Zambia’s Energy Sector Growth ............. 68

4.4.4 Nuclear Power Generation - Challenges and Pospects for Zambia ........ 70

4.4.5 Role of New Business Models in Enhancing Energy Supply - Case

Study of GreenCo Power Service Limited ........................................................................ 73

4.4.6 Recommendations on Energy Sector ................................................................ 75

4.5 NATIONAL ECONOMIC DEVELOPMENT – THE ISRAELI EXPERIENCE .................... 77

4.5.1 Overview .................................................................................................................... 77

4.5. The Secret of Success which made Israel to become the Start-up Nation .. 77

4.5.3 Bringing Israeli Solar and Agricultural Technologies to African Villages ... 78


4.6 EDUCATION AND HUMAN CAPITAL DEVELOPMENT SEGMENT ............................ 79

4.6.1 Overview .................................................................................................................... 79

4.6.2 Alternative Financing for the Education Sector .................................................... 80

4.6.3 Limitations in Financing Initiatives ........................................................................ 82

4.6.7 Conclusion and Recommendations .................................................................. 83

4.7 NON-TRADITIONAL METHODS OF FUNDING INFRASTRUCTURE’............................ 84

4.7.1 Overview .................................................................................................................... 84

4.7.2 The Role of Tolling in Enhancing Road Infrastructure Development in

Zambia …………………………….…………………………………………………………………………………………………..84

4.7.3 Enhancing Competitiveness of Local Contractors ........................................ 87

4.7.4 Enhancing the Quality for Public Projects and PPP Projects ....................... 88

4.7.4 Enhancing the Use of Locally Produced Materials ........................................ 89

4.8 AGRICULTURAL DEVELOPMENT IN ZAMBIA ................................................................ 90

4.8.1 Overview .................................................................................................................... 90

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4.8.2 Agriculture Sector Dvelopments in Africa......................................................... 90

4.8.3 Challenges and Prospects for Crop Diversification in Zambia ................... 93

4.8.4 What can be done to make Maize Profitable? .............................................. 93

4.8.4 Measures to Improve the Contribution of Fishing Farming .......................... 95

4.9 THE ROLE OF ICT IN PROPELLING ECONOMIC DIPLOMACY ................................. 96

4.9.1 Overview .................................................................................................................... 96

4.9.2 SMART Zambia E-Government Agenda ............................................................ 96

4.9.3 Positioning of ICT to Facilitate Economic Diplomacy and Trade ............... 97

4.9.4 Role of ICT to Improve Access to Domestic, Regional and International

Markets ……………………………………………………………………………..………………………………………………….98

4.9.5 Opportunities under Regional Integration Initiatives ..................................... 99

4.9. 6 Value of ICT for Economic Diplomacy .............................................................. 99

4.10 THE IMPORTANCE OF THE AVIATION INDUSTRY IN ENHANCING REGIONAL TRADE

IN AFRICA ......................................................................................................................................... 100

4.10.1 Overview .................................................................................................................. 100

4.10.2 Bilateral Air Services Agreements ...................................................................... 100

4.10.3 Yamoussoukro Declaration ................................................................................. 101

4.10.4 Current Status as Regards to Treaties ............................................................... 101

4.10.5 Type of Equipment (Are African Airlines still in the 737 Syndrome?) ........ 102

4.10.6 Where Zambia was in Terms of Regional Growth? ...................................... 103

4.10.7 Recommendations ................................................................................................ 103

4.11 THE BUSINESS ENVIRONMENT IN ZAMBIA; A LEGAL PERSPECTIVE .......................... 103

4.11.1 Overview .................................................................................................................. 103

4.11.2 Binding Constraints ................................................................................................ 104

4.11.3 Some key Laws Regulating Business in Zambia ............................................. 105

4.11.4 Conclusions and Outlook .................................................................................... 106

4.12 ECONOMIC OUTLOOK - REMARKS BY HON. DR. BWALYA NG’ANDU, MP,

MINISTER OF FINANCE ................................................................................................................... 106

4.12.1 Economic Outlook ................................................................................................. 106

4.12.2 Policy Measures by Government ...................................................................... 107

5.0 MAIN RECOMMENDATIONS ................................................................................................ 109

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Enhancement of African Intra and International Trade ............................................ 109

Addressing Youth Unemployment in Africa ................................................................... 111

Recommendations on Energy Sector .............................................................................. 114

6.0 VOTE OF THANKS-CHARITY LUMPA ................................................................................ 120

ANNEXES ........................................................................................................................................... 121

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CHAPTER ONE

1.0 OVERVIEW OF THE NATIONAL ECONOMIC SUMMIT

1.1 Introduction

The Economic Association of Zambia hosted an inaugural National Economic

Summit (NES) from 25th to 26th July 2019, at Avani Victoria Falls Resort,

Livingstone. The theme of the Summit was “The Future of Economic

Diplomacy: Supporting Inclusive Growth and Sustainable Development in

Africa”.

The Summit was officially opened by His Excellency, Mr Edgar Chagwa Lungu,

President of the Republic of Zambia on 26th July 2019.

The Summit was also attended by His Excellency, Hon. Uhuru Kenyatta,

President of the Republic of Kenya, and His Excellency, Dr Jakaya Kikwete,

former President of the United Republic of Tanzania, following invitations by

the EAZ.

The NES drew both local and international participants. A total of 720

attended the NES. Among the delegates were regional government leaders,

EAZ members, Cabinet Ministers, senior government officials, captains of

industry, policy think tanks, private sector, cooperating partners, academia,

students, and civic leaders.

Key discussion topics focused on the broad theme of the Summit and

comprised deliberations on a broad range of economic issues in Africa.

Furthermore, the Summit focused on and provided meaningful insights for

improved policy making in Africa.

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the Summit.

Various topics on the theme were discussed during the Summit, which

culminated into key Policy recommendations.

1.2 Arrangement of the Report

The Report has five parts arranged as follows:

I. Chapter One: Overview of the National Economic Summit;

II. Chapter Two: Background information (objectives and rationale, the

main objective of the Summit, specific objectives, expected results, the

format of the Summit expected outputs and inputs);

III. Chapter Three: Official opening of the Summit;

IV. Chapter Four: Salient issues from the deliberations of the Summit; and

V. Chapter Five: Main Recommendations.

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CHAPTER TWO

2.0 BACKGROUND

Economic Diplomacy is a game-changing reality which African countries

must fully embrace in order to achieve sustainable and inclusive

development.

In the new world economic order, characterised by globalisation, economic

diplomacy is emerging as one of the ubiquitous modes of modern diplomatic

practices in both the developed and developing nations. It is also worth

noting that Economic Diplomacy takes many forms, such as negotiation of

bilateral and multilateral trade agreements, establishing foreign economic

relations, nation branding, the attraction of foreign direct investment and

promoting international tourism in the pursuit of national development

objectives.

There is no doubt that cross-border linkages are a fundamental factor in the

growth and development of highly interconnected economies, which makes

sound economic diplomacy essential. A closer look at Africa's growing

market economies reveals a more complex picture involving the importance

of economic diplomacy. In view of the foregoing, there is need for Africa to

further strengthen its promotional activities with the view to creating an

image of a dependable partner in trade and tourism investment. The

creation of awareness and developing interest in the trade, investment and

tourism opportunities available in Africa should be pursued aggressively and

in a sustainable manner. The Summit will, therefore, deliberate on how

Economic Diplomacy could propel economic growth throughout the

continent.

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“The Future of Economic Diplomacy: Supporting Inclusive Growth and

Sustainable Development in Africa” was the theme of the 2019 Economic

Summit, organised by the Economics Association of Zambia (EAZ) with

support from various stakeholders.

Africa has over the years pursued economic diplomacy in a quest to

increase exports, particularly of value-added or industrial products, improve

international tourism to pursue national development imperatives and

facilitate foreign direct investment that provides job opportunities and

contribute to growth. The economic diplomacy of African states is primarily

diplomacy of development aimed at improving the quality of life of African

citizens. Development policy and economic diplomacy, therefore, should

work in tandem. To that end, economic diplomacy has assumed great

significance and has become one of the dominant features of global

economic relations. Even though Africa is moving at a slow pace overall, it is

making steady progress in building the critical ingredients for sustainable and

resilient economies. In order for Africa to develop a clearer and stronger

economic diplomacy that is aimed at supporting both national and

continental development, there will be need for identification of strategic

foreign policy priorities, greater institutional co-operation among agencies

dealing with economic and foreign policy development as well as building

synergies between corporate strategies on the one hand and governments’

foreign policy objectives on the other.

Promoting inclusive growth is a critical aspect in having an interconnected

global economy, as well as a moral imperative of development policy.

Sustained inclusive economic growth promotes political and economic

stability. The Sustainable Development Goals (SDGs) of the UN place

emphasis on promoting inclusive and sustainable economic growth, and

creating employment opportunities and decent work for all, especially for the

marginalised youth.

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The Summit sought to spark interest and create a platform for stakeholders to

find answers through policy recommendations, formulation of strategies to

help various governments and other key players to find mechanisms that

would help in eradicating poverty and hunger, and jump-start economic

recovery in Africa. Furthermore, the Summit sought to address the challenges

that many policy-makers face in Africa, including the lack of country-specific

empirical evidence that could guide their policy choices.

Some of the credible solutions lie in the improvement of Africa’s key sectors

such as agricultural productivity through the improvement of market access

for smallholder farmers, expansion of local production of goods and services,

increasing exports, strengthening service delivery and providing an enabling

environment for businesses to thrive and create jobs which are gender-

responsive and represent the needs of the young people.

Africa has a number of potential opportunities in all the above areas and it is

difficult to explain why its recovery has remained elusive. As a precondition to

jump-starting economic recovery, Africa needs to better manage the

economy to increase investor confidence, improve ease of doing business,

and attract Foreign Direct Investment (FDI) into the continent. Among the

major instruments include the foreign policy of a nation which could be used

to achieve national goals, hence the call for a united Africa.

2.1 Objectives and Rationale

2.1.1 Main Objective of the Summit

The main objective of the Summit was to offer a unique avenue as well as

present a platform where key stakeholders could gather to discuss, evaluate

and develop strategies aimed at strengthening the economic environment in

Zambia in particular and across Africa in general in order to achieve

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sustainable economic development. Furthermore, the Summit deliberated on

ways in which trade could be used as a mechanism to improve Africa’s

economy from being lower income to higher income and improve the living

standards of the citizenry. Economic diplomacy might just be the key as it

may result in economic growth, job creation, poverty eradication and

improving the global competitiveness of Zambia in particular and Africa as a

whole.

Taking into perspective the Seventh National Development Plan (7NDP)

which aims at accelerating development efforts towards Vision 2030 and the

Africa Union Agenda 2063 with focus on Africa, the holding of the Summit

was timely and was expected to address burning issues of various

stakeholders.

2.1.2 Specific Objectives

The specific objectives of the Summit were to:

I. Promote economic dialogue between the state and non-state actors;

II. Develop mechanisms that support the effective use of local products

to stimulate economic growth through value addition;

III. Provide crucial information that could assist governments to support

national efforts at diversifying and increasing the export base,

attracting foreign investments, and promoting the tourism and

hospitality sector, among other things;

IV. Create a platform that supports the exchange of ideas and innovative

thinking among researchers, development practitioners, and

policymakers at all levels (local, national, regional and global);

V. Encourage and enhance research on economic and policy issues

related to the development of the Zambian and African economies;

and

VI. Create avenues which the African economy would be boosted.

Promote evidence-based policy planning and implementation.

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2.2 Expected Results

I. Improved working relationships between state and non-state actors

II. Strengthened peer learning, information sharing mechanisms and

collaboration among key players at all levels

III. Enhanced awareness of better economic practices at all levels

IV. Effective coordination, planning and implementation of plans and

policies

V. It was envisaged that the deliberations would provide contributions to

the discussions of high-level policy makers

VI. The insights and analyses presented at the Summit would provide

important analytical milestones for achieving the Vision 2030 without

leaving anyone behind, especially as Zambia’s 7th National

Development Plan unfolds

VII. The Summit was also expected to provide important opportunities for

key policy makers to develop new partnerships and deepen networks

2.3 Format of the Summit

Key discussion topics focused on the broad theme of the Summit which was

“The Future of Economic Diplomacy: Supporting Inclusive Growth and

Sustainable Development in Africa” and comprised deliberations on a broad

range of economic issues in Africa. Furthermore, the Summit focused on and

provided meaningful insights for improved policy-making in Africa.






the Summit.

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The Summit covered the following thematic areas:

I. Structural policies and bilateral trade and investment agreements,

II. International organizations and their role in the development process,

III. Economic Diplomacy in Africa,

IV. Regional Integration and Infrastructure,

V. Global Dimension of Growth & Sustainability,

VI. Economic Integration and Communication Technology,

VII. Institutional Framework for Inclusive Economic Growth,

VIII. Agriculture as a means of Economic Diversification ,

IX. Financing for Development,

X. Trade and Investment ,

XI. Energy and Industrialization,

XII. Policy Framework for Growth,

XIII. Population, Migration and Urbanization, and

XIV. Socioeconomic Development.

2.4 Expected Outputs and Inputs

The expected outputs from the Summit included:

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I. A Summit Report summarising key findings as well as important policy

recommendations extracted from Summit papers and keynote

speeches; and

II. The proceedings of the Summit, incorporating relevant comments and

feedback from peer review and Summit participants, may be

published after the Summit.

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CHAPTER THREE

3.0 OFFICIAL OPENING OF THE SUMMIT

The Summit was officially opened on 26th July 2019, by His Excellency, Mr

Edgar Chagwa Lungu, President of the Republic of Zambia, who was the

Guest of Honour. This was preceded by keynote speeches from His

Excellency, Hon. Uhuru Kenyatta, President of the Republic of Kenya and Dr

Lubinda Haabazoka, President of the Economic Association of Zambia.

3.1 Keynote Speech - H.E, Mr Edgar C. Lungu, President of the Republic of

Zambia

The President indicated he was greatly honoured to participate as one of the

keynote speakers at the inaugural National Economic Summit which was a

brainchild of the Economics Association of Zambia.

President Lungu extended his gratitude to his Excellency Hon. Uhuru

Kenyatta, President of the Republic of Kenya for sparing time to attend the

Summit. He observed this was a clear demonstration of commitment to

building and sustaining the bilateral cooperation between Zambia and

Kenya, and the critical role Kenya was playing in advancing economic

diplomacy in Africa.

President Lungu also expressed profound gratitude to His Excellency, Dr

Jakaya Kikwete, former President of The United Republic of Tanzania for

participating in this Summit. He underscored the longstanding history

between Zambia and Tanzania anchored on common interests at bilateral

and multilateral levels.

President Lungu also commended the Economics Association of Zambia

(EAZ) for hosting the inaugural National Economic Summit.

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The President observed that theme for the Summit “The Future of Economic

Diplomacy: Supporting Inclusive Growth and Sustainable Development in

Africa” was relevant as it resonated well with the aspirations of his

Government and the Zambian people. He indicated that Government was

desirous to see an inclusive growth, and sustainable development which

permeates gender, social-economic status, ethnicity, race, and religious

orientation. The President also noted that theme was in line with the African

Union’s Agenda 2063, and the United Nations Agenda 2030.

The President indicated that he was committed to domesticating and putting

into practice the preamble of the AU Agenda 2063 as stipulated below.

“We are resolved to free the human race from the tyranny of poverty and

want to heal and secure our planet. We are determined to take the bold

and transformative steps which are urgently needed to shift the world onto a

sustainable and resilient path. As we embark on this collective journey, we

pledge that no one will be left behind.”

The President underscored the importance of the Summit as it offered an

opportunity for positive dialogue on issues pertaining to the Zambian

economy in particular and the African continent at large.

The President emphasised that development initiatives, policies, strategies,

tools, and programmes such as economic diplomacy, inclusive growth, and

sustainable development should take centre stage as we strive for economic

prosperity for the African continent.

The President highlighted some of the economic initiatives the Zambian

government had embarked on in pursuit of inclusive growth, sustainable

development, and economic diplomacy.

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3.1.1 Key Economic Sectors

A. Energy Sector

The President highlighted the range of natural resources such as forests, water

and minerals such as coal, and renewable sources of energy such as, wind,

solar energy and hydropower which Zambia was endowed with. He

indicated that with these natural resources, the country had the potential to

generate about 6,000 Megawatts (MW) of electricity, once fully developed.

The Summit was informed of the measures that the government had put in

place to grow and diversify the energy sector to enhance its contribution to

national economic diversification. He indicated that the measures were

anchored on the need to ensure universal access to clean, safe, reliable and

affordable energy at the lowest cost, consistent with national development

aspirations. These measures included:

Rural Electrification Programme:

Government, through the Rural Electrification Authority (REA), was

implementing a number of projects to increase access to electricity from 3

percent to 51 percent by 2030;

I. Grid Extension Projects in 10 provinces;

II. Solar Projects - 423 stand-alone solar home system projects at various

public and social institutions;

III. Mini-hydro power stations in various districts; and

IV. Wind energy projects in Lunga district of Luapula Province.

Integrated African Electricity Sector

The President informed the Summit that on the international scene, Zambia

would continue to play a major role in promoting the development of an

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integrated African electricity sector. He indicated that this was meant to

facilitate the long-term establishment of an African electricity market which

provides access to affordable and reliable electricity to the people of Africa.

He pointed out that as a country, Zambia was heavily investing in power

generation plants – hydro-electric plants, solar energy, nuclear, wind and

many other forms of renewable energy, not only for domestic consumption,

but also for export into the region and Africa as a whole.

He emphasised that this was part of the strategy to promote the African

regional power pools and interconnections of grids between countries in

order to facilitate power trading, and promotion of renewable energies.

In a bid to have a full-fledged regional electricity transmission, the President

informed the Summit that the Government of the Republic of Zambia was

actively supporting the implementation of the following projects:

1. Zimbabwe-Zambia-Botswana-Namibia (Zizabona 330kv);

2. Zambia-Tanzania-Kenya (400 kv);

3. Mozambique-Malawi (400 kv); and

4. Mozambique-Zimbabwe-South Africa (Mozisa 400kv);

B. Infrastructure Development

The President underscored the importance of infrastructure development as

a vital component in encouraging a country's economic growth by

enhancing efficiency in production, transportation, and communication. The

President indicated this was the reason the Zambian government was

investing massively in infrastructure development to spur accelerated

sustainable development and inclusive growth.

Some of the infrastructure development projects being implemented

included the construction of new, and expansion of existing, airports, rail, and

road infrastructure. This was meant to ensure that Zambia was land linked to

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the Southern African Development Community (SADC), the Common Market

for Eastern and Southern Africa (COMESA), and Africa as a whole.

C. Social Infrastructure

The President informed the Summit that his government had embarked on an

ambitious programme to establish and upgrade hospitals, primary and

secondary schools, and tertiary learning institutions such universities, colleges

and skills training centres. It was learnt that this was to ensure Zambians are

provided with access to quality medical care, education and skills training for

them to contribute positively to sustainable development within Zambia and

the African continent.

D. E-Government

In terms of Information Communication Technologies (ICT) Infrastructure and

in line with the vision of establishing a SMART Zambia, the Summit learnt that

the Zambian government had established the Zambia National Data Centre

in 2015, a limited company under the Industrial Development Corporation

(IDC). It was indicated that this is Zambia’s only dedicated Data Centre

Company offering various ICT-related services. It was heard that the

establishment of this company would contribute to the reduction of cost of

ICT-related services.

The President urged the business community to make use of the Zambia

national data centre. The delegates also learnt that the Zambian

government had established the SMART Zambia Institute mandated to

coordinate and implement electronic government (e-government) for the

citizens, businesses and the public sector for improved service delivery. The

President highlighted the following services that government, through SMART

Zambia, was providing aimed at creating an enabling business environment:

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1. Government to Citizens (G2C) online services that include:

ePAMODZI; ePAYSLIP; The Zambia Integrated Agriculture

Management Information System (ZIAMIS); Zambia Integrated

Land Management Information System (ZILMIS); and Smart Care;

2. Government to Business (G2B) online services such as tax online;

ASYCUDA; e-PACRA; e-Procurement; and e-VISA; and

3. Government to Government (G2G), the following online services

are in place: e-CABINET; Integrated Financial Management

Information System (IFMIS), and Treasury Single Account (TSA);

Payroll Management and Establishment Control (PMEC); Shared

Services; and Government of the Republic of Zambia (GRZ)

Mining Cadastral Portal.

3.1.2 Revision of Key Economic Policies

The Summit was informed of several polices government had revised to make

them business-friendly. Particularly, the Summit learnt that government

through the Ministry of Commerce, Trade and Industry had formulated the

National Industrialisation Policy, the Trade Policy, the Strategy on Local

content utilisation and the Buy Zambian campaign. It was also indicated that

the Government was in the process of revising the Macro, Small and Medium

Enterprises (MSMES) policy to make it responsive to the needs of this sector.

3.1.3 Provincial Expos

The President informed the Summit that the government had embarked on

hosting provincial expos to showcase the investment potential in the ten

provinces. He indicated that the provincial expos were aimed at attracting

appropriate investment in respective sectors in each province. He

highlighted the vast investment opportunities in respective sectors including

mining, manufacturing, agriculture, tourism, energy, health and education.

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Policy Direction

The President directed the Ministry of Finance to work closely with the

Economics Association of Zambia (EAZ) in finding ways of ensuring that all

economists in Zambia are registered with the association to bring order in the

field.

3.2 Keynote Speech – H.E, Hon. Uhuru Kenyatta, President, Republic of

Kenya

President Kenyatta in his keynote speech observed that the theme of

economic Summit “The Future of Economic Diplomacy: Supporting Inclusive

Growth and Sustainable Development in Africa” was is in line with the

comprehensive framework, Vision 2063, developed and adopted by the

African Union for the realisation of a prosperous continent.

He particularly pointed out that having launched of the operational phase of

the Continental Free Trade Agreement, in Niamey, Niger at the beginning of

July 2019, and having participated in the COMESA business Summit in Nairobi

in the same month, the National Economic Summit stood in good stead to

take forward some of the discussions and commitments to grow regional and

intra-regional African trade.

He further observed that the Summit’s focus on topics such as structural

economic policies; bilateral trade and investment agreements; international

organizations and their role in the development process; Economic

Diplomacy in Africa; Regional Integration and Infrastructure; Global

Dimension of Growth & Sustainability, and Communication Technology,

offered an opportunity to focus on the entire ecosystem for driving the

prosperity agenda for Zambia and Africa at large.

President Kenyatta underscored the importance of economic diplomacy as

it had become a priority for many countries worldwide. He observed that

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attention on trade, investment and commercial agenda was responding to

the reality of a globalised world.

3.2.1 Fundamental Realities - Economic Diplomacy in Africa

President Kenyatta pointed out five fundamental realities that underline the

importance of economic diplomacy in Africa. These include:

1. The need to respond to the obtaining reality that more than 95 percent

of the world trade is being transacted outside the continent of Africa;

2. The cost of doing business in Africa was higher compared to other

continents. African exports outside the continent encountered high

barriers and Africa was the only continent in the world that had the

least trade and investment with itself;

3. Africa was most affected by the new challenges of globalisation,

supply chains, data flows and blockchains;

4. African cities were becoming the centre of economic growth. The rate

of economic growth in the global South far exceeded the one in the

global North and was essentially located in developing countries and

in particular on the continent of Africa. This implied that consumption

patterns were going to change as people have more disposable

income; and

5. More than 65 percent of uncultivated arable land was located on the

African continent, which presents huge opportunities for agricultural

production on the continent to feed itself and the rest of the world.

President Kenyatta took cognizance of the shared aspirations between

Kenya and Zambia for addressing all the above-highlighted issues as a

means of growing prosperity between the two countries. He pointed out that

this shared prosperity could only be realised through closer cooperation and

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integration. He noted this would expand the two countries’ markets, create

bigger opportunities, reduce the cost of production and enhance quality of

services and goods.

President Kenyatta further observed that because of the shared aspirations,

Kenya and Zambia supported each other's growth and development

processes and had been strategic and cooperative partners. He indicated

that the relationships the two countries had developed offered the potential

to strengthen economic and commercial links. He implored the two countries

to ensure that their ties were used in the best way possible to promote

mutually beneficial trade and investment.

President Kenyatta lauded Zambia’s Vision 2030 which strived to make

Zambia a “prosperous middle-income country by 2030” and current focus as

reflected in the Seventh National Development Plan (7NDP) for the period

2017-2021, focusing on creating a diversified and resilient economy for

sustained growth and socio-economic transformation. President Kenyatta

indicated that similarly, Kenya had its economic vision for accelerating

transformation of the country into a rapidly industrialising middle-income

nation by the year 2030.

He also indicated that Kenya shared a collective membership of the

COMESA, SADC-EAC-COMESA Tripartite Free Trade Area and now African

Continental Free Trade Area (AfCFTA). He further indicated that his country

cooperated actively in various instances internationally as well as at the

continental level, through a shared aspiration for effective continental

integration and deepened regional trade.

President Kenyatta indicated that he recognised the importance of FDI for

economic development as increased FDI into African economies would help

support economic prosperity. He indicated this was the reason why they

continued to reform their business environment to facilitate business people

and investors, both local and foreign.

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3.2.2 Policy Recommendations

President Kenyatta made the following recommendations to the Summit;

I. The need to pursue policies and structural reforms that promote trade,

foreign direct investment, tourism and technology transfers to this

continent of Africa. These included: improving market access and

trade with bilateral partners, increasing foreign direct investment,

positioning our countries as a preferred tourism and investment

destinations as well as marketing them abroad more widely;

II. The need to provide quality leadership by actively getting involved in

economic diplomacy and bringing onboard all relevant stakeholders,

including the private sector, to ensure that there was requisite

complementarity when all actors were all pulling in the same direction

to maximise on the use of the available scarce resources.

III. Diversification of products and trade markets was crucial and focal

aspect of economic diplomacy. He pointed out that if African

countries were to develop faster and take advantage of regional

integration and benefits of globalisation, there was need to address

the constraints facing the supply side of our economies, including those

related to inadequate infrastructural linkages. He indicated that this

required structural transformation that would lead to more diversified

economies, value addition and, in consequence, significant reduction

of over-dependence on primary commodities.

IV. That development of infrastructure to promote connectivity of the

continent to facilitate trade and reduce market fragmentation was

indispensable. He reiterated that through these focused and sustained

efforts, Africa would conquer poverty, create jobs for the youth and

overall, create a prosperous and peaceful continent, as envisaged

under the AU Vision 2063.

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3.3 Keynote Statement- H.E, Dr Jakaya Kikwete, Former President, Tanzania

3.3.1 Realising the AU Vision of Political Integration

President Kikwete opined that there was no conflict in uniting Africa, but the

process was of great importance. He was hopeful that there was progress

being recorded towards having a united state of Africa as evidenced

through regional groupings were going to be building blocks before political

integration was realised. However, he noted that the process needed

commitment from AU member states.

President Kikwete was of the view that if Africa were to benefit from political

and economic Integration, there was a need for sharing a common cause

amongst AU Member states. He indicated this would involve removal of

tariffs, free movement of goods, creation of certain conditionalities such as

rules of origin, having common external tariff: agree to create a common

external tariff for external goods produced outside Africa to avoid diversion

of trade.

3.3.2 Maximising benefits of Economic Diplomacy

With regard to the significance and maximising benefits of economic

diplomacy, Dr Kikwete emphasised the need for AU to take deliberate efforts

to enhance the use of Foreign policy is an extension of domestic policy in

projecting national interest in the international arena in all facets. He

indicated that this including projecting economic interests abroad.

To ensure Africa benefited from economic diplomacy, Dr Kikwete opined

that AU member states should:

I. Secure markets for local products;

II. Prioritise technological transfer, investments into other countries and

develop partnerships with other countries, so that you create a more

significant niche.

III. Facilitate the creation of a conducive business environment;

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IV. Promote peace and security within nations and in the region;

V. Build trustworthy institutions to enhance the rule of law such as building

confidence in the courts;

VI. Combat corruption and graft to enhance transparency and

accountability.’

VII. Ensure predictable social and environmental policies; and

VIII. Have clear incentive packages to both local and foreign investors.

3.3.3 Significance of Smallholder Farmers

President Kikwete implored African countries to ensure they promote inclusive

strategies to ensure full involvement and contribution of small scale farmers to

the economy. He argued that there was no way small scale farmers could

remain excluded from full participating in the economy as this group

accounted for 70 to 80 percent of the population.

3.3.4 China’s Engagement with Africa

On whether china’s contribution to Africa’s could be doubted, and need to

be cautious as suggested by the West, Dr Kikwete observed that the West

(Europe and USA) had close trade links with China. He noted that the West

and China have had mutual trade dealings and the former had invested

heavily in China. He also indicated that unlike the West, Africa had the least

trade with China. Dr Kikwete urged AU countries to strengthen trade with

China.

3.3.5 Debt Contraction and Sustainability.

Dr Kikwete urged AU member states to ensure they should not take loans

without assessing their capacity to pay back. He gave the case of his country

where every loan met certain criteria before being contracted. For instance,

Tanzania ensures that every loan should have a concession element.

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3.3.6 Addressing youth unemployment in Africa

Dr. Kikwete observed that youth unemployment was a big challenge

affecting most African countries. He implored AU member states to

modernise and make the agriculture sector attractive as it had huge

potential to contribute to creation of sustainable jobs. He observed that if

agriculture remained subsistence and lacked technology, the youths would

continue shunning this sector.

He urged governments to facilitate modernisation agriculture to enhance

productivity and profitability.

3.4 Keynote Statement - Dr Lubinda Haabazoka, President, EAZ

3.4.1 Reflections on the theme for the Summit

Dr. Haabazoka began by acknowledging the contributions of the Zambian

government, various stakeholders and partners towards the successful

hosting of the Summit (Amplified under the Acknowledgements section of the

Report).

Dr Haabazoka informed the Summit that the theme “The Future of Economic

Diplomacy: Promoting Inclusive Growth and Sustainable Development in

Africa” was conceived in respect of the current economic development

thinking. He indicated that the theme was in line with the United Nations’

Agenda 2030 that focused on SDGs and the African Union’s Agenda 2063 –

“The Africa We Want”, and also at the national level it fitted into the Seventh

National Development Plan and the Vision 2030.

In his keynote speech titled “Championing economics of the people, for the

people, by the people: the Zambia we want”, Dr Lubinda indicated that EAZ

believed in “economics that is at the centre of people’s lives”. He indicated

that EAZ agreed with the African Union’s Agenda 2063 and the United

Nations Agenda 2030 and the SDGs as these development initiatives focus on

human development in all areas of life.

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Dr Haabazoka pointed out that there was need for practice of economics

that balanced the interests of the owners of capital and improving people’s

choices and freedoms.

The EAZ president also indicated that his speech was inspired by the United

Nations Development Programme’s Human Development approach

introduced in 1990, as it is focused on people and their opportunities and

choices.

“Human development - or the human development approach - is about

expanding the richness of human life, rather than simply the richness of the

economy in which human beings live”.

In line with the theme of the Summit, Dr Haabazoka highlighted that human

development focused on improving the lives people led rather than

assuming that economic growth would lead, automatically, to greater

wellbeing for all. He further argued that human development was about

giving people more freedom to live lives they value.

The EAZ president acknowledged the positive strides being made by most of

the countries on the African continent, particularly for Zambia, Kenya,

Tanzania and South Africa for pursing people-centred development plans,

policies and strategies.

He notably observed that the focus of governments in Sub-Saharan Africa

that Include Zambia, Kenya and Tanzania is to reduce poverty, inequality

and unemployment thereby Increasing people’s freedoms, capabilities,

choices and well-being.

The EAZ president highlighted the positive strides as reflected by several

forward-looking economic strategies aimed at turning the Vision 2030 into

reality.

He observed that 7NDP was a development plan of the people, for the

people, by the people as its theme indicated: “Accelerating development

efforts towards Vision 2030 without leaving anyone behind” while Zambia’s

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Vision 2030 was centred on human-development: “Becoming a prosperous

middle-income country by 2030”.

He commended the government of the Republic of Zambia for achieving the

main goal of the Seventh National Development Plan which is: “to create a

diversified and resilient economy for sustained growth and socio-economic

transformation is driven, among others, by agriculture and to respond to the

Smart Zambia transformation Agenda 2064 and consequently to embed in it

the economic recovery necessary for the actualisation of a Smart Zambia”.

3.4.2 Policy, Interventions and Recommendations

Dr Lubinda Haabazoka highlighted the progress government had made in

implementing the 7NDP and suggesting key recommendations government

and stakeholders could consider in actualising the theme of the Summit.

3.4.2.1 Citizen Influenced or Citizen Empowered Companies

He acknowledged the special attention being given to citizen influenced,

citizen empowered, or citizen-owned companies for preference and

reservation schemes as provided for in both the Citizens Economic

Empowerment Act No. 9 of 2006 and Statutory Instrument No. 36 of 2011. He

observed that the focus of these interventions was in Manufacturing;

Agriculture; Mining; Trading; Construction (Civil, Road, And Building and

Services). However, Dr Haabazoka expressed concern that most people

seemed not to know much about this facility.

He highlighted the specific interventions, which included:

I. The Aquaculture Seed Fund of the Zambia Aquaculture Enterprise

Development Project (ZAEDP).

He indicated this project was focusing on table fish production, fish seed (fry

and fingerlings) production, fish feed production or other fish farming input

supply business, cold chain solution, fish value addition and processing

41

(drying, smoking, fillet, canning, etc.), marketing of fish products, or other

commercially viable fish farming backward and forward business activities.

He pointed out that if these projects come to fruition, the fish deficit in

Zambia would be narrowed hence reducing imports that would contribute to

lessening pressure on the demand for foreign exchange and consequently

reduce the prices of fish that is locally grown.

II. Skills Development and Entrepreneurship Project

The Summit heard that the CEEC was also running a skills development and

entrepreneurship project supporting women and youth where there was

even a call for applications for the occupation of industrial yards. He noted

CEEC under option one (1) was constructing 8 industrial yards in Lusaka,

Chipata, Mongu, Ndola, Kitwe, Solwezi, Mansa and Kasama districts.

Dr Haabazoka noted that an estimated 300 MSME’s would participate in

option 1 and would have opportunities to access business loans from CEEC

for purchase of equipment and working capital. He indicated that it was

expected that this intervention would create at least 4,000 jobs in the

industrial yards by 2021.

He further commended the government for securing e-financing from the

African Development Bank (AFDB) towards the implementation of the skills

development and entrepreneurship project supporting women and youth

which funds are for the development of industrial yards in Zambia through the

CEEC.

He noted that the CEEC targeted citizens and targeted companies to

occupy light manufacturing workshops for purposes of metal fabrication,

wood processing, auto mechanics, agro-processing, gemstone processing,

information and communication technology-ICT and energy as well as bulk

storage, timber curing kilns and restaurants to commercially operate in the

following industrial yards: Mongu ,Solwezi, Kasama, Ndola and Chipata.

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Recommendations

I. Increase public sensitization using timely, relevant and

appropriate media and marketing strategies to increase

awareness and visibility of the interventions.

II. Zambian people should develop a culture of creativity and

innovativeness if their businesses are to thrive and remain

competitive.

III. Zambian people should develop a culture of spending the

financial resources they access from institutions such as CEEC on

the intended viable business projects and be highly motivated to

pay back if these our institutions are to be exceedingly financially

sustainable.

IV. EAZ requested that more funding be allocated and disbursed to

support such initiatives (empowerment programmes).

V. Urged Government to ensure that CEEC expedited the process

of building these planned industrial yards and also extends them

to the other remaining four provinces of Central, Lusaka,

Luapula, and Southern.

VI. Urged the government to ensure that its intentions to introduce

Economic Facility Zones across the country as a way of fast-

tracking Zambian-owned industrialisation was actualised within

the implementation period of the 7NDP.

VII. Urged the government of the Republic of Zambia to continue on

the path of diversification within the mining sector from copper

to other minerals such as industrial minerals, petroleum and

gemstones.

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VIII. The government should continue to promote value addition in

the sector in a bid to create backward and forward linkages with

other sectors of the economy.

3.4.2.2 Promotion of Home-Grown Industries

Dr Haabazoka recognised the positive strides government was making

through ZDA to realise the Vision and Mission “to be a dynamic hub for

promoting economic development for all” and to “to efficiently and

effectively promote and facilitate investment, trade and enterprise

development in Zambia.”

He noted that through the Micro, Small and Medium Enterprise (MSME)

Division, ZDA facilitates skills training through various training packages and

other services that promote home-grown industries.

Dr Haabazoka also commended the government for declaring Kafue town

as an iron and steel economic facility zone as a way to encourage

homegrown industrialisation.

He further highlighted EAZ appreciated the significance of Economic Facility

Zones in promoting and actualising Zambia’s industrialisation programme as

enshrined in the 7NDP. He indicated government’s intentions to introduce

Economic Facility Zones across the country was meant to fast-track Zambian-

owned industrialisation.

3.4.2.3 Trade and Industrialisation

The EAZ president extolled the Government for formulating the following

policy documents that promote trade and industrialisation: Trade policy;

National industrialisation policy; Strategy Paper on the promotion of local

content and the buy Zambian campaign.

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3.4.2.4 The Palm Oil, Tea Plantation and Processing Projects

The EAZ indicated that they valued the palm oil plantation and processing

project in Muchinga Province and the tea plantation and processing project

in Luapula Province.

Recommendation

EAZ implored government to the growth and development from these

projects was inclusive and sustainable.

3.4.2.5 Energy Development

Dr Haabaoka indicated the EAZ was confident that with a number of hydro,

solar and coal power plants under construction, the energy or electricity

demand should sufficiently be met. He, therefore, urged the business

community not to panic, but also focus on investing in alternative sources of

clean energy.

Recommendation

Dr Haabazoka urged the government to continue to invest in the energy

sector to be ready to meet the anticipated increased demand for energy

that will reach its peak in 2021 at 3,000 megawatts.

3.4.2.6 Nuclear energy

He indicated that EAZ awaited the actualisation of the Centre for Nuclear

Science and Technology. He indicated that once operational, the Centre

would contribute towards the enhanced treatment of cancer, irradiation of

certain agricultural and mineral products for export as well as other industrial

uses. He also observed that the centre of excellence would contribute to

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academic tourism as well as create jobs and contribute to the achievement

of a Smart Zambia as the country moved towards attaining Vision 2030.

3.4.2.7 Infrastructure Development

The EAZ president urged the government to continue with his transport

network transformation agenda through full implementation of the Link

Zambia 8,000 road project. He indicated that EAZ was concerned at the

growing silence on the Lusaka-Ndola dual carriageway while acknowledging

the ongoing implementation of the austerity measures. Dr Haabazoka

indicated that EAZ strongly believed that the road was of economic value

and could reduce the cost and time of doing business once it is completed.

The EAZ president pointed out the association’s desire to see the full

implementation of the construction of airports in strategic business areas of

our country. It was against this background that EAZ awaited the completion

of the construction of the two modern airports - Kenneth Kaunda

International Airport and Simon Mwansa Kapwepwe Airport. He indicated this

would enable Zambia gain competitive sustainable advantage in the airline

industry given the forthcoming launch of the new Zambia Airways as

Indicated by the Government.

Recommendation

Government to ensure that the airline and airports were using viable and

competitive business models. The national airline should not undo the existing

Zambian-owned private airlines but collaborate with them by focusing more

on international routes and contribute to reducing and stabilising

international and local flight charges.

3.4.2.8 Reducing the Burden of Poverty and Vulnerability

The EAZ president acknowledged the government’s efforts in reducing the

burden of poverty and vulnerability through various interventions such as the

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social cash transfer scheme; promoting of girl child education; women

empowerment; and promotion of the rights of persons with disabilities.

The EAZ president also acknowledged government’s commitment in

promoting inclusive growth and development by extending social security

coverage to the informal sector through the NAPSA. He indicated this

pension scheme was now covering domestic workers, bus and taxi drivers,

artists, marketeers, traders and small scale farmers.

Recommendation

The EAZ president appealed to the government to continue implementing

multi-pronged strategies that tackled the root causes of gender inequality

such as access to education, health, nutrition and justice; and perpetuate

the current robust investments in the development of socio-economic

infrastructure such as roads, schools and hospitals in rural areas. He noted this

will secure equitable distribution of the benefits of economic growth.

3.4.2.9 Social Infrastructure Development

The EAZ president noted that government had operationalised the Kapasa

Makasa, Kwame Nkrumah, Mukuba and Chalimbana universities for

increased access to education.

He also appreciated government efforts in ensuring that 82 secondary

schools were built across the country by the World Bank.

Further, the EAZ president applauded government for the construction of

several health posts, upgrading of clinics and hospitals in all parts of the

country.

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Recommendation

I. The EAZ president appealed to the Government to accelerate the

construction of Frederick Titus Jacob Chiluba University in Mansa, King

Lewanika University in Mongu and Kasama University in Kasama even if

the country was under the implementation of austerity measures.

II. There is a need to quickly focus on improving the quality of health care

provision at all levels - primary, secondary and tertiary health care.

3.4.2.10 Rebalance the Rules of Economic Theory and Practice

Dr. Haabazoka informed the Summit that the EAZ was desirous to see

governments in the African Union continue taking actions that rebalance the

rules of economic theory and practice in favour of the poor of the poorest

through the actualisation of inclusive and sustainable economic growth and

development strategic initiatives.

He urged the delegates to continue fostering on a new type of growth, one

that is more inclusive with opportunities and benefits for the people who work

their lives for that growth, not just for the big owners of capital, the

comprador bourgeoisie and the bureaucratic bourgeoisie.

The EAZ president pointed out that it was time to bring “the forgotten” back

to centre stage. He indicated it was for this reason that EAZ supported the

government’s decision to take over the operations of Konkola Copper Mines

in Chingola and Chililabombwe.

Dr Habaazoka urged the Committee tasked to find an investor to take over

Konkola Copper Mines to put the interest of Zambians first, saying Zambia

had learnt many excruciating lessons from the sale of ZCCM in the 1990s. He

emphasized that Zambia should not repeat the failed lessons of the 1990s

and early 2000s.

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3.4.2.11 Implementation of Austerity Measures

The EAZ president made the following views on the current austerity

measures the government was implementing:

I. Urged government to ensure that the austerity measures presently

being implemented be implemented with the poorest of the poor in

mind. There was need to find a balance that would ensure that the

poorest of the poor are not made worse off;

II. There was need to strike a balance between economic austerity

policies and economic stimulus policies if we are to grow the economy.

He indicated that EAZ was of the view that if the country religiously

implemented austerity measures at the expense of stimulus economic

policies, it would be by-passed by inclusive and sustainable economic

growth and development; and

III. Indicated that EAZ was more inclined to the promotion and

implementation of economic stimulus growth policies that would

enable the country to grow and meet its domestic and foreign

financial obligations.

3.4.2.12 Review and Transformation of General Education Curriculum

It was appealed to government that the Zambian general education school

curriculum should be revised to introduce economics, finance, financial

education and entrepreneurship as independent core subjects to be taken

from grade 8 to 12 by pupils wishing to pursue careers in these fields. He

noted this would ensure the Zambian general education school curriculum

was responsive to the contemporary economic, political and social needs

and challenges of our country.

49

Recommendation

The EAZ president urged all economists to provide accurate, timely, relevant,

and appropriate economic policy advice.The EAZ President indicated that

we should not hide in economic theory jargon or terms. He recalled what

Harry Truman (US President 1945-1953), said :

"Give me a one-handed economist. All my economists say, on the one hand

… on the other …"

50

CHAPTER FOUR

4.0 SALIENT ISSUES FROM THE DELIBERATIONS OF THE SUMMIT

This section summaries salient matters that arose from the deliberations of the

Summit.

4.1 THE ROLE OF THE FINANCIAL SECTOR IN ZAMBIA’S ECONOMIC

DEVELOPMENT

4.1.1 Overview

Mr Henk Mulder, Chief Executive Officer and Managing Director of Zambia

National Commercial Bank, made a presentation on “The Role of the

Financial Sector in Zambia’s Economic Development”. The key discussants for

the thematic area were Dr Caleb Fundanga, Board Member, Standard

Chartered Bank, and former Bank of Zambia Governor, Mrs Mizinga Melu,

Managing Director, Barclays Bank, Mr Leina Gabaraane, Chief Executive,

Stanbic Bank, and Hon Christopher Mvunga, Deputy Secretary to Cabinet for

Economic Affairs. The segment was moderated by Dr Francis Chipimo,

Deputy Governor, Bank of Zambia.

The discussion focused on the major challenges facing banks in financing

SMEs in Zambia, financial inclusion and made recommendations to over the

challenges.

4.1.2 Financial Sector and Growth

Economic Growth Trends

It was highlighted that economic growth had slowed down from 7.6% in 2012

to 3.7% in 2018, and 2019 growth was expected range between 2.0% -3.0%.

Key factors attributable to the declining growth were:

51

I. Climate change effects - unfavourable rainfall pattern which had resulted in

Lower electricity production and low agro-sector production;

II. Policy-related tightening of fiscal space;

III. External factors such as volatile copper prices

Impact of the Financial Sector on Growth

It was indicated that :

I. Evidence suggests that deeper financial systems had a positive effect

on Per Capita Incomes.

II. Although progress was being made, many Zambians remained outside

the financial system. For instance, the Finscope Report (2009) showed

that only 37% of Zambians were financially included while 63% were

financially excluded. The same report records that in 2015, 41% of

Zambians were financially excluded while 59% were financially

included.

III. Access to financial services remained biased to urban areas: of the

59.3% of adults that had financial access, 70.3% were based in urban

areas compared to only 50.2% in rural areas.

IV. Taking financial services to rural areas was challenging and costly, yet

digital platforms could help to overcome this challenge to promote

financial inclusion. It was suggested that Banks and customers should

take advantage of digital platforms.

4.1.3 ICT and Financial Inclusion

The salient points under this segment were that:

I. ICT sector growth helped to enhance financial inclusion of about 14.5

billion kwacha worth of mobile transactions in 2018;

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II. Access to ICTs had grown over the years at tremendous pace; for

instance, mobile penetration tripled in the last 10 years while access to

internet in 2019 stood at 27% of the population from less than 6% in

2008. It was further indicated that mobile penetration in 2019 had

grown to 82% from 27% in 2008.

III. Digital transformation was helping to enhance financial inclusion. ICT

sector growth creating opportunities for: Enhanced financial services

access, cheaper cost of service provision and affordable banking

services to customers.

4.1.4 SMEs and the Economy

The significant contribution of the SMEs to the economy was emphasised.

Particularly, it was reported that empirical evidence suggested that SMEs

were a key source of growth and employment across the world. It was learnt

that SMEs contribute over 65% to employment and 55% to GDP HIC, 55% to

employment and 48% to GDP in MIC and in LIC, they only contribute 32% and

15% respectively.

The Summit observed that despite the significant contribution of the SMEs to

the economy, their access to finance was ridiculously low in SSA despite

employment potential. It was highlighted that when compared to other

regions in the world, only 7% of SMEs in SSA had access to bank loans

compared to 68% in Latin America and 50% in East Asia.

4.1.5 Financing SMEs-Hindrances to SME growth

The Summit identified the following as hindrances to SME growth:

I. Lack information to help credit risk assessment;

II. Lack of regulatory support to lend to SMEs;

53

III. The traditional approach to financing of SMEs which focuses on

adherence to strict corporate governance standards such as

submitting of audited financial reports; and

IV. Low interest paid by banks discouraged SMEs from banking; yet the

cost of borrowing was high.

4.1.6 Recommendations

I. To enhance contribution of SMEs to employment and economic

growth, there was need for SMEs to change through:

Innovation, graduation from informal to formal setups for ease

access to funding and becoming more competitive; and

Integration into domestic and global supply/value chains by

building partnerships with companies with similar products.

II. To deepen financial inclusion especially for SMEs, there was a need to


funds and capital markets;

III. Banks and other non-financial institutions such as mobile company

providers and pension funds needed to complement their efforts and

leverage on each other’s efforts for them to fully benefit from the

digital revolution thus contributing to deepening of financial inclusion.

IV. The National Switch would bring all the banks together in Zambia,

break barriers and lower transaction cost, thus was expected to make

banking cheaper;

V. The government should consider the International Monetary Fund

financing option as this was expected to contribute to lowering the

cost of accessing funds in the Zambian financial market;

54

VI. Financial inclusion would only work if there were:

Further declines in ICT access cost;

Harmonisation of players in the digital financial space; and

Incentivisation of providers of enhanced access to financial

services.

VII. Several ways can be used to enhance SME access to finance

There is a need to enhance the role of International Financial

Institutions in the credit provision framework through provision of;

Credit lines to SMEs through Banks;

Guarantees to ensure part of the credit risk Bourne by banks;

and

Private equity.

VIII. To enhance financing to SMEs, the policy environment was critical.

Particularly, it had to be more accommodative to SMEs, especially

startups by:

Creating a conducive tax environment for startups

Ensuring predictability of the policy environment

Ensuring a stable macroeconomic environment

Ensuring continued with infrastructure investment (ICT, road, etc)

IX. Need for innovative solutions to financing SMEs, such as focusing on the

value and leveraging on profile of corporate engagements. The

traditional approach which focuses on meeting conditionalities such as

submitting of audited financial reports and meeting certain

governance standards have continued to hinder SMEs from accessing

financing.

X. Need for networks and electricity in rural areas to promote use of

digital platforms

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XI. Need for complementarity and linkages with mobile phone companies

to reach out to SMEs and the unbanked. Leverage on these to lower

costs and lower barriers to financial inclusion.

4.2 THE ROAD TO SALES TAX

4.2.1 Overview

Mr Kingsley Chanda, ZRA Commissioner General, was the main presenter for

the segment. His presentation was premised on the theme “The Road to Sales

Tax”. The presentation highlighted Key features; Performance and challenges

of VAT in Zambia; Strategies to redress VAT challenges; Policy reform initiative,

scope and imposition of Sales Tax; Registration for Sales Tax; Sales Tax

exemptions and Common features between Sales Tax and VAT.

4.2.2 VAT Performance in Zambia

It was highlighted that Gross VAT collections as a share of Gross Domestic

Product (GDP) had generally been stable averaging at 7.0 percent,

accelerating after 2016. It indicated, however, that the ratio of VAT refunds to

GDP has had an upward trend, averaging at 2.6 percent. The Summit learnt

that the resultant effect from the movement of the two ratios had been a

downward trend in the net VAT as a ratio of GDP, especially during the

period 1996 to 2015 (period average of 4.4%) as depicted in the figure below:

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Source: ZRA

4.2.3 Challenges to VAT Administration

The presentation pointed out some limitations to the effective administration

of VAT. These included:

a. Refund fraud: It had been established that some of the refunds since

VAT was introduced were not legitimate due to;

• Use of false documentation,

• Double claims of refunds even by some multinational

companies,

• Excess refunds arising from fraudulent offsets, and

• Shell companies established to claim VAT.

b. Disbanding of the full-time VAT Department in September 2006;

c. Accumulating refund claims every month due to zero-rating of exports

with low-value addition;

d. Cash flow inconvenience to the business community due to delayed

refunds;

e. Transfer pricing practices due to over-invoicing of capital goods on

which duty is zero and VAT is refundable which results in loss of

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

20

18

VAT Refunds as % of

GDP

Gross VAT as % of GDP

Net VAT as % of GDP

VAT Refund Claims as %

of GDP

57

Company Income Tax due to high capital allowance claims that

makes companies, especially mining companies, declare loses; and

f. Disappearing value chain due to the prominence of the informal

sector.

4.2.4 Strategies to Redress VAT Challenges

To overcome the observed inadequacies, it was learnt that the following

initiatives were implemented within the VAT framework:

I. Re-establishing a full-time VAT department in 2016. This was to regain

focus on VAT and build a specialised knowledge base for the

administration of the tax.

II. Collection of VAT at Source introduced in 2017. This measure mitigated

revenue leakages through reduction of collection points;

III. Enhanced audits and support from external forensic auditors. This

enhanced the quality assurance on transactions subject to VAT and to

some extent, minimised VAT fraud.

IV. Establishment of a Refund Analytics Unit (RAU) in 2018 to validate

refund claims.

V. Introduction of Electronic Fiscal Devises (EFD’s) to monitor transactions

in real-time to avert cheating.

4.2.5 Sales Tax as a Policy Intervention

The ZRA Commissioner General informed the Summit that the introduction of

Sales Tax was needed to adequately address the challenges in VAT. This

entailed the abolition of VAT and the introduction of Sales Tax. It was pointed

out that the proposed model of the Sales Tax was a hybrid between VAT and

a traditional Sales Tax.

Sales Tax was envisaged to:

i. Increase revenue collection to enhance fiscal space.

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ii. Stop the refund debt escalation.

iii. Simplify the administration of tax on goods and services suitable

to the Zambian economy.

iv. Minimise the level of exemptions.

4.2.6 Sales Tax: Scope and Imposition

The presentation brought the following salient elements of Sales tax:

I. Sales Tax, like VAT, was a consumption tax but levied on the selling

price of goods and services;

II. It will be charged on all taxable goods and services supplied in the

course of or furtherance of business in Zambia and on imported goods

and services;

III. Sales Tax will be collected at every stage in the supply chain; and

IV. It will apply on all taxable supplies from importation, manufacturing,

production, distribution, wholesale and retail.

4.2.7 Common Features between Sales Tax and VAT

It was learnt that:

I. Self-policing mechanism through the TPIN requirement for all

transactions between registered purchasers and sellers for purposes;

II. An exemption of some businesses below the Sales Tax registration

threshold from charging sales tax;

III. Taxation at every point of value addition; and

IV. Input exemptions for producers and manufactures from the tax.

4.2.8 Conclusion

Key lessons were learnt, including:

I. Taxation was dynamic; it requires continuous evolution to ensure it

remains relevant to the country’s objectives amidst the changing

economic environment.

59

II. It is important to adapt a country’s tax system to its unique economic

experiences and circumstances; and

III. Zambian experience had revealed that VAT was not the suitable

consumption tax for the Zambian economy as there is little value

addition.

4.3 INTRA AFRICA TRADE - A FOCUS ON THE AFRICA FREE TRADE AGREEMENT

4.3.1 Overview

The session focused on Intra Africa trade with a focus on the Africa Free Trade

Agreement. The segment also sought to discuss on whether or not Zambia

was ready to participate in the Africa Free Trade Area.

The segment was moderated by Mr Lishala Situmbeko, Chief Commercial

Officer, Zambia National Commercial Bank. The main speaker was

Ambassodor Albert Muchanga, Commissioner for Trade and Industry, African

Union whilst the panellists were Mrs Kayula Siame, Permanent Secreatry,

Ministry of Commerce, Trade and Industry and Mr Jose Daniel Moran, Chief

Executive Officer, Zambian Breweries, Dr E. D. Wala Chabala, Coordinator,

NABII Zambia Limited, and Dr Francis Ndilila, Ndilila Associates, ZACCI Trustee.

4.3.2 Intra Africa trade and Africa Free Trade Agreement

The keynote presentation recognised Africa’s fundamental development

challenge as the most fragmented continent in the world which resulted into

small economies, small markets, isolation, uncompetitiveness, commodity

dependency, aid dependency, Political and commercial manipulation, all

translating in individual and collective weaknesses.

It was highlighted that the common challenge facing African required a

common solutions, hence AfCFTA.

60

With regard to the implementation Status, Commissioner Mushanga informed

the Summit that AfCFTA Agreement:

I. Opened for signature on 21st March, 2018, in Kigali, Rwanda;

II. Had received 22nd instrument of ratification on 29th April, 2019;

III. Came into force on 30th May, 2019;

IV. 54 countries had signed, with one signature remaining;

V. There were 27 ratifications, 28 remaining, while Zambia was yet to ratify

in August 2019;

VI. All 55 AU member states launched the operational phase of AfCFTA in

Niamey, Niger on 7th July, 2019; and

VII. Vision of creating one African Market was closer to realization.

The potential benefits of the AfCFTA were underscored. These included

expanded market size and related economics. It was particularly observed

that AfCFTA had ;

I. 1.27 billion people,

II. Aggregate GDP of US$2.5 trillion,

III. Greater scope for trade creation than trade diversion,

IV. Large welfare gains, and

V. Large economies of scale and scope.

Albeit the above highlighted potential benefits of AfCFTA, the presenter

brought out the key developments in international trade that included on-

going political, technological, economic, commercial and demographic

changes in the world. He observed that:

I. There was re-emergence of protectionism while there was retreat from

multilateralism;

II. Intangible assets were now key sources of comparative advantage;

III. Was narrowing policy space for export-led development; and

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IV. Was Increasing share of private consumption in emerging economies

which was projected influence shifts in global value chains

It was also learnt that there was unexploited Policy Space for Intra-African

Trade. This included;

I. Marginal levels of recorded Intra-African Trade,

II. High levels of unrecorded Intra-African Trade,

III. Scope for increasing Intra-African trade through tariff liberalization

under the AfCFTA,

IV. Scope for increasing Intra-African trade under the AfCFTA through

elimination of non-tariff barriers, and

V. Scope for increasing Intra-African trade through shift of global value

chains to Africa and development of regional and continental value

chains.

4.3.3 Major factors affecting Intra Africa Trade

Commissioner Mushanga pointed out that the challenges of creating One

African Market and the opportunities within included;

I. The challenge of fear of the unknown and scepticism,

II. The challenge of the mindset and commitment to the status quo,

III. The challenge of self-confidence,

IV. The challenge of trade deflection, and

V. The challenge of inclusivity.

4.3.4 Making Companies in Africa more Competitive for Trade

The Opportunities Within

• The opportunity for higher levels of economic growth

62

• The opportunity for economic diversification and structural

transformation

• The opportunity to connect Africa

• The opportunity to educate and train the population, transform Africa

into a talent factory

• The opportunity to reduce poverty


General Recommendation

There was need to fully implement AfCFTA legal instruments and deepen

continental integration for accelerated and inclusive sustainable

development.

Specific Recommendations

1. Getting African Nations and Business ready for AfCFTA

To get African Nations and business ready for start of trading under the

AfCFTA, there was need for;

I. Continued advocacy for signature and ratification,

II. National level sensitization of business,

III. Production and distribution of trade documents,

IV. Development of collaborative framework between Interim

AfCFTA secretariat and Regional Economic Communities, and

V. Review of state of preparedness.

2. Positioning for Success in the AfCFTA

With respect to making companies in Africa more competitive for trade

and positioning for success in the AfCFTA, there was need to;

I. Join continental business associations and networks,

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II. Seek joint ventures and other business partnerships to produce to

scale of the AfCFTA market,

III. Invest in other African countries,

IV. Participate in Intra-African Trade Fair,

V. Participate in regional, continental and global value chains, and

VI. Participate in the AfCFTA Business Forum series.

4.4 Zambia , The Hub of Electricity Trading in the Region

4.4.1 Overview

The segment considered the energy generation prospects in Southern Africa

and whether Zambia could be the launch pad. The segment also discussed

the regulatory challenges limiting Zambia’s energy sector growth. In addition,

nuclear power generation challenges and prospects for Zambia were

explored. The discussants discussed the role of the private sector playing in

enhancing energy supply in Zambia and the region in particular.

A keynote presentation entitled “Zambia, The Hub of Electricity Trading in the

Region” was made by Victor. M. Mundende, Managing Director – ZESCO

Limited. The discussants were Ana Hajduka, GREENCO Chief Executive

Officer, Dr Roland Msiska, Director General, Zambia Atomic Energy Agency,

and Ms Langiwe Hope Lungu, Chief Executive Officer, Energy Regulation

Board.

4.4.2 Zambia’s Energy Generation Prospects in Southern Africa

ZESCO’s Current Generation Market

The ZESCO Managing Director informed the meeting of his company’s

current generation market. He indicated that:

64

ZESCO has an installed generation capacity of 2,341MW. Hydro - 2,331

MW (99.9%) and Diesel Generation 10MW (0.1%);

Owned over 100,000 km of Transmission and Distribution lines; and

Had an installed transformer capacity of over 5,000MVA.

The company’s total fixed assets were valued at over K 17.5 billion.

Its customer base was over 900,000

Projected Capacity Vs Demand Growth

The Summit learnt that ZESCO had sufficient generation capacity to meet

demand up to 2030. It was however empathized that a generation mix was

required using different sources of energy, especially renewables to

sustainably meet future demands.

The figure below depicts the project capacity compared to growth demand.

65

Projected Energy Generation and Consumption Growth

ZESCO provide a comparative analysis of project energy generation

compared to growth as indicated below:

I. Energy deficit of between 113GWh and 1,213GWh between 2017 and

2021, or an annual average of 707GWh;

II. The projected energy deficit changes as the 750MW KGL is

commissioned, as it is expected to inject 2,400GWh, into the grid in

2020, resulting in an excess of 5712.5GWh (28% of energy demand) on

average, between 4,830GWh (28% of energy demand) in 2022

III. Commissioning of Batoka and Luapula River Basin projects in 2024 and

2025 is projected to further add to both capacity and energy,

respectively.

66

Energy Demand and Supply Forecasts in the Region

The ZESCO Managing Director informed the Summit that based on the latest

data available from SAPP, the electricity demand for the 12 member

countries was likely to increase from 57,392 MW in 2016 to 77,654 MW in 2025

at a CAGR of 3.4 per cent. The supply of energy will increase significantly

from 375,220 GWh in 2016 to 501,983 GWh in 2025 at a CAGR of 3.3 per cent.

67

Existing Market in SAPP

The Summit was informed that ZESCO has interconnections with ESKOM

and EDM through ZESA;BPC; Nampower; SNEL

There are existing Power supply agreements (and supply) to Zimbabwe,

Malawi and Tanzania

Plans were under way for ZESCO to put up more interconnection

infrastructure to enhance bulk power supply Power Tanzania,Malawi,

DRC,Angola and Zambia –Tanzania-Kenya.

Power supply to Zimbabwe, Malawi and Tanzania

Can Zambia be the Launch Pad?

The ZESCO Managing Director highlighted the strategic projects that the

company was currently undertaking to support energy generation prospects

68

in Southern Africa. He particularly indicated a favourable tariff regime would

certainly be a key catalyst in the full realisation and sustainability of the

strategic projects.

He highlighted the strategic projects generation and transmission

infrastructure as indicated below:

Strategic Pipeline Project Generation Infrastructure

I. Kafue Gorge Lower – 750MW, COD is 2020

II. Lusiwasi Upper – 15MW, COD is December 2019

III. Lusiwasi Lower – 86MW, COD is by 2023

IV. GETFiT Solar PV programme – 120MW, COD is 2021

V. GETFiT Hydro programme – 100MW, COD is by 2023

VI. ZESCO/ MASEN Kanona Solar PV plant – 100MW, COD is 2022

Transmission Infrastructure

I. 330KV Zambia – Tanzania interconnector – COD 2025

II. 330KV Zambia – Mozambique interconnector COD 2023

III. 330KV Kolwezi – Solwezi interconnector – COD 2022

IV. 330KV ZIZABONA interconnector – COD 2022

V. 330KV Lusaka West – Kabwe, improved transfer limits into Copperbelt -

COD is 2022

VI. Luano SVC – Improved voltage stability and increased transfer

capacity into DRC – COD 2021

4.4.3 Regulatory Challenges Limiting Zambia’s Energy Sector Growth

The following were highlighted as some of the key challenges limiting Zambia

energy sector’s growth:

I. Power supply interruptions, load-sheading, interruption to business and

wider economy is a reality due to draught and climate change

69

II. New generation prices often above end consumer tariffs lock utilities

into unsustainable long term position

III. State-owned utilities often perceived as uncreditworthy so

Governments are required to guarantee for this long-term exposure

IV. Financial Strain: the amount of public debt hinders foreign investments

and adds additional costs through required guarantees and higher risk

premiums

V. Information asymmetry related to monitoring performance and

efficiency of energy enterprises.

VI. Emerging issues requires capacity building for regulators to develop

frameworks such as bio-mass, wind, geothermal etc.

VII. Setting prices in the petroleum and electricity sub-sectors to balance

the needs of Policy Makers (Security of supply); Enterprises (High Profits)

and Consumers (low prices).

VIII. Guarantee viability and investment

IX. Public acceptance on the need to migrate to cost – reflective tariffs

still remain a challenge

X. Capacity to develop emerging pricing frameworks for multi-year tariff

framework; automatic cost-pass-through mechanism; open access

regime and regulatory oversight on Bulk Supply Agreements.

XI. Capacity to finance and undertake Cost of Service Studies currently

dependent on cooperating partners, therefore may affect timely

regulatory interventions

XII. Independent Power Producers want assurance of un-discriminatory

access to grid to evacuate their power to the market. Lack of

assurance is a deterrent to investment.

XIII. Rapid evolvement of RE technologies and off-grid systems entails that

at times they are not covered by existing regulatory frameworks

XIV. Lack of regulatory framework can be a deterrent to investment:

however it was learnt that mitigation measures had been put in place:

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ERB has taken a proactive approach to development of

regulatory framework e.g. Off-grid and mini-grid regulatory

framework;

ERB has provisions for development of investor initiated

regulatory framework based on international best practice

4.4.4 Nuclear Power Generation - Challenges and Prospects for Zambia

The importance of considering nuclear power energy was elaborated. It was

heard that nuclear power allowed for inter-generational thinking, planning

and implementation of nuclear power plant expansion and replacement.

Why Zambia has taken the Nuclear Energy route?

In 2015/16 Zambia experienced low power production due to

prolonged drought.

This caused a reduction of approximately 40% of the economic growth

rate.

The Climate Change Effects increasing regular shorter than before

(More frequent droughts)

Unbudgeted K364,458,258.69 ($39,286,245.70) was spent on emergency

power imports by the Treasury in 2015. (Average exchange rate for

2015/16, $1≈K9.5193). This caused adverse effects on the fiscal

performance in 2015 as the El-Nino effect was not anticipated when

drawing the 2015 budget.

In 2016, the figure for emergency power imports went up to

K3,807,720,000.00 (≈$400,000,000.00).

In order to address the above challenge, His Excellency the President

announced on 18th September 2015, and 16th September 2016 that his

administration during its term in office would pursue nuclear energy as

part of the diversified sustainable energy mix to power Zambia’s

economy.

71

Prospects and Benefits

Some of the potential benefits were highlighted and included a Smart

Zambia with the following characteristics:-

I. Smart Energy: efficient and effective use of energy using artificial

intelligence, robotics and internet of things for better network

management that optimizes production and distribution of energy to

all citizens. Including the use of a smart grid for the export of electricity

to our neighbors.

II. Smart Transport: increased use of artificial intelligence, robotics and

internet of things in the management of transport of goods, people

which will in turn reduce road traffic accidents, pollution levels, traffic

congestion in cities and hence promote health life styles for all citizens.

III. Smart Health: Increased use of artificial intelligence, robotics and

internet of things in health. And hence improve the coverage and

quality of health.

IV. Smart Education: Increased use of artificial intelligence, robotics and

internet of things in education. And hence improve the coverage and

quality of education.

V. Smart Agriculture: Increased use of artificial intelligence, robotics,

internet of things and gamma radiation in agriculture. This will improve

market access and productivity in the sector, hence tax revenue.

VI. Smart Manufacturing: Increased use of artificial intelligence, robotics

and internet of things in manufacturing. To improve productivity in

manufacturing and hence increase tax revenue.

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VII. Smart Mining: Increased use of artificial intelligence, robotics, internet

of things, neutron activation analysis, gemstone coloration in mining. To

improve productivity in mining and hence increase tax revenue.

VIII. Smart Governance: Internet of Things (IoT) devices will enable free

exchange of ideas between Government and Citizens, Citizens to

Citizens, Citizens to Business, Business to Business and Government to

Business.

Other benefits of nuclear energy included;

• Unlike oil, coal or natural gas, nuclear energy is one of the lowest

carbon footprint technologies

• Nuclear power: Very low lifetime GHG emissions which makes the

technology a potent climate change mitigation option

Clear Economic Benefits – US NPP Case Study

Dr Msiska highlighted the economic benefits of nuclear energy using the US

NNP case study based a 2012 Report by the Nuclear Energy Institute titled

“Nuclear Energy’s Economic Benefits — Current and Future”. These included;

I. Each year, the average 1,000 megawatt (MW) nuclear plant

generated approximately $470 million in electricity sales and revenue

II. The average NPP pays an average Tax of about:

$16 million in taxes at local level

$67 million annually at national level.

III. On average a single 1,000 MW new nuclear power plant requires

approximately:

736,000 (1,452,000) metric tonnes of concrete,

66,000 (132,000) tons of steel,

70.8 (141.6) km of piping,

483 (966) km of electric wiring, and

130,000 (260,000) electrical components.

IV. Jobs created:

3,500 workers at peak construction

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1,500 during operation.

For every 100 direct jobs from the nuclear facility, 726 indirect and

induced jobs are created throughout the nation.

With 1,500, this will translate into 10,890 indirect and induced jobs

Challenges

The US installed capacity is 882 times the Zambian installed capacity. The US

had installed capacity of 4.18 billion MWh as of 2018 (1,270 MWh per Capita)

capacity while Zambia had installed capacity of 24, 528,000 MWh as of 2018

(1.44 MWh per Capita).

Zambia needed huge investment in nuclear energy power to fully achieve its

potential. Financial constraints and limited investment in the sector impeded

the nation from realising from her potential.

4.4.5 The Role of New Business Models in Enhancing Energy Supply - Case

Study of GreenCo Power Service Limited

The role of innovative new business models in enhancing energy supply in

Zambia and the region was highlighted based on GreenCo, an innovative

response to the emerging energy challenge in Zambia.

It was heard that GreenCo Power Service Limited, a Zambian company

leading on regional renewable energy scale up established in 2018 in Lusaka,

under Zambian Law is a PPP model with shareholding of GRZ anticipated via

IDC and developed under the leadership of the GRZ.

The contribution of GreenCo Power Service Limited was highlighted as:

I. Contributing to reducing financial strain on the Treasury: The amount of

public debt hinders foreign investments and adds additional costs

through required guarantees and higher risk premiums. Private sector

could help reducing fiscal pressure on the treasury by sourcing for

alternative funds in the sector;

74

II. Aggregating and diversifying risks and attracting private investments in

the power sector at affordable tariffs; it was learnt that US$200 million in

tariff savings was projected for the first 300MW portfolio;

III. Impacting positively economy and job creation: Through bringing more

and cheaper energy capacity to Zambia, it was heard that GreenCo

helps to fight economic losses caused by power shortages. For

instance, GreenCo reported that it plans to facilitate investments of

over US$400 million in its first three years and over 300MW clean

affordable power leveraging over 15,000 jobs (indirect and direct);

V. Assisting in power sector market development using an innovative

business model – developed in partnership with Zambian stakeholders;

• Ministry of Energy & DoE, Ministry of National Development

Planning, Ministry of Finance, ERB, EAZ and other associations

• Strong collaboration with ZESCO

• Strong collaboration with IDC

• Local engagement science 2017 with multiple large stakeholder

workshops

• Strong support of the Zambian NDA with the current application

of USD 30mn at the Green Climate Fund

• Budget Speech 2019 included a reference to the proposed

business model

IV. Supporting Zambia’s and ZESCO’s vision to become a regional power

trading hub through:

Harnessing Zambia’s renewable energy potential to drive economic

growth and reduce poverty at cheaper tariff and lower fiscal

burden

Contributing to the creation of a diversified energy mix and

increased energy security

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Assisting in power sector market development: introducing a multi

buyer model, facilitating open access and helps ZESCO monetizing

its transmission network

4.4.6 Recommendations on Energy Sector

I. GRZ to communicate to stakeholders and investors on the ZESCO

reforms and to share plans and progress made towards financial

recovery of ZESCO;

II. Introduction of New Business Models in the Energy Sector

New business such as that of introduction of creditworthy intermediary

offtakers and power sellers in the market (as proposed by GreenCo

Power Services Limited under the leadership of the GRZ) for renewable

energy should be encouraged in order to provide comfort to

financiers of renewable energy Independent Power Producers (IPPs),

promoting growth in the sub-sector at a lower generation cost, as well

as reducing fiscal risks that emanate from Government issuance of

sovereign guarantees to IPPs. The model strategically aligns with the

GRZ’s aspirations for increasing supply availability, improving security of

supply in the country through diversity in the generation mix; increasing

efficiency through facilitating open access in the market; improvement

of ZESCO’s supply through a cheaper supply portfolio; movement

closer to cost reflective tariffs in the country; increasing access to clean

energy; and enhancement of ERB’s position as a consumer advocate

in the country.

III. Licensing in the Energy Sector:

Licensing in energy sector entails multi-sectoral regulations. License

condition if not set correctly may act as a deterrent e.g. low penalty

units resulting into low compliance levels. Harmonizing processes and

procedures with other sector regulators, such as launch of integrated

portals for license application, processing and information is important.

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IV. Enhancement of Enabling Legislation :

Emerging challenges require enhancement of Energy Regulation

Act and Electricity Act

Changing market structure and conduct such as service

providers in the electricity sector including import and export of

electricity products and services

Changes in procurement systems (Government versus Private

sector)

V. Open access will lead to better returns for all stakeholders and drive

positive growth

VI. Zambia’s renewable generation potential will help safeguard against

future supply shocks

VII. A favourable tariff regime will certainly be a key catalyst in the full

realisation and sustainability of the strategic projects.

VIII. ERB needs adequate, predictable and sustainable support for it to

continue playing its role effectively and efficiently. International

Technical support with other regulators (NARUC) underway.

IX. Supporting Zambia’s Vision to become a regional power trading hub

will depend on:

• Harnessing Zambia’s renewable energy potential to drive

economic growth, and reduce poverty at cheaper tariff and

lower fiscal burden

• Creation of a diversified energy mix and increased energy

security

• Increasing energy access and mitigating against climate

change

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4.5 NATIONAL ECONOMIC DEVELOPMENT – THE ISRAELI EXPERIENCE

4.5.1 Overview

The segment focused on

I. The secret of success which made Israel to become the start-up Nation

II. The Start-up Nation Scene-Jerusalem Ecosystem as a case study and

AtoBe Start-up Accelerator;

III. Bringing Israeli Solar and Agricultural Technologies to African Villages;

and

IV. Innovations in ICT: The Zambian experience.

The discussants for the segment were Mr Hezki Arieli, Founding Chairperson,

Global Excellence (GE), Israel, Mr Michael Mizrahi, Head of Research

Innovation & Entrepreneurship Authority Azrieli Academic College of

Engineering, Israel, Ms Sivan Yaari, Founder & CEO, Innovation Africa, Isra and

Mr Lukonga Lindunda, Executive Director and co-founder, BongoHive,

Zambia.

4.5.2 The Secret of Success which made Israel become the Start-Up Nation

The presentation focused on the importance of human capital development

in unlocking the potential of nations for the benefit of citizens.

Experiences were shared on how the nation of Israel had successfully

anchored its sustainable development on “The Knowledge Revolution” which

had resulted into a knowledge-based economy has been developed.

It was underscored that the education system of Israel had focused on:

1. Educating children to ask, research, become curious and creative;

2. Allowing the mistake as it was the best teacher;

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3. Challenging students and employees to find creative and

nonconventional solutions;

4. Chutzpa Spirit – Taking risks, Daring, challenging the impossible; and

5. Applying Rosh Gadol (Big head) for ‘out of the box’ thinking.

4.5.3 Bringing Israeli Solar and Agricultural Technologies to African villages

The presentation discussed the various interventions that had been put to

provide solar energy to rural parts of Africa in 10 countries. The interventions

were in the education, health, water and sanitation sectors in the respective

countries.

It was head that over 250 solar projects were completed in 10 African

countries in which an estimated 1,563,446 people were impacted. The

presenter also shared the innovations and partnerships they were engaged in

to facilitate implementation of the projects. These included partnerships with

UNICEF to impact the lives of refugees in Cameroon, utilisation of remote live

data control and monitoring interface at anytime from computer and

mobile, remote live data control and monitoring interface - live data.

4.5.4 Innovations in ICT: The Zambian Experience

BongoHive shared its ICT innovations which was impacting positively on many

lives in Zambia. For instance, BongoHive was implementing the Coding and

Electronics Bootcamp, a fun project-based programme hosted during the

long school holidays to introduce children to STEM (Science, Technology,

Engineering and Mathematics) and computer programming. It was also

learnt that BongoHive was implementing student-focused entrepreneurship

programmes to enable sharing knowledge, collaboration, and be the

ultimate platform for students to relaiise their entrepreneurial potential.

Further, Bongohive shared its planned innovations. These included: Thrive

Incubator - which upon completion of launch was expected to identify those

businesses most likely to succeed and continue achieving growth for an

investment readiness programme; Bongohive Ventures - An early-stage

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impact fund looking to address the funding gap that exists in the local

ecosystem for high growth businesses; and Southern Africa Venture

Partnership - A coalition of tech hubs in Southern Africa dedicated to building

up technology and innovation sectors in the region comprised of BongoHive,

mHub(Malawi), and TechVillage (Zimbabwe).


1. The education systems should be premised on Innovation, creativity

and excellence to become leading global players.

2. Open I.C.E centres countrywide to create enabling environment for

fostering innovation, creativity and excellence.

4.6 Eductaion and Human Capital Development Segment

4.6.1 Overview

The segment focused on alternative methods of financing the education

sector in Zambia; reducing dependency on government funding in Zambian

Public universities and development Impact Platform: a new Action Based

Learning collaboration between the University of Zambia and London

Business School.

The main speaker for the segment was Honorable Dr. Brian Mushimba,

Minister of Higher Education, Zambia; Honorable David Mabumba Minister of

General Education, Zambia, also made a presentation. The panellists

included Dr Jeff Bordes, Chief Executive Director, Astria Learning, USA; Mrs

Priscilla Sampa, Chief Executive Officer, Lusaka Stock Exchange, Zambia; Mr

Samson Kwanlinga, Senior Country Economist, World Bank; Prof Naison

Ngoma, Vice Chancellor, Copperbelt University, Zambia; and Prof Jeremie

Gallien, London Business School, UK.

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4.6.2 Alternative Financing for the Education Sector

Demand for University Education

The demand for university education in Zambia was profiled. It was indicated

that:

1. There were 17 universities in Zambia - 3 Public and 14 privately owned-

in 2011, and enrolments in public universities stood at 23,737 in 2011;

2. In 2019, there were over 60 universities - 7 public and 61 private - with

enrolments in public universities standing at over 91,000 learners

3. Total rate of absorption of school leavers by public universities stood at

6% of all school leavers in 2010 and by 2015, the target was to increase

to at least 20%. Regulatory framework guiding accreditation of Private

Sector University Education to assure quality

The Summit was informed that despite this high demand, access and quality

in public universities remain relatively low due to the following challenges:

• Insufficient infrastructure (366 learner capacity infrastructure

accommodating 29,000)

• Insufficient lecturers;

• Insufficient training and research materials

• Mismatch between the competences of graduates and the

needs of industry;

• Limited research and generation of new knowledge taking

place;

• Limited publications being churned out;

Financing of Education Trends in Zambia

It was learnt that although Zambia was party to the SADC recommendation

of 25% budgetary allocation to education, this had not been achieved. It

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was revealed that the allocation stood at 15.3% due to many competing

needs against the limited resource envelop.

Source: Ministry of Finance*Forecast-Public Expenditures on Education 2012-

2018

Modalities and Sourcing of Financing

The following modalities and sources of financing for education and training

were shared;

1. Public Financing: Government directly provides finances to all public

education institutions through grants, and targeted financing for

training equipment and infrastructure development;

2. Private Financing; Private education institutions are run and financed

privately; and

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3. Faith Based Organisations: Religious organisations finance those

education institutions under their charge.

4. Public/Private Partnerships: Government has partnered with a number

of development partners in the financing of education and training

through various models such as the World Bank, African Development

Bank.

5. Global Financing: Zambia is a beneficiary of the Global Partnership for

Education that supports 65 developing countries to ensure that every

child receives a quality basic education, prioritizing the poorest, the

most vulnerable and those living in fragile and conflict-affected

countries.

Innovative Financing Modalities in Zambia

The financing modalities:

1. Provision of loans to students (the Ministry has commenced

recoveries from loan beneficiaries);

2. Skill Development Funds where industries contribute to a Skills

Development Levy for skills training in the country; Employers

with an annual turnover of K800,000 contribute 0.5 % of monthly

wage bill to the Skills Development Fund as a levy;

3. The country feels that there is need to enhance such innovations

to improve on the financing to education.

4.6.3 Limitations in Financing Initiatives

It was pointed out that generally, there was a rise in the cost of running

University Education. It was highlighted that:

1. While Zambia has received finances from the cooperating partners,

the use of such funds has been restrictive to areas of agreements

and time lines. The bureaucracies and conditions tied to these funds

makes it unfeasible to attain locally desired progress;

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2. Some partnerships fail to be actualised due to some challenges

encountered by both parties like the inadequate counterpart

financing on the part of the Government;

3. Inadequate infrastructure for tertiary education;

4. Lack of laboratory facilities and equipment for Science, Technology

and Engineering;

5. Inadequate financing for training scientists, science teachers and

lecturers; and

6. Inadequate bursary support to STEM students in higher education.

4.6.7 Conclusion and Recommendations

As can be seen from above, Zambia requires more financing for TEVET, STEM

and Higher Education mainly because of;

1. Dwindling Financial Support: Emerging priorities in other development

sectors are competing with education;

2. Population Growth: Zambia’s population now stands at approximately

17million. This has increased the demand on other competing needs

such as water and health that require huge government investment;

3. Limited Absorptive Capacity: The expansion of access to primary

education has resulted in growing demand for secondary and tertiary

education;

4. Economic Growth and Capacity: Like any other country in Africa,

economic growth has been impressive in the past decade. Its

sustainability and structural transformation from primary producers

requires capacity from quality education and training, particularly in

science and technology.

Recommendations

1. Universities should play a fundamental role in undertaking research,

consultancies and other ventures that can supplement the huge cost

of providing University Education;

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2. Gradual increase in resource allocation to universities (grant/research/

infrastructure);

3. Liquidation of university debt; and

4. While endeavouring to mobilise resources from other local alternative

financing, the enhancing Private Sector Participation that may

improve the financing of education and training in the country e.g.

PPPs

4.7 Non Traditional Methods of Funding Infrastructure

4.7.1 Overview

The segment was centred on the non-traditional methods of funding

infrastructure. Particularly, the role of tolling in enhancing road infrastructure

development in Zambia, what should be done to ensure that local

contractors competed favourably with foreign contractors for both public

and private works, how Local contractors could participate in development

and how use of locally produced materials to reduce capital flight and

support job creation could be enhanced were explored. The segment also

discussed policy measures that should be taken to ensure that the quality for

both Public projects and PPP projects were implemented according to

standard.

Keynote presentation was made by Yollard Kachinda, Director General –

NAPSA, on the “Non-Traditional Methods of Funding Infrastructure’. The

panellists were Eng. Wallace Mumba, Director and CEO, National Road Fund

Agency, Mr Chanda Katotobwe, Founder and CEO, Tomorrow Investments

Limited, Mr Matthew Ngulube, CEO, National Council for Construction.

4.7.2 The Role of Tolling in Enhancing Road Infrastructure Development in

Zambia

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Traditional Methods of Financing Infrastructure

The presenter itemised the key traditional methods of financing infrastructure,

among them Government Budget and Corporate Capital Expenditure.

It was observed that reliance on traditional methods of financing

infrastructure was not sustainable given the ever increasing demand for

infrastructure against reduced fiscal space resulting into funding gap of over

6-7% of GDP funding gap per year.

Non-Traditional Methods of Financing Infrastructure

He informed the Summit that Non-Traditional Methods of Infrastructure

Investments (The Case of Pension Funds) was not fully explored as they were

seen to be less attractive traditional investments, had no appropriate

guaranteeing assets and limited domestic markets for traditional investment

choices (equities/bonds).

The key risks associated with Non-Traditional Methods of Infrastructure

Investments were highlighted. These included:

Rising interest rates - Impact on valuations

Patronage – Impact on demand for their usage

Regulatory/Political risks - changes in government policy

Credit risk - Revenues dependent on counterparties

Reputation risk - Asset does not perform

The Summit explored some investment approaches and vehicles for non-

traditional financing to infrastructure. These include:;

External Fund Managers

In-house/Direct investment approach

Public –Private – Partnerships (PPP)

Special Purpose Vehicles (SPVs)

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NAPSA’S Maiden Infrastructure Investment

The Summit was informed of NAPSA’s maiden Debt Facility to NRFA worth K3.9

billion which went towards the road reconstruction and tolling kitwe to

Chingola and Chingola to Solwezi. It was indicated that this was the best

performing asset under NAPSA.

In terms of economic benefits to the country, the Summit learnt that the debt

facility was not only low cost finance but also a sustainable option to

financing infrastructure projects in the country.

Chingola-Solwezi Road before NAPSA Investment

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Chingola-Solwezi Road after NAPSA Investment

4.7.3 Enhancing Competitiveness of Local Contractors

The challenges affecting the effective participation and contribution of local

contractors to the development of infrastructure and economy were

highlighted. These included;

I. Capacity of local contractors continue diminishing due to financing

frameworks. It was observed that 85% of funding in the construction

sector was being done by 5% of the foreign investors. It was heard that

this was impacting negatively on local contractors; impeding the

creation of sustainable jobs, stifling local industry, and negatively

impacting on financial capital inflows;

II. The Summit heard that the problem of local contractors has been

perpetuated by policy and negative sentiments. Both local and foreign

contractors draw personnel from the same universities;

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III. There was a high risk for tax evasion as 85% of the budget of

construction sector is in foreign hands, thus foreign contractors can

purchase materials from foreign markets;

IV. Payments to foreign contractors took away liquidity from the economy

; and

V. There was collision by foreign contractors which amounted to unfair

competition.

Recommendations

The following recommendations were made to address the above

challenges:

I. Need to change the financing frameworks to the construction sector

by focusing on;

Low cost and sustainable financing

Returning the funds in the country.

Realising the full potential on non-traditional financing such

as pension funds

II. Promoting joint ventures; and

III. Enhancing the capacity of local contractors through training.

4.7.4 Enhancing the Quality of Public Projects and PPP Projects

It was observed that most of the financiers of PPP projects were not

implemented according to standards due to poor regulation of the PPP while

the standards are not up to date. Other factors attributable to poor works

included corruption, weak and uncoordinated legislation and lack of

enforcement of those found committing crimes.

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Recommendations

It was recommended that there was need to review, strengthen and

enhance enforcement of PPP Policy and regulations to get the best value for

money and maximise positive externalities to the economy.

4.7.4 Enhancing the use of Locally Produced Materials

Using the success story of UMCIL, the following recommendations were made

to enhance the use of locally produce materials to reduce capital flight and

support job creation;

I. Have deliberate policy to promote buying and use of local materials in

key sectors of the economy such as locally produced steel( which

meets international standards;

II. Need to believe in ourselves and capability as a country;

III. Need to consider sourcing funds locally to finance investment. For

instance UMCIL had raised US$200 million from within Zambia for

investment and used local labour for developing in its Kafue steel and

iron plant;

IV. The Government has to challenge the local contractors by giving them

work;

V. The local contractors should also embrace business side of doing things

and improve efficiency;

VI. Engineers should change their mindest and become efficient;

VII. Compete by building synergies and not stifling completion; and

VIII. Use of local materials and labour was important so as to improve local

content.

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4.8 Agriculture Development in Zambia

4.8.1 Overview

The keynote presentation under the Agriculture segment was centred on the

theme “Agricultural Development in Zambia: The Entrepreneurial Option”.

The discussion questions examined the challenges and prospects for crop

diversification in Zambia from a government perspective, measures to ensure

that mealie meal became a forex income earner for Zambia. The segment

also considered options to ensure that Africa used its abundant water

resources to be a major exporter of fish in the world.

The main presenter for the segment was Dr Theo de Jager, President of World

Farmers Organisation (WFO), and Chairman of Agri All Africa. The discussants

were Mr Songowayo Zyambo, Permanent Secretary, Ministry of Agriculture,

Mr Andrew Chintala, President, Millers Association of Zambia, and Mr Chance

Kabaghe, Executive Director, Indaba Agriculture Policy Research Institute.

4.8.2 Agriculture Sector Developments in Africa

Challenges to Fully Exploit the Potential in Agriculture in Zambia

Some challenges affecting Zambia from fully exploiting its potential were

highlighted. These included lack of;

I. Value chains,

II. Access to modern technology

III. Expertise to fully exploit the potential in agriculture.

IV. Long-term low cost financing to grow agriculture

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V. All-weather roads

VI. Good linkages and access to markets; for instance Intra-Africa trade is

only 3%.

Policy Concerns for Investors in Agriculture:

The following policy concerns in the agriculture sectors were discussed;

I. Administration costs,

II. Governance issues including transparency and accountability ,

III. Command and control,

IV. Protection of investment,

V. Legislation,

VI. Bio technology,

VII. Property rights,

VIII. Security of tenure /title deed,

IX. Collateral,

X. Based on the integrity of the law; very foundation for

transactions;

XI. Long-term lease,

XII. Value chain financing options,

XIII. Best policy environment: supports cultural revolution and is a

business, and

XIV. Modernisation, mechanisation of agriculture industry through

leveraging on the population (what people are doing) and

SMES.

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Recommendations

I. Need to improve transparency and accountability;

II. Need broader planning to produce for all markets. Utilise what we

have to grow agriculture. Africa should not only strife to produce to

feed itself, it needs to produce where it has a competitive advantage

to grow for domestic consumption and also get enough money to

ensure food security;

III. Also lure the best brains to choose agriculture as their career: best

human capital, then will start making profits from agriculture;

V. Improve financing for small-scale farmers;

VI. Ministry of lands should give some kind of land titles to small scale

farmers to use their land as collateral to finance their production and

lessen dependence on government;

VII. Government formulates consistent and predicable policies to ensure

investor confidence; also improve on implementation on policy;

VIII. Small scale Farmers in Zambia must start farming as a business, thus

must take advantage of markets and technology. Several programmes

to support small scale farmers in the past have not impacted positively

because i.e. most of these small scale are not graduating because

they do not take agriculture as a business but a lifestyle. Hence

government programme may not work;

IX. Improve extension services by improving funding to recruit more

personnel to address primary production.

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4.8.3 Challenges and Prospects for Crop Diversification in Zambia

The Summit examined key reasons why Zambia had not realised its potential

in crop diversification. The reasons sighted included;

I. Lack of Market Information

There is need to produce what the market wants. There are primarily three

markets: local market in Africa (most are not food secure) - concerned with

affordability: middle class (concerned with nutrition) and high income market

(concerned with process of producing). We must be ready to compete in all

these three markets. Focus on quality, price and where it comes from.

Zambia has confined itself to local market only.

In addition, the Summit observed that Zambia was not taking advantage of

markets in the neighbouring countries such as Democratic Republic of

Congo and Namibia;

II. Lack of Information on Crop Diversification:

The government was supporting and promoting growing a variety of crops to

cope with climate change. This also meant to ensure foods security. The other

aspect was to increase nutritional elements in the diet of farmers and

increase the income for the farmers.

III. Policy Inconsistency

The Summit also observed government policy inconsistency in the agriculture

sector was distorting the market and impeding the sector from realising its full

potential.

4.8.4 What can be done to make Maize Profitable?

I. Government policy was to ensure maize was seen as an export crop

and should be profitability as Zambia had a comparative advantage.

II. There was need to review the Food Reserve Agency Act

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III. There was need for agriculture marketing policy consistency; Mealie

produced in Zambia was the cheapest in the region, thus there was

need to pay the correct prices for mealie meal according to what was

obtaining on the market;

IV. There was need to set up a grain stock information system to ensure

effective monitoring of grain stocks;

V. There was need to enhance effective communication amongst

stakeholders in the agriculture sector to lessen mistrust, strengthen

complimentarily and ensure growth of the sector;

VI. There was need for restructuring the export market including

developing the MOU with neighbouring countries and the region;

VII. Modernise farming techniques among small holder farmers to raise

productivity, competiveness and productivity;

VIII. Imperative to look at primary production: need to look at Ministry of

Agriculture as another important Ministry;

IX. Take advantage of Zambia’s capacity to add value and export mealie

as a way of maximising employment creation and forex generation. It

was learnt that Zambia had an installed crushing capacity of maize of

4.2 metric tonnes whilst the country needed only 1.8 million tonnes for

consumption annually;

X. Within the country, identify crops that can grow better based on

absolute advantage in the country and in SADC region

XI. Improve beneficiation processes. Cassava getting

transformed/industries in beer and ethanol. Soon will see cassava

being blended in mealie

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4.8.4 Measures to Improve the Contribution of Fishing Farming

Prospects

The prospects of fish farming in Zambia were highlighted as follows;

I. Fishing farming is profitable on a small piece of land compared to

traditional maize farming;

II. 87,000 metric tonnes deficit to satisfy the local market;

III. Captured fish has been dwindling because fishermen have increased,

water level has been going down, whilst the market has increased;

IV. US$50 million about to support aquaculture if implemented well,

Zambia will become sufficient;

V. Buka buka fish only produced in Zambia in Mpulungu: need to use

technology and research to introduce it; and

VI. Zambia and Africa can become fish self sufficient

Measures to Enhance Contribution of Fish Farming

I. Need for policy consistency: replicate lessons from Seed industry in

Zambia which has done well. It’s the biggest exporter in Africa

because of good policy on seed industry not only in Africa but the

world;

II. Support value addition to get maximum benefit;

III. Need for commitment from government to commercialise fish

farming.

IV. Need for joint plans and policies with private sector;

V. Small-scale farmers in Zambia must start farming as a business, thus

must take advantage of markets and technology; and

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VI. Improve extensions services by improving funding to recruit more

personnel to address primary production.

4.9 The Role of ICT in Propelling Economic Diplomacy

4.9.1 Overview

Dr Martine G. Mtonga, National Coordinator and Deputy Secretary to the

Cabinet for the Electronic Government Division at Cabinet Office, made a

keynote presentation on “The Role of ICT in propelling Economic Diplomacy

in pursuit of Inclusive Growth and Sustainable Development”. The

presentation highlighted the position of ICT to facilitate Economic Diplomacy,

domestic, regional and international trade. It also brought out the value of

ICT in Economic Diplomacy.

4.9.2 SMART Zambia eGovernment Agenda

Dr Mtonga indicated that the SMART Zambia eGovernment Agenda was

about applying ICTs to all aspects of the three (3) arms of Government’s

Business where it brings in improvement in government efficiency and

effectiveness in the achievement of policy and programme outcomes.

He highlighted the progress on attainment of a Smart Zambia. This included:

1. MPSAs were now using the Government Wide Area Network (GWAN)

for connectivity to the internet;

2. MPSAs also had access to collaboration and communication tools i.e.

official emails, SharePoint and Skype;

3. Benefits of the widespread infrastructure could be evidenced in the

increase in the value and volume of mobile payments and point of

sale transactions. For instance, the volume of mobile payments where

at 17 million transactions in 2012 and stood at 59 million transactions in

the 1st quarter of 2018. He indicated this was a clear indication that

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there has been great growth in the use of ICTs for business processes.

The growth can be seen from the investment in infrastructure and the

increase in trust of mobile payment processes.

4.9.3 Positioning of ICT to facilitate Economic Diplomacy and Trade

The presentation brought out the role of Smart Zambia in economic

diplomacy outlined in the 7NDP. These included:

Programme 1: Trade Mediation Programme

SZI and MCTI - Developing the Electronic Trade Information Portal accessible

at http://www.ztp.world to encourage entry of more Zambian products into

the Export Market;

Programme 2: Economic Diplomacy Capacity Development

MFA and the Zambia Institute of Diplomacy and International Studies (ZIDIS)

have since engaged SZI to develop a Knowledge Management System for

Regional Integration and Country competitiveness;

Programme 3: Economic Deployment Scaling-up

SZI, MoF, BoZ & ZRA have deployed the Mineral Value Chain System in the

ZNDC and working now to utilise mineral resources to participate in ICT

Products Development Value Chains and Task Development setup in Zambia;

Programme 4: Private Sector Regional and International Trade Negotiations

Integration

SZI through the coordination of MCTI participates in Trade in Services

Negotiations on provision of ICT Services;

Programme 5: Global and Regional Development Agendas Integration

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SZI is enhancing ICT Platforms to position Zambia as a major influencer of

decisions that Support Regional Integration i.e.

the African Continental Free Trade Area under the African Union;

the Common Market for Eastern and Southern Africa;

the SADC Protocols on Trade and Industry

4.9.4 Role of ICT to Improve Access to Domestic, Regional and International

Markets

The role of ICT in improving access to domestic, regional and international

markets is spelt out in The SMART Zambia e-Government Master Plan (2018 -

2030). The Plan places ICT at the centre of achieving Structural

Transformation by Industrialisation, Modernization; Upgrading and promotion

of Closer Regional Integration. The Summit learnt that as part of the role of

the Plan;

I. SZI was working with ZRA and other Border Management Agencies in

automating and integrating government systems being deployed to

ease cross-border trade facilitation through single windows. It was

indicated that 26 systems out 30 had being integrated.

II. A Single Window Goods and Products Clearance System to ease trade

facilitation had been implemented;

III. SZI was providing ICT requirements in the design of the One Stop

Border Posts;

IV. SZI was working with MoHA in enhancing the National ID System to

identify Citizens, Residents and International traders;

V. SZI was working with the MoF and establishing a Government Service

Bus and Payment Portal;

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VI. SZI was working with MTC to deploy mobile technologies across the

country to facilitate of public service delivery and bring in innovation;

and

VII. SZI was working with MoA on the FISP

4.9.5 Opportunities under Regional Integration Initiatives

The Summit learnt that SZI in collaboration with ZICTA and BoZ were

coordinating systems to ensure that;

I. Mobile Money Platforms were interoperable across the borders for

Zambian traders to take advantage;

II. There was reduction of mobile roaming rates to allow for continuous

communications; and

III. Development of skills and capacities in government and private sector

that were relevant across our borders.

4.9. 6 Value of ICT for Economic Diplomacy

SZI informed the NES of the following notable progress attained:

I. Immigration – Visas were being issued online resulting into over 300%

revenue growth, easy management of tourists , zero income leakages

to Zambia; (costed US$15,000 to develop, first 3 months of piloting,

brought in US$800,000);

II. Business Registration Services – These had resulted into enhanced

efficiency in Company Registration from 1 Month to 3 Days, Searches

from 1 Week to 1 Day, and serious reduction in related user costs;

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III. Ministry of Lands & Environmental Protection – this had resulted into

instant searches, payment of land rent (Over 300% growth), and instant

transfer of land (pending court case);

IV. Civil Registration Services (CRS) – efficiency in application of Birth

Certificates was enhanced from 1 month to 1 day;

V. Tax – Developed the production reporting tool as part of the mineral

output statistical evaluation system (MOSES) that enables mines to

submit their monthly mineral production reports to the Ministry of Mines

and Mineral Development, SZI and ZRA and other Government

Agencies online; and

VI. One Stop Shop Integrated System (OSSIS) - Developed in 2016 to

interface eight public service institution information systems for

purposes of sharing information in order to enhance regulatory and

taxpayer compliance. It is online and working.

4.10 The Importance of the Aviation Industry in Enhancing Regional Trade in

Africa

4.10.1 Overview

Dr. Jim Belemu, Executive Director of Mahogany Air, spoke about the

importance of the Aviation Industry in enhancing regional trade in Africa. The

key highlights of his presentation were: Bilateral air services agreements;

Status as regards to treaties; and where is Zambia in terms of regional growth.

4.10.2 Bilateral Air Services Agreements

The Summit learnt that most African countries were still using bilateral

agreements. However these proved to be restrictive in terms of frequency

and type of equipment to be used in a particular country.

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4.10.3 Yamoussoukro Declaration

It was reported that the Yamoussoukro Declaration, also known as “Open

Skies”, was mooted in 1999 by the African countries, but came into effect in

2002. It was also pointed out that some African countries had since ratified

the Treaty. It was learnt that the declaration rose out a need to overcome

limitations caused by the bilateral air service agreements.

The Summit was informed that the Yamoussoukro Declaration considered the

following benefits:

1. Wider economy: The impact of enhanced connectivity would result

beyond those of passengers. The increased Air Service levels will

stimulate trade in the region;

2. Its main objective was to focus at the cooperation between and

integration of African airlines and carriers;

3. It would also maximise trade and tourism between African countries;

4. Open skies would increase industries and activities that would not exist

in a region could be attracted by improved air transport services; and

5. The full implementation of open skies would create a larger market for

Africa trade and industry.

4.10.4 Current Status on Treaties

It was reported most countries were still relying on the bilateral air service

agreements despite them being restrictive in nature. This was attributed to

various reasons ranging from particular country constitutions to protectionism.

For example, it was indicated that Zambia, despite still using the bilateral air

service agreement, was highly relaxed such that other countries have

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obtained 5th (fifth) freedom to carriers (e.g. Kenya Airways, Ethiopian

Airways, Emirates).

4.10.5 Type of Equipment (Are African Airlines still in the 737 Syndrome?)

The transformation in the management of airlines in Africa was examined. The

key lessons were that;

1. In recent years most airlines were finding it difficult to do business and

continued to close down;

2. The dynamics have changed - Intercontinental airlines were coming

more into Africa, causing stiff competition to regional airlines;

3. Regional airlines could no longer sustain their operations due to

reduced number of passengers (due to sharing);

4. It is time to realise that it is critical to change fleet management in

Africa.

5. It is time for operators to change the attitude in order to be sustainable;

6. To use efficient sizable equipment equivalent to traffic makes it

sustainable, it allows to compete with major carriers or indeed

compliments major carriers. Like this we save our regional airlines from

failure;

7. It is time for us as operators to change attitude in order to be

sustainable; and

8. To use efficient sizable equipment equivalent to traffic makes it

sustainable and allows to compete with major carriers.

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4.10.6 Zambia’s Position in Regional Growth

The Summit was informed the percentages of airline industry in Zambia as

shown below.

I. Zambia recorded a positive growth for the first quarter of 2018;

II. Passenger numbers increased by 12.4% when compared to the same

period in 2017; and

III. International passenger movements grew by 8.4%

IV. Domestic passenger movements grew by 34.4%. ;

V. Of this percentage Mahogany Air contributed 20%; and

VI. Cargo movement increased by 22.3% in the first quarter of 2018.


1. Maximizing the potential benefits of aviation growth will depend on

levels of trade liberalization and visa facilitation. If moves towards

liberalization increase, annual growth could be more than two

percentage points faster, leading to a tripling in passengers over the

next 20 years.

2. Aviation is faster than land or water transportation, and speed,

efficiency in trade, faster economic growth.

3. Conducive policy and collective effort would support the growth

4.11 The Business environment in Zambia: A Legal Perspective

4.11.1 Overview

Honourable Minister of Justice – Mr Given Lubinda, MP, made a keynote

presentation on “The Business Environment from a Legal Perspective in

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Zambia”. The presentation was premised on the policy framework. He also

highlighted some pieces of legislation that impact on business.

4.11.2 Policy Framework on Regulation of Businesses

Hon. Lubinda pointed out that the government of the Republic of Zambia

recognised the private sector as an important player in contributing to

increased economic growth and improved social welfare. He informed the

Summit that as such the government was committed to enhancing the

quality of regulatory frameworks that govern the business environment so as

to create an enabling environment that attracts increased investment and

promotes business.

He emphasised that Government recognised that poor regulation increases

compliance costs for businesses; results in exorbitant enforcement costs for

regulators; leads to unnecessary complexities and uncertainty in business

environment; reduces foreign and local investment opportunities and the

ability of government to achieve its objectives.

The government has prioritised the creation of a conducive governance

environment in the Seventh National Development Plan as this was

imperative for creating conditions to accelerate Zambia’s diversification and

the inclusive growth agenda.

4.11.3 Binding Constraints

Hon. Lubinda informed the Summit that during the preceding National

Development Plans, a number of strides were recorded in upholding the

good governance agenda, notably, the amendment of the Zambian

Constitution and establishment of the Small Claims Court.

However, he indicated that the business sector continued to face challenges

of inadequacies and inconsistencies in the regulatory framework and policy

environment, access to justice, transparency and accountability,

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democratisation and slow pace of implementation of decentralisation

reforms.

The rule of law in a business environment includes the following:

I. Establishing codes and standards for business principles and

conduct;

II. Maintaining stability and order in society;

III. Amicable resolution of business related disputes either through

courts or alternative methods like mediation and arbitration; and

IV. Protecting liberties and rights thereby providing with exploitation of

participants in the business environment.

Hon Lubinda guided that sound regulation was key to creating a conducive

business environment to this extent. He pointed out that as a result of this

realisation the government of the Republic of Zambia enacted the Business

Regulatory Act, No. 3 of 2014, to provide for an efficient, accessible and

effective regulatory system. The act, among other things provides a

requirement for public bodies to undertake a Regulatory Impact Assessment

(RIA) whenever they propose policies or regulations that are likely to have an

impact on business. The premise of the RIA process is to improve the

regulatory environment and the quality of policies/regulations in order to

lessen the regulatory burden for sustainable business development and the

private sector led growth.

The objectives of the act include among other things, to provide a set of

principles and interventions to guide the agencies when regulating and

licensing business activities in accordance with the law under their mandate.

4.11.4 Some Key Laws Regulating Business in Zambia

He highlighted some key laws regulating business in Zambia as follows; The

Companies Act, No.10 of 2017; Zambia Development Act no 11 of 2006; The

Securities Act, No. 41 of 2016, and Corporate Insolvency Act No. 9 of 2017.

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Other notable pieces of legislation outlined were ;The Customs and Excise Act,

Cap 322, The Income Tax Act, Cap 323 and the Value Added Tax Act, Cap 331

of the Laws of Zambia, Employment Code Act no. 3 of 2019, The Patents Act,

NO. 40, 2016, and Zambia Environmental Management Act no. 12 of 2011.

4.11.5 Conclusions and Outlook

Hon. Lubinda informed the Summit that Zambia would continue to streamline

regulations and bureaucratic procedures impacting business such as

licensing for the private sector to encourage private investment. He

indicated that these efforts also related to access to finance, paying taxes,

trade facilitation including enforcement of contracts. Other initiatives were

automated service provision or e-commerce and the multi facility economic

zones. He noted that Zambia was currently developing e-commerce and e-

governance legislation and depositors’ insurance legislation.

4.12 Economic Outlook -Remarks by Hon. Dr. Bwalya Ng’andu, MP, Minister

of Finance

4.12.1 Economic Outlook

The Finance Minister informed the Summit that the economy was facing

some headwinds. Growth had been sluggish, mainly at the back of adverse

weather conditions that have had a dampening effect on the agricultural

and energy sectors, resulting in real GDP growth projected at around 2.5

percent in 2019, down from an initial projection of almost 4 percent.

He also indicated that liquidity conditions had been tight, adversely affecting

businesses around the country and constraining economic activity. Further,

he informed the Summit that the economy had encountered declining fiscal

space for developmental projects as most of the resources have been

utilised on debt service and other obligations that have a first call on the

Treasury.

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He further underscored that developments in the international economy had

also not been supportive. He observed that global growth remained sluggish

while risks to the global economy were on the upside, adversely affecting

commodity prices including copper prices.

Dr Ngandu indicated that these factors had culminated in negative market

sentiments that in the second quarter of the year impacted negatively on the

exchange rate of the Kwacha against major convertible currencies.

The Minister observed that it was therefore gratifying that the Summit was

being held at a time when the country needed to make strategic decisions

and choices on the following challenges facing the economy:

1. The need to reinvigorate growth;

2. Dealing with debt vulnerabilities and ensuring debt sustainability;

3. Building back fiscal buffers over the medium-term;

4. Improving liquidity so as to support SMEs and the private sector in

general through dismantling of arrears; and

5. Ensuring support to the social sectors and the vulnerable in our society.

4.12.2 Policy Measures by Government

The Finance Minister informed the Summit that the Government had a robust

framework to address these challenges. He paid tribute to his predecessors in

the ministry for laying a strong foundation on what required to be done. He

pointed out that he would focus on Implementation of the key policy

pronouncements. Some of the notable policies included:

I. To kick-start growth, we must take appropriate measures to deal,

adapt, mitigate and reduce the risks associated with climate change.

We must also ensure that liquidity is improved. Reinvigorating the

diversification drive is another area of priority;

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II. We have also announced a number of measures aimed at slowing

down the pace of debt accumulation, such as postponement and

cancellation of debt, subject to discussions with our creditors. The

importance of front-loading fiscal adjustment, including the expansion

of the revenue base is another important area. He indicated that

addressing the challenge of domestic arrears, and enhancing external

buffers, are other areas for which government has devised appropriate

policy responses.

III. The Government was also aware of the importance of undertaking

policy, legal and structural reforms in the energy sector, and

procurement systems. This was in order to increase investments in

energy production which has proven to be a constraint to growth in

the recent past. He indicated that enhanced procurement legislation

was aimed at changing the focus from processes to actual value for

money when goods and services are procured. He indicated that

Government was also working on improving, in the shortest possible

time, the public appraisal system.

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CHAPTER FIVE

5.0 MAIN RECOMMENDATIONS

The NES made key recommendations that Government and other

stakeholders needed to implement to support “inclusive growth and

sustainable development in Africa”. The Summit recommendations would

also contribute to successful implementation of the United Nations’ Agenda

2030 that focused on SDGs and the African Union’s Agenda 2063 – “The

Africa We Want”, and also at national level, the Seventh National

Development Plan and the Vision 2030.

Enhancement of the Legal and Policy Framework for EAZ

President Lungu directed the Ministry of Finance to work closely with the

Economics Association of Zambia (EAZ) in finding ways of ensuring that all

economists in Zambia are registered with the association so as to bring order

in the field.

Enhancement of African Intra and International Trade

1. There is need to pursue policies and structural reforms that promote

trade, FDI, tourism, and technology transfers to this continent of Africa.

These included: improving market access and trade with bilateral

partners, increasing FDI, positioning African countries as preferred

tourism and investment destinations as well as marketing them abroad

more widely.

2. Governments should continue actively getting involved in economic

diplomacy and bringing on board all relevant stakeholders, including

the private sector, in order to ensure that there was requisite

complementarity when all actors were all pulling in the same direction

in order to maximize on the use of the available scarce resources.

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3. There was need to address the constraints facing the supply side of

African economies, including those related to inadequate

infrastructural linkages if African countries were to develop faster and

take advantage of regional integration and benefits of globalization.

The structural transformation would lead to more diversified economies,

value addition and, in consequence, significant reduction of over-

dependence on primary commodities.

4. That development of infrastructure to promote connectivity of the

continent to facilitate trade and reduce market fragmentation was

indispensable. The Summit observed that through these focused and

sustained efforts, Africa would conquer poverty, create jobs for the

youth and overall, create a prosperous and peaceful continent, as

envisaged under the AU Vision 2063.

Promoting Intra-African Trade

1. There was need to fully implement AfCFTA legal instruments and

deepen continental integration for accelerated and inclusive

sustainable development.

2. With respect to making companies in Africa more competitive for trade

and positioning for success in the AfCFTA, there was need to;

I. Join continental business associations and networks,

II. Seek joint ventures and other business partnerships to produce to

scale of the AfCFTA market,

III. Invest in other African countries,

IV. Participate in Intra-African Trade Fair,

V. Participate in regional, continental and global value chains, and

VI. Participate in the AfCFTA Business Forum series.

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3. To get African nations and businesses ready for start of trading under

the AfCFTA, there was need for;

I. Continued advocacy for signature and ratification,

II. National level sensitization of business,

III. Production and distribution of trade documents,

IV. Development of collaborative framework between Interim

AfCFTA secretariat and Regional Economic Communities, and

V. Review of state of preparedness.

Addressing Youth Unemployment in Africa

AU member states should modernise and make the agriculture sector

attractive as it had huge potential to contribute to creation of sustainable

jobs. It was observed that if agriculture remained subsistence and lacked

technology, the youths would continue shunning this sector.

Governments should therefore facilitate the modernisation of agriculture to

enhance productivity, profitability and promote inclusive growth especially

among the marginalised groups. This would also help government fully

harness the demographic dividends as most African economies were largely

youthful.

Infrastructure Development

1. The Government should accelerate the construction of Frederick Titus

Jacob Chiluba University in Mansa, King Lewanika University in Mongu

and Kasama University in Kasama even if the country was under the

implementation of austerity measures.

2. There is need to quickly focus on improving the quality of health care

provision at all levels – primary, secondary and tertiary health care.

3. There is need to review, strengthen and enhance enforcement of PPP

Policy and regulations to get the best value for money and maximise

positive externalities to the economy.

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Implementation of Austerity Measures

1. Government to ensure that the austerity measures presently being

implemented be implemented with the poorest of the poor in mind.

There was need to find a balance that will ensure that the poorest of

the poor are not made worse off.

2. There was need to strike a balance between economic austerity

policies and economic stimulus policies if we were to grow our

economy; the Summit observed that if the country religiously

implemented austerity measures at the expense of stimulus economic

policies, the country would be by-passed by inclusive and sustainable

economic growth and development.

Deepening Financial Inclusion for SMEs

1. To deepen financial inclusion especially for SMEs, there was need to


funds and capital markets.

2. Banks and other non-financial institutions such as mobile company

providers and pension funds needed to complement their efforts and

leverage on each other’s efforts for them to fully benefit from the

digital revolution thus contributing to deepening of financial inclusion.

3. Government should consider the International Monetary Fund

financing option as this was expected to contribute to lowering the

cost of accessing funds in the Zambian financial market.

4. There was need for innovative solutions to financing SMEs, such as

focusing on the value and leveraging on profile of corporate

engagements. The traditional approach which focused on meeting

conditionalities such as submitting of audited financial reports and

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meeting certain governance standards had continued to hinder SMEs

from accessing financing.

5. There was need for networks and electricity in rural areas to promote

use of digital platforms.

Energy Development

1. The GreenCo model supported by ZESCO, IDC, Ministry of Energy,

Ministry of Finance and Ministry of National Development Planning and

a number of Zambia’s key cooperating partners was presented as an

immediately and readily implementable model through which to

achieve climate change mitigation and diversification in the energy

sector whilst assisting in creating a wider power market for renewable

energy in the country.

GreenCo will act as a renewable energy creditworthy intermediary

offtaker only and will not control the physical generation, transmission

and distribution of electricity. It will not own any grid infrastructure or

seek to replace existing utilities. Rather than replacing existing

structures, it complements them and facilitates the implementation of

wider utility rehabilitation and balance sheet optimisation objectives.

Alignment with the Government of Zambia’s Policy Objectives is a

central advantage of the GreenCo approach. Once operationalized,

GreenCo is designed to:

a. Assist in achieving the objectives set out in the Industrialization

and Job Creation Strategy and the Economic Growth and

Stabilization Programme – “Zambia Plus”;

b. Support the efforts of the Government of Zambia to position

Zambia as a strategic regional hub for power trading within

SAPP, and also with EAPP once SAPP and EAPP have been

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connected through the ZTK (Zambia, Tanzania, Kenya)

interconnector currently under construction;

c. Support measures outlined under Government of Zambia’s

strategy for ZESCO and wider electricity sector reforms such as

the introduction of an open access regime;

d. Align with the Government of Zambia’s Seventh National

Development Plan; and

e. And contribute to Zambia’s achievement of the renewable

energy goals contained in its Nationally Determined

Contribution under the Paris Agreement.

Recommendations on Energy Sector

1. GRZ to communicate to stakeholders and investors on the ZESCO

reforms and to share plans and progress made towards financial

recovery of ZESCO.

2. New business such as that of introduction of creditworthy

intermediary offtakers and power sellers in the market (as proposed

by GreenCo Power Services Limited under the leadership of the

GRZ) for renewable energy should be encouraged and approved

in cabinet as soon as poossble in order to provide comfort to

financiers of renewable energy Independent Power Producers

(IPPs), promoting growth in the sub-sector at a lower generation

cost, as well as reducing fiscal risks that emanate from Government

issuance of sovereign guarantees to IPPs. The model strategically

aligns with the GRZ’s aspirations for increasing supply availability,

improving security of supply in the country through diversity in the

generation mix; increasing efficiency through facilitating open

access in the market; improvement of ZESCO’s supply through a

cheaper supply portfolio; movement closer to cost reflective tariffs

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in the country; increasing access to clean energy; and

enhancement of ERB’s position as a consumer advocate in the

country.

3. Zambia needed huge investment in Nuclear energy power to fully

achieve its potential. Financial constraints and limited investment in

the sector may continue to impede the nation from realising her

potential.

4. Licensing in energy sector entails multi-sectoral regulations. License

condition if not set correctly may act as a deterrent e.g. low penalty

units resulting into low compliance levels. Harmonizing processes

and procedures with other sector regulators, such as launch of

integrated portals for license application, processing and

information is important.

5. Enhancement of enabling Legislation :

Emerging challenges require enhancement of Energy Regulation

Act and Electricity Act;

Changing market structure and conduct such as service

providers in the electricity sector including import and export of

electricity products and services; and

Changes in procurement systems (Government versus Private

sector).

6. Open access will lead to better returns for all stakeholders and drive

positive growth.

7. Zambia’s renewable generation potential will help safeguard

against future supply shocks.

8. A favourable tariff regime will certainly be a key catalyst in the full

realisation and sustainability of the strategic projects.

9. ERB needs adequate, predictable and sustainable support for it to

continue playing its role effectively and efficiently. International

Technical support with other regulators (NARUC) underway.

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10. Supporting Zambia’s Vision to become a regional power trading

hub will depend on:

• Harnessing Zambia’s renewable energy potential to drive

economic growth, and reduce poverty at cheaper tariff and

lower fiscal burden

• Creation of a diversified energy mix and increased energy

security

• Increasing energy access and mitigating against climate

change

• Regulations and legal framework that allow innovative business

models to emerge. As other countries have the goal of

becoming power exporters as well, timing is of the essence.

Human Capital Development

1. Government should consider reviewing and transforming the general

education curriculum with a view of making it responsive to promote

creativity, innovation and entrepreneurship among the citizens. The

government general education school curriculum should be revised to

introduce economics, finance, financial education and

entrepreneurship as independent core subjects to be taken from

Grades 8 to 12 by pupils wishing to pursue careers in these fields. This

would ensure the Zambian general education school curriculum was

responsive to the contemporary economic, political and social needs

and challenges of our country.

2. The education systems should be premised on innovation, creativity

and excellence to become leading global players. Open I.C.E centres

countrywide could contribute to creation of an enabling environment

for fostering innovation, creativity and excellence.

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3. Universities should play a fundamental role in undertaking research,

consultancies and other ventures that can supplement the huge cost

of providing University Education.

4. While endeavouring to mobilise resources from other local alternative

financing, enhancing Private Sector Participation that may improve

the financing of education and training in the country e.g. PPPs are

important.

Enhancing Competiveness of Local Contractors

1. To address challenges affecting the effective participation and

contribution of local contractors to the development of infrastructure

and economy, there is need to change the current financing

frameworks to the construction sector by focusing on;

Low cost and sustainable financing,

Returning the funds in the country, and

Realising the full potential on non-traditional financing such

as pension funds

The capacity of local contractors may continue diminishing if status

quo remains where 85% of funding to the construction sector was

being done by 5% of the foreign investors. This advantages the foreign

contractors at the expense of local contractors, impedes the creation

of sustainable jobs, generally stifles local industry, and negatively

impact on financial capital inflows.

2. Government should fully exploit the non-traditional financing options

such as pension funds to support implementation of its infrastructure

development. The financing agreement between NAPSA and NRFA

towards the construction of the Solwezi -Chingola road offers insights

into non-traditional, low cost and sustainable financing of infrastructure

projects in the country. Government should fully exploit this option as it

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is low risk, cost effective and sustainable in view of the reduced fiscal

space in the short to medium term.

Agriculture Development

1. Government should issue certificate of title to land held by small-scale

farmers for them to use their land as collateral to finance their

production and lessen dependence on government.

2. Government should ensure an enabling environment for small-scale

farmers in Zambia to take farming as a business, taking advantage of

markets and technology. Several programmes to support small-scale

farmers in the past have not impacted positively as evidenced by

persistent poverty levels among small-scale farmers because they

don’t take agriculture as a business .

3. There was need to improve extensions services by increasing funding to

recruit more personnel and modernise extension service deliverly to

address primary production.

4. There was need to take advantage of Zambia’s capacity to add value

and export maize as a way of maximising employment creation and

foreign exchange earnings generation. It was learnt that Zambia had

an installed crushing capacity of maize of 4.2 million metric tonnes

whilst the country needed only 1.8 million metric tonnes for

consumption annually;

5. Government should formulate consistent and predicable policies to

ensure investor confidence. Government could replicate lessons from

Seed industry in Zambia which had done well over many years resulting

into the sector being the biggest exporter not only in Africa but the

world;

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Maximising the Contribution of the Aviation Industry to the Economy.

1. Government should ensure that the proposed airline and new airports

were using viable and competitive business models. The Zambian

national airline should not undo the existing Zambian-owned private

airlines, but collaborate with them by focusing more on international

routes and contribute to reducing and stabilising international and

local flight charges.

2. Maximising the potential benefits of aviation growth will depend on

levels of trade liberalization and visa facilitation. If moves towards

liberalization increase, annual growth could be more than two

percentage points faster, leading to a tripling in passengers over the

next 20 years.

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CHAPTER SIX

6.0 VOTE OF THANKS - CHARITY LUMPA

The vote of thanks was given by Ms Charity Lumpa, Board Chaiperson of

ZANACO. She thanked their Excellencies, President Lungu and Preseident

Kenyatta for gracing the occasion.

Ms Lumpa emphasised the importance of implementation of the Summit as it

would contribute to realisation of inclusive and sustainable growth,

democratic governance, peace and prosperity, economic democracy,

management of international relations on multi-sectoral approach, prospects

of nuclear energy and Israel experiences; raising above challenges.

Among others, she underscored the importance of focusing on citizens that

think creatively and make their own way. She pointed out that human

knowable was more valuable than manufacturing.

She recommended that there was need to checklist change the Zambian

curriculum as a matter of urgency to ensure it was relevant to industry, global

trends whilst building on the strong local cultures that we have-cultural traits

that promote excellency at local and national level.

She implored Zambia to emulate Israel by having a curriculum that promoted

creativity, innovation and entrepreneurship.

She further highlighted the need to do away with self-serving cultures but

instead focus on national good.

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ANNEXES

Attachment or keynote speeches

Programme

Sponsors

Page 1 of 12

STATE HOUSE

LUSAKA

K

S EXCELLENCY, MR. EDGAR CHAGWA LUNGU,

PRESIDENT OF THE REPUBLIC OF ZAMBIA,

ON THE OCCASION OF THE INAUGURAL NATIONAL

ECONOMIC SUMMIT

OF THE ECONOMICS ASSOCIATION OF ZAMBIA

AT AVANI VICTORIA FALLS RESORT, LIVINGSTONE

FRIDAY, 26TH JULY 2019

EYNOTE SPEECH BY

HI

Page 2 of 12

▪ YOUR EXCELLENCY, MR UHURU KENYATTA, PRESIDENT

OF THE REPUBLIC OF KENYA;

▪ YOUR EXCELLENCY, MR JAKAYA KIKWETE, FORMER

PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA;

▪ THE SECRETARY TO THE CABINET, DR. SIMON MITI;

▪ THE MINISTER OF FINANCE, HON. DR. BWALYA K. E.

NG’ANDU;

▪ THE MINISTER OF COMMERCE, TRADE AND INDUSTRIES,

HON. CHRISTOPHER YALUMA;

▪ THE HOST - THE PRESIDENT OF THE ECONOMICS

ASSOCIATION OF ZAMBIA, DR LUBINDA HAABAZOKA;

▪ MINISTER OF NATIONAL DEVELOPMENT PLANNING,

HON. ALEXANDER CHITEME;

▪ HONOURABLE CABINET MINISTERS PRESENT;

▪ PROVINCIAL MINISTERS;

▪ SENIOR GOVERNMENT OFFICIALS;

▪ THE BANK OF ZAMBIA GOVERNOR, DR DENNY

KALYALYA;

▪ THE BOARD OF THE ECONOMICS ASSOCIATION OF

ZAMBIA AND ITS SECRETARIAT;

▪ YOUR WORSHIP THE MAYOR OF THE CITY OF

LIVINGSTONE MR EUGEN MAPUWO;

▪ MEMBERS OF THE DIPLOMATIC CORPS, AND

COOPERATING PARTNERS;

▪ MEMBERS OF THE PRESS;

▪ DISTINGUISHED DELEGATES;

▪ LADIES AND GENTLEMEN;

I AM GREATLY HONOURED TO PARTICIPATE AS ONE

OF THE KEYNOTE SPEAKERS AT THIS INAUGURAL NATIONAL ECONOMIC SUMMIT WHICH IS A BRAINCHILD OF THE ECONOMICS ASSOCIATION OF ZAMBIA.

Page 3 of 12

I WISH TO EXTEND MY SINCERE GRATITUDE TO MY DEAR

BROTHER HIS EXCELLENCY MR UHURU KENYATTA, PRESIDENT OF THE REPUBLIC OF KENYA FOR SPARING TIME TO ATTEND THIS SUMMIT.

YOUR EXCELLENCY, YOUR PRESENCE HERE IS A CLEAR

DEMONSTRATION OF YOUR COMMITMENT TO BUILDING, AND SUSTAINING OUR BILATERAL COOPERATION, AND YOUR CRITICAL ROLE IN ADVANCING ECONOMIC DIPLOMACY IN AFRICA.

KENYA AND ZAMBIA HAVE HAD A LONG HISTORY OF BILATERAL COOPERATION, AND THIS SUMMIT WILL ENHANCE RELATIONS BETWEEN THE TWO COUNTRIES.

LET ME ALSO EXPRESS MY PROFOUND GRATITUDE TO HIS

EXCELLENCY, MR JAKAYA KIKWETE, FORMER PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA FOR PARTICIPATING IN THIS SUMMIT. YOUR EXCELLENCY, YOUR PRESENCE AT THIS SUMMIT IS INVALUABLE.

ZAMBIA AND TANZANIA HAVE A LONGSTANDING HISTORY ANCHORED ON COMMON INTERESTS AT BILATERAL AND MULTILATERAL LEVELS.

ALLOW ME ALSO TO COMMEND THE ECONOMICS

ASSOCIATION OF ZAMBIA (EAZ) FOR HOSTING THIS AUSPICIOUS INAUGURAL ECONOMIC SUMMIT.

THE THEME: “THE FUTURE OF ECONOMIC DIPLOMACY:

SUPPORTING INCLUSIVE GROWTH AND SUSTAINABLE

DEVELOPMENT IN AFRICA” IS VERY RELEVANT AS IT RESONATES WELL WITH THE ASPIRATIONS OF MY

GOVERNMENT, AND THE ZAMBIAN PEOPLE.

Page 4 of 12

MY GOVERNMENT IS DESIROUS TO SEE AN INCLUSIVE

GROWTH, AND SUSTAINABLE DEVELOPMENT WHICH PERMEATES GENDER, SOCIAL ECONOMIC STATUS, ETHNICITY, RACE, AND

RELIGIOUS ORIENTATION.

THIS THEME IS ALSO IN LINE WITH THE AFRICAN UNION’S

AGENDA 2063, AND THE UNITED NATIONS AGENDA 2030.

WE ARE COMMITTED TO DOMESTICATING, AND PUTTING

INTO PRACTICE THE PREAMBLE OF THE AGENDA 2063 WHICH READS, AND I QUOTE:

“WE ARE RESOLVED TO FREE THE HUMAN RACE FROM THE

TYRANNY OF POVERTY AND WANT TO HEAL AND SECURE OUR

PLANET. WE ARE DETERMINED TO TAKE THE BOLD AND

TRANSFORMATIVE STEPS WHICH ARE URGENTLY NEEDED TO SHIFT

THE WORLD ONTO A SUSTAINABLE AND RESILIENT PATH. AS WE

EMBARK ON THIS COLLECTIVE JOURNEY, WE PLEDGE THAT NO

ONE WILL BE LEFT BEHIND,” END OF QUOTE.

THEREFORE, THIS SUMMIT OFFERS US AN OPPORTUNITY

FOR POSITIVE DIALOGUE ON ISSUES PERTAINING TO THE ZAMBIAN ECONOMY IN PARTICULAR, AND THE AFRICAN

CONTINENT AT LARGE.

IN OUR QUEST TO REALISE OUR ASPIRATIONS, WE ARE

CONFRONTED WITH VARIOUS OBSTACLES, AND CHALLENGES.

HOWEVER, THE OBSTACLES, AND CHALLENGES IN OUR

WAY ARE NOT INSURMOUNTABLE.

FOR THIS REASON, I STRONGLY BELIEVE THAT

DEVELOPMENT INITIATIVES, POLICIES, STRATEGIES, TOOLS, AND PROGRAMMES SUCH AS ECONOMIC DIPLOMACY, INCLUSIVE

GROWTH, AND SUSTAINABLE DEVELOPMENT SHOULD TAKE CENTRE STAGE AS WE STRIVE FOR ECONOMIC PROSPERITY FOR

THE AFRICAN CONTINENT.

Page 5 of 12

YOUR EXCELLENCIES;

LADIES AND GENTLEMEN: AT THIS POINT, ALLOW ME TO HIGHLIGHT SOME OF THE ECONOMIC INITIATIVES MY GOVERNMENT HAS

EMBARKED ON IN PURSUIT OF INCLUSIVE GROWTH, SUSTAINABLE DEVELOPMENT, AND ECONOMIC DIPLOMACY.

1.0 KEY ECONOMIC SECTORS

1.1 ENERGY SECTOR

THEORETICAL AND EMPIRICAL EVIDENCE INDICATE THAT ENERGY PLAYS A KEY ROLE IN ALL SECTORS OF ANY ECONOMY.

ZAMBIA IS ENDOWED WITH A WIDE RANGE OF

NATURAL RESOURCES SUCH AS FORESTS, WATER, AND MINERALS SUCH AS COAL, AND RENEWABLE SOURCES OF ENERGY SUCH AS, WIND, SOLAR ENERGY AND HYDROPOWER WHICH HAVE THE POTENTIAL TO GENERATE

ABOUT 6,000 MEGAWATTS (MW) OF ELECTRICITY, ONCE FULLY DEVELOPED.

MY GOVERNMENT HAS PUT IN PLACE MEASURES TO

GROW, AND DIVERSIFY THE ENERGY SECTOR TO ENHANCE ITS CONTRIBUTION TO NATIONAL ECONOMIC DIVERSIFICATION.

THE GOAL IS TO ENSURE UNIVERSAL ACCESS TO

CLEAN, SAFE, RELIABLE AND AFFORDABLE ENERGY AT THE LOWEST COST, CONSISTENT WITH NATIONAL DEVELOPMENT ASPIRATIONS.

Page 6 of 12

I AM PLEASED TO NOTE THAT THE ZAMBIA ELECTRICITY SUPPLY CORPORATION (ZESCO)’S KAFUE GORGE REGIONAL

TRAINING CENTRE HAS BEEN SELECTED AS ONE OF THE EIGHT CENTRES OF EXCELLENCE IN AFRICA, TO OFFER TRAINING OF

STAFF FROM ALL OVER AFRICA.

THE ZAMBIAN GOVERNMENT WILL CONTINUE SUPPORTING

THE TRAINING CENTRE FOR IT TO PROVIDE THE NECESSARY KNOWLEDGE AND SKILLS AIMED AT IMPROVING AFRICA’S

MANAGEMENT OF ELECTRICITY UTILITIES.

MY GOVERNMENT REMAINS RESOLUTE TO ADDRESSING

THE ELECTRICITY CHALLENGES WE FACE AS A COUNTRY, AND AFRICA AS A WHOLE.

I AM AWARE THAT MANY OF OUR PEOPLE IN ZAMBIA, AND AFRICA IN GENERAL, NEED TO HAVE ACCESS TO ELECTRICITY TO

IMPROVE THEIR SOCIAL CIRCUMSTANCES, GROW THEIR ENTERPRISES, AND CONTRIBUTE TO INDUSTRIAL GROWTH.

AS A GOVERNMENT, WE ARE WORKING TIRELESSLY THROUGH THE RURAL ELECTRIFICATION AUTHORITY (REA)

INCREASE ACCESS TO ELECTRICITY FROM 3 PERCENT TO 51 PERCENT BY 2030 THROUGH THE IMPLEMENTATION OF THE

FOLLOWING PROJECTS:

1. GRID EXTENSION PROJECTS IN ALL OUR 10 PROVINCES;

2. SOLAR PROJECTS - 423 STAND-ALONE SOLAR HOME SYSTEM PROJECTS AT VARIOUS PUBLIC, AND SOCIAL

INSTITUTIONS;

3. MINI-HYDRO POWER STATIONS IN VARIOUS DISTRICTS; AND

4. WIND ENERGY PROJECTS IN LUNGA DISTRICT OF LUAPULA

PROVINCE.

ON THE INTERNATIONAL SCENE, ZAMBIA WILL CONTINUE TO PLAY A MAJOR ROLE IN PROMOTING THE DEVELOPMENT OF AN INTEGRATED AFRICAN ELECTRICITY

Page 7 of 12

SECTOR. THIS IS TO FACILITATE THE LONG-TERM ESTABLISHMENT OF AN AFRICAN ELECTRICITY MARKET

WHICH PROVIDES ACCESS TO AFFORDABLE AND RELIABLE ELECTRICITY TO THE PEOPLE OF AFRICA.

AS A COUNTRY, WE ARE HEAVILY INVESTING IN POWER GENERATION PLANTS – HYDRO-ELECTRIC PLANTS, SOLAR

ENERGY, NUCLEAR, WIND AND MANY OTHER FORMS OF RENEWABLE ENERGY, NOT ONLY FOR DOMESTIC CONSUMPTION, BUT ALSO FOR EXPORT INTO THE REGION, AND AFRICA AS A WHOLE.

THIS IS PART OF THE STRATEGY TO PROMOTE THE AFRICAN REGIONAL POWER POOLS, AND INTERCONNECTIONS OF GRIDS BETWEEN COUNTRIES. THIS IS TO FACILITATE POWER TRADING, AND PROMOTION OF

RENEWABLE ENERGIES.

HENCE, MY GOVERNMENT IS ACTIVELY SUPPORTING THE ESTABLISHMENT OF A FULL-FLEDGED REGIONAL ELECTRICITY TRANSMISSION THROUGH THE FOLLOWING PROJECTS:

1. ZIMBABWE-ZAMBIA-BOTSWANA-NAMIBIA(ZIZABONA

330KV);

2. ZAMBIA-TANZANIA-KENYA (400 KV);

3. MOZAMBIQUE-MALAWI (400 KV); AND

4. MOZAMBIQUE-ZIMBABWE-SOUTH AFRICA (MOZISA

400KV);

YOUR EXCELLENCIES;

LADIES AND GENTLEMEN:

1.2 INFRASTRUCTURE DEVELOPMENT

Page 8 of 12

WE ARE ALL AWARE THAT INFRASTRUCTURE DEVELOPMENT IS A VITAL COMPONENT IN ENCOURAGING

A COUNTRY'S ECONOMIC GROWTH BY ENHANCING EFFICIENCY IN PRODUCTION, TRANSPORTATION, AND COMMUNICATION.

THIS IS WHY MY GOVERNMENT IS INVESTING MASSIVELY

IN INFRASTRUCTURE DEVELOPMENT TO SPUR ACCELERATED SUSTAINABLE DEVELOPMENT, AND INCLUSIVE GROWTH.

THIS IS BEING IMPLEMENTED THROUGH THE CONSTRUCTION OF NEW, AND EXPANSION OF EXISITING

AIRPORTS; RAIL; AND ROAD INFRASTRUCTURE, SO THAT ZAMBIA IS LAND LINKED TO THE SOUTHERN AFRICA DEVELOPMENT COMMUNITY (SADC), AND THE COMMON MARKET FOR EAST AND SOUTHERN AFRICA (COMESA), AND

AFRICA AS A WHOLE.

1.3 SOCIAL INFRASTRUCTURE

TURNING TO SOCIAL INFRASTRUCTURE, MY

GOVERNMENT HAS EMBARKED ON AN AMBITIOUS PROGRAMME TO ESTABLISH, AND UPGRADE HOSPITALS, PRIMARY AND SECONDARY SCHOOLS, TERTIARY LEARNING INSTITUTIONS SUCH UNIVERSITIES, COLLEGES, AND SKILLS

TRAINING CENTRES. THIS IS TO ENSURE OUR PEOPLE ARE PROVIDED WITH ACCESS TO QUALITY MEDICAL CARE, EDUCATION, AND SKILLS TRAINING FOR THEM TO CONTRIBUTE POSITIVELY TO SUSTAINABLE DEVELOPMENT

WITHIN ZAMBIA, AND THE AFRICAN CONTINENT.

YOUR EXCELLENCIES;

LADIES AND GENTLEMEN:

1.4 E-GOVERNMENT

Page 9 of 12

IN TERMS OF INFORMATION COMMUNICATION TECHNOLOGIES (ICT) INFRASTRUCTURE, AND IN LINE WITH

OUR VISION OF ESTABLISHING A SMART ZAMBIA, MY GOVERNMENT ESTABLISHED THE ZAMBIA NATIONAL DATA CENTRE IN 2015.

IT IS WORTH NOTING THAT THE ZAMBIA NATIONAL

DATA CENTRE IS A LIMITED COMPANY UNDER THE INDUSTRIAL DEVELOPMENT CORPORATION (IDC) AND IS ZAMBIA’S ONLY DEDICATED DATA CENTRE COMPANY OFFERING VARIOUS ICT-RELATED SERVICES.

THE ESTABLISHMENT OF THIS COMPANY WILL CONTRIBUTE TO THE REDUCTION OF ICT-RELATED SERVICES.

I THEREFORE URGE THE BUSINESS COMMUNITY TO MAKE USE OF THE ZAMBIA NATIONAL DATA CENTRE.

FURTHER, MY GOVERNMENT HAS ESTABLISHED THE SMART ZAMBIA INSTITUTE MANDATED TO COORDINATE, AND IMPLEMENT ELECTRONIC GOVERNMENT (E-GOVERNMENT) FOR THE CITIZENS, BUSINESSES, AND THE

PUBLIC SECTOR FOR IMPROVED SERVICE DELIVERY.

IT IS AGAINST THIS BACKGROUND THAT MY GOVERNMENT, THROUGH SMART ZAMBIA, IS PROVIDING THE FOLLOWING SERVICES THAT CREATE AN ENABLING

BUSINESS ENVIRONMENT:

(1) GOVERNMENT TO CITIZENS (G2C) ONLINE SERVICES THAT INCLUDE: ePAMODZI; ePAYSLIP; THE ZAMBIA INTEGRATED AGRICULTURE MANAGEMENT

INFORMATION SYSTEM (ZIAMIS); ZAMBIA INTEGRATED LAND MANAGEMENT INFORMATION SYSTEM (ZILMIS); AND SMART CARE;

Page 10 of 12

(2) GOVERNMENT TO BUSINESS (G2B) ONLINE SERVICES SUCH AS TAX ONLINE; ASYCUDA; e-PACRA; e-PROCUREMENT; AND e-VISA; AND

(3) GOVERNMENT TO GOVERNMENT (G2G), THE FOLLOWING ONLINE SERVICES ARE IN PLACE: e-CABINET; INTERGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM (IFMIS), AND TREASURY SINGLE ACCOUNT (TSA); PAYROLL MANAGEMENT

AND ESTABLISHMENT CONTROL (PMEC); SHARED SERVICES; AND GOVERNMENT OF THE REPUBLIC OF ZAMBIA (GRZ) MINING CADASTRAL PORTAL.

2.0 REVISION OF KEY ECONOMIC POLICIES

MY GOVERNMENT HAS REVISED SEVERAL POLICIES TO MAKE THEM BUSINESS FRIENDLY.

IN THIS REGARD, THE MINISTRY OF COMMERCE, TRADE AND INDUSTRY HAS FORMULATED THE NATIONAL INDUSTRIALISATION POLICY, THE TRADE POLICY, THE STRATEGY ON LOCAL CONTENT UTILISATION, AND THE BUY

ZAMBIAN CAMPAIGN.

THE MINISTRY IS ALSO IN THE PROCESS OF REVISING THE MACRO, SMALL, AND MEDIUM ENTERPRISES (MSMES) POLICY TO MAKE IT RESPONSIVE TO THE NEEDS OF THIS

SECTOR.

3.0 PROVINCIAL EXPOS

MY GOVERNMENT HAS EMBARKED ON HOSTING PROVINCIAL EXPOS TO SHOWCASE THE INVESTMENT POTENTIAL IN OUR TEN PROVINCES. THESE PROVINCIAL EXPOS ARE AIMED AT ATTRACTING APPROPRIATE

INVESTMENT IN RESPECTIVE SECTORS IN EACH PROVINCE.

http://www.szi.gov.zm/






https://portal.miningcadastre.gov.zm/site/Login.aspx?ReturnUrl=%2fsite

Page 11 of 12

ZAMBIA HAS VAST INVESTMENT OPPORTUNITIES IN MINING, MANUFACTURING, AGRICULTURE, TOURISM,

ENERGY, HEALTH AND EDUCATION SECTORS.

I NOTE WITH PLEASURE THAT THIS NATIONAL ECONOMIC SUMMIT HAS ATTRACTED RENOWNED THOUGHT-LEADERS FROM ACADEMIA, PUBLIC SECTOR,

AND THE PRIVATE SECTOR FROM WITHIN, AND OUTSIDE ZAMBIA.

THEREFORE, LET ME TAKE THIS OPPORTUNITY TO EXTEND AN INVITATION TO YOU TO COME, AND INVEST IN OUR

COUNTRY. THE TIME FOR YOU TO MAKE THAT DECISION IS NOW, AND NOT LATER AS INVESTMENT OPPORTUNITIES ARE DIMINISHING AS MORE, AND MORE INVESTORS COME INTO THE COUNTRY.

4.0 CONCLUSION

YOUR EXCELLENCIES;

LADIES AND GENTLEMEN: AS I CONCLUDE, I WISH TO URGE ALL PARTICIPANTS AT THIS SUMMIT TO UTILISE YOUR TIME TO INTERROGATE AREAS OF CRITICAL PUBLIC CONCERN, AND IF NEEDS BE

RECOMMEND TO MY GOVERNMENT SUITABLE COURSES OF ACTION.

THE SUCCESS OF MY GOVERNMENT AND THE REGION

IN ATTAINING THE UN AGENDA 2030 AND THE AU AGENDA

2063 DEPENDS SIGNIFICANTLY ON THE APPLICATION OF EXPERT ADVICE FROM YOUR INSTITUTIONS.

MY GOVERNMENT IS AMENABLE TO EXPERT ADVICE THAT IS IN THE BEST INTEREST OF US ATTAINING INCLUSIVE

Page 12 of 12

GROWTH, AND SUSTAINABLE DEVELOPMENT FOR THE GOOD OF OUR PEOPLE.

LET ME DIRECT THE MINISTRY OF FINANCE TO WORK CLOSELY WITH THE ECONOMICS ASSOCIATION OF ZAMBIA (EAZ) TO FIND WAYS OF ENSURING THAT ALL ECONOMISTS IN ZAMBIA ARE REGISTERED WITH THE ASSOCIATION SO AS

TO BRING ORDER IN THE FIELD.

I WISH TO THANK THE ASSOCIATION’S BOARD FOR HOSTING A SUMMIT OF THIS MAGNITUDE. FURTHER, I WISH TO ASSURE EAZ THAT MY GOVERNMENT WILL CONTINUE

PARTICIPATING IN THE ANNUAL NATIONAL ECONOMIC SUMMIT.

I NOW END BY ENCOURAGING OUR VISITORS TO ENSURE THAT THEY SAMPLE VARIOUS TOURISM ATTRACTIONS

INCLUDING THE MUST SEE MIGHTY VICTORIA FALLS.

MAY GOD BLESS YOU ALL,

MAY GOD BLESS ZAMBIA, AND THE ENTIRE AFRICAN

CONTINENT,

I THANK YOU.

K

ON THE OCCASION OF THE INAUGURAL NATIONAL

ECONOMIC SUMMIT

OF THE ECONOMICS ASSOCIATION OF ZAMBIA

AT AVANI VICTORIA FALLS RESORT, LIVINGSTONE

FRIDAY, 26TH JULY 2019

EYNOTE SPEECH BY

HI

S EXCELLENCY, HON. UHURU KENYATTA,

PRESIDENT OF THE REPUBLIC OF KENYA,

1

H.E. Honourable Mr Edgar Chagwa Lungu,

President of the Republic of Zambia,

Excellencies Heads of States and

Government,

Honourable Ministers,

Excellencies Ambassadors and High

Commissioners,

Ladies and Gentlemen,

2

1. I sincerely thank His Excellency Edgar

Chagwa Lungu, my Brother and President of this

great Republic of Zambia, for his leadership in

organizing this first ever National Economic

Summit, and for inviting me to address the

meeting.

2. I am greatly inspired by the diverse group of

leaders in attendance: from business, academia,

civil society and government. Your presence

in such impressive numbers speaks to the

relevance of this Summit, not only to Zambia but

to Africa and the world at large.

3

3. The theme of this economic Summit “the

future of economic diplomacy”, supporting

inclusive growth and sustainable development in

Africa, speaks to the imperatives of our time. This

is in line with the comprehensive framework,

Vision 2063, developed and adopted by the

African Union for the realization of a prosperous

continent.

4

4. Coming just out of the launch of the

operational phase of our Continental Free Trade

Agreement, in Niamey, Niger at the beginning

of the month, and the COMESA business Summit in

Nairobi last week, this Summit stand in good stead

to take forward some of the discussions and

commitments to grow regional and intra-regional

African trade.

5

5. More importantly, the focused attention of

this Summit on topics such as structural economic

policies; bilateral trade and investment

agreements; international organizations and their

role in the development process; Economic

Diplomacy in Africa; Regional Integration and

Infrastructure; Global Dimension of Growth &

Sustainability, and Communication Technology,

offers an opportunity to focus on the entire

ecosystem for driving the prosperity agenda for

our countries and Africa.

6

6. Economic diplomacy has become a priority

for many countries worldwide. This attention on

trade, investment and commercial agenda is

responding to the reality of a globalized world.

7. In this regard, I would like to point out five,

fundamental realities that underline the

importance of economic diplomacy in Africa.

a) First, we have to respond to the obtaining

reality that more than 95 percent of the

world trade is being transacted outside the

continent of Africa.

7

b) Secondly, the cost of doing business in

Africa is higher compared to other

continents. Our exports outside the

continent encounter high barriers and Africa

is the only continent in the world that has the

least trade and investment with itself.

c) Third, Africa is most affected by the new

challenges of globalization, supply chains,

data flows and block chains.

8

d) Fourth, Africa cities are becoming the centre

of economic growth. The rate of economic

growth in the global South far exceeds the

one in the global north and is essentially

located in developing countries and in

particular on the continent of Africa. This

implies that consumption patterns are going

to change as people have more disposable

income.

9

e) Fifth, more than 65 % of uncultivated

arable land is located on the African

Continent, which presents huge opportunities

for agricultural production on the continent

to feed itself and the rest of the world.

Ladies and Gentlemen,

8. Kenya and Zambia share the aspiration for

addressing all these issues –as a means of growing

our prosperity. More importantly, we believe that

this shared prosperity can only be realized through

closer cooperation and integration.

10

9. This will expand our markets, create bigger

opportunities, reduce the cost of production and

enhance quality of services and goods.

10. Because we share the same aspirations,

Kenya and Zambia support each other's growth

and development processes and have been

strategic and cooperative partners. The

relationships we have developed offer the potential

to strengthen economic and commercial links. We

need to ensure that our ties are used in the best

way possible to promote mutually beneficial trade

and investment.

11

Your Excellency,

11. I laud Zambia’s Vision 2030 which strives

to make Zambia a “prosperous middle-income

country by 2030” and current focus as reflected

in the Seventh National Development Plan

(7NDP) for the period 2017- 2021, focusing on

creating a diversified and resilient economy for

sustained growth and socioeconomic

transformation. Similarly, we have our own

economic vision for accelerating transformation

of our country into a rapidly industrializing

middle-income nation by the year 2030.

12

12. We also share common membership of the

COMESA, SADC-EAC-COMESA Tripartite Free

Trade Area, and now African Continental Free

Trade Area (AfCFTA). We cooperate actively in

various instances internationally as well as at the

continental level, through a shared aspiration for

effective continental integration and deepened

regional trade.

13

13. I am encouraged by the significant efforts by

the Government of Zambia for creating the

enabling environment aimed at promoting

economic diversification, private sector led growth

through an inclusive growth approach.

14. We recognize the importance of foreign

direct investment for economic development.

Increased foreign direct investment into our

economies will help support economic prosperity.

That is why we continue to reform our business

environment to facilitate business people and

investors, both local and foreign.

14

15. We must pursue policies and structural

reforms that promote trade, foreign direct

investment, tourism, and technology transfers to

this continent of Africa. These include: improving

market access and trade with bilateral partners,

increasing foreign direct investment, positioning

our countries as a preferred tourism and

investment destinations as well as marketing them

abroad more widely.

15

Your Excellency,

16. as leaders we need to provide quality

leadership by actively getting involved in economic

diplomacy and bringing onboard all relevant

stakeholders, including the private sector, in order

to ensure that there is requisite complementarity

when all actors are all pulling in the same

direction. This combined strength enables us to

maximize on the use of the available scarce

resources.

16

17. Diversification of our products and trade

markets has always been a crucial and focal aspect

of economic diplomacy. I believe that if our

countries are to develop faster and take advantage

of regional integration and benefits of

globalization, we need to address the constraints

facing the supply side of our economies, including

those related to inadequate infrastructural

linkages. This requires structural transformation

that will lead to more diversified economies, value

addition and, in consequence, significant reduction

of over-dependence on primary commodities.

17

18. We need to stress on development of

infrastructure to promote connectivity of the

continent to facilitate Trade and reduce market

fragmentation.

19. Through these focused and sustained efforts,

we shall conquer poverty, create jobs for our youth

and overall create a prosperous and peaceful

continent, as envisaged under the AU Vision

2063.

18

…….0000000…….0000000…….

20. This Summit is, therefore, opportune and

timely. Let us use it constructively to generate

ideas and feasible solutions that can take

Zambia and our Continent forward.

21. I wish you a fruitful discussion and every

success.

Thank You.

SPEECH

TO BE DELIVERED AT THE NATIONAL ECONOMIC SUMMIT

HOSTED BY THE

ECONOMICS ASSOCIATION OF ZAMBIA

BY

DR. LUBINDA HAABAZOKA,

PRESIDENT OF THE ECONOMICS ASSOCIATION OF ZAMBIA,

ON

FRIDAY, 26TH

JULY 2019

AVANI HOTEL, LIVINGSTONE

EAZ INAUGURAL NATIONAL ECONOMIC SUMMIT THEME:

“THE FUTURE OF ECONOMIC DIPLOMACY: SUPPORTING INCLUSIVE

GROWTH AND SUSTAINABLE DEVELOPMENT IN AFRICA”

HIS EXCELLENCY, DR EDGAR CHAGWA LUNGU, PRESIDENT

OF THE REPUBLIC OF ZAMBIA

HIS EXCELLENCY, HON UHURU KENYATTA, PRESIDENT OF

THE REPUBLIC OF KENYA

HIS EXCELLENCY, DR JAKAYA MRISHO KIKWETE, FORMER

PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA

THE MINISTER OF FINANCE, HON. DR BWALYA NG’ANDU, M.P.

THE MINISTER OF COMMERCE, TRADE AND INDUSTRIES,

HON. CHRISTOPHER YALUMA, M.P

CABINET MINISTERS PRESENT

PROVINCIAL MINISTERS PRESENT;

DEPUTY SECRETARIES TO CABINET PRESENT

PERMANENT SECTRETARIES PRESENT

THE BOARD OF THE ECONOMICS ASSOCIATION AND ZAMBIA

AND ITS SECRETARIAT;

HIS WORSHIP THE MAYOR OF THE CITY OF LIVINGSTONE, MR

EUGENE MAPUWO;

MEMBERS OF THE DIPLOMATIC CORPS AND OTHER

COOPERATING PARTNERS;

THE BANK OF ZAMBIA GOVERNOR DR. DENNY KALYALYA;

DISTINGUISHED GUESTS; MEMBERS OF THE PRESS

LADIES AND GENTLEMEN

MAY I SIMPLY SAY ALL PROTOCOLS OBSERVED

INTRODUCTION

YOUR EXCELLENCIES, LADIES AND GENTLEMEN

IT IS MY GREAT PLEASURE AND A RARE PRIVILEGE TO STAND

BEFORE RENOWNED GIANTS IN THOUGHT LEADERSHIP. AT NO

TIME IN LIFE DID I DREAM THAT ONE-DAY, I WILL LEAD AN

ASSOCIATION THAT WILL ORGANISE THE NATIONAL ECONOMIC

SUMMIT THAT WILL BRING DISTINGUISHED LEADERS OF OUR

COUNTRY AND THE WORLD IN GENERAL. THIS IS INDEED A

LIFETIME HONOUR.

YOUR EXCELLENCIES, LADIES AND GENTLEMEN, ON BEHALF OF

THE ECONOMICS ASSOCIATION OF ZAMBIA AND INDEED ON MY

OWN BEHALF, I WARMLY WELCOME YOU TO THE INAUGURAL

NATIONAL ECONOMIC SUMMIT UNDER THE THEME:

THE FUTURE OF ECONOMIC DIPLOMACY: SUPPORTING INCLUSIVE

GROWTH AND SUSTAINABLE DEVELOPMENT IN AFRICA

THE THEME WAS CAREFULLY CONCEIVED IN RESPECT OF THE

CURRENT ECONOMIC DEVELOPMENT THINKING. IT FITS INTO THE

UNITED NATIONS’ AGENDA 2030 THAT FOCUSES ON SUSTAINABLE

DEVELOPMENT GOALS AND THE AFRICAN UNION’S AGENDA 2063 –

THE AFRICA WE WANT, AND ALSO AT NATIONAL LEVEL IT HAD TO

FIT INTO THE SEVENTH NATIONAL DEVELOPMENT PLAN AND THE

VISION 2030.

YOUR EXCELLENCIES, LADIES AND GENTLEMEN,

I AM SURE THAT THIS INAUGURAL NATIONAL ECONOMIC SUMMIT

WILL PROVIDE AN EXCELLENT OPPORTUNITY TO EXCHANGE

VIEWS AMONG PROFESSIONALS WITH EXTENSIVE EXPERIENCE

AND INTENSIVE INSIGHTS IN ECONOMIC AND FINANCIAL POLICY

MATTERS.

THUS, I AM PARTICULARLY DELIGHTED TO WELCOME THEIR

EXCELLENCIES:

HIS EXCELLENCY, DR. EDGAR CHAGWA LUNGU, PRESIDENT OF

THE REPUBLIC OF ZAMBIA. YOUR EXCELLENCY, WE ARE

OVERJOYED THAT YOU HAVE HONOURED YOUR ACCEPTANCE OF

OUR INVITATION TO COME AND GRACE THE FIRST EVER

NATIONAL ECONOMIC SUMMIT UNDER THE UMBRELLASHIP OF

THE ECONOMICS ASSOCIATION OF ZAMBIA. FURTHERMORE, YOUR

EXCELLENCY, WE ARE GRATEFUL FOR FACILITATING THE

INVITATION OF HIS EXCELLENCY HON UHURU KENYATTA; AND

HIS EXCELLENCY, DR. JAKAYA KIKWETE, FORMER PRESIDENT OF

THE UNITED REPUBLIC OF TANZANIA.


IT IS MY GREAT HONOUR AND RARE PRIVILEGE TO WELCOME AND

ACKNOWLEDGE THE MIRACULOUS PRESENCE OF HIS

EXCELLENCE, HON. UHURU KENYATTA, PRESIDENT OF THE

REPUBLIC OF KENYA. WE ARE HIGHLY INDEBTED AS AN

ASSOCIATION FOR THE SUPPORT YOU HAVE GIVEN OUR

ASSOCIATION JUST BY YOUR PRESENCE AND YOUR ACTIVE

PARTICIPATION IN THIS SUMMIT. IT IS A DREAM COME TRUE FOR

US TO HOST YOU.


I WISH TO EXPRESS A SPECIAL WELCOME TO HIS EXCELLENCY, DR.

JAKAYA KIKWETE, FORMER PRESIDENT OF THE UNITED REPUBLIC

OF TANZANIA AND NOW FOUNDER OF JAKAYA MRISHO KIKWETE

FOUNDATION. YOUR EXCELLENCY, WE ARE FILLED WITH

JUBILATION THAT YOU ACCEPTED OUR INVITATION. WE ARE ALSO

EXTREMELY APPRECIATIVE OF YOUR ACTIVE PARTICIPATION IN

THIS SUMMIT.


I WISH TO ACKNOWLEDGE THE INVALUABLE SUPPORT WE

RECEIVED FROM WELL-WISHERS ESPECIALLY OUR SPONSORS

WHO INCLUDE: ZANACO, STANBIC,ZRA, ZESCO, NAPSA, ZISC LIFE,

TRADE KINGS, COPPERBELT ENERGY CORPORATION, STANDARD

CHARTERED BANK, MAHOGANY AIR ZCCM-IH, TOMORROW

INVESTMENTS, AFRICA GREENCO, INDO-ZAMBIA BANK, NATIONAL

BREWERIES, NATIONAL ROAD FUND AGENCY, NATSAVE, ASTRIA

LEARNING AND MANY MORE. WE ARE ALSO HIGHLY INDEBTED

TO OUR PARTNERS: THE BANK OF ZAMBIA, UNIVERSITY OF

ZAMBIA, COPPERBELT UNIVERSITY, DEVELOPMENT AND

INVESTMENT INFRASTRUCTURE (DII-CONFERENCE), MULUNGUSHI

UNIVERSIY; ZCAS UNIVERSITY; SPRINGER, LONDON BUSINESS

SCHOOL, HARVARD UNIVERSITY, ZAMBIA INSTITUTE FOR POLICY

ANALYSIS AND RESEARCH, POLICY MONITORING AND RESEARCH

CENTRE, UNIVERSITY OF JOHANNESBURG JUST TO MENTION A

FEW

IT IS EVIDENT THAT WITHOUT THE INVALUABLE AND SELFLESS

CONTRIBUTIONS FROM OUR SPONSORS AND PARTNERS, WE

WOULD NOT HAVE MANAGED TO HOST A SUCCESSFUL AND

EXTRAORDINARY EVENT SUCH AS THIS ONE.


MAY I NOW TURN TO MY SPEECH TITLED “CHAMPIONING

ECONOMICS OF THE PEOPLE, FOR THE PEOPLE, BY THE PEOPLE:

THE ZAMBIA WE WANT”. THE ECONOMICS ASSOCIATION OF

ZAMBIA BELIEVES IN ECONOMICS THAT IS AT THE CENTRE OF

PEOPLE’S LIVES. YOUR EXCELLENCIES AS AN ASSOCIATION – WE

ARE IN AGREEMENT WITH THE AFRICAN UNION’S AGENDA 2063

AND THE UNITED NATIONS AGENDA 2030 AND THE SUSTAINABLE

DEVELOPMENT GOALS. THESE ARE DEVELOPMENT INITIATIVES

THAT FOCUS ON HUMAN DEVELOPMENT IN ALL AREAS OF OUR

LIVES.


DAYS ARE LONG GONE WHEN ECONOMICS WAS TILTED TOWARDS

THE OWNERS OF CAPITAL – MEANINGFUL ECONOMICS IS ABOUT

IMPROVING PEOPLE’S CHOICES AND FREEDOMS. I AM A STRONG

BELIEVER IN THE DEFINITIONS OF DEVELOPMENT PROVIDED BY

THREE FAMOUS ECONOMISTS: AMARTYA SEN – A NOBEL LAURET

IN ECONOMICS; DUDDLEY SEERS; AND EDGAR OWENS. AMARTYA

SEN'S CONCEPT OF DEVELOPMENT AS FREEDOM IS HIGHLY

ACCLAIMED. HE ARGUES THAT HUMAN DEVELOPMENT IS ABOUT

THE EXPANSION OF CITIZENS CAPABILITIES. FOR SEEN,

FREEDOM MEANS INCREASING CITIZENS ACCESS AND

OPPORTUNITIES TO THE THINGS THEY HAVE REASON TO VALUE.

DUDLEY SEERS SUGGESTED THAT DEVELOPMENT IS WHEN A

COUNTRY EXPERIENCES A REDUCTION OR ELIMINATION OF

POVERTY, INEQUALITY AND UNEMPLOYMENT.

AND EDGAR OWENS SUGGESTED THAT DEVELOPMENT IS WHEN

THERE IS DEVELOPMENT OF PEOPLE (HUMAN DEVELOPMENT) AND

NOT DEVELOPMENT OF THINGS.

FURTHERMORE, YOUR EXCELLENCIES, THE TITLE OF MY SPEECH

IS INSPIRED BY THE UNITED NATIONS DEVELOPMENT

PROGRAMME’S HUMAN DEVELOPMENT APPROACH INTRODUCED

IN 1990 AND I QUOTE:

“HUMAN DEVELOPMENT – OR THE HUMAN DEVELOPMENT

APPROACH - IS ABOUT EXPANDING THE RICHNESS OF HUMAN

LIFE, RATHER THAN SIMPLY THE RICHNESS OF THE ECONOMY IN

WHICH HUMAN BEINGS LIVE. IT IS AN APPROACH THAT IS

FOCUSED ON PEOPLE AND THEIR OPPORTUNITIES AND CHOICES.

YOUR EXCELLENCIES, LADIES AND GENTLEMEN, HUMAN

DEVELOPMENT FOCUSES ON IMPROVING THE LIVES PEOPLE LEAD

RATHER THAN ASSUMING THAT ECONOMIC GROWTH WILL LEAD,

AUTOMATICALLY, TO GREATER WELLBEING FOR ALL. INCOME

GROWTH IS SEEN AS A MEANS TO DEVELOPMENT, RATHER THAN

AN END IN ITSELF. [THIS EXPLAINS WHY INCLUSIVE GROWTH IS PART

OF OUR THEME FOR THIS SUMMIT]

INDEED, HUMAN DEVELOPMENT IS ABOUT GIVING PEOPLE MORE

FREEDOM TO LIVE LIVES THEY VALUE. IN EFFECT THIS MEANS

DEVELOPING PEOPLE’S ABILITIES AND GIVING THEM A CHANCE

TO USE THEM. FOR EXAMPLE, EDUCATING A GIRL WOULD BUILD

HER SKILLS, BUT IT IS OF LITTLE USE IF SHE IS DENIED ACCESS TO

JOBS, OR DOES NOT HAVE THE RIGHT SKILLS FOR THE LOCAL

LABOUR MARKET. THREE FOUNDATIONS FOR HUMAN

DEVELOPMENT ARE TO LIVE A LONG, HEALTHY AND CREATIVE

LIFE, TO BE KNOWLEDGEABLE, AND TO HAVE ACCESS TO

RESOURCES NEEDED FOR A DECENT STANDARD OF LIVING.


IT WORTH NOTING THAT WE AS ASSOCIATION, TOOK TIME TO

READ THE DEVELOPMENT PLANS, POLICIES AND STRATEGIES FOR

MOST OF OUR COUNTRIES ON THE AFRICAN CONTINENT

PARTICULARLY FOR ZAMBIA, KENYA, TANZANIA AND SOUTH

AFRICA. WE NOTED THAT ALL THESE COUNTRIES ARE MAKING

EFFORTS IN TURNING THE DEFINITIONS OF DEVELOPMENT

PROVIDED ARMATYA SEN, DUDDLEY SEERS, THE UNDP AND

OTHERS PROPONENTS OF HUMAN DEVELOPMENT INTO REALITY.

WE NOTE YOUR EXCELLENCIES, LADIES AND GENTLEMEN,

THE FOCUS OF GOVERNMENTS IN SUB-SAHARAN AFRICA THAT

INCLUDE ZAMBIA, KENYA, AND TANZANIA IS TO REDUCE

POVERTY, REDUCE INEQUALITY, REDUCE UNEMPLOYMENT

THEREBY INCREASING PEOPLE’S FREEDOMS, CAPABILITIES,

CHOICES AND WELL-BEING.


IN THE CASE OF MY MOTHER COUNTRY ZAMBIA, THE ECONOMICS

ASSOCIATION OF ZAMBIA HAS NOTED COUNTLESS FORWARD-

LOOKING ECONOMIC STRATEGIES AIMED TO TURNING THE VISION

2030 INTO REALITY.

WE NOTE YOUR EXCELLENCIES THAT THE SEVENTH NATIONAL

DEVELOPMENT PLAN IS A DEVELOPMENT PLAN OF THE PEOPLE,

FOR THE PEOPLE, BY THE PEOPLE AS ITS THEME INDICATE:

“ACCELERATING DEVELOPMENT EFFORTS TOWARDS VISION 2030

WITHOUT LEAVING ANYONE BEHIND”

AND OUR VISION 2030 IS CENTRED ON HUMAN-DEVELOPMENT:

“BECOMING A PROSPEROUS MIDDLE-INCOME COUNTRY BY 2030”


THE ECONOMICS ASSOCIATION OF ZAMBIA UNRESERVEDLY

COMMENDS THE GOVERNMENT OF REPUBLIC OF ZAMBIA THAT IS

PRESENTLY BEING CAPTAINED BY HIS EXCELLENCY, DR. EDGAR

CHAGWA LUNGU, FOR AIMING INFINITELY HIGH AT ACHIEVING

THE MAIN GOAL OF THE SEVENTH NATIONAL DEVELOPMENT

PLAN WHICH IS: “TO CREATE A DIVERSIFIED AND RESILIENT

ECONOMY FOR SUSTAINED GROWTH AND SOCIOECONOMIC

TRANSFORMATION DRIVEN, AMONG OTHERS, BY AGRICULTURE…

AND TO RESPOND TO THE SMART ZAMBIA TRANSFORMATION

AGENDA 2064 AND CONSEQUENTLY TO EMBED IN IT THE

ECONOMIC RECOVERY NECESSARY FOR THE ACTUALISATION OF

A SMART ZAMBIA.

THEREFORE, YOUR EXCELLENCIES, LADIES AND GENTLEMEN,

AS A KEY STAKEHOLDER IN THE FORMULATION AND

IMPLEMENTATION OF 7NDP, ESPECIALLY THAT OUR ASSOCIATION

ADVOCATES FOR SOUND, INCLUSIVE, AND SUSTAINABLE

ECONOMIC POLICIES WE WISH TO COMMENT ON THE PROGRESS

MADE AND CHALLENGES BEING FACED IN THE IMPLEMENTATION

OF THE SEVENTH NATIONAL DEVELOPMENT PLAN UNDER THE

FIVE PILLARS (OR STRATEGIC AREAS) OF THE PLAN WHICH ARE:

1. TO DIVERSIFY AND MAKE ECONOMIC GROWTH INCLUSIVE

AND JOB CREATION;

2. TO REDUCE POVERTY AND VULNERABILITY;

3. TO REDUCE DEVELOPMENTAL INEQUALITIES;

4. TO ENHANCE HUMAN DEVELOPMENT; AND

5. TO CREATE A CONDUCIVE GOVERNANCE ENVIRONMENT FOR

A DIVERSIFIED AND INCLUSIVE ECONOMY


WE NOTE THE SPECIAL ATTENTION BEING GIVEN TO CITIZEN

INFLUENCED, CITIZEN EMPOWERED, OR CITIZEN OWNED

COMPANIES FOR THE PURPOSE OF PREFERENCE AND

RESERVATION SCHEMES AS PROVIDED FOR IN BOTH THE CITIZENS

ECONOMIC EMPOWERMENT ACT NO. 9 OF 2006 AND STATUTORY

INSTRUMENT NO. 36 OF 2011. IT WORTH NOTING THAT THE TYPE

OF BUSINESSES THAT QUALIFY FOR THIS SUPPORT ARE IN

MANUFACTURING; AGRICULTURE; MINING; TRADING;

CONSTRUCTION (CIVIL, ROAD, AND BUILDING AND SERVICES.

HOWEVER, YOUR EXCELLENCE, WE NOTE THAT MOST OF OUR

PEOPLE SEEM NOT TO KNOW MUCH ABOUT THIS FACILITY.

THEREFORE, THERE IS NEED FOR INCREASED SENSITIZATION

USING TIMELY, RELEVANT AND APPROPRIATE MEDIA AND

MARKETING STRATEGIES. FURTHERMORE, I WISH TO URGE OUR

PEOPLE TO DEVELOP A CULTURE OF CREATIVITY AND

INNOVATIVENESS IF THEIR BUSINESSES ARE TO THRIVE AND

REMAIN COMPETITIVE. OUR PEOPLE SHOULD ALSO DEVELOP A

CULTURE OF SPENDING THE FINANCIAL RESOURCES THEY ACCESS

FROM INSTITUTIONS SUCH AS CEEC ON THE INTENDED VIABLE

BUSINESS PROJECTS AND BE HIGHLY MOTIVATED TO PAY BACK IF

THESE OUR INSTITUTIONS ARE TO BE EXCEEDINGLY FINANCIALLY

SUSTAINABLE.


THE ECONOMICS ASSOCIATION OF ZAMBIA AGAIN IS OVERJOYED

AT CALLS FOR PROPOSALS TO UNDERTAKE BUSINESS

INVESTMENTS WITH FUNDING FROM THE CITIZENS ECONOMIC

EMPOWERMENT FUND (CEEF) FOR THE YEAR 2019 UNDER THE

AQUACULTURE SEED FUND OF THE ZAMBIA AQUACULTURE

ENTERPRISE DEVELOPMENT PROJECT (ZAEDP).


PROJECTS TO BE CONSIDERED FOR FUNDING INCLUDE TABLE FISH

PRODUCTION, FISH SEED (FRY AND FINGERLINGS) PRODUCTION,

FISH FEED PRODUCTION OR OTHER FISH FARMING INPUT SUPPLY

BUSINESS, COLD CHAIN SOLUTION, FISH VALUE ADDITION AND

PROCESSING (DRYING, SMOKING, FILLET, CANNING, ETC.),

MARKETING OF FISH PRODUCTS, OR OTHER COMMERCIALLY

VIABLE FISH FARMING BACKWARD AND FORWARD BUSINESS

ACTIVITIES. THE PROJECTS WILL FOCUS ON THE PRODUCTION AND

UTILISATION OF TILAPIA, POPULARLY KNOWN AS BREAM, AND

CATFISH POPULARLY KNOWN AS MULONGE, MULAMBA OR

NDOMBE.

THE ECONOMICS ASSOCIATION OF ZAMBIA IS EUPHORIC THAT IF

THESE PROJECTS COME TO FRUITION, THE FISH DEFICIT IN OUR

COUNTRY WILL BE NARROWED HENCE REDUCING IMPORTS THAT

WILL CONTRIBUTE TO LESSENING PRESSURE ON THE DEMAND OF

FOREIGN EXCHANGE AND CONSEQUENTLY REDUCE THE PRICES

OF FISH THAT IS LOCALLY GROWN.

THE ECONOMICS ASSOCIATION IS FURTHER ENRAPTURED THAT

MAJORITY OF OUR PEOPLE ESPECIALLY CHILDREN WILL

SUSTAINABLY HAVE ACCESS TO THE MUCH NEEDED PROTEINS

FOR THEIR MENTAL AND PHYSICAL GROWTH.

YOUR EXCELLENCY, DR EDGAR CHAGWA LUNGU, THIS IS A STEP

IN THE RIGHT DIRECTION. WE CAN ONLY REQUEST THAT MORE

FUNDING IS ALLOCATED AND DISBURSED TO SUPPORT SUCH

INITIATIVES.


WE NOTE THAT THE CEEC IS RUNNING A SKILLS DEVELOPMENT

AND ENTREPRENEURSHIP PROJECT SUPPORTING WOMEN AND

YOUTH WHERE THERE IS EVEN A CALL FOR APPLICATIONS FOR

OCCUPATION OF INDUSTRIAL YARDS. CEEC IS UNDER OPTION ONE

(1) CONSTRUCTING 8 INDUSTRIAL YARDS IN LUSAKA, CHIPATA,

MONGU, NDOLA, KITWE, SOLWEZI, MANSA AND KASAMA

DISTRICTS.

THE ECONOMICS ASSOCIATION OF ZAMBIA IS RAPTUROUS THAT

THROUGH YOUR GOVERNMENT, YOUR EXCELLENCY, DR. EDGAR

CHAGWA LUNGU, IT IS ESTIMATED THAT 300 MSMES WILL

PARTICIPATE IN OPTION 1 AND WILL HAVE OPPORTUNITIES TO

ACCESS BUSINESS LOANS FROM CITIZENS ECONOMIC

EMPOWERMENT COMMISSION-CEEC FOR PURCHASE OF

EQUIPMENT AND FOR WORKING CAPITAL. IT IS EXPECTED THAT

THIS INTERVENTION WILL CREATE AT LEAST 4,000 JOBS IN THE

INDUSTRIAL YARDS BY 2021.


THE ECONOMICS ASSOCIATION OF ZAMBIA IS OVER-JOYED THAT

OUR GOVERNMENT WAS ABLE TO SECURE FINANCING FROM THE

AFRICAN DEVELOPMENT BANK (AFDB) TOWARDS THE

IMPLEMENTATION OF THE SKILLS DEVELOPMENT AND

ENTREPRENEURSHIP PROJECT SUPPORTING WOMEN AND YOUTH

WHICH FUNDS ARE FOR THE DEVELOPMENT OF INDUSTRIAL

YARDS IN ZAMBIA THROUGH THE CITIZENS ECONOMIC

EMPOWERMENT

THE INDUSTRIAL YARDS WILL EACH PROVIDE ELECTRIC POWER

SUPPLY FROM ZESCO AND WATER SUPPLY FROM BOREHOLES AND

FINANCIAL AND BANKING SERVICES SUCH AS ATMS, CLEANING

SERVICES AND GARBAGE COLLECTION AND SECURITY SERVICES.


IT IS NOTEWORTHY THAT THE CEEC TARGETED CITIZENS AND

TARGETED COMPANIES TO OCCUPY LIGHT MANUFACTURING

WORKSHOPS FOR PURPOSES OF METAL FABRICATION, WOOD

PROCESSING, AUTO MECHANICS, AGRO PROCESSING, GEMSTONE

PROCESSING, INFORMATION AND COMMUNICATION

TECHNOLOGY-ICT AND ENERGY AS WELL AS BULK STORAGE,

TIMBER CURING KILNS AND RESTAURANTS TO COMMERCIALLY

OPERATE IN THE FOLLOWING INDUSTRIAL YARDS;

1. MONGU INDUSTRIAL YARD IN WESTERN PROVINCE;

2. SOLWEZI INDUSTRIAL YARD IN NORTH WESTERN PROVINCE

3. KASAMA INDUSTRIAL YARD IN NORTHERN PROVINCE

4. NDOLA INDUSTRIAL YARD ON THE COPPERBELT

5. CHIPATA INDUSTRIAL YARD IN EASTERN PROVINCE

WE ARE SELF-POSSESSED AS THE ECONOMICS ASSOCIATION OF

ZAMBIA THAT THE REALISATION OF A DIVERSIFIED AND

RESILIENT ECONOMY FOR SUSTAINED GROWTH AND

SOCIOECONOMIC TRANSFORMATION DRIVEN, AMONG OTHERS, BY

AGRICULTURE IS GUARANTEED WITH YOUR REVOLUTIONARY

ECONOMIC POLICIES, YOUR EXCELLENCY, DR. EDGAR CHAGWA

LUNGU.

HOWEVER, YOUR EXCELLENCY, WE CAN ONLY URGE YOUR

GOVERNMENT TO ENSURE THAT CEEC EXPEDITES THE PROCESS

OF BUILDING THESE PLANNED INDUSTRIAL YARDS AND ALSO

EXTENDS THEM TO THE OTHER REMAINING FOUR PROVINCES OF

CENTRAL, LUSAKA, LUAPULA, AND SOUTHERN.


THE ECONOMICS ASSOCIATION OF ZAMBIA IS ALSO

PROPORTIONATELY CHARMED THAT THE ZAMBIA DEVELOPMENT

AGENCY UNDER YOUR GOVERNMENT IS MAKING EFFORTS TO

TURN ITS MISSION INTO REALITY WHICH VISION AND MISSION

ARE, “TO BE A DYNAMIC HUB FOR PROMOTING ECONOMIC

DEVELOPMENT FOR ALL” AND TO “TO EFFICIENTLY AND

EFFECTIVELY PROMOTE AND FACILITATE INVESTMENT, TRADE

AND ENTERPRISE DEVELOPMENT IN ZAMBIA.”

YOUR EXCELLENCIES IT IS FRIGHTENING TO NOTE THAT MOST

ZAMBIANS HAVE A WRONG PERCEPTION OF THE ZAMBIA

DEVELOPMENT AGENCY – THE ERRONEOUS DISCERNMENT IS

THAT THE ZDA ONLY OFFERS SERVICES TO FOREIGN INVESTORS.

I WISH TO TAKE THIS OPPORTUNITY TO CORRECT THE

PERCEPTION BY INFORMING THE NATION THAT THROUGH THE

MICRO SMALL AND MEDIUM ENTERPRISE (MSME) DIVISION, ZDA

FACILITATES SKILLS TRAINING THROUGH VARIOUS TRAINING

PACKAGES AND OTHER SERVICES THAT PROMOTE HOME-GROWN

INDUSTRIES.


AS EAZ WE WISH TO APPLAUD GOVERNMENT FOR DECLARING

KAFUE TOWN AS AN IRON AND STEEL ECONOMIC FACILITY ZONE

AS A WAY TO ENCOURAGE HOME GROWN INDUSTRIALISATION.

THE ECONOMICS ASSOCIATION OF ZAMBIA THAT HOUSES A

MULTITUDE OF ECONOMIC THOUGHT LEADERS APPRECIATES AND

UNDERSTANDS THE SIGNIFICANCE OF ECONOMIC FACILITY ZONES

IN PROMOTING AND ACTUALISING ZAMBIA’S INDUSTRIALISATION

PROGRAMME AS ENSHRINED IN OUR SEVENTH NATIONAL

DEVELOPMENT PLAN.


AS AN ASSOCIATION, WE ARE WELL AWARE THAT IT IS YOUR

GOVERNMENT’S INTENTIONS TO INTRODUCE ECONOMIC FACILITY

ZONES ACROSS THE COUNTRY AS A WAY OF FAST-TRACKING

ZAMBIAN-OWNED INDUSTRIALISATION. HOWEVER, WE WISH TO

URGE YOUR GOVERNMENT TO ENSURE THAT THIS IS ACTUALISED

WITHIN THE IMPLEMENTATION PERIOD OF THE SEVENTH

NATIONAL DEVELOPMENT PLAN.


THE ECONOMICS ASSOCIATION OF ZAMBIA WISH TO

ENTHUSIASTICALLY EXTOL THE MINISTRY OF COMMERCE TRADE

AND INDUSTRY FOR FORMULATING THE FOLLOWING POLICY

DOCUMENTS THAT PROMOTE TRADE AND INDUSTRIALISATION:

1. TRADE POLICY

2. NATIONAL INDUSTRIALISATION POLICY

3. STRATEGY PAPER ON THE PROMOTION OF LOCAL CONTENT -

4. THE BUY ZAMBIAN CAMPAIGN


THE ECONOMICS ASSOCIATION OF ZAMBIA ENDEARS THE PALM

OIL PLANTATION AND PROCESSING PROJECT IN MUCHINGA

PROVINCE AND THE TEA PLANTATION AND PROCESSING PROJECT

IN LUAPULA PROVINCE. IT IS OUR DESIRE THAT THE GROWTH AND

DEVELOPMENT FROM THESE PROJECTS WILL BE INCLUSIVE AND

SUSTAINABLE.


WE WISH TO URGE THE GOVERNMENT OF THE REPUBLIC OF

ZAMBIA TO CONTINUE ON THE PATH OF DIVERSIFICATION WITHIN

THE MINING SECTOR FROM COPPER TO OTHER MINERALS SUCH AS

INDUSTRIAL MINERALS, PETROLEUM AND GEMSTONES. FURTHER,

GOVERNMENT SHOULD CONTINUE TO PROMOTE VALUE ADDITION

IN THE SECTOR IN A BID TO CREATE BACKWARD AND FORWARD

LINKAGES WITH OTHER SECTORS OF THE ECONOMY.


WE ARE COGNISANT OF THE FACT INDUSTRIALISATION REQUIRES

ENERGY. THEREFORE, WE WISH TO URGE HIS EXCELLENCY DR

EDGAR CHAGWA LUNGU’S GOVERNMENT TO EMPHATICALLY,

CONTINUE TO INVEST IN THE ENERGY SECTOR SO AS TO BE

READY TO MEET THE ANTICIPATED INCREASED DEMAND FOR

ENERGY THAT WILL REACH ITS PEAK IN 2021 AT 3,000

MEGAWATTS.

WE AS THE ECONOMICS ASSOCIATION OF ZAMBIA ARE CONFIDENT

THAT WITH A NUMBER OF HYDRO, SOLAR AND COAL POWER

PLANTS UNDER CONSTRUCTION THE ENERGY OR ELECTRICITY

DEMAND SHALL SUFFICIENTLY BE MET. THEREFORE, WE URGE

THE BUSINESS COMMUNITY NOT TO PANIC, BUT ALSO FOCUS ON

INVESTING IN ALTERNATIVE SOURCES OF CLEAN ENERGY.


THE ECONOMICS ASSOCIATION OF ZAMBIA WISH TO URGE HIS

EXCELLENCE, DR EDGAR CHAGWA LUNGU TO CONTINUE WITH HIS

TRANSPORT NETWORK TRANSFORMATION AGENDA THROUGH

FULL IMPLEMENTATION OF THE LINK ZAMBIA 8,000 ROAD

PROJECT AGAINST ALL ODDS. YOUR EXCELLENCY, WE THE

ECONOMICS ASSOCIATION OF ZAMBIA STILL BELIEVE THAT EVEN

UNDER THE ON-GOING IMPLEMENTATION OF THE AUSTERITY

MEASURES ARE STILL CONCERNED AT THE GROWING SILENCE ON

THE LUSAKA-NDOLA DUAL CARRIAGE WAY. WE STRONGLY

BELIEVE, YOUR EXCELLENCE THAT THIS ROAD IS OF ECONOMIC

VALUE AND CAN REDUCE THE COST AND TIME OF DOING

BUSINESS ONCE IT IS COMPLETED.

WE AS AN ASSOCIATION HAVE NOT HIDDEN OUR DESIRE TO SEE

THE FULL IMPLEMENTATION OF THE CONSTRUCTION OF AIRPORTS

IN BUSINESS STRATEGIC AREAS OF OUR COUNTRY. IT IS AGAINST

THIS BACKGROUND THAT WE AWAIT THE COMPLETION OF THE

CONSTRUCTION OF THE TWO MODERN AIRPORTS - KENNETH

KAUNDA INTERNATIONAL AIRPORT AND SIMON MWANSA

KAPWEPWE AIRPORT. THIS WILL ENABLE ZAMBIA GAIN

COMPETITIVE SUSTAINABLE ADVANTAGE IN THE AIRLINE

INDUSTRY AS THE NEW ZAMBIA AIRWAYS SHALL BE LAUNCHED

IN THE COMING MONTHS AS INDICATED BY YOUR GOVERNMENT.

HOWEVER, WE WISH TO URGE YOUR GOVERNMENT TO ENSURE

THAT THE AIRLINE AND AIRPORTS ARE USING VIABLE AND

COMPETITIVE BUSINESS MODELS. THE NATIONAL AIRLINE

SHOULD NOT UNDO THE EXISTING ZAMBIAN-OWNED PRIVATE

AIRLINES, BUT COLLABORATE WITH THEM BY FOCUSING MORE

ON INTERNATIONAL ROUTES AND CONTRIBUTE TO REDUCING

AND STABILISING INTERNATIONAL AND LOCAL FLIGHT CHARGES.


WE WISH TO NOTE THAT EVIDENCE IS THERE TO SEE THAT THE

GOVERNMENT IS MAKING EFFORTS IN REDUCING THE BURDEN OF

POVERTY AND VULNERABILITY THROUGH VARIOUS

INTERVENTIONS SUCH AS THE SOCIAL CASH TRANSFER SCHEME;

PROMOTING OF GIRL CHILD EDUCATION; WOMEN EMPOWERMENT;

AND PROMOTION OF THE RIGHTS OF PERSONS WITH DISABILITIES.

WE ACKNOWLEDGE OUR GOVERNMENT’S COMMITMENT TO

PROMOTING INCLUSIVE GROWTH AND DEVELOPMENT BY

EXTENDING SOCIAL SECURITY COVERAGE TO THE INFORMAL

SECTOR THROUGH THE NATIONAL PENSION SCHEME AUTHORITY,

NAPSA. THIS PENSION SCHEME IS NOW COVERING DOMESTIC

WORKERS, BUS AND TAXI DRIVERS, ARTISTS, MARKETEERS,

TRADERS AND SMALL SCALE FARMERS.


WE WISH TO HEARTEN OUR GOVERNMENT TO CONTINUE

IMPLEMENTING MULTI-PRONGED STRATEGIES THAT TACKLE THE

ROOT CAUSES OF GENDER INEQUALITY SUCH AS ACCESS TO

EDUCATION, HEALTH, NUTRITION AND JUSTICE; AND PERPETUATE

THE CURRENT ROBUST INVESTMENTS IN THE DEVELOPMENT OF

SOCIO-ECONOMIC INFRASTRUCTURE SUCH AS ROADS, SCHOOLS

AND HOSPITALS IN RURAL AREAS. THIS WILL SECURE EQUITABLE

DISTRIBUTION OF THE BENEFITS OF ECONOMIC GROWTH. SO FAR

THE GOVERNMENT HAS DONE VERY WELL BY CREATING NEW

DISTRICTS SO THAT DEVELOPMENT CAN BE DELIVERED WITH

EASE ACROSS THE COUNTRY.


WE NOTE AS AN ASSOCIATION, THAT GOVERNMENT HAS

OPERATIONALISED THE KAPASA MAKASA, KWAME NKRUMAH,

MUKUBA AND CHALIMBANA UNIVERSITIES FOR INCREASED

ACCESS TO EDUCATION.

HOWEVER, WE NOTE THAT THE CONSTRUCTION OF FREDERICK

TITUS JACOB CHILUBA UNIVERSITY IN MANSA, KING LEWANIKA

UNIVERSITY IN MONGU AND KASAMA UNIVERSITY IN KASAMA

NEEDS TO BE ACCELERATED EVEN IF WE ARE UNDER THE

IMPLEMENTATION OF AUSTERITY MEASURES.

YOUR EXCELLENCY, AS YOU WROTE IN THE VISITORS BOOK AT

YOUR FORMER SCHOOL – MUKUBA SECONDARY SCHOOL –

DURING THE LAUNCH OF FORMER MUKUBA BOYS SECONDARY

SCHOOL ASSOCIATION AND I QUOTE: “THERE IS NO BETTER

INVESTMENT THAN INVESTING IN THE FUTURE THROUGH

EDUCATION”

WE ALSO APPRECIATE YOUR EFFORTS IN ENSURING THAT 82

SECONDARY SCHOOLS ARE BUILT ACROSS THE COUNTRY BY THE

WORLD BANK. AND ALSO THE CONSTRUCTION OF SEVERAL

HEALTH POSTS, UPGRADING OF CLINICS AND HOSPITALS IN ALL

PARTS OF THE COUNTRY. NEVERTHELESS, THERE IS NEED TO

QUICKLY FOCUS ON IMPROVING THE QUALITY OF HEALTH CARE

PROVISION AT ALL LEVELS – PRIMARY, SECONDARY AND

TERTIARY HEALTH CARE.


AS AN ASSOCIATION, WE IMPATIENTLY, THOUGH

ENTHUSIASTICALLY, AWAIT THE ACTUALISATION OF THE CENTRE

FOR NUCLEAR SCIENCE AND TECHNOLOGY. ONCE OPERATIONAL,

AS YOU INDICATED IN YOUR SPEECH TO PARLIAMENT, THE

CENTRE WILL CONTRIBUTE TOWARDS ENHANCED TREATMENT OF

CANCER, IRRADIATION OF CERTAIN AGRICULTURAL AND

MINERAL PRODUCTS FOR EXPORT AS WELL AS OTHER

INDUSTRIAL USES. THIS WILL ALSO CREATE A CENTRE OF

EXCELLENCE WHICH WILL CONTRIBUTE TO ACADEMIC TOURISM

AS WELL AS CREATE JOBS. AND CONTRIBUTE TO THE

ACHIEVEMENT OF A SMART ZAMBIA AS WE MOVE TOWARDS

ATTAINING VISION 2030.


YOU WILL NOTE THAT TRUST IS KEY IN EVERY RELATION.

WITHOUT CONFIDENCE AND TRUST BETWEEN AND AMONG

ECONOMIC PLAYERS, MACROECONOMIC FUNDAMENTALS WILL

FACE TURBULENCES. IT IS AGAINST THIS BACKGROUND THAT THE

ECONOMICS ASSOCIATION OF ZAMBIA HAS BEEN CHAMPIONING

THE DEVELOPMENT AND SUSTENANCE OF TRUST AMONGST ALL

KEY ECONOMIC, SOCIAL, FAITH-BASED AND POLITICAL

STAKEHOLDERS AND THOUGHT-LEADERS.

THEREFORE, YOUR EXCELLENCIES, LADIES AND GENTLEMEN,

I WISH TO URGE ALL ECONOMIST AND OTHER THOUGHT-LEADERS

IN ZAMBIA AND FROM THE ENTIRE AFRICAN CONTINENT AND

BEYOND TO ADDRESS TO ADDRESS THE LIMITATIONS OF EXISTING

TOOLS FOR STRUCTURAL ANALYSIS TO FACTOR IN KEY LINKAGES

AND FEEDBACKS – FOR EXAMPLE BETWEEN GROWTH,

INEQUALITY, AND SUSTAINABLE DEVELOPMENT.


THIS ECONOMIC SUMMIT IS AN OPPORTUNITY FOR US ALL TO

REMIND OURSELVES THAT THE CENTRAL PURPOSE OF

ECONOMICS IS TO IMPROVE THE LIVES OF PEOPLE. THE BURNING

ASPIRATION OF THE ECONOMICS ASSOCIATION OF ZAMBIA IS TO

SEE OUR GOVERNMENT AND ITS SISTER GOVERNMENTS IN THE

AFRICAN UNION TO CONTINUE TAKING ACTIONS THAT

REBALANCE THE RULES OF ECONOMIC THEORY AND PRACTICE IN

FAVOUR OF THE POOR OF THE POOREST THROUGH THE

ACTUALISATION OF INCLUSIVE AND SUSTAINABLE ECONOMIC

GROWTH AND DEVELOPMENT STRATEGIC INITIATIVES.


WE AS THE ECONOMICS ASSOCIATION OF ZAMBIA WISH TO URGE

EACH ONE OF US TO CONTINUE FOSTERING ON A NEW TYPE OF

GROWTH, ONE THAT IS MORE INCLUSIVE, WITH OPPORTUNITIES

AND BENEFITS FOR THE PEOPLE WHO WORK THEIR LIVES FOR

THAT GROWTH, NOT JUST FOR THE BIG OWNERS OF CAPITAL, THE

COMPRADOR BOURGEOISIE AND THE BUREAUCRATIC

BOURGEOISIE.

IT’S TIME TO BRING “THE FORGOTTEN” BACK TO CENTRE STAGE.

IT IS FOR THIS REASON YOUR EXCELLENCY THAT THE ECONOMICS

ASSOCIATION OF ZAMBIA WHOLEHEARTEDLY WELCOMED YOUR

GOVERNMENT’S DECISION TO TAKE OVER THE OPERATIONS OF

KONKOLA COPPER MINES IN CHINGOLA AND CHILILABOMBWE.

HOWEVER, WE WISH TO URGE THE COMMITTEE TASKED FIND AN

INVESTOR TO TAKE OVER KONKOLA COPPER MINES TO PUT THE

INTEREST OF ZAMBIANS FIRST – ZAMBIA HAS LEARNT MANY

EXCRUCIATING LESSONS FROM THE SALE OF ZCCM IN THE 1990s.

WE SHOULD NOT REPEAT THE FAILED LESSONS OF 1990s AND

EARLY 2000s. SO WE AN ASSOCIATION EXPECT NOTHING BUT THE

BEST FOR THIS COUNTRY FROM THIS COMMITTEE BEING LED BY

HON. ANTHONY MUMBA. WE WANT NOTHING LESS BUT A

CREDIBLE INVESTOR OR INVESTORS WHO WILL OPERATE KCM ON

A WIN-WIN BASIS AND WHO WILL BUY INTO OUR VISION 2030.


THIS WILL BE A CLEAR DEMONSTRATION OF OUR GOVERNMENT’S

COMMITMENT TO ENSURING THAT ONLY INVESTORS THAT BUY

INTO PROMOTING INCLUSIVE GROWTH AND DEVELOPMENT

PARTICIPATE IN GETTING THE RETURNS FROM OUR NATURAL

ECONOMIC RESOURCES PROWESS. THE ECONOMICS ASSOCIATION

OF ZAMBIA BELIEVES AND SUPPORTS YOUR GOVERNMENT’S

COMMITMENT TO MAINTAINING A NEW FORM OF ECONOMIC

LIBERALISATION THAT WILL MAKE A SOLID CONTRIBUTION

TOWARDS THE ACTUALISATION OF THE ZAMBIA WE WANT – TO

BECOME A PROSPEROUS MIDDLE INCOME COUNTRY BY THE YEAR

2030 THROUGH THE SEVEN PILLARS OF OUR SEVENTH NATIONAL

DEVELOPMENT PLAN


IT IS OUR BELIEF AS THE ECONOMICS ASSOCIATION OF ZAMBIA

THAT THIS NATIONAL ECONOMIC SUMMIT WILL CONTRIBUTE TO

ENSURING THAT INCLUSIVE GROWTH AND SUSTAINABLE

DEVELOPMENT BECOME OUR DNA – OUR BORN MARROW - WE

SHOULD CONTINUE TO ACTUALISE THE THINKING THAT -

GROWTH AS A MEANS AND NOT AS AN END. WE SHOULD ALWAYS

REMIND OURSELVES THAT WE SHOULD NOT JUST FOCUS ON

INCLUSIVE GROWTH FOR ITS SAKE, BUT GIVE PRIORITY TO THE

QUALITY OF GROWTH OVER THE QUANTITY OF GROWTH IF

ZAMBIA IS TO BECOME A PROSPEROUS MIDDLE-INCOME COUNTRY

WHERE NO ONE WILL BE LEFT BEHIND.


WE WISH TO URGE OUR GOVERNMENT, TO ENSURE THAT THE

AUSTERITY MEASURES PRESENTLY BEING IMPLEMENTED BE

IMPLEMENTED WITH THE POOREST OF THE POOR IN MIND. THERE

IS NEED TO FIND A BALANCE THAT WILL ENSURE THAT THE

POOREST OF THE POOR ARE NOT MADE WORSE OFF.

WE THE ECONOMICS ASSOCIATION OF ZAMBIA ARE OF THE VIEW

THAT WE ALSO THAT WE SHOULD NEED TO STRIKE A BALANCE

BETWEEN ECONOMIC AUSTERITY POLICIES AND ECONOMIC

STIMULUS POLICIES IF WE ARE TO GROW OUR ECONOMY –

OTHERWISE, IF WE RELIGIOUSLY IMPLEMENT AUSTERITY

MEASURES AT THE EXPENSE OF STIMULUS ECONOMIC POLICIES,

WE SHALL AND A COUNTRY BE BY-PASSED BY INCLUSIVE AND

SUSTAINABLE ECONOMIC GROWTH AND DEVELOPMENT.

THOUGH WE SUPPORT THE IMPLEMENTATION OF AUSTERITY

MEASURES, OUR ASSOCIATION IS MORE INCLINED TO THE

PROMOTION AND IMPLEMENTATION OF ECONOMIC STIMULUS

GROWTH POLICIES THAT WILL ENABLE THE COUNTRY TO GROW

AND MEET ITS DOMESTIC AND FOREIGN FINANCIAL OBLIGATIONS

ESPECIALLY THAT ZAMBIA IS STILL A VERY STABLE AND

RESILIENT ECONOMY THAN CAN NEVER FALL INTO AN ECONOMIC

OR DEBT CRISIS.


WE WISH TO APPEAL TO GOVERNMENT THROUGH HIS

EXCELLENCY DR. EDGAR CHAGWA LUNGU THAT IN OUR GENERAL

EDUCATION SCHOOL CURRICULUM, WE SHOULD INTRODUCE

ECONOMICS, FINANCE, FINANCIAL EDUCATION AND

ENTREPRENEURSHIP AS INDEPENDENT CORE SUBJECTS TO BE

TAKEN FROM GRADE 8 TO 12 BY PUPILS WISHING TO PURSUE

CAREERS IN THESE FIELDS. BY SO DOING OUR GENERAL

EDUCATION SCHOOL CURRICULUM WILL BE RESPONSIVE TO THE

CONTEMPORARY ECONOMIC, POLITICAL AND SOCIAL NEEDS AND

CHALLENGES OF OUR COUNTRY. MY ASSOCIATION IS READY TO

ACTIVELY PARTICIPATE IN THE TRANSFORMATION OF THE

SCHOOL CURRICULUM BY DEVELOPMENT PRESENT-DAY

SYLLABUSES FOR THESE SUBJECTS. THERE IS NEED FOR PUPILS TO

UNDERSTAND THESE SUBJECTS EARLY IN SCHOOL. MAY I END

WITH QUOTE FROM THE NOBEL LAURET IN ECONOMCS, LATE

PROFESSOR RICHARD STONE, AND I QUOTE:

“IF ONLY ECONOMICS WAS BETTER UNDERSTOOD, THE WORLD

WOULD BE A BETTER PLACE”

AND JOHN MAYNARD KEYNES IN 1923 ON MONETARY REFORM

SAID:

"THE LONG RUN IS A MISLEADING GUIDE TO CURRENT AFFAIRS. IN

THE LONG RUN WE ARE ALL DEAD. ECONOMISTS SET THEMSELVES

TOO EASY, TOO USELESS A TASK IF IN TEMPESTUOUS SEASONS THEY

CAN ONLY TELL US THAT WHEN THE STORM IS PAST THE OCEAN IS

FLAT AGAIN." END OF QUOTE

YOUR EXCELLENCY, THE EAZ IS FOCUSED ON RISING ABOVE ALL

OUR ECONOMIC CHALLENGES NOW AND NOT TOMORROW.

FURTHER, I WISH ALL ECONOMISTS HERE TO PROVIDE ACCURATE,

TIMELY, RELEVANT, APPROPRIATE ECONOMIC POLICY ADVICE.

WE ECONOMISTS SHOULD TELL TRUTH TO POWER IN RESPECT OF

ECONOMIC ADVICE TO OUR PRESIDENT. WE SHOULD NOT HIDE IN

ECONOMIC THEORY JAGON OR TERMS. THIS REMINDS ME OF

WHAT HARRY S. TRUMAN – PRESIDENT OF THE UNITED STATES

BETWEEN 1945 AND 1953 SAID AND I QUOTE:

"GIVE ME A ONE-HANDED ECONOMIST. ALL MY ECONOMISTS SAY, ON

THE ONE HAND … ON THE OTHER …"

MAY GOD BLESS ZAMBIA, KENYA AND TANZANIA, AFRICAN

CONTINENT AS A WHOLE AND ALL OF US PRESENT HERE.

OWN A PIECE OF HISTORY

THANK YOU FOR YOUR ATTENTION.

Dial *882#

1. Check Balance

2. Statements

3. Funds Transfer

4. Bill Payments

5. Airtime Topup

6. Pin Change

Check Balance

Statements

Funds Transfer

Bill Payments

Airtime Topup

Pin Change

www.natsave.co.zm / Natsave,Your Bank

NATSAVE Mobile Banking

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THIS PUBLICATION IS PROUDLY SPONSORED BY NATSAVE

ECONOMICS ASSOCIATION OF ZAMBIA 2019 NATIONAL ECONOMIC SUMMIT

PROGRAMME

Venue: Avani Victoria Falls Resort

Dates: 25th to 26th July, 2019

Theme: The Future of Economic Diplomacy- Supporting Inclusive Growth and Sustainable

Development in Africa

Thursday- 25th

July 2019

TIME ACTIVITY RESPONSIBILITIES

07:00 - 08:25 Hrs Registration

EAZ Secretariat

08:30 - 08:40 Hrs Prayer and National Anthem EAZ Deputy National Secretary - Mrs Rita Mkandawire Lumbwa

08:40 - 08:45 Hrs Welcoming remarks EAZ Executive Director - Ms Mirriam Nachilima

08:45 - 08:55 Hrs Welcoming remarks Minister of Finance - Honourable Dr Bwalya Ngandu

08:55 - 09:05 Hrs Inclusive growth and sustainable development Minister of Commerce,Trade and Industry - Honourable

Christopher Yaluma

09:05 - 09:15 Hrs Vision 2030 & 7NDP- Challenges and Prospects Minister of National Development and Planning - Honourable

Alexander Chiteme

09:15 - 09:25 Hrs Economic Diplomacy in Zambia Minister of Foreign Affairs Minister - Honourable Joseph Malanji

09:25 TO 09:45 HEALTH BREAK

09:45 - 10:45 Hrs

Financial Sector Segment

Topic: The role of the financial sector in Zambia’s

economic development

Chairperson – Dr Francis Chipimo, Deputy Governor, Bank of

Zambia

Main speaker:

Mr Henk Mulder, Managing Director, Zambia National

Commercial Bank

Discussion Questions

1. What are the major challenges facing banks

in financing SMEs in Zambia?

2. Financial inclusion remains very low in

Zambia. Why do you think Zambians

remain lagerly unbanked?

3. Bank customers continue to complain about

high bank charges and fees. What seems to

contribute to this problem?

4. Lately we have seen volatilities in the

exchange rate. Many experts have suggested

that we take advantage of the Rand and

Chinese Yuan to reduce dependency on the

US dollar. What is your take on that?

Panelists

1. Mrs Mizinga Melu, Managing Director, Barclays Bank

2. Mr Leina Gabaraane, Chief Executive, Stanbic Bank

3. Dr. Caleb Fundanga, Board Chairman, Standard

Chartered Bank

4. Hon Christopher Mvunga, Deputy Secretary to Cabinet

for Economic Affairs

10:50 - 11:40 Hrs Presentation

The Road to Sales Tax

Taxation Segment

Mr Kingsley Chanda, Commissioner General, Zambia Revenue

Authority

11:40 – 12:40 Hrs

Commerce, Trade and Industry Segment

Topic: Intra Africa Trade: Can Africa Trade with

itself? A focus on the Africa Free Trade Agreement


1. How ready is Zambia to participate in the

Africa Free Trade Area from a government

perspective?

Chairperson – Mr Lishala Situmbeko, Chief Commercial

Officer, Zambia National Commercial Bank

Main speaker:

Ambassodor Albert Muchanga, Commissioner for Trade and

Industry, African Union

Panelists

1. Mrs Kayula Siame, Permanent Secreatry, Ministry of

Commerce, Trade and Industry

2. Mr Jose Daniel Moran, Chief Executive Officer,

2. Your company already has a lot of

competition from those in the illicit alcohol

business, How bad is the illicit alcohol

business in Zambia and how ready are you

to compete with other foreign companies

once we move to a free trade area?

3. What are the major factors affecting intra

Africa trade?

4. What do we need to do in order to make our

companies more competitive for trade?

Zambian Breweries

3. Dr. E. D. Wala Chabala, Coordinator, NABII Zambia

Limited

4. Dr Francis Ndilila, Ndilila Associates, ZACCI Trustee

12:40 -13:00 Hrs

Presentation

Topic: The Role of ICT in propelling Economic

Diplomacy in pursuit of Inclusive Growth and

Sustainable Devlopment

Smart Zambia

Deputy Secretary to the Cabinet (E-Gov)-

Dr Martine G. Mtonga

Presentation

Topic:Compony products and Services and

importance in decision making

Blackout Media Mrs Ethel Kandiwo,Managing Director

Mrs Nganga Director,Intrepid Research and Media Ltd

13:00 TO 14:00 Hours LUNCH

14:00 -15:00 Hrs

Energy Segment

Topic: Energy generation prospects in Southern

Africa- Can Zambia be the launch Pad?

Presentations

1. Greenco – a Creditworthy intermediary

buyer and seller of renewable: a new

paradigm for renewables in Zambia and in

the region

2. Nuclear power generation for Zambia:

Chairperson: Dr Erastus Mwanaumo

Main speaker:

Mr. Victor Mudende, Managing Director, ZESCO

Speakers

1. Mrs Ann Hajduka, Managing Director and Founder,

Greenco Power Services Limited

Challenges and prospects

3. What regulatory challenges are limiting

Zambia’s energy sector growth?

4. What role is the private sector playing in

enhacing energy supply in Zambia and the

region in particular?

5. The Rise Of Solar in the energy mix.Is the

investment keeping pace?

2 Dr. Roland Msiska, Director General, Zambia Atomic

Agency

3 Mr Owen Silavwe,Managing Director,CEC Plc

4 Ms. Langiwe Hope Lungu, Chief Executive Officer,

Energy Regulation Board

5 Mr. Sianga Malumo, Chairman, CEC-Africa, Zambia

Energy Corporation

15:00 -15:20 Hrs

HEALTH BREAK

15:20- 16:50 Hrs

National Economic Development – The Israeli

Experience

Presentations

1. The secret of success which made Israel to

become the start up Nation

2. The Start-up Nation Scene-Jerusalem

Ecosystem as a case study and AtoBe Start-

up Accellerator

3. Bringing Isreali Solar and Agricultural

Technologies to African Villages

4. Innovations in ICT: The Zambian

experience

Chairperson: Amb. Frank Mutubila

Speakers

1. Mr. Hezki Arieli, Founding Chairperson, Global

Excellence (GE), Israel

2. Mr. Michael Mizrahi, Head of Research Innovation &

Entreprenuership Authority Azrieli Academic College of

Engineering, Israel

3. Ms. Sivan Yaari, Founder & CEO, Innovation Africa,

Israel

4. Mr Lukonga Lindunda, Executive Director and co founder,

BongoHive, Zambia

16:50 - 17:50 Hrs

Education and Human Capital Development

Segment

Alternative Financing for Education Sector


1. E-learning as a way of enhancing revenue

generation for African universities

2. What role can capital markets play in

enhacing education infrastructure

development

3. Human Capital Development in Zambia:

The role of the World Bank

4. Reducing dependency on government

funding in Zambian Public universities

5. Development Impact Platform: a new

Action Based Learning collaboration

between the University of Zambia and

London Business School

Chairperson: Grevazio Zulu

Main speaker:

Honorable Eng. Dr. Brian Mushimba, Minister, Ministry of

Higher Education, Republic of Zambia

Panelists

1. Dr. Jeff Bordes, Chief Executive Director, Astria

Learning, USA

2. Mrs Priscilla Sampa, Chief Executive Officer, Lusaka

Stock Exchange, Zambia

3. Ms.Ina-Marlene Ruthenberg,Country Manager for Zambia

Word Bank.

4. Prof. Naison Ngoma, Vice Chancellor, Copperbelt

University, Zambia

5. Prof. Jeremie Gallien, London Business School, UK

17:50-18:00 Hrs Summary of Day 1 Rapportuers

END OF DAY 1

Friday- 26th

July 2019

07:00 - 08:25 Hrs Registration EAZ Secretariat

08:25- 08:30 Hrs Prayer and National Anthem EAZ DNS-Rita Mkandawire

08:30 – 08:45 The Business Environment from a legal perspective

in Zambia

Honorable Given Lubinda, Minister of Justice, Republic of

Zambia

08:45 – 08:55 Zambia as a Tourist Destination Mr Felix Chaila, CEO, Zambia Tourism Agency

09:00- 09:15 The importance of the Aviation industry in

enhancing regional trade in Africa

Dr Jim Belemu, CEO, Mahogany Air

09:20 - 10:10 Hrs Infrastructure Development Segment

Topic: Non traditional methods of funding

infrastructure


1. What is the role of tolling in enhancing road

infrastructure development in Zambia? Can

we create an effective regional tolling

system for the region?

2. What should be done to ensure that local

contractors compete favourably with foreign

contractors for both public and private

works?

3. How can we use Local contractors in

development and locally produced materials

to reduce capital flight and support job

creation?

4. In terms of policy, what measures should be

taken to ensure that the quality for both

Public projects and PPP projects is

Chairperson: Prof. John Lungu

Main speaker:

Napsa: Director General- Mr Yollard Kachinde

Panelist:

1. Eng. Wallace Mumba, Director and CEO, National Road

Fund Agency

2. Mr Chanda Katotobwe, Founder and CEO, Tommorrow

Investments Limited

3. QS Mathews Ngulube, CEO, National Council for

Construction

4. Dr Julius Koma,Director Technical,UMCIL

according to standard?

10:15 – 10:35 Hours HEALTH BREAK

10:35-11:25Hrs Agriculture Sector Segment

Agriculture sector developments in Africa: How

can Africa grow its own food?


1. From government’s perspective, what are

the challenges and prospects for crop

diversification in Zambia?

2. What should be done to ensure that mealie

meal becomes a forex income earner for

Zambia?

3. Fish farming is increasingly becoming

popular in Zambia. What should be done to

ensure that Africa uses its abundant water

resources to be a major exporter of fish in

the world?

Chairperson: Nabwalya Vlahakis

Main speaker:

World Farmers Organisation: President - Dr Theo De Jager

Panelists:

1. Mr Songowayo Zyambo, Permanent Secretary, Ministry

of Agriculture

2. Mr Andrew Chintala, President, Miller’s Association of

Zambia,

3. Mr Chance Kabaghe, Executive Director, Indaba

Agriculture Policy Research Institute

11:30 - 13:00 Hrs Davos style panel discussion

African Economic Diplomacy for sustainable

inclusive growth and development: Realizing

Agenda 2063 – The Africa we want

Moderators: Frankyn Tembo Jr - ZNBC

Judy Ngulube – ZNBC

Nabwalya Vlahakis

H.E Dr Jakaya Mrisho Kikwete, Former President of the United

Republic of Tanzania

13:00 TO 14:00 Hours LUNCH

14:00 - 14:05 Hrs A word from the Platinum sponsor

Main Sponsors

Mr Henk Mulder, Managing Director, Zambia National

Commercial Bank

14:05- 14:15 Hrs GROUP PHOTO

14:20 – 14:30 Hrs EAZ Keynote speech EAZ President- Dr Lubinda Haabazoka

14:30 - 15:00 Hrs Keynote speech His Excellency The President of The Republic of Zambia, Dr

Edgar Chagwa Lungu

15:00 - 15:30 Hrs Keynote speech His Excellency The President of The Republic of Kenya, Mr

Uhuru Kenyatta

18:00hrs – 20:30 Hrs Dinner His Excellency The President of The Republic of Zambia, Dr

Edgar Chagwa Lungu, His Excellency The President of The

Republic of Kenya, Mr Uhuru Kenyatta , H.E Dr Jakaya Mrisho

Kikwete, Former President of the United Republic of Tanzania

, EAZ, Sponsors of the Summit and selected invited guests

DAY END & DINNER

ZANACO Was A Proud Platinum Sponsor of the 2019 EAZ National Economic Summit

ZESCO Was A Proud Platinum Sponsor of the 2019 EAZ National Economic Summit

ZRA Was A Proud Platinum Sponsor of the 2019 EAZ National Economic Summit

The European Union Was A Proud Sponsor of the 2019 EAZ National Economic Summit

ED

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NAPSA Was A Proud Sponsor of the 2019 EAZ National Economic Summit

ZSIC Life Was a Proud Sponsor of the 2019 EAZ National Economic Summit

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Astria Learning Was A Proud Sponsor of the 2019 EAZ National Economic Summit

Partners

Economics Association of Zambia

Sponsors

Documents

NATIONAL ECONOMIC SUMMIT REPORT EAZ SUMMIT REPORT FOR IMMEDIATE RELEASE.pdf · invitation of His Excellency Hon. Uhuru Kenyatta, President of of the Republic of Kenya, and His Excellency,