Business Etiquette

The one single mechanism that either binds people together in harmony, or sets them at poles apart in conflict and misunderstanding, is effective communication. The basis of effective communication is a level of agreeable etiquette that promotes dialogue and agreement.

Much of the conflict around the world is characterized by arrogance and entrenched positions as expounded by the public pronouncements in Zimbabwe, South Africa, Pakistan, the USA, and in South America. Conflict and instability impact negatively on business development in any country. Businesses are very sensitive to risk and political pressure, and tend to shy away from these characteristics if they appear to threaten viable and sustainable economic activity.

In a nutshell, the questions of effective communication, timely responses, positive positioning, the transfer of functions, inclusivity, and sensitivity to other parties are all very important aspects to promote harmony and positive development in any economy.

Our former late Head of State made several state visits to China and India and was able to share Zambia’s development agenda with his hosts thereby effectively soliciting support for Zambia. China responded by providing in excess of USD800 million investment in the mining industry and a new economic zone to be established in Chambeshi. India has also responded positively and offered to encourage Indian businesses to invest in Zambia with particular emphasis on participating in Zambia’s Multi Facility Economic Zones. Japan has offered assistance to Zambia in the form of funding the development of the Lusaka Chalala Multi Facility Economic Zones. The Business Etiquette in this regard is to encourage the Head of State to seek support from the outside world, but to then follow through by passing on the technical responsibility of implementation to the relevant Government Agency with an oversight progress reporting link to State House.

Our Cabinet Ministers often travel around the world to establish trade and business links between Zambia and selected countries that are indentified to be of strategic importance in our efforts to advance the development of our own economy. Memoranda of Understanding are signed and official trade and commerce between the two countries is then promoted thereon. The Business Etiquette best suited to promoting development is to encourage economic activity between the two countries and to desist from labelling selected investors as bogus investments. We should be acknowledging our own weaknesses in the areas of the giving out of work permits and self employment permits. We should also take full responsibility for our weaknesses in monitoring labour laws and practices, and intervening where necessary. We should be consistent with our policy on investment and not make wild utterances for political expediency which usually has a very negative impact on investment promotion. We must be sensitive to the fact that a Minister’s statements either supports the Governments’ economic development policy, or if to the contrary, spell out a new unilaterally declared Government policy. A Minister represents the views of the Government and therefore spells out the current Government policy at every public presentation. This also applies in respect to our perceived national views on the SADC Free Trade Agreement and the COMESA Free Trade Area.

Our collaborating partners play a significant role in affecting and influencing the business climate in Zambia. Partners that focus on Economic Partnership Agreements endeavour to keep the Zambian Government engaged in dialoguing on trade relationships. The standard Etiquette in this engagement process is to highlight the pro’s and con’s and leave the decision making to the Zambian Government and her private sector. Typically, collaborating partners tend to drive the process with Aid packages linked to Guidelines and Benchmarks that promote the decisions they would like to see come out. The World Bank’s Doing Business Report is one such mechanism. The 10 Indicators selected to assess a country are not necessarily the most significant indicators to local investors. The indicators are more relevant to foreign investors and tend to be biased towards developing world specific problems. For instance, no credit is given for free foreign exchange regimes that are now characterising most African countries as opposed to the tighter regimes in Europe and North America. No credit is given to the lower cost of labour on the African continent as compared to the costs in the west. No credit is given for the availability of land and natural resources that are abundant in Africa as opposed to the land shortages in developed countries. No credit is given for the wider latitude for profit making in African economies in comparison to the tighter competition in developed countries. These all impact very positively on Doing Business in Africa compared with the developed world. The Doing Business Report therefore may be a disincentive for investment in a particular country rather than a challenge to get countries to improve their investment profiles. One might therefore question the value and negative business impact that this report has on our economy with our standing of 100 out of 181 countries.

In the last decade we have experienced some interesting outbursts from Diplomats accredited to Zambia that could be considered undiplomatic at the least, but certainly of very poor Business Etiquette. Accredited Ambassadors and High Commissioners to Zambia have confused their personal ideas with the official position taken by their own Governments. Many diplomats around the globe have had to resign because of making public statements that either put their Governments to ridicule in the public domain or making statements that cross the Diplomatic Etiquette line. The very argument that we have advanced to ask our own Government Minsters to be mindful of their utterances in the media is also valid for all diplomats accredited to Zambia. The Diplomatic interventions on the future of Indeni Oil Refinery, the Genetically Modified Foods debate, Zambia’s influence on the Zimbabwe question, and most recently the local airline industry woes, are all interesting examples of poor Diplomatic Etiquette that only results in unnecessary business damage. Today we see that our Government and people have developed a phobia against the EU-EPA and consequently expect to be threatened about the consequences of not signing this suspicious document.

Our Permanent Secretaries in various Government Ministries play a pivotal role in promoting and institutionalising dialogue amongst stake holders. The Business Etiquette expected from our Permanent Secretaries (PS) is to constantly encourage dialogue between the private sector and Government so that all policy and regulatory development can be collectively done to ensure compliance and stakeholder buy in. The PS is the integrator for all interests to be considered and synthesised into the Government systems. The PS has a duty to also educate both the politicians and the private sector about various domestic and international instruments and policies to promote progressive participation and a common understanding of the issues. The current information blackout on the three known Economic Zones leaves much to speculation, innuendo and cons

The private sector sometimes pampers itself by expecting to be engaged in useful production at all times without investing in the policy and regulations making mechanisms. In, many instances the policies and regulations are aimed at private sector operations. It is therefore folly for any business to be too busy to participate in the various processes. It is also folly for any business to expect to be supported and facilitated by the Government in any meaningful way if no taxes are collected and all Government decisions are made solely on the input from Civil Servants and politicians.

The private sector is often sensitive to Business Etiquette in respect to delivering goods and services to the public. It is a well known rule that cost, quality of service, reliability and customer care form the basis of a successful company. It is of primary importance for the private sector to adopt some new Business Etiquette that promotes and supports constant engagement with the Government, and that encourages the various business associations to rally together on common issues that must be debated at national level. The challenges of the One-Stop-Shop program, the full operationalisation of the Zambia Development Agency, the impact of the Citizens Economic Empowerment Commission, and the overall improvement of the business climate in Zambia, require a private sector inclusivity attitude which will enhance co-operation and co-ordination during the various dialogues. Collaboration is essential at this particular time as we step into yet another Free Trade Area, endure the electricity load shedding exercises, succumb to the ever increasing fuel prices, prepare for the 2009 Fiscal Budget, and usher in a new Head of State.

Published 23 September 2008