Counterfeit Goods

The last few months have brought to centre stage issues of copyrights, trademarks, brand names, piracy, and quality of goods on the Zambian market.

Calls for the enactment of an Anti-Counterfeiting Act have been made and discussions between Government and various private sector institutions are ongoing in respect to this issue.

The Merriam-Webster On line dictionary also defines Piracy as ‘the unauthorized use of another's production, invention, or conception especially in infringement of a copyright’

It has been highlighted that piracy continues to rob innovators and investors of income legitimately due to them. Worldwide, trademarks and branding has been the mechanism for containing and linking the marketing efforts of a product to its inventors or producers thereby translating the longtime investment into sustainable financial returns.

Countries such as Kenya have taken the initiative to put in place an Anti-Counterfeiting Act to mainly protect their domestic industries. It must be acknowledged however, that there are many instances where re-packaging and re-documenting that amount to ‘pirating’, are still practiced in the COMESA Free Trade Area with special focus on ‘export’ goods. Many countries in Africa import bulk products and distribute in smaller quantities under the label ‘product of … such and such country’. This problem is also challenging the SADC as they try to establish a Free Trade Area in the southern tip of the African continent.

Across the Atlantic in South America, some countries have argued that if a ‘patented’ product was of national importance to a particular nation, then the commercial rights should be overridden by the larger public good and that product should be allowed to be reproduced with or without the consent of the patent holder. In effect, this decision legalizes within a domestic economy, the counterfeiting of the product. A typical example is that of HIV ARV’s that became so expensive to the average citizen that the Government of the day decided to exercise its sovereign right to manufacture patented formulas for the treatment of its own people. The debate on commercial patented rights versus the moral ethical rights of people’s access to products that are ‘life saving’ is ongoing even at the World Trade Organization such that ‘national interests’ are now being taken on board in trade rules, regulations, agreements and protocols. This provides some legal waivers to ‘piracy’ in very special circumstances.

At the global level debate is going on in respect to the ownership of intellectual property rights for discoveries and development of products, processes and formulas that emerge from educational institutions. Should the techniques for Genetically Modified Organisms be universally owned because they are developed in Universities or should commercial institutions immediately patent and own them because of the funding that they provide to institutions of higher learning? The last four decades have seen American companies’ scrambling to the patents office to patent GMO techniques as soon as they are established by various Universities. Is this morally and ethically right? The world continues to struggle with the debate of commercial and business rights versus the people’s rights and one cannot expect a consensus in the near future as the two sides have different interests. One side is driven by profit whilst the other side is driven by responsibility.

It is therefore very disturbing when we see that businesses are engaging themselves in producing counterfeit products in the pharmaceutical sector and marketing these fake products in the Zambian market. When customers buy a brand name they expect to get the genuine product made to a specific quality and design. This phenomenon must be stopped by the relevant authorities such as the Zambia Bureau of Standards, the Poisons Board, and the Zambia Weights and Measures Agency in coloration with the Zambia Police Service to protect the safety of the public. Counterfeited products unlike ‘similar’ products cannot be easily traced to the producers therefore leaving all consumers at the mercy of trial and error with no recourse for defective or damaged consignments.

At a more life threatening level, the pharmaceuticals and medicines industry in Africa is worth over USD20 billion per year. At least 20 percent of this industry is made up of counterfeit or sub standard products. Many people are dying due to these substandard medicines and Zambia cannot afford to stand by and watch innocent people perish for no good reason.

COMESA and SADC are challenged to look into counterfeiting and piracy as trade protocols and agreements are finalized. The success of regional integration will largely depend on how practical we can be in addressing the issues of equity and public safety within the region. Short changing the process will not bring the desired results as we will continue to bicker and quarrel at the expense of productivity, wealth creation, higher standards of living, and more jobs for our people.

It is evident that counterfeiting industry in Zambia has criminal elements as shown by the firearms discovered by the Police during their raids of targeted premises. It is clear that the Police recognize the dangers to human health that counterfeit pharmaceuticals pose. It is now the responsibility of all Government agencies and the general public to support the Police in bringing all culprits to book in an effort to save our own lives.

Published 15th July, 2008

2009 Harvest

Zambia has enjoyed good harvests in the last few years because we planned our farming seasons and had some good rains.

The Food Reserve Agency and the Ministry of Agriculture worked as a team to ensure that farming inputs were made available to both the commercial farmer and the widely dispersed peasant farmer. A similar effort was made for collection of produce and subsequent storage as reserve to provide food throughout the year.

Food production, like rain, is a vey delicate business. Planning, forecasting, and preparation are significant keys to success. There are many storage warehouses across the country for grain storage to cater for a bumper harvest at the end of the rainy season. More and more intermediaries are cropping up in the food production chain such that various crop buying agencies are vibrantly engaged in trading in Maize, Wheat, Soya Bean and several other crops. Millers have much larger storage sheds now because milling is a round-the-clock business to supply the Zambian consumer as well as consumers in the region. Packaging producers and importers are doing a roaring business supplying jute bags, thread, and weigh scales to the sector.

The grain business is definitely a winning business as the price of Mealie Meal continues to go up every couple of months. In the middle of 2007 Roller Meal retailed at K25,000 per 25Kg bag. Today this basic food necessity for many Zambians is selling at K35,000 per 25Kg bag. This marks a whopping increase of 40% in one year! The population is growing, people must eat, and Mealie Meal is the stuff that satisfies our stomachs.

The current prices of fertilizer spell doom for next year’s grain harvest.

Every farmer in the country whether peasant producer or commercial farmer is lamenting at the high cost of fertilizer. Commercial farmers recognize that they must procure this commodity at whatever cost or go bust, but peasant farmers who constitute the bulk of the grain producers will sow their seeds when the rain comes and will fail to afford the vital fertilizer that is needed to guarantee a good harvest. The writing is on the wall. Next year promises to put food shortages top on the national development agenda unless this dilemma is addressed immediately.

Too often we respond too late to avert a crisis and the price to pay is very high. We end up having to beg for ‘food aid’ from the ‘donor’ community in turn will attach lots of conditions to the aid program and compromise our own national development programs. In addition, when this ‘food aid’ arrives in the country it will further damage the already weakened farming sector as grain prices will be controlled by Government through the ‘price fixing’ of the ‘food aid’. This kind of knock to the agriculture sector will take several years to repair and this too, only if good rains persist for a couple of years thereafter.

Nitrogen Chemicals of Zambia is a strategic industry that is being left to go to grass. We do not seem to have a decent forward looking program for the company that will ensure that NCZ plays its rightful role in supplying fertilizer to the farming community across the country. Initial plans for NCZ were that it would produce not only enough fertilizer to support Zambia’s agriculture sector, but even more for export to the region.

Since the time that NCZ was slated for privatization, the company has limped along incurring debt to its employees and has been relegated to being a burden to the tax payer.

NCZ has substantial infrastructure that is useable and offers any investor an opportunity to develop the company into the largest producer of fertilizer amongst Zambia’s eight neighbors.

The Zambia Development Agency in collaboration with Government and private sector business associations must work tirelessly towards getting NCZ back on its feet as a major producer of fertilizer in Zambia at prices that will guarantee food security for Zambia.

Effort must be made at all levels. Local Private Businesses must be attracted to invest in NCZ to ensure viability and a sustainable operation. Foreign State Enterprises must be targeted too, as an alternative model for resuscitating this all too important industry. Our international marketing programs must be stepped up to bring in new and fresh capital and business ideas respectively.

The world economies and their economics are all about food. Conflict and suffering all over the world have been primarily triggered due to lack of access to food. For many countries the reasons given for mass suffering are justifiable when productive life is disrupted by Tsunamis, Monsoon rains, Cyclones, Volcanic eruptions, Earthquakes and so on. What will Zambia’s reasons be? Lack of foresight? No planning? Insufficient investment? Lack of focus? These are all very limp excuses that will not attract pity but will instead label us as incompetent thus invoking those dreaded conditions by ‘donors’ that offer a helping hand. If Zambia can start to seriously put food on the top of the social and economic development agenda then we will be on the right track to a brighter future and sustained peace and prosperity.

Published 8 July 2008

Women In Development

Last week a very important international women’s conference was held in Belfast, Northern Ireland at which the focus of the discussions was on sustainable peace and the special characteristics of women that are often ignored and sidelined in national and communal development programs.

Irish women highlighted how for 30 years they had suffered the brunt of the misery brought about during the ‘troubles’ and yet they refused to be cast aside from participating in the negotiations and discussions that led to the Good Friday Agreement of 10^th April, 1998 which brought peace and stability to this battlefield that did not discriminate amongst men, women or children. Combatants were not identified by age, gender or uniform. They were marked by geographical location, religion, and political persuasion.

Powerful women that emerged through the Northern Ireland conflict spoke with confidence, knowledge and experience that left the delegates inspired about the possibility of women around the world taking up more central roles in the social and economic development agendas of their countries.

In many countries women have proven quite conclusively that they are more committed to their employers, that they are less corrupt than men, that they can work as long hours as their men folk, and that they are more reliable than men. Even in the face of this evidence employers continue to prefer to employ men over women. It is quite obvious that these decisions are propelled by some kind of xenophobic fear of women gearing to take over a man’s world, and the paradoxical conclusion that women are the ‘weaker sex’ and therefore should be preserved at home for the purpose of propagating the human race.

When we assess the gender demography of many towns and cities in Africa we note that women generally account for at least 55% or of the population. In post conflict countries, women account for over 65% of the population. This suggests that women are a ‘silent’ and ‘ignored’ human resource that if called upon, could dramatically impact on the social and economic development of our countries.

In business, women tend to be more conservative and measured on profit margins and risk taking. These are two positive characteristics that banks offering loans would appreciate. Furthermore, women often clean up their work spaces at the start of the day and clean up at the end of the day. Paper work, equipment, tools and raw materials will therefore be properly managed and accounted for every working day. Most small businesses in urban areas are run by women. In addition, there are many more women headed single parent households than those headed by men.

Evidence shows blatantly that single parent headed households headed by women usually result in more balanced children and stable homes compared to those headed by men. This information suggests that generally women don’t breakdown irreparably after an emotional bout such as divorce, retrenchment, dismissal or bereavement. They pick themselves up at some stage and carry on with life as best they can irrespective of whether they receive help or not.

In Zambia our lived experiences show similar results.

Former Minister of Health Professor Nkandu Luo has never been held back because of losing her Cabinet position or her seat in Parliament. She continues to push ahead in her own right. She stands in the front line both as national leader and provider for herself and family.

Current Minister of Local Government Sylvia Masebo is as charged and vocal as she has ever been throughout her political career. Ms Masebo puts effort and passion in her work at the office and is not depended on anybody to feed herself. Her presence is felt throughout the nation.

Former Barclays Bank of Zambia boss Margaret Mwanakatwe excelled in her work at the Zambia Investment Centre to the extent that she became the first Chief Executive of a Bank in Zambia and subsequently climbed the ladder of success to head an international bank in a foreign country.

Ambassador to the United States of America Inonge Mbikusita Lewanika has done a splendid job of marketing Zambia to the American people as both an investment and tourism destination. One wonders what positive work she will be allowed to do in Zambia when she completes her diplomatic tour of the world.

Zambia has broken some regional records by acknowledging the competence and integrity of women through the appointment of a woman as Deputy Chief Justice.

There is a long list of women achievers in Zambia who should be considered as assets for national development. Women bring to the table a special unique profile that will propel the country forward towards equity, prosperity and sustainable peace for the foreseeable future.

Norway, Burundi and several progressive countries have recognized the potential of women and that they are equal partners to their men folk. As such, new legislation has been drawn up that ensures equal rights for both men and women. Furthermore, some bold laws have been passed to promote women in politics, business, and community development. Norway demands that the Boards of Public Companies and those of Private Listed Companies must have at least 40% women representation.

We should be proud of our achievements in supporting the integration of women in all spheres of our development, but we can do more. We must not become complacent and should continue to employ all our human resources covering men, women, the elderly, and the youth. As our country develops in this modern and demanding world, the challenges are continuously evolving and the best Zambian should always be chosen to serve the country in politics, business and the public services sector.

It is often said that behind every successful man is a supportive woman. The time has come to re-cast this saying. We may want to consider a new saying that says ‘when men and women join hands to work together they will achieve full success’.

Published 1 July 2008

Privatization

Zambia is still grappling with the task of finding suitable investors to inject both finances and other resources into the operations of old public companies that once were the backbone of the economy and are now threatened with liquidation or receivership.

These once flagship factories, industries and processing units, stand helplessly while their assets deteriorate each day that goes by due to lack of maintenance.

A quick look at the infrastructure that was put into many of these public companies indicate that even though three decades ago Government investment was in the region of between one and five million US dollars, the current value of similar investments would be at least ten times more.

It is therefore interesting to note the lethargy in our attempts to attract investment into these sleeping giants, such that when an acceptable investor is found and the deal is signed, the easy way to make money out of these enterprises is usually to asset strip the company and sell the premises and machinery to various buyers at a very good profit.

One challenge that faces us in turning this scenario around is to do some useful preparatory work that will be useful to would-be and prospective investors, and for the benefit of getting the best deal possible for the people of Zambia whilst ensuring sustained operations.

Basic information in respect to all public companies should be made available to the general public via the various Government institutions and the Zambia Development Agency. The annual books of accounts are usually printed in the local media for the public to see what the performance of these companies have been over the years. If this public information is by law in the public domain, one wonders why any interested party or prospective investor must be harassed with demands of letters of ‘expression of interest’, and various documentation, even to just get a basic appreciation of the nature of the companies to be privatized. Just across the border into South Africa, all public companies have their profiles, prospectuses, and final accounts published in the media or displayed on their web sites for all to see. More detailed information is given on the basis of some official contact and correspondence to determine the nature of the request for information.

In Zambia, we still operate on the old ‘command’ system where information is a privilege and not a right in respect to public institutions. There are many investors out there that do not have the time to investigate the business options around the world and prefer to use consultants to do the leg work and sift the good opportunities from the bad ones. How do we facilitate this when our sales and marketing regime for investors is so rigid?

We have seen several new banks indicate their desire to set up business in Zambia. The Bank of Zambia has posted all the forms necessary to apply for a banking license on their web site. There is no hidden information and their doors are open to anybody who cares to knock and be supported and facilitated as long as they are able to comply with the investment criteria required. The due diligence is carried out after the applications are made such that when a license is issued, it is done so with a full appreciation of the capacity, profile, and commitment of the investor. As a result of this pro-active and facilitative attitude towards investment into the financial services sector, we are told that they may be as many as five new banks opening doors within the next twelve months. Now this is the way to attract and support investment into Zambia.

The Zambia Development Agency needs to take a leaf from the Bank of Zambia and change its mind set from being guarded and withholding, to one of being supportive and facilitative, so that many more investors can become more interested in focusing on the opportunities that Zambia has to offer.

Currently, important industries such as Maamba Collieries, Nitrogen Chemicals, Zambia Railways, and several more lie idle and unproductive probably because we are demanding too much from the many enquirers who often are agents for the real investors whose focus is not only in Zambia, but the whole world.

The Zambia Development Agency must develop investment prospectuses for all companies that are up for privatization. The publicly disclosed accounts should be made available, and some research should be carried out on what similar investments would currently cost so as to entice prospective investors to put their money in our already installed companies.

The economy is beginning to pick up and our target for a GDP growth of 9% per annum is reachable. It will not happen by accident. It can happen with well designed and implemented investment programs that will attract both local and foreign investment into all sectors of the economy.

The first major hurdle is to provide services to businesses. This requires a re-engineering of Government and public institutions towards serving the public and facilitating investment by the provision of relevant information. The goal of the creation of the Zambia Development Agency was to put five individual institutions under one roof so that more efficient services could be provided to the public and to investors. The private sector both in Zambia and outside are anxiously waiting to experience the improved service that promises to bring development and prosperity for all.

Published 24 June 2008

Drug Trade

Last week the Deputy Minister of Health Dr. Lwipa Puma launched the Pharmaceutical Awareness Week in the wake of global recognition that essential drugs for the treatment of common killer diseases such as Malaria, Tuberculosis and AIDS are manufactured with varying degrees of efficacy, efficiency and potency.

Reports indicate that the annual drug trade in Africa is worth over USD 20 billion. Of this business, estimates of between USD 4 billion and USD 6 billion are considered to be of sub standard production that either do not treat the diseases effectively, or actually promote the disease in the patient.

Further information shows that these sub standard drugs are marketed predominantly in poor or developing countries where the capacity of the regulatory authorities in respect to drug quality is weak, inefficient, or non existent.

The mere fact that poor and developing countries have a cash constraint on their ability to purchase quality drugs, presents the perfect trading environment for cheap, substandard drugs that buyers perceive to be better than having no drugs at all.

As a result, many people in Zambia and elsewhere die needlessly, diseases are prolonged due to insufficient drug treatment, many productive hours are wasted in hospitals and clinics, and there is a developing misery amongst sick people and those that are responsible for looking after the sick.

Basically, the misery affects us all. We all, in some way or another, care or look after some relative or friend that is afflicted by some sickness.

The drug trade in Africa has degenerated to a level where sick people are reduced to consumers of chemicals rather than drugs, and the medical and funeral professions are inundated with customers that follow the ‘death chain’ to the grave yard.

It may be useful to link the end of the Pharmaceutical Awareness Week with the beginning of a new Pharmaceutical Quality program across the nation. We are challenged to look at our capacity as a nation, to analyze and assess the quality of all drugs manufactured and imported into the country for public consumption.

If we cannot test the drugs adequately, then we must invest in new laboratory equipment and human resources to ensure that capacity is developed for this life saving public service.

We cannot count on morality and ethics to save lives. Effective regulation, monitoring, assessment, inspection, and quality control are paramount, and the only way of protecting the public from dangerous and sometimes poisonous administration of pseudo life saving drugs.

The Ministry of Health must immediately institute investigations into the quality of all drugs in the country. The private sector must be held accountable for quality of manufactured and imported drugs that constitute their business. In addition, the Government procurement system for drugs must be assessed and investigated for possibilities of harmful drugs being procured for public hospitals. Our collaborating partners must be held accountable for the quality of the drugs that they supply to the people of Zambia through the many health support programs in the country.

Too often, the culprits are the very ones that purport to be benevolent with an agenda for doing public good.

It is important to streamline the drug procurement and production processes such that opportunities for quality control checks are built in and mechanisms for halting dangerous drugs from entering our environment are put firmly in place.

We often swing from one extreme of totally liberalizing the drug trade without any enforceable inspections and assessments, to one of total control and single door management. In both cases people either die from poor quality drugs, or die due to lack of access to any drugs whatsoever. The end result is the same, death.

We must arrive at a workable mechanism of processes and regulations that support and facilitate the provision of quality drugs to our people in an efficient and timely manner.

The poor graciously consume whatever drugs are handed out to them, and take the drugs with hope and trust. The more affluent prefer to be given a prescription by the doctor and search for quality drugs in the many chemists and pharmacies because they know that there are varying qualities of drugs on the market. The rich that do not trust the local medical service industry, get on the first plane heading south and book themselves in at a hospital in Joburg.

The sad thing is that for every rich person there are 100 middle class people, and 10,000 poor people who are at the mercy of whatever drugs they can lay their hands on.

The equalizer comes when there is an emergency. At that point poor, well to do, and rich find themselves in the University Teaching Hospital or any other Government run Hospital. In that world there is no choice of drugs that will be administered. Everybody gets the same treatment.

Published 17 June 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

Fighting Corruption

The private sector has often been perceived as the champions of promoting corruption in most countries around the world.

There is a premise that the public sector is not corrupt, and civil society is blameless, but suffers the brunt of the negative effects of corruption. These effects include poor health systems, inadequate schooling infrastructure, sub standard roads, hazardous food products, and dangerous buildings and transport systems.

The private sector tends to consider the issue of corruption as a phenomenon that is supported and promoted by imbalances in relationships, whether they are trade or service related. The basic dynamic is that one party requires some action or product from the other party and therein lies the opportunity for corruption to breed and grow.

The private sector point of view in preventing and fighting corruption in Zambia is to minimise the opportunity for corruption to take root or operate unchallenged.

In this regard, in respect to public services, there is need to remove all forms of discretion and replace these instances with processes that are predictable and accountable to the public. Institutions such the Zambia National Tender Board (ZNTB), Lusaka City Council, Registrar of Companies, the Passport Office, the Zambia Revenue Authority, NAPSA, and UTH are constantly challenged by the private sector to develop a Service Charter that can be used by the public to hold the staff in these institutions accountable. ZRA has now instituted an Internal Affairs Unit to monitor, assess and respond to issues relating to staff conduct and performance within the institution. ZNTB is now amending, and possibly revoking, it’s Act, to be replaced by a document that provides the institution with a new mandate with sufficient rules to ensure that transparency and accountability are in the forefront of their processes. In many of these public institutions, the private sector has been invited to dialogue on the mechanisms that can be changed in order to prevent corruption.

The private sector has challenged the ZRA to consider options for using the private sector as anti corruption watch dogs and whistle blowers. The ideas shared with ZRA focus on taking advantage of the tenacity and shrewdness of the private sector and using this aggressive character to fight corruption. A case in point, is to deliberately set a customs duty tariff difference between a wholly packaged product and that of the product coming into the country in either knock down kits, or unpackaged. This tariff discrimination motivates the private sector companies that are packaging or assembling to work tirelessly with the ZRA to ensure that those companies that are importing the wholly packaged or assembled products pay the correct higher customs tariff. This arrangement and its success is motivated by the fact that if the assemblers or packagers allow their counterparts to import their products at lower customs duty rates, then the value adding group will soon be out of business as their competitive advantage will have been eroded.

Private sector business associations have discussed the need for tax payments to be decentralised such that long queues can be avoided on due dates. ZRA has responded by slowly introducing bank managed payment systems for the various taxes.

The private sector has shared amongst its membership the need for all companies to understand the implications of a corrupt environment and the long term costs that it imposes on doing business. This ongoing initiative is promoted through the Institute of Directors, the Zambia Business Forum, the Zambia Association of Chambers of Commerce and Industry, and many other business associations across the country.

The private sector is cognisant of the shoddy quality of projects undertaken in Zambia with public funds. In recognition of this, the private sector was in the forefront of establishing the National Construction Council which is an oversight statutory body for civil engineering works in Zambia.

There is a national recognition that the Zambia Police Service and the Anti Corruption Commission are public watch dog institutions that should be open to all residents to receive and act on issues of corruption. The private sector constantly challenges these two flagship institutions to be professional, accountable and responsive to the public, if they indeed expect the public to have confidence in their services. The ZPS and the ACC are considered to be the first point of contact for any corrupt practices brought to the attention of the public. If these two institutions are perceived to be biased or ineffective, corruption will erupt more aggressively as it will grow unchecked.

Private businesses have invested in community police stations in residential areas, commercial areas and industrial areas to ensure that there is Police presence throughout our society to curb corrupt practices.

The private sector is part of society and society is part of the private sector. This integrated relationship suggests that the fight against corruption cannot be confined to one sector only. Zambians and residents must be challenged to take equity in the social and economic development of the country. A huge paradigm shift must be made such that every individual in the country recognises that public property belongs to us all and we must take responsibility for its well being. Every individual must be made to understand that they contribute to Zambia’s present and future character. Every individual must be an active player in developing the nation.

Mahatma Ghandi once said ‘You must be the change that you want to see in the world’. This is so true for Zambia and Zambians, whether they be public workers, civil society and indeed, the private sector.

Published 27 May 2008