Tuesday, June 3, 2008

Business-Phobia

There is Phobia season around the world and there are several manifestations of the phenomenon around the globe that are usually condemned by the open hearted and comfortable.

Since 911 the phobia in the United States has been in respect to Arabs and the popular perception that every Arab is a terrorist.

The phobia in the United Kingdom for several decades now, and in France in more recent times, is that of the perception that all citizens of the ex-colonies are rushing to enter and stay in the UK and France respectively, and become a burden on the social security systems in these countries.

The phobia in Israel in the last twenty years is that every Palestinian is a probable suicide bomber.

The recent Xenophobia in South Africa which has led to brutal violence in the densely populated townships and left many foreigners from neighboring countries dead on the streets is another example of a fresh and developing phobia much closer to home.

One might argue these perceptions one way or the other, and debate the good reasons for and against the paranoia that feeds into the development of some kind of phobia, but the common person on the street has a general appreciation of what the underlying issues are.

For many normal people, the basic generator for Xenophobia and ‘Businessphobia’ is ‘the perception of being threatened or discarded’. The threat of being attacked, being overrun, being sidelined and so on generate a violent survival instinct in most people to the extent that the basic animal survival instinct takes over from the rational and civilized behavior that we have all subscribed to in our National Constitutions and the many resolutions of the United Nations.

What has been quite consistent is that if this ‘animal instinct’ is allowed to surface then mindless destruction is evidently unleashed on everybody irrespective of whether they are players in the equation, or merely bystanders finding themselves in the wrong place at the wrong time.

We are witnessing miniature versions of what is happening in South Africa in our developing perceptions of foreign investors and outsiders from our communities invading our traditional business areas. This threat of being discarded or sidelined in business generates ‘Businessphobia’ which can escalate if ignored.

We must take precautionary action to nip the problem in the bud by ensuring that the greater masses of citizens are supported and facilitated in developing their businesses and enterprises such that the economy develops and evolves through hard work and innovative initiatives.

This action is necessary in the form of more information to the private sector about the prospects and opportunities that the two new Economic Zones in Chambishi and Lusaka respectively have to offer to Zambian businesses. At the moment information is being shared with investors from China, India, Malasia and possibly several other countries whilst the local domestic investors are not included or targeted in the marketing exercise.

The effective contribution of the Citizens Economic Empowerment Commission will be another tool to quell the development of ‘Businessphobia’ as Citizens and their businesses will be supported and facilitated in a transparent and accountable manner.

The current exercise of re-writing the Zambia National Tender Board Act and the introduction of a Public Procurement Authority can go a long way towards cementing the stability in doing business with Government in a manner that maintains harmony and professionalism.

The improvement of our licensing regime to levels that make it more private sector supportive with an element of tighter scrutiny in respect to reserved sectors for nationals and quality of foreign investment is another anti ‘Businessphobia’ intervention that will be welcomed by the private sector.

The active role of the Zambia Competition Commission in ensuring that active competition is promoted and encouraged will go a long way towards guiding businesses to be more efficient and cost effective when selling their products and service to the general public.

The facilitation of the private sector to invest in social services that will serve the community reduces the burden on Government to single handedly provide for the nation. This is demonstrated by the private sector led passenger transport sector which has grown over the last decade and now spans the entire country.

The private sector can play a very pivotal role in stemming the possibility of Xenophobia in Zambia and in so doing stem ‘Businessphobia’ through careful and thoughtful planning and interventions in collaboration with Government.

Tens of thousands of people are fleeing South Africa and returning to Mozambique, Zimbabwe and Malawi. One other choice for many of these people is to focus on the next best option in the region which happens to be Zambia. What measures are we putting in place to deal with this possible influx of labour and the probable relocation of businesses into our economy? Are we looking into the options for Joint Ventures to ensure equity for Zambians? The Zambia Development Agency is likely to be swamped with a wave of investors that will want to move in fast. Is ZDA ready for this? Do they have a responsive action plan? The next few months may be the proverbial ‘calm before the storm’ and possibly the eruption of ‘Businessphobia’.


Published 3 June 2008

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