Origins

Origin is described by the Merriam-Webster On-line Dictionary as:-

a: rise, beginning, or derivation from a source b: the point at which something begins or rises or from which it derives. In layman’s language one might simply say that origin describes where an item, being, or thing that is tangible or intangible is traced to have initially come from

We often trace the origins of families, tribes, languages, traditions, customs, fruits, trees, minerals, flowers, ideas, and so on in an effort to establish the source and accredit the people, country or region associated with that product.

A few decades past the world was preoccupied with establishing the origins of peoples for the purpose of labeling them with a nationality, a race, a religion, and even a culture or caste. Soon afterwards, scientists uncovered DNA testing as a means to accurately tell us where various organisms originated from, and in our every day life, who was the undisputed father of which child.

Interestingly, origin testing is selectively applied, and selectively given either a cursory mention, or an in-depth analysis. This selective application is usually dependant on the institution concerned and what outcome it is looking to achieve. So the establishment of origin has a social, political and economic impact when applied in various selected ways.

What criteria does a licensing agency use to establish if a company is local or foreign? How does one describe who is a Zambian? What characteristics constitute the description of a resident of a particular society? How can one claim to hail from a particular village? These are simple but important issues that we use in our daily lives to describe ourselves, our businesses, and who we are.

Many of us will fill in forms and claim that we come from a particular village and are subjects of a listed Chief when in fact we have never seen that village nor have we met or interacted with the Chief that we claim to be our traditional leader.

This casual treatment of origin may be harmless and fashionable for the purposes of anchoring our identity when applied at the domestic level, but there are some serious implications when unleashed at a business or international level.

Origin is a big issue at the regional trade level, and an even bigger issue at the international trade level. The diversity among people at the regional level is far less than that at the international level where race, economic level, geography, social systems, and weather are significant parameters to contend with.

Currently both the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA) are grappling with the intricacies of integrating regional economies under a Free Trade Area and possibly a Customs Union. A major hurdle in these deliberations is the one of Rules of Origin. Where do various goods and services come from? The World Trade Organization (WTO) is plagued with the same question as it endeavors to create global trading rules that all countries must adhere to.

At the regional level we see various permutations that are being used to create Rules of Origin which include the minimum percentage of local input of raw materials, labour, value addition, and so on. Some rules are being adopted within SADC and possibly different rules are being adopted by COMESA.

The strategy is that if the member states finally agree to a set of rules that are acceptable across the board then those rules will apply within that particular regional economic group. These sorts of negotiations are on-going behind the scenes and Governments are constantly challenging their private sector and other interested groupings to participate in fine tuning these Rules of Origin such that they support local development in addition to regional development.

At the global level however, the scenario is quite different.

The world is subdivided into a wider variety of interest groups with North America, Europe, China, India, South America, East Asia, and Africa being the prominent players. Much effort is focused on Africa, South America, East Asia, China, and India on Rules of Origin as these groupings are perceived to be ones that may try to circumvent the rules in order to trade with the rest of the world un-hampered. Many conferences and seminars are run to educate the countries in these regions on how to follow the rules and become good trading partners with the developed world.

In the background, the issue of ‘Intellectual Property’ (IP) rights is downplayed and relegated to later discussions much further down on the WTO agenda. The current emphasis is to get the Rules of Origin accepted across the globe and thereafter the IP issues can then be tabled for discussion.

One wonders how the global trading system will decipher the impact of IP on the Rules of Origin. It is interesting to note that while the developing world is busy trying to ensure that goods and services are produced on home soil, our colleagues in the West are outsourcing their production lines to China, India and most of East Asia. Today most European and American products that have home grown labels are actually produced in Greater Asia. Philips, LG, Siemens, Nokia, Motorola, Nike, Polo, Addidas, Cherokee, Rover, several computer brands, etc. are produced on the Asian continent. It will be interesting to see how the debate will go on this issue. Can a Philips TV be said to originate from Holland when it is actually manufactured in Asia? Can a Motorola Mobile Phone be said to originate from the USA when it is clearly marked ‘Made in China’?

There is a great likelihood that IP will suddenly account for a substantial part of the production of any goods or services to give the Western countries a special and solid foothold in claiming credit for the development of many products. The Rules of Origin are likely to tilt towards the Intellectual Content away from the physical input and give the developed nations the unfair advantage they have always enjoyed.

Published 29 January 2008

Youth

The ongoing excitement in respect to the Football Association of Zambia leadership race is evidence that the youth have become more assertive in demanding a voice at the decision making table and a chance and to be in the driving seat.

The many outcries emanating from youth organizations on the various concerns relating the Economic Partnership Agreements, business opportunities, and national policy development, are similar endeavors to allow the youth to participate more actively in the development of Zambia’s economy.

The youth are often more idealistic and embrace challenges with little regard for the obstacles. One may conclude this profile to be of naivety, but it can also be seen as that of hope and unrelenting enthusiasm.

The youth across the world have been the vehicle for change both in socio-political thinking and economic development.

The many High School, College and University peaceful demonstrations have told the parents of the nation that the youth have a lot to contribute and should be embraced and taken on board to help create the world that they would like to live in. Life will surely move the older generation of people out and usher in the younger generation to chart the course for the next generation to come. The question is whether the older generation will make space for the youth to participate and wisdom is passed on, or whether the older generation hangs in there until Mother Nature moves them on, and by that time some damage may have been done in respect to opportunities for cross generation exchanges.

The streets of Zambia’s urban areas are congested with the male youth selling every conceivable item to the motorist and passersby. The markets are choked with female youth selling vegetables and other commodities in a relatively more formal and protected environment. In the rural areas, the youth that are not in the fields tending to the family crop will congregate around markets and shops keenly looking out for any opportunity to make some money.

Our youth are a resource that is not as productive as it could be.

Tourism is an industry in which the youth can engage in with very little physical support. Many tourist attractions are left to chance experiences by our visitors. The youth can play a very big role in lifting the standards of the quality of the tourist’s experiences in Zambia. There are abundant opportunities for the youth around the mighty Victoria Falls (Mosi-O-Tunya), the nearby Railway Bridge, the route of the Zambezi River between the bridge and Livingstone City, and in the city itself. This is no new revelation because many have talked about these issues in the past with reference to Livingstone and other tourist areas in Zambia.

Manufacturing is a sector that the youth have struggled to transform into an income generating activity. The ideas, skills and enthusiasm are all there but insufficient support is provided to transform the dream into reality. As a result short cuts in manufacturing are the order of the day, and what could have developed into a quality product with potential for development into corporate business, remains as a substandard product destined for the poor homes fetching a pitiful profit.

The Services Sector has been conspicuously downplayed in the Fifth National Development Plan. The youth are the fodder and raw material for the Services Sector. Educated, Trained and Skilled youth provide the basic resource for the Services Sector. Chefs, Waiters, Drivers, Guides, Consultants, Computer Operators, Economists, Journalists, Lawyers, Doctors, Artisans, Technicians, Engineers, and so on are all part of the ingredients for a vibrant Service Sector.

The Services Sector can work to develop the local economy by providing services to local companies, but can also be exported to the region and further abroad, and generate expatriate earnings into the Zambian economy from other countries.

The Ministry of Science and Technology, in collaboration with other relevant Ministries including the Ministry of Youth and Sport, must focus on a comprehensive Services oriented plan for youth empowerment. The Zambian youth currently speaks the best level of English in the region, and yet this skill is not acknowledged and used for the benefit of the nation and its people.

The various youth development programs supported by co-operating partners must be coordinated to avoid continuous duplication and repetition of projects that have very little impact on the development of the youth in transforming them into productive and contributing adults in the future.

The current trend of youth development in Zambia gives us some indication as to what to expect from the next generation of adults and leaders. This will also provide a telescope to see whether the generation thereafter will positively contribute to the development of Zambia, or will pull the country backwards instead.

The challenge for the current crop of adults and leaders is to build the foundations for our children’s tomorrow, and at some point we must be ready to hand over so that our protégés can be in the driving seat whilst we guide and advise in the background.

Investment in the youth today through more private training institutions, expanded Government owned colleges, youth development programs, and open dialogue at all levels, will guarantee a more prosperous Zambia in the future.

Published 22 January 2008

Cement

Zambia has experienced disrupting shortages of energy and cement during 2007 such that industry has had constant nightmares when it comes to business planning in the areas of continuity of production and cost of production irrespective of which sector one might want to consider. This across the board problem that manifests itself in the form of erratic electricity supply, or increased fuel prices, or shortage of cement, or increased cement prices plays havoc with all business plans and cash flows for most businesses.

ZESCO is attempting to stabilize the supply of adequate electricity by rehabilitating and upgrading various power stations in addition to embarking on the building of additional power stations at Itezhi-tezhi and Kafue Gorge Lower.

The issue of oil based fuels will continue plaguing us until INDENI oil refinery finds some serious investment and the world oil prices start to fall – an unlikely expectation for at least one more decade.

As for cement, we can actually do something about it.

At the moment the two major cement producers are based in Lusaka and Ndola. These two plants have been around for many years and have expanded only due to pressurized demand. Another small producer based in Lusaka probably outputs around 100 metric tons per day.

A huge opportunity exists for some new investment in the cement production sector. The mining industry is poised to grow exponentially in the next five to ten years. At the moment the existing mines are expanding their capacities and therefore require lots of cement to meet their construction needs. In addition, the new mining companies in the North Western Province and the Southern Province are going full throttle in building the mining infrastructure and will demand a huge amount of cement as they roll out. The growth in the economy is witnessing the building of new hotels, office blocks and housing estates in the strategic areas and the consumption of cement is escalating every day. Furthermore, the ZESCO program of expansion of our electricity production will demand vast amounts of cement as the different projects come on line. The two Economic Zones earmarked for Chambeshi on the Copperbelt and Chalala in Lusaka East will demand a lot of cement to see the intended construction work through. The indicators are there for all to see. A regional focus offers export opportunities for Zambian cement to South Africa where major construction of Stadia and transport systems are underway in preparation for the 2010 World Cup. Burundi, Congo DR, Tanzania, Angola and Mozambique are countries where economic development is on the increase and cement for construction will be required in large quantities.

This is the time for Zambian businesses to consider investing in this sector. This is the time for Zambia to attract foreign investment into this sector. This sector offers opportunities for Joint Ventures and other permutations such that Zambia can become the largest producer of cement in the region to supply the entire sub region covering SADC, COMESA, and the EAC.

The basic inputs for cement production are plentiful in Zambia. The technologies vary from small plants that produce 50 to 100 metric tons per day, to large installations that will produce as much as 2,000 metric tons per day. Cement production inputs include Limestone, Coal, Gypsum, and Clay. Zambia has vast reserves of these minerals and some strategic investment will render the cement industry self sufficient in raw materials.

Maamba Collieries is sitting on vast coal deposits that would both provide alternative fuel for the mining industry and other heat process manufacturing industries. Maamba Collieries can also provide much of the requirements for large scale cement production.

The current large investment in cement is expanding its production capacity to 2000 metric tons per day in an attempt to meet the growing demand. The fact is that there is, and will be, more than enough market for any new investor in this sector for some decades to come. The profile of the new investments in Zambia and the region that will require constant large volumes of cement, is that of businesses that are in for the long haul, and have chosen to put their investments in brick and mortar.

The current plans to regulate the number of registered sales outlets for cement is another restrictive and anti-development measure being considered between by the major cement producer and the Ministry of Commerce, Trade and Industry. The consequence of the shortage of supply of cement to the local market is seen in the high retail pricing of the commodity and a quickly developing black market. The stop gap solution may be to regulate the supply chain to the market, but experience tells us that as long as there is a buyer out there that is willing to pay more for the commodity, we can be sure that a black market price will prevail. The real problem is to address the shortage of supply. The existing producers should be persuaded to upgrade their production to meet the ever rising demand, and the Government through the Zambia Development Agency, should be going out full throttle to attract new investment and investors into the sector.

Several investments in cement production will benefit the cement consumer since broad and effective competition will be created, thereby developing a conservative pricing structure that will ensure a sustained and expanding local and regional market.

Published 18 December 2007

ZIM Yuan

‘Zim Yuan’ immediately reminds one of some Chinese name that may be a politician or a Kung Fu expert. It seems to fall in line with names such as Zhou Enlai, Deng Xiaoping, Jhao Ziyang, and Jiang Zemin, all names of former and successive Chinese national leaders.

In this case it is neither. It is the description of a currency that may be the ‘magic bullet’ for an economy that is convulsing and kicking before it finally dies. It may be compared to the blood transfusion that saves a terminal patient, the antibiotic to treat a ravaging epidemic, the rain which revives a dehydrated crop, or the air that is pumped into a polluted lake to supply oxygen to the suffocating fish.

Southern Africa is a sub region that has been dominated by predominantly European colonialisation since the 1600’s. Several Southern African economies have had to make bedfellows of the very people that they fought off for political independence. The post independence relationship between former master and former slave was that of economic and social development for the newly independent states. The basis for this continued and seemingly adjusted relationship between the independent states and their colonial masters may have been simply, ‘dealing with the devil that you know’. For many African countries the devils that we new back then have remained devils to this day and our people continue to struggle to scratch a living in their own ‘independent’ country.

If we were to put politicking aside and look at some options for a state that finds itself in a very difficult position in as far as relationships with their colonial masters and friends are concerned, what options does such an African state have when no developed country wants to dialogue with it? When the world monetary system descends on it with no mercy for its people and assists to introduce rampant inflation that multiplies every couple of weeks? When the freedom of movement of its people are checked and curtailed by aggressive immigration officers around the world? When the deck of cards is stacked against them to undermine any economic activity that will feed, clothe and educate the ordinary person? When its people can hardly trade their produce with the rest of the world because the physical product is reduced to a currency that is worthless? When schools, hospitals, roads, railways systems, and law and order are stressed by the sudden infusion of poverty in an otherwise very productive country?

Outside the arena of politics, what can such a country do to push ahead and climb out of this spiral downwards to disaster?

If this question were asked two decades ago, the simple answer would be ‘not much’ but to seek the political solution as demanded by the outside powers that be.

Today, there are some new options. An African country that works its way into such a tight scenario can consider taking a good and hard look at who is who on this planet for some possible strategic alliances.

Our history tells us that at the attainment of independence in the 1960’s, our newly introduced local currencies were pegged to the British Pound as that was the currency of most of the sub continent. A decade or so later the United States emerged as both the super power and economic giant of the world, so Africa scrambled to align our currencies to the US Dollar. Two decades later Japan came forward as the nation to watch as it held the world’s largest foreign reserves, but this achievement was not enough to attract other currencies to align to the Japanese Yen. The G7 Western countries assemble their Finance Ministers to fix international exchange rates and currencies presumably to suit their own economic needs, which leaves very little room for any single country to influence the monetary system. In this decade, we see China dominate as the world’s largest producer of manufactured goods, and holding the world’s largest foreign reserves that stands at almost double the amount that the Japanese have put aside. In addition, we see the BRIC’s team of Brazil, Russia, India and China get together and form an economic club of their own that may eventually displace the dominance of the G7 club.

Is there an option for an African state that wants to resurrect itself and break away from its hostile traditional partners in favour of strategically aligning itself with China? Can Chinese companies and state enterprises replace Western multinationals in African economies? Is there a case for the Bank of China to substitute the World Bank and IMF in providing development finance for social and economic infrastructure? Can African states opt to peg their currencies to the Chinese Yuan, or maybe, as the case has been for US Dollar and Pound Sterling, even use the Yuan in their economies, as a mechanism to provide currency stability and shield their domestic economies from foreign influenced currency devaluation? Any developed nation that would dare to devalue the Yuan would be committing economic suicide as their own economies would be invaded with cheaper Chinese imports.

Is it unthinkable for developing countries to think beyond their colonial boundaries? India, Indonesia, Thailand, and Malaysia all entered into strategic alliances with new non traditional partners and have today transformed their economies into vibrant and aggressive world players. The romantic notion, that our old friends will see us through thick and thin, needs to be re-evaluated. Where is the evidence? What have we achieved in the last half a century? Who really cares for our people except ourselves? The future lies in what is openly put on the table, and what agreements we can enter into that clearly shows what is in it for us, and what is in it for them.

Published 18 December 2007

Agreements

We have all no doubt read the contributions from the great Professor W J Baumol of New York University on issues related to privatization and development agreements.

We have also read comments from both the existing Minister of Finance and a previous Minister of Finance from the last administration on the same issues. Our compatriots spend much time and energy on claiming credit for successes or laying blame on each other instead of working together in national interest.

On the other hand, our anecdotal Professor prescribes some useful advice that is too little, too late, and well after the proverbial ‘horse has bolted.’

The Professor highlights that ‘Governments come under political pressure to renege on their promises once the benefits of privatization begin to be harvested’, but he forgets that many of our privatization programs were shoved down our throats by our co-operating partners namely; the World Bank, the IMF and the Western Donor Community. Very few Zambians were comfortable with the rush privatization program that our Government was forced to do in order to receive foreign support from the west. Today, at the expense of our people’s welfare, we are told that ‘they could not predict that copper prices would soar’ and that puts an end to the discussion. In the meantime, we pay the price for this indiscretion. The dissent is slowly surfacing as public pressure mounts on the Government to either re-negotiate the privatization terms and various agreements or renege on commitments as they were not in the best interests of the country.

The Professor cautions us when he states that ‘The danger is that these benefits may vanish.’ This scenario is not new to us as Zambia has had to bale out the mining industry many times before when times were tough much in the same way that it has done with the Development Agreements currently taking centre stage. The public understanding is that when business activity is difficult and the economy is sluggish, then the Government is called upon to make concessions to support the domestic industry. Conversely, when there is an economic boom, then Government is expected to collect more taxes to invest in the national infrastructure such as roads, communication, water and energy. The pendulum is expected to swing both ways.

The Professor argues that ‘The new price cap rules supposedly solve the problem by setting upper limit on price rather than profits so that a firm can increase profits by cutting costs.’ This scenario generally applies to industries or developments that have developmental impact such as roads, communications, energy and water. The Government therefore plays a much more instrumental role in these sectors than it would do in purely private sector investment where the sector is an economic end in itself. There are many permutations of how these special ‘catalyst effect’ sectors can be supported and facilitated as seen elsewhere in the world. Subsidies, soft loans, grants, guarantees, Private-Public-Partnership’s etc. are part of the support regime.

One cannot agree more with the Professor when he concludes that ‘The moral of this is that governments must be careful and conservative in what they promise…’ and ‘But once a promise is made it should be kept.’ The difficulty for Zambia is that many agreements were made under duress of some kind or another. This is characteristic even in the current relationships with our co-operating partners. Zambian Government officially will very seldom criticize or censure any of our colleagues on the other side, but our partners will waste not time in giving us a good tongue lashing when we are seen to step out of line.

The big question however, is what should we do about the current issue of the Mining Development Agreements?

We need to consider the effect of leaving the agreements as is – loss of tax revenues, energy revenues, mineral royalties, and so on, and weigh these against our ability to continue to grow the economy. We also need to consider the impact of the current agreements on how they attract expansion of existing investments and re-investment into the economy by the same companies enjoying the special incentives therein. Are substantially more jobs being generated for our people? We need to consider what our regulations are in respect to the export of copper and related products from the point of view of foreign exchange receipts and how these inflows affect our economy. Is all the forex accounted for in our banks because of the copper export boom? How is the current Mining industry supporting local businesses in the area of supply of goods and services? Is there more money available to lend out to the private sector because of the copper boom?

The Professor seems to have missed out on some of the issues above and therefore cannot truly appreciate Zambia’s predicament.

As a member of the global economy, it is very important for Zambia to be sincere in her dealings. To this end, we must respect our commitments and agreements to the letter. However, we must also recognize that the increased investments and operations in Mining subjects our roads and environment to high levels of damage and degradation. The cost of building a two lane paved road hovers at USD 1 million per kilometre and the water resources and air in the mining areas are being polluted with acid, effluents, noise, and other waste from the various operations.

The Government would be wise to focus on these areas by considering ‘Copper/Copper Ore Transportation’ road levies, ‘Pollution and Environment’ maintenance levies, and possibly introduce a ‘Copper/Copper Ore Shipment Protection’ levy that will ensure that theft in this industry is curbed to zero.

Levies are subject to annual review unlike develop agreements, and the levies can be adjusted on a need-to basis as the roads and environment require to be attended to in a bid to ensure that the Mining sector is supported with good infrastructure.

As Zambia develops her infrastructure as witnessed by the Zamtel Fibre Optic network currently being installed in Lusaka metropolitan area, our opportunities to attract investments both in the Mining sector and other sectors will be greatly enhanced such that in the near future our economy will be come more broadly based and we may never have to be forced to sign some unpalatable development agreements for the foreseeable future.

Published 4 December 2007

Ox Brown

Last week we heard officials from the Lusaka City Council pronounce another decree as has been their tradition since the old one party state which died several decades ago.

The legacy of the former command economy and form of governance still lives on in several government and civic institutions. Some Civil Servants and Council Officials still see themselves as little dictators that act in the public interest, without consulting their constituents or paying any attention to basic common sense.

The latest decree comes in the form of an ultimatum to business houses in the Kamwala business district of Lusaka, to paint their premises in an Ox Brown colour!

When the news broke out in both the printed media as well as on the broadcast media, one could not help but to sigh and exclaim, ‘here we go again.’ Another hair brained scheme to make business more uncomfortable, expensive, and another new item with which the Council can attack business houses. This move opens up a new channel for bribery, corruption and extortion.

We should not be surprised to see that within the next few weeks the market prices of Ox Brown paint will shoot up to double or triple the current going rate, due to the Council generated demand.

There may even be a possibility that a paint manufacturer that specializes in Ox Brown, or has a huge amount of Ox Brown colourant in stock, has had an influence on the choice of the colour by the Lusaka City Council. Could there be grounds for some corruption even at this early stage of the program?

Anyway, Councils all over the world seldom dictate what colour a town or district must be painted in, except for the good old Communist days in the East. What is more prevalent in a liberalized economy and a democratic state, is the demand that buildings be painted every other year, immediately after the rainy season. And this is enshrined in the By-laws of the local Council.

This continued dictatorial tendency by the Council is not backed by the various Wards and their representatives, and if left unchecked, will soon evolve to include new laws on what colour clothes we must wear, what type of shoes we must put on, how we must present our hair, and what we must eat.

Lusaka is plagued with uncollected waste dumped alongside the roads, common sights of dead animal carcasses on the roads that are eventually smeared into the tarmac by all those spinning tyres, no road names on many roads, no road signs at most junctions, no storm drains to prevent flooding, and so on. The Council seems to prefer to focus on areas where they can agitate a fight and make life miserable for others, rather than to provide the basic services that it annually promises to deliver to its residents.

Cholera and Dysentery are looming epidemics at the onset of the Rainy Season, but the Council seems not to care about this as they have never been held accountable over the years. Furthermore, Malaria threatens Lusaka residents between November and May every year, but no major plan is in motion to eradicate this mass killer disease except for trying to deal with the yearly impact on a need-to-basis.

There are some basic challenges that the Lusaka City Council must respond to instead of wasting its time and energy on prescribing what paint the private sector should use on its buildings, or buses, or taxis etc.

Trading Licenses demand that business houses must be inspected by the Council for Fire Safety, Sanitation conditions, proper Electrical installations, Public Fire Escape facilities, Car Parks, proper Construction of Buildings, Public Conveniences, Ventilation etc. before the license is issued. Does the council actually carry out these inspections? Or is a Trading License now issued on the basis of the applicant paying the appropriate fee? Liquor Licenses are supposed to be issued after careful inspection of the business premises as highlighted above, but in addition, measures are supposed to be put in place to prevent under aged youth from having access to both purchasing liquor and consuming it. Is the Council inspecting drinking places for these malpractices when the businesses are in full operation? Are the appropriate on-site signs to inform the public about the regulations on liquor sales and consumption being checked by the Council? What checks is the Council making in respect to Fire Hazards at Fuel Stations? How many people have been arrested or even cautioned for smoking on the premises of a Petrol Station? What alternate routes have been negotiated by the Council for public minibuses to service otherwise un-serviced areas of the City such as Kamloops Road, Thabo Mbeki Road, and Addis Ababa Road to name just a few examples? What plans are under way to decongest the Kamwala business district by routing traffic to Kafue Road through a more solid road than the existing track that threatens to destroy any smaller vehicle than a four wheel drive? Is the Council satisfied with the new traffic re-routing that now goes through the Kamwala residential area because of the previous congestion that was a traffic nightmare at the Independence Avenue Premium House junction? What impact has this had on residents, children and the residential roads?

Lusaka City Council must become more serious about its mandate from the Lusaka residents. Let’s stop being petty and a nuisance to the private sector with these punitive and dictatorial outbursts that can only be described as a disincentive to serious investments in the City. Let’s tackle the more important issues of servicing the City and uplifting the lives of our residents to develop a platform for social and economic growth that this expanding City sorely deserves.

Keyboard and typing practice shows us that the sentence; ‘The quick brown fox jumps over the lean lazy dog’ contains all the letters of the alphabet. This Ox Brown paint demand may compel Lusaka residents to dump out the mean lazy Council.

Published 27 November 2007

Equity

Last Friday saw the Economics Association of Zambia and several collaborating NGO’s host an evening meeting on Equity, Growth and Development.

Prominent speakers from the University of Zambia, the Citizens Economic Empowerment Commission, the Zambia Development Agency, and the Zambia National Tender Board presented the various challenges before the nation in respect o empowering Zambians and sustainably growing the economy.

The panel of experts highlighted the development initiatives within their institutions and were quick to point out that the public, business associations, NGO’s and any other interested parties were sincerely invited to submit recommendations, concerns, advice and criticisms that would assist in tailoring the programs towards Zambia’s development needs.

Many participants in the full house were concerned about access to resources by the ordinary person, and not least on the resource list, was access to affordable financing. Teachers, the youth, the disabled, the average employee, and the small scale business person lamented on this issue as a cross cutting setback on Zambia’s economic development program. In response to this outcry, both the Zambia Development Agency and the Citizens Economic Empowerment Commission conceded that both institutions were putting in place some funds to support Zambians and Zambian businesses.

The question that every Zambian is grappling with is the question of Equity. What Equity does the average citizen have in the developing national economy? What Equity does the average Zambian have in the decision making process on economic development policy?

The answer may lie in the understanding that every Zambia has the responsibility to engage in some economic activity to support themselves and their families. Furthermore, every Zambian has the responsibility to positively contribute to the economic and social development of the community that they live in, and to the nation at large.

Every Zambian is challenged to have an informed opinion, and personally contribute to the decision making process on the development of Road and Rail infrastructure, effective Communication and Information systems, access to Land and Natural resources, development of Energy sources, improved Health Care systems, quality Education services, access to basic Food, access to Shelter, and, access to affordable Financial Services to name a few key areas.

The Minister of Finance and National Planning in his budget speech early this year invited the public to challenge his Ministry on the management of the fiscal budget and the economy in general. In addition, the Ministers of Commerce, Energy, Agriculture, Education, Health, Tourism, and Mines, all continuously challenge the general population to participate in developing the economy. Several dialogue programs such as the Private Sector Development program, the EU-Capacity Building PSD program, and the Zambia International Business Advisory Council (ZIBAC) have been set up specifically to challenge our citizens to participate and contribute to the economic development agenda.

The interesting factor to consider is that all Government Ministries have experts in their planning departments and yet they still see the need for the public, the private sector, and the NGO’s to contribute to policy making.

The simple reason for this is that whatever the Government plans is ultimately for the benefit of the nation which is made up of ordinary people. The Government therefore encourages the stakeholders to bring to the table their views, which in many cases are based on ‘good old common sense’, in addition to any experiences and expertise that Government may be lacking. Even Government recognizes its weakness in effectively participating in WTO, EU-EPA negotiations at a global level, and in SADC and COMESA negotiations at a regional level. The private sector and various NGO’s are beginning to collaborate and work with Government in these areas, but there is room for much more, and much wider partnership.

The Zambian citizen is a shareholder in every public institution. ZAMTEL, CELL-Z, ZNBC, DBZ, ZESCO, ZANACO, NSCB, CBU, UNZA, NHA, ZNBS and every Public Hospital, are all public institutions ultimately owned by the citizens and tax payers.

The old saying; ‘you have the economy that you deserve’ is the basic challenge to all citizens to question what is happening in the economy and to be part of the decision making process. When citizens sit back and let smaller groups of interested parties decide on their behalf, then the undesirable result is squarely because of lack of participation, and we only have ourselves to blame.

The challenge to take up Equity in the national economic development program cannot be left only to the NGO’s and the media. It is absolutely necessary for every Zambian to be informed on what is happening in the economy and to develop some ‘expertise’ in addition to the common sense that we all have, so that we can all contribute effectively. The average Zambian is required to vote for Zone Development Committees, Ward Development Committees, Civic Leaders, and Members of Parliament. If we are to make well informed choices coupled with ‘good common sense’, then the time for taking a laid back position must come to an end and we must all endeavor to be part of the team in the driving seat.

The quest for Equity in participating in the development agenda does have some pitfalls. Members of the public or Government officers must not be discouraged by disparaging remarks and biased retorts because society is made up of all sorts of characters. There will be those that are instruments of their pay masters, those that are mis-guided by short term gains, those that are driven by ego, and those that are mis-informed. In the end, ‘good common sense’ always shows the right way forward.

Published 14 August 2007