Burning Business

Not too long ago, the identification of a town consisted of a minimum set of public services which included a Post Office, a Police Station, a Hospital, a Church, a School, and a Fire Brigade Station.

When we look at the oldest buildings in any town or city, these relics of public services still characterize the genesis of urban development. In the developed world these old facilities have become museums for the kids to marvel at, as new and more sophisticated installations are put in place to replace these now inefficient buildings and associated equipment.

Old Churches and hospitals are often elevated to tourist attractions, and as we see in Lusaka, the old Post Office at the corner of Katondo Street and Freedom way is now a national monument. This is generally the fate of most old and now historical buildings and equipment as the value is more for capturing lessons learnt and experiences, than functionality in this constantly developing world.

The odd situation in Zambia is that the Fire Brigade Stations around the country seem to have escaped this natural course of evolution. We still have our old Fire Stations running more or less the same as they did in 1964 at the turn of independence. In some cases even the fire engines are now vintage vehicles fit for the museums with little or no functionality except to ferry firemen from one place to another.

Some ten to fifteen years ago, Society House on Lusaka’s Cairo Road was gutted by fire while the Lusaka Fire Brigade with support from the National Airports Fire Tenders and even the Kafue Fire Brigade helplessly made some feeble attempts to put the fire out. The equipment at hand was not adequate to deal with a fire in a multistoried building, and therefore most of the floors above the fifth floor became infernos that were fed by furniture, carpets and worst of all, a keen wind up there above the tree line. The ghost like building still stands with blackened walls like the remains from some war zone. Its current value is that it is now the most expensive giant bill board stand in Africa and markets products for a mobile phone company.

Did we learn any lessons from this experience? Did we use this nasty experience to prepare better to fight future fires?

Another memorable fire broke out on the top floor of Kulima Tower in Lusaka in the premises of the Zambia National Tender Board. Again, there was very little that the fire department could do even with support from their traditional Airport tenders and the whole floor was gutted as we all watched helplessly.

Over the years several fires have erupted at markets in Lusaka, Kitwe, Ndola, and Livingstone, and yet again we had inadequate fire tenders and equipment to prevent the loss of property and lives in these incidents.

More recently, Shoprite on Cairo Road went ablaze in broad daylight and in full view of many Lusaka residents. The usual team of Lusaka Fire Brigade and the National Airports Corporation and any other miscellaneous equipment came to the rescue, but the building which was no more than two floors tall, went up in flames until it could burn no more. Those people that work in the vicinity reported that the fire went on for days before it burned itself out.

Last week, another fire broke out in an office block in Kitwe. The Kitwe Fire Brigade, the various fire services operating in the mining companies, and the Copperbelt Energy Corporation fire tenders rushed to the scene and tried to put out the fire. The equipment was not very functional, the despondent firemen and women just seemed to go through the motions mechanically, and there was a general atmosphere of resignation to the fact that the building would either burn to the ground, or that the fire would somehow burn itself out. Fortunately, the latter proved to be the outcome due to lack of oxygen to feed the fire in the building, and only one floor was gutted.

Last Thursday night I received a phone call in the small hours of the morning from someone who was mistakenly informing me that our shop was burning to ashes in the market. When I told the caller in Nyanja that I did not have a clue about what he was talking about, he promptly apologized and told me that he had dialed a wrong number but that there was a fire in the market. My immediate thought was ‘will there be a fire brigade tender to put the fire out before it destroys goods and buildings belonging to the caller and other entrepreneurs?’ I was not too hopeful about that.

The prospect of fire breaking out anywhere in Zambia must be an Insurance company’s nightmare. The possibility of a limited insurance claim is almost non existent because without proper fire fighting equipment in our towns and cities the expectation is that the fire will wipe out everything flammable. Since the insurance business is all about risk, the premiums for fire insurance must be very high to mitigate against the fact that fires cannot be fought effectively and efficiently in Zambia.

What misery and wastage of resources do fires account for? How many small businesses in the various markets have perished due to fires? How many families move from survival mode with a small business, to destitute mode when their property and goods are burnt to ashes? How many men and women have we seen wailing on television because their homes were burned to the ground due to fire? Fire destroys completely. The only value of the end product after a fire is fertilizer for gardens, as was used in the Chitemene system.

We can all therefore see a strong case for investing in our various Fire Departments and Fire Brigades around the country. It is important for businesses, that fire should be a risk that can be managed. Our insurance premiums will be much lower if the insurance companies can count on our national fire fighting capacity to put the fires out to minimize the damage to property. Fire reduces an asset to ashes therefore it destroys wealth that has been created by hard working people.

It is time now to invest in our public safety with no budget hurdles. Every Zambian wants to live in an environment where he or she can count on the Fire Brigade to come to his or her aid when there is a fire. We have seen how helpless we are to deal with fires over the years. We must act now, because fire is like a disease. You may ignore the treatment and survive, but eventually it will catch you unaware and the price is usually much higher to pay.

Published 20 May 2008

Food Prices

News reports all over the world are reporting that there is a global food shortage on the planet.

Rice, the staple Asian food is in short supply and emergency stocks have to be transported to areas where the need is greatest. Maize, on the African continent is also becoming scarce such that many countries have put a block on exports in order to ensure domestic food security during 2008.

A factor that is exasperating the situation is the cost of energy that directly increases the prices of food worldwide. A barrel of oil is now selling at USD122 thus making transportation a major input in food production and distribution.

Well, if you come from a developed country the situation is not so disastrous since the only change you have to make is in respect to what choice of food you can eat. There is always and alternative when there is money in your pocket to make the various choices.

However, on the African and Asian continents the situation is quite different. The choices are limited and the cash in our pockets is insufficient therefore reducing the number of options away from nshima, beans, meat, fish and traditional vegetables.

Zambia is a country endowed with untold mineral resources, vast areas of arable land, a huge water resource capacity, and able bodied citizens.

One often wonders why we should be suffering from ever rising food prices and at times even a national food shortage.

The Government of the day has various programs to support and encourage agriculture in Zambia in an effort to produce more food to satisfy the local demand and to service the export markets.

A key link in the development chain for food production is that one from producer to consumer via several intermediaries such as consolidators and processors.

This is where our grand plan seems to fall flat on its face.

Year in, and year out, we often read reports of maize being stranded in some province due to lack of transport to markets, or lack of a market in that particular production area.

There is need for us to look at food production beyond the farmer. We need to develop the supply chain from the farmer to the markets through a set of different buying agencies, transportation logistics, and produce trading companies that do this work as a business in itself. We need to support and facilitate various processing and packaging companies to convert our bumper harvests from perishable produce to processed and packaged products that have a much longer shelf life and can be easily transported and sold in various markets.

Some years ago, the United States Government came up with a brilliant idea to support Africa by offering US markets to Africa’s producers of goods and services. This initiative known as the African Growth and Opportunity Act (AGOA) was never taken seriously by many of the African countries and the option to develop their economies and their food production capacity was only discussed at conference tables but very little was done on the ground to actually stimulate and motivate production. Zambia was no exception. Even today the endeavour still stands very much as an opportunity that we are missing and continue to ignore.

This opportunity offered us the ability to market our produce in the US and to process much of it into a value added exportable form. The net result would have been more exports for Zambia and a food security mechanism at the local level to ensure that our food would always be available to all. This abundance of this food in the economy would result in stable and affordable prices.

It’s not too late. Oil prices will continue to increase in the foreseeable future. The population of the world is growing with quite rapid growth coming from Africa. We need to move from clasping our begging bowl and doing the rounds in Europe and North America, to using our brains and resources to make things happen in Zambia.

As the financial sector opens up to more foreign direct investment, the motivation to finance the private sector in agribusiness and agro processing becomes more interesting to our commercial banks and financial institutions.

If the Government can see the opportunities that local trading and processing offers towards developing food security, then a proactive program can be put in place to support, encourage and facilitate this drive through the Zambia Development Agency, the Development Bank of Zambia, and the Citizens Economic Empowerment Commission.

Zambian based farmers are very keen to grow more food, produce more milk, raise more livestock, plant more vegetables and fruit, and develop a budding fisheries sector, if only they can be assured of stable markets for their produce.

The dynamics for rapid development in this sector are already in place thanks to the efforts of the Zambia National Farmers Union and other Business Associations operating in the agriculture sector.

There are many initiatives supported by collaborating partners to increase our food security and to develop some form of self sufficiency. These are at best, complementary efforts to the national agriculture development program, and at worst, a diversion from our own programs in favour of some foreign grants and resources.

Food security and affordable food prices don’t happen by accident. It is a well calculated strategy that requires investment and nurturing, and is the direct responsibility of Zambia and Zambians.

Published 13 May 2008

Building Investment

Lusaka and many parts of Zambia are booming with new construction projects. Malls, shopping centres, fuel stations, hotels, office blocks, schools, houses, apartment blocks, warehouses and factories are springing up everywhere.

Construction in Zambia is recorded as one of the major growth sectors of economic activity over the last five years. This is evidenced by the large investments in cement production currently announced by various investors in addition to the new real estate developments visibly seen.

The number of builder’s hardware shops around the country is another sign that the demand for building materials and fittings is on the increase. There are probably as many hardware shops in Lusaka as there are motor vehicle spare parts outlets.

A prominent Architect in Lusaka recently indicated that the construction industry is undoubtedly the fastest economic vehicle for developing skills, opening new opportunities for value chain businesses, offering mass employment, wealth creation, and the attraction of capital and other businesses to a particular environment or community.

This all seems great news for Zambia and Lusaka in particular, but one asks; what are the bottlenecks and setbacks in trying to develop a booming construction sector in Zambia?

A booming construction sector is obviously as a consequence of other economic activities that compel and attract investment into real estate. A stable and predictable economy, lowering interest rates, relatively free market economic activity, high levels of foreign direct investment, low hassles in obtaining licenses and permits, and an open foreign exchange regime are some of the key factors that motivate long term investments such as in the construction sector.

The bottlenecks in construction at company level revolve mainly around quality and committed human resources.

During an inspection of a construction site it was observed that senior managers were compelled to be on site to manage and monitor progress. When asked why these high ranking staff had to do a foreman’s work, the response was that most artisans walking the streets today who are looking for work, were either ‘chancers’or , were well qualified but not committed to doing the work as demanded. Bricklayers demand to have several ‘person to holder’ helpers who sit around arranging the next block to be laid and preparing the mortar. A more efficient system would be to have two helpers for every five bricklayers. Plumbers use ‘shoprite’carrier bags as thread tape to connect piping and fittings. Much later, when the plumbing starts to leak the price to pay is the removal and replacement of ceramic tiles to access the leaking plumbing in the walls and a huge repair bill. Electricians will overload circuitry and even use smaller cables than that prescribed, in an effort to either save costs or mis-direct material to personal projects. The list goes on.

An assessment of the human resources at a building site shows that the quality staff tends to see themselves as consultants who are not interested in full time jobs but short term attachments. As a result, they will over extend themselves with several parallel commitments, and leave the real work to their assistants who are not qualified, and a poor job is often the end result.

The larger construction jobs require much steel fixing in the concrete pillars and beams. There are not many trained ‘steel fixers’ around and this expertise is often imported from neighbouring Zimbabwe and South Africa.

Taking all these issues into account one must conclude that our local colleges and training institutions are not developing enough crafts people, artisans, technicians, and technologists to cater for the construction boom in the economy. A quick look at the various training facilities in Lusaka reveal that several colleges running under the Ministry of Science, Technology and Vocational Training are fairly well equipped to train good quality carpenters, plumbers, electricians, bricklayers, welders, and mechanics. The throughput of these institutions could be increased if the facilities accommodated evening classes and provided short term courses for specific competencies.

One veteran expert in the construction industry compared the operation of the industry in the 1980’s with the situation today. In the 1980’s and the years before, the construction industry had a strong apprenticeship program that took in bright young Zambians to work under the tutelage of an expert and after a year or so another new expert would have been developed. This system infused short training programs for theory training with the ‘on the job’ practical training that was given on site. The veteran cited the various construction projects developed by the then Yugoslav companies. The Yugoslavs did not speak too much English and therefore usually physically demonstrated how the work needed to be done and the apprentices would ‘learn by doing’. The quality and commitment of such construction workers was second to none and the projects were completed in record time and at a high level of quality.

The veteran noted that when the experts in the construction industry became good English speakers the training evolved to where we are today. The boss barks out the commands and demands, and the workers do what they think he or she wants. What is the result? Misunderstandings, repeat jobs, shoddy work, and so on. This has a direct negative impact on the profitability of the project and pushes wages to lower levels.

Our current challenge is to empower our people with relevant and quality skills and competencies. The writing is on the wall. The mining industry is predicted to double its production within the next five years. There is a regional shortage of cement which indicates that construction is on the increase in Southern Africa. Zambia is planning to build more power stations. Tourism is growing every year. These indicators all point towards more construction and we must start to prepare for the demand for quality human resources in this sector.

My veteran colleague finally commented that construction is probably the fastest way of employing people in mass and creating wealth. In general an Architect and other Civil Engineers will take a month or two to design a big construction project. It will take another month to mobilise the materials for the project. By the fourth month the construction site will be busy with labourers, machinery and many experts working hard to put the drawings into brick and mortar on the ground. Hundreds of people are immediately employed and the skills transfer is immediate. At the end of the day the concrete monument will house business and commercial activities and the economy grows.

Published 6 May 2008

Kick Your Own

Zambia is a country that has spent the last 44 years grappling with the challenge of empowering her people to not only have political independence, but also economic independence too.

The nationalisation era and the parastatal era were all well intentioned initiatives to empower Zambians over time. In addition, Lima Bank, Namboard, Indeco, Zamhort, and so on were all part of a macro program to develop wealth and economic activity in Zambia. Some of these initiatives were successful and others did not do so well and eventually collapsed.

Many Zambians found themselves without too many options for business except to trade across the borders and offer their physical capacity as labour. Even at the consultancy level many Zambians become assistants to foreign consultants in order to get a piece of the consulting cake. The assistant did all the leg work and burned the late night oil while the principal consultant provided credibility and consumed the lion’s share of the fee. A good example of intellectual labour!

44 years down the road we have not moved too far from where we started. We may have more Zambians participating in the economy, but what equity do they hold in the scheme of things? Successful Zambian consultants are predominantly those that bow to the desires of the pay master at the expense of a professional and quality piece of work. Successful businessmen are usually those that shout loudest for the benefit of their funders. These are people that don’t want to rock the boat to enable many more Zambians to prosper, because doing so would sever their links with a foreign based financier or multinational.

There are some Zambians that have challenged the status quo and fought for local empowerment in the shadows while the rest of us run seminars on the subject and pick sitting allowances.

A case in point is Andrew Kachibe of Andrew Kurt Limited. This man of the soil Zambian has seen it all. Andrew has jumped the hoops of business in Zambia for several decades and always landed on his back because of lack of access to finance, lack of support from larger corporations, and so on.

After some in depth research Andrew decided to go into the cement business and export the commodity to Burundi as many Burundians and other investors were doing.

When he tried to register for an export quota of cement he was told that there was no provision for Zambians to be given export quotas. After much negotiations and debates with the supplier Andrew finally gave up and decided to go to Burundi and become an investor there so that he could come back home as a Burundian company wanting to purchase cement for export as other investors were doing.

After successfully launching Andrew Kurt International in Burundi, Andrew was back in Zambia knocking at the suppliers’ door with supporting documentation to be given a quota for export. Again he was denied. What started off as a business negotiation finally evolved into a quarrel that bordered on discrimination. If you are a Zambian then there are no quotas for you – period. Andrew made sure that if he could be allowed to purchase the commodity as Burundian registered company then no Burundian company should be given any quota and that is how the saga ended.

Andrew Kurt International now sources its cement form Tanzania, tranships it via Nakonde and Mpulungu in Zambia, and onward over Lake Tanganyika to Burundi.

A Zambian with his heart in Zambia is forced to do his business in Tanzania and Burundi for the benefit of these two countries, but at the expense of his mother country.

School fees, rentals, taxes, fuels, food, and so on are all paid for outside our economy because we choose not to support our own people.

There is much talk of Citizens Economic Empowerment but it must not be just in the boardroom and at the conference tables. The challenges go far beyond the basics of providing funds and reserving sectors for ‘nationals’. The CEEC must become a watch dog with sharp teeth to check on unfair practices and to advocate for supportive and facilitative initiatives to assist Zambians to prosper.

In the construction industry, many Zambians lose contracts due to difficulties in obtaining bank guarantees due to the cumbersome procedures and high costs involved. On the other hand, foreign contractors overcome this hurdle effortlessly because of the support they receive from banks originating from their home countries. How do expect our own people to become bigger players in the construction industry unless we deliberately persuade our supporting institutions to be more pro-Zambian including the Zambia National Tender Board. One need only look at the purchasing rules of some Diplomatic Missions and Donor organisations to see the impact of their initiatives to support their own nationals. Why do we shun this practice which is an international best practice of citizens’ empowerment in the developed world?

The Zambia Competition Commission has its work cut out to ensure that there is equity and fair play in the business environment such that Zambians can be facilitated and supported to invest in their own country and become the large corporations of tomorrow.

We would all like to see Mr Andrew Kachibe’s big Zambian smile in our economy.

Published 29 April 2008

Cost Of Living

Last Tuesday a colleague shared her experience with me about the realities of life in the high density urban areas around our cities.

The area in question is Ngómbe Compound, and the incident in question is Health Services at the local clinic.

My colleagues’ niece is 20 years old and had recently married a 30 year old man who is employed as a Gardener in Chamba Valley. In addition, this 30 year old man inherited his late mother’s house in the compound and his 5 siblings whose ages range from 28 to 6 years old. This head of the household is the only reliable bread winner in the family while his younger brothers peddle in various local beverages to earn some income to supplement their food requirements.

On that fateful Sunday two weeks ago, the young wife was taken to Ngómbe Clinic with all the necessary requirements to deliver her first baby. The family had struggled to buy a new surgical blade to sever the umbilical cord, a new surgical umbilical cord peg, 4 new pairs of surgical gloves, a new delivery chitenge, a bag of cotton wool, and the usual new baby requisites of receiving blanket, napkins, pins, and clothing.

The delivery went through without a hitch and the baby girl was born at 22.00 hours that Sunday 6^th April, 2008. Mother and baby were doing just fine on the Monday morning and all seemed well.

On Tuesday afternoon the mother noticed that the baby was running a fever and was very uncomfortable. Thanks to the experiences and wisdom of the elders that had come to see the new baby, both mother and baby were taken back to the Ngómbe clinic for medical attention. The medical personnel were unable to deal with the situation but noted that the umbilical cord area was infected and was the cause of the fever. The new baby was then referred to the University Teaching Hospital for specialist treatment. Both the mother and father realised that they had to act fast and resorted to asking friends and relatives to chip in and book a K30,000 taxi to speedily take the baby to the UTH instead of the usual option of a two hour mini bus ride that must pass through town centre.

At the UTH the baby was attended to after a seemingly long wait and the doctors concluded that the infection was as a result of a soiled or dirty umbilical cord peg that was used to clamp the cord during the birth of the child.

The baby and mother were immediately admitted into hospital for treatment and observation since the baby was fragile and not even 2 days old. Let’s remember that UTH does not admit a patient unnecessarily so the doctors must have been quite worried about the state of the new born baby.

The baby’s mother, father and other relatives were all perplexed that a brand new umbilical cord blade and peg that were brought to Ngómbe Clinic sealed in their wrappers could be soiled or dirty. The family had made sure that their first baby was going to get the best support and treatment that they could afford, but now they were faced with huge transport bills to UTH and back, huge food bills for the mother while at UTH, huge drugs bills for any drugs that may be prescribed by the doctors at UTH, and no doubt severe losses to the father’s wages as he takes time off from work to tend to his new born and wife in hospital.

Judging by the difference in type of umbilical peg clamped on the baby’s stomach compared what they had given the medical staff, the family feels quite confident that the staff at Ngómbe Clinic had taken all the requisites for their child’s birth and sold them to other patients for some quick cash while the intended baby was clamped with a re-used peg, had her cord cut with a re-used blade, and was handled with re-used gloves which ultimately resulted in the infection suffered by the new born. This negligent greed has brought a host of new expenses that were not bargained for and now threatens the life of this innocent child. Such is the price for being poor and being voiceless.

This episode may be seen to be full of speculation and innuendo but it resonates with many Zambians who live in the compounds around our towns and cities. Who has not experienced a similar story in respect to their children, siblings, parents, grandparents or any other relatives and friends? We all have. It is worth acknowledging that even those people that have medical rescue insurance that evacuates them to South Africa for emergency medical treatment are at the mercy of our own healthcare systems when they are involved in an accident with nobody to point out what should be done for them. A person injured in an accident, or the victim of some sudden disease, also becomes voiceless. These people will find themselves in the UTH or any other Government run hospital or clinic and they will be brought down to the level of the compound dweller in Ngómbe.

Our quality of life is greatly affected by the quality of health care that we are exposed to. The Government has made its efforts to provide healthcare throughout the nation. The time has come to hold hands among the three parties – Government, Private Sector and Civil Society, to work together in collaboration and partnership to provide acceptable healthcare to all in Zambia.

Published 22 April 2008

Tender Board

The print media recently revealed that the Road Development Agency was concerned about the capacity of the Zambia National Tender Board (ZNTB) to handle bids on time. In addition, during a parliamentary committee sitting it was also reported that the Tender Board had failed to utilise K900 billion last year which was later returned to the Government Treasury.

There is a current initiative that aims to either amend the ZNTB Act such that it better serves the purposes of Government procurement, or, to out rightly repeal the ZNTB Act to be replaced with a totally new Act that will overhaul Government procurement processes.

This initiative is an admission by the ZNTB that there are weaknesses in the Act that leaves the management helpless to perform certain functions that may be pertinent to the smooth, efficient and professional operations of the ZNTB. This ongoing program is welcome, but care must be exercised to ensure that the new ZNTB Act is not flavoured by ‘empire building’ and inter Governmental bureaucracy that will impact negatively on the performance of the ZNTB. Challenges for encompassing the vision of the Fifth National Development Plan and the new Citizens Economic Empowerment Commission must be taken on board. Additionally, Zambia is a member of the Southern African Development Community (SADC) and the Common Market for East and Southern Africa (COMESA) and is compelled to factor the procurement protocols and agreements at the regional level into the domestic public procurement legislation. At the global level, the World Trade Organisation (WTO) has also launched a series of trading processes and protocols that all member states are required to adhere to, which no doubt will impact on our procurement relationships with foreign companies. The challenges are monumental and must be addressed in the context of the various instruments to which Zambia is a signatory.

At the ZNTB on the ground, one cannot over look the fact that the Ministry of Finance chairs the Board. This close relationship between the ZNTB and the Ministry of Finance begs the question of why is ZNTB seen to lack capacity to manage the bids that are tendered every day? The other question one may ask is what legitimate reasons can the ZNTB forward for failing to employ K900 million during 2008? What part of the perceived inefficiency at the ZNTB can be attributed to the lack of oversight and specific mandate from the Board that is chaired by the very Ministry that vocally highlights its weaknesses? Some introspective evaluation needs to be carried out to determine what the issues are and to offer sustainable solutions. This is a challenge to the Ministry of Finance and National Planning as well as the ZNTB Board of Directors.

Too often we see that the problems emanate from the top and the management finds itself handicapped to offer solutions as no clear direction, or options for redress are articulated at the policy level.

There is need for wide consultation as we evolve our public procurement tendering processes towards systems that focus on the development of the domestic economy while navigating through the maze of requirements developed at the regional level and within the global trading system.

Some clear cut strategies need to be developed that will avoid entangling ourselves in duplication and conflict as we seek to develop the economy and empower our people. Accountability, transparency, and collaboration with the private sector are imperative if ZNTB is to be perceived as impartial and professional in the way it conducts its business. In many parts of the world private sector consultants are called upon to assist in developing specifications or evaluating bids to ensure that the technicalities of particular industries are taken into account without compromising the tendering process. ZNTB must be able to advise various Government departments on aspects of procurement and should become the chief policy advisor to Government in respect to tendering processes and implementation and evaluation strategies. A deliberate public and private sector dialogue forum must be put in place to keep a constant contact with the stakeholders. It is from this forum that ZNTB will be able to extract data, concerns, and trends that will impact on the evolution of the policies affecting the public procurement system. Lessons from the experiences of withdrawing the various development agencies in favour of the Zambia Development Agency, and the sidelining of the Development Bank of Zambia in favour of the Citizens Economic Empowerment Funds are food for thought on how we can do it better, and at a sustainable level. The challenge is to continue to positively develop our public institutions so that they serve the purposes for which they were created.

An opportunity now exists to improve on what we have been doing in the tendering process. An amended or re-enacted ZNTB Act is only part of the way forward. There is room for looking at the composition of the Board of Directors. How will the Board influence the vision of the ZNTB? What benchmarks can be put in place to ensure ongoing monitoring and evaluation of the efficiency and efficacy of the ZNTB? Should we consider thresholds for Local Bidding and Competitive International Bidding? The glass is half full and all efforts must be made to improve the operations of the ZNTB and empower its management such that at the end of the day the Government which is the largest buyer in the country can be best served. A well functioning and efficient Government will save the taxpayers’ money, and ensure that the economy is firmly on the road to success for the benefit of all Zambians.

Published 15 April 2008

Negotiations

Zambia is in the East and Southern African configuration (ESA) in which she is currently in the throes of preparing for final negotiations on the Economic Partnership Agreement (EPA) with the European Union. In December 2007 Zambia initialed an Interim EPA Agreement to indicate commitment to continuing the negotiations after the European Union (EU) set deadline of 31^st December, 2007.

As of 1^st January, 2008 Zambia reverted to the Everything But Arms (EBA) trading arrangement with the EU until an EPA is finally expected to be signed with Zambia and other ESA countries by 3st December, 2008.

In the background it is important to understand that the now revoked Cottonou Agreement was unilaterally withdrawn by the EU on the basis that the provisions in the agreement did not comply with World Trade Organization rules that compels the EU to treat all developing countries of the world with equal trade rules. In order to comply with the WTO rules, the EU decided to revoke the Cottonou Agreement which affected about 77 African, Caribbean and Pacific (ACP) countries, rather than to absorb the almost 20 developing countries into this already established trade agreement. It may be possible that the EU needed some excuse to ‘pull the carpet’ from under the ACP countries’ feet because they did not like the Cottonou deal which offered non reciprocal market access into the EU by ACP states.

The current environment for negotiation puts a huge burden on Zambia to develop various positions in respect to an EPA with the EU. It also prescribes a time line that compels the negotiations t be completed by the end of the year. Furthermore, several guidelines and best practices are thrown at us to indicate the direction of negotiations that would be acceptable to the EU negotiating team as a means to help Zambia in the process. And finally, the EU offers to assist Zambia to develop her capacity to negotiate through funding for human resource development in the public sector, and providing logistics, equipment and experts to support the process.

The challenge for Zambia now, is to initially step out of the shadow of guidelines, best practices, and terms of references, and come up with a home grown list of specific issues that we would like to see in an EPA with the EU. These issues should take into account our own development needs first, and the regional development needs second. Our minds should not be restricted by what we think other countries will do, or what the EU would want, but what Zambians expect. In addition, Zambia must set the agenda for capacity building with specific requirements such as the type of human resource training required, where it should sourced, and who should be trained. We must clearly state what logistical requirement we need, what equipment is relevant for our programs, and whether we need to use local experts or foreign consultants of our choice, and from countries that will bring out the issues that support our cause.

If Zambia were to take these decidedly bold steps, then our position in negotiations with the EU on the EPA would be one of equity in the dialogue, and on issues that will have a positive impact on Zambia’s development. It is understood that there will be negotiations towards a final agreement that will serve the interests of both parties such that a sincere and mutually accountable agreement is entered into for the benefit of Zambians and our European counterparts.

It is of cardinal importance to note that the current EU ‘red tape’ and rigidity in endeavoring to support Zambia and facilitate a useful EPA negotiation is not succeeding. The EU must be held accountable and should be transparent in their EPA development program in Zambia. Committed support must be delivered as per a set matrix that covers funding, time lines, and other logistics.

Zambia must work towards being able to negotiate an EPA that will help to develop the country, but we must be brave enough to recognize what is possible within the resources and time span provided. We must sign that part of the EPA that we are comfortable with come 31^st December this year, and push for further negotiations for next year if necessary.

The demands made of Zambia in any trade agreements with the EU must be must be pitched against the EU’s practiced trade rules and arrangements with stronger economies such as the United States, China and India. Double standards must be eliminated and we must all walk away from the negotiation table with some satisfaction.

Published 11 March 2008