Holding Hands

As Government has joint hands amongst the various ministries to change the 2010 budget cycle so that programs can be streamlined over the 12 month fiscal year, regional groupings get together to negotiate various partnership agreements, and the World Trade Organization is poised to enter yet another round of trade negotiations that impact every country on the planet.

The private sector is yet to make the same alliances and rally numbers and muscle to present a united front to Government on various issues affecting the development of private enterprise.

The efforts of the Zambia Association of Chambers of Commerce and Industry and the Zambia Business Forum to adequately harness the various private sector interests and make the appropriate representations to Government and other development partners, has not yielded the desired results.

Manufacturers have a representative body that champions the cause for manufacturing and endeavours to promote domestic production of goods and services. The cries from manufacturing companies are continuous as they jostle for support and facilitation to expand the country’s manufacturing base with the goal of not only supplying the domestic market, but to also export to the region and beyond.

Much as manufacturing is an important development activity as outlined in the Fifth National Development Plan, the plight of manufacturers is not responded to with the urgency that is required. The threat to manufacturing posed by the COMESA Customs Union and other Economic Partnership Agreements is not adequately registered in the minds of Zambians. Manufacturers need to hold hands with other sectors of the economy to make their case for domestic manufacturing across the country and even in the new Economic Zones being promoted by Government.

The Construction sub sector is currently experiencing a relative boom with growth rates recorded of 10 percent during 2009. This sub sector is closely related to manufacturing as it is dependent on cement, sand, stones, steel, and timber amongst other requisites.

Construction will only continue to register growth if the cost of construction material can be kept low enough to render the sub sector cost effective. In addition, opportunities for construction work for Zambian companies should be encouraged and supported through pro active threshold project levels, joint ventures, and mechanisms for procurement of plant and machinery.

The work of the National Construction Council may be commendable, but an option exists for the sub sector to hold hands with other players in the economy to ensure that construction is supported through different mechanisms such as manufacturing.

The Transport sector has witnessed a rapid growth in the last two decades. Buses and trucks have dotted the highways across the country as they ferry passengers and goods to every corner of the country. Inner city transport is still an unresolved challenge as mini bus routes force commuters to travel to the city centre hub before branching out to another suburb. Very few options exist for commuters to travel across the city from one neighbourhood to another. This travel paradigm makes commuting costly and time wasting.

The transport sector has an option to hold hands with other sectors to develop a more commuter friendly routing system, to resuscitate the Njanji Commuter railway system, and to collaborate on building new stations at strategic places within our various cities.

The future of our intercity railway network is yet to be determined. Holding hands to collectively find a way forward in the railway sub sector is the country’s greatest challenge.

Agriculture has always been the focus of Zambia’s food security program. Crop production annually requires adequate supplies of seed and fertilizer. Irrigation systems support farmers to grow crops all year round. Challenges for livestock development and fisheries have yet to be addressed. The global debate on Genetically Modified Organisms (GMO) in the agriculture sector is still ongoing.

The Agriculture sector needs to hold hands with the manufacturers and the transporters to develop a sustainable agriculture support system. The banking sector and the various proponents in the GMO debate must hold hands with the Agriculture sector to find solutions to the annual problems of insufficient financing and quality of harvests.

The Mining sector has done reasonably well on its own with strong Government support. New mines are emerging and old mines are being recapitalized. However, the mining industry is not adequately integrating with the wider economy to transfer the benefits of mining to other economic activities.

There is need for the mining sector to hold hands with the manufacturing sector and other sectors to form strong and sustainable alliances that benefit all sectors and consequently develop a stronger and more diversified economy.

Tourism is challenging Zambia as the 2010 World Cup prepares to roll out after the first quarter of the year. Tourism development demands the full cooperation and support of other sectors. A promising tourism industry requires a cost effective transport system, a quality food supply chain, a pro tourism banking system, adequately packaged tourism attractions, and a supportive Government policy.

The tourism sector must join hands all round to collaborate and partner with many sectors of the economy to develop a tourism program that will attract tourism from near and far. The challenges are hefty but teamwork can provide the answers to developing a predictable and sustainable tourism industry.

There are however, several cross cutting services that either support economic development, or can retard development. The nation must hold hands to acknowledge the importance of cost effective and reliable communication systems across the country. Telephone and internet communication is essential for development as they offer information and knowledge that is vital to business development.

The banking sector and the insurance sector are essential for business to flourish. These sectors must be part of the link of hand holding partners for economic development.

The impact of energy in respect to availability and affordability is essential for any long term and sustainable economic activity to prosper.

Cost effective energy, communications, and raw materials are the three common pre requisites in any environment for economic activity to develop.

There is definitely a case for all sectors of the economy to hold hands and plan the future together.

Published 17 November 2009