SPEECH BY THE ZFE PRESIDENT MRS MYRA MARA SAKALA NGOMA AT THE NATIONAL KAIZEN CONFERENCE ON FRIDAY, 17TH FEBRUARY 2023 AT MULUNGUSHI INTERNATIONAL CONFERENCE
- THE GUEST OF HONOUR MRS BRENDA MWIKA TAMBATAMBA, MINISTER OF LABOUR AND SOCIAL SECURITY;
- THE PRESIDENT OF THE ZAMBIA CONGRESS OF TRADE UNIONS MR. BLAKE MULALA;
- HIS EXCELLENCY AMBASSODOR OF JAPAN TO ZAMBIA
- HEAD OF INDUSTRIALIZATION, AUDANEPAD, MR. KOSSI TOULASSI
- SENIOR GOVERNMENT OFFICIALS PRESENT;
- THE ILO DIRECTOR FOR ZAMBIA, MALAWI AND MOZAMBIQUE, MR GEORGE OKUTHO;
- REPRESENTATIVES FROM THE MEDIA HOUSES;
- DISTINGUISHED GUESTS, LADIES AND GENTLEMEN;
IT IS WITH GREAT PLEASURE THAT THE ZAMBIA FEDERATION OF EMPLOYERS ( ZFE) HAS BEEN ACCORDED AN OPPORTUNITY TO MAKE SOME REMARKS AT THIS CONFERENCE ORGANISED BY THE KAIZEN INSTITUTE OF ZAMBIA LIMITED UNDER THE THEME” WORKING TOGETHER TOWARDS BETTER QUALITY, LOWER COSTS AND TIMELY DELIVERY”.
GUEST OF HONOUR, DISTINGUISHED GUESTS, AS ZFE WE FIND THIS THEME TO BE A VERY GOOD THEME AS IT IS MAKING A CALL FOR UNITY OF PURPOSE TO THE VARIOUS STAKEHOLDERS THAT ARE INVOLVED IN PRODUCTION AND IN THE CREATION OF WEALTH IN THE COUNTRY. AS EMPLOYERS WE ARE IN THE PRODUCTION OF GOODS AND SERVICES AND WE ALWAYS STRIVE FOR QUALITY IN THE GOODS AND SERVICES THAT WE PRODUCE. THIS IS WHAT OUR CUSTOMERS DEMAND FOR IN ORDER TO SATISFY THEIR NEEDS.
HOWEVER, WHILE THE ISSUES CONCERNING QUALITY AND TIMELY DELIVERY MAY NOT BE A CHALLENGE AT THE MOMENT WE ARE CURRENTLY FACED WITH THE ISSUE OF HIGH COST OF PRODUCTION WHICH IS GENERALLY THE HIGH COST OF DOING BUSINESS WHICH EFFECTIVELY HAS LED TO THE HIGH COST OF LIVING IN THE COUNTRY TODAY.
THIS IS SO BECAUSE THE GOODS AND SERVICES ARE PRODUCED AT A COST AND IF THIS PRODUCTION COST IS HIGH IT WILL TRANSLATE OR IT HAS TRANSLATED INTO HIGH PRICES OF THESE GOODS AND SERVICES HENCE THE CURRENT HIGH COST OF LIVING IN THE COUNTRY. SO THE THEME OF THIS CONFERENCE IN PARTICULAR ON THE ASPECT OF LOWERING COSTS IS TIMELY. THERE IS GREAT NEED FOR AN INTROSPECTION IN THE PUSH FACTORS THAT HAVE CAUSED THE COST OF LIVING BEING ON THE INCREASE. GUEST OF HONOUR, DISTINGUISHED GUESTS, LADIES AND GENTLEMEN IT IS OUR CONSIDERED VIEW IN THE ZFE THAT THE NEW DAWN ADMINISTRATION HAS BEEN WORKING HARD TO RESTORE THE COUNTRY’S ECONOMY AND HAS SO FAR ACHIEVED SOME POSITIVE GAINS BUT IF THE HIGH COST OF LIVING IS NOT ADDRESSED THE POSITIVE GAINS SO FAR ACHIEVED WILL BE ERODED.
DESPITE HAVING RECORDED A VERY GOOD PERFORMANCE OF OUR CURRENCY SOON AFTER THE AUGUST 2021 GENERAL ELECTION WE HAVE NOW SEEN THE KWACHA DEPRECIATING BY 4.3% DURING THE FOURTH QUARTER OF 2022 WHICH HAS CONTINUED IN THE FIRST QUARTER OF 2023 AS THE KWACHA IS NOW TRENDING AT K19.3 WHICH ACCORDING TO THE CENTRAL BANK GOVERNOR HAS BEEN CAUSED BY AMONG OTHER FACTORS THE LOW FOREIGN EXCHANGE SUPPLY PARTICULARLY FROM THE MINING SECTOR.
IT IS ENCOURAGING THEREFORE, THAT THE ISSUES SURROUNDING THE MOPANI AND THE KONKOLA COPPER MINES WILL SOON BE A THING OF THE PAST FOLLOWING THE ANNOUNCEMENT MADE BY THE PRESIDENT OF THE REPUBLIC OF ZAMBIA THAT THE PROBLEMS WOULD SOON BE RESOLVED. WE WISH TO COMMEND THE GOVERNMENT ON THE EFFORTS SO FAR MADE AND ENCOURAGE THE REPUBLICAN PRESIDENT MR, HAKAINDE HICHILEMA AND HIS TEAM TO EXPEDITE THE CONCLUSIONS AND BRING THE TWO BIG MINES INTO OPERATION.FURTHER WE ALSO WISH TO REMIND THE GOVERNMENT THAT THE PROCESS OF MAKING THE KASESELI GOLD MINE IN MWINILUNGA OPERATIONAL AND ELSEWHERE WHERE THE COUNTRY HAS GOLD DEPOSITS MUST BE EXPEDITED AS THE COUNTRY IS CURRENTLY DENYING HERSELF AN OPPORTUNITY OF MAKING A FORTUNE OUT OF THIS RICH MINERAL RESOURCE THAT HAS BEEN KEPT DORMANT.
GUEST OF HONOUR, WE ARE ALL AWARE THAT IN THE 2023 NATIONAL BUDGET OUR GOVERNMENT HAS COMMITTED TO LIFTING THE LIVING STANDARDS OF THE ZAMBIAN PEOPLE UNDER THE ASPIRATION OF ECONOMIC TRANSFORMATION AND JOB CREATION AND ALSO ON THE HUMAN AND SOCIAL DEVELOPMENT RESPIRATION. MACRO ECONOMIC TARGETS SUCH AS ATTAINING GDP GROWTH RATE OF 4.0% AND MAINTAINING INFLATION BETWEEN 6% AND 8% HAVE BEEN SET BUT SO FAR AT THE RATE AT WHICH THE LOCAL CURRENCY IS DEPRECIATING THERE IS A SERIOUS THREAT THAT THE MACRO ECONOMIC TARGETS PRONOUNCED IN THE 2023 BUDGET MAY NOT BE ACHIEVED. IT MAY BE TOO EARLY TO MAKE THIS ASSUMPTION AS WE ARE JUST IN THE SECOND MONTH OF THE YEAR 2023 BUT SURELY IF THINGS REMAINED THE WAY THEY ARE ESPECIALLY ON THE DEPRECIATION OF THE KWACHA THERE IS A HIGH RISK OF ATTAINING THE TARGETS. ALREADY WE HAVE BEEN INFORMED BY THE CENTRAL BANK GOVERNOR THAT END OF YEAR INFLATION TARGET IS PROJECTED AT 11% WHICH HAS ALSO LED TO THE ADJUSTMENT OF THE MONETARY POLICY RATE FROM 9.0% TO 9.25%.
THE MEASURE TO INCREASE THE POLICY RATE AND THE RECENT ADJUSTMENT OF THE STATUTORY RESERVE RATIO ON COMMERCIAL BANKS DEPOSITS LIABILITIES THROUGH WHICH THE CENTRAL BANK INTENDS TO MINIMISE EXCHANGE RATE VOLATILITY IN OUR VIEW MAY LEAD TO A RISE IN THE INTEREST RATES IN THE COMMERCIAL BANKS. THIS EFFECTIVELY WILL RAISE THE COST OF DOING BUSINESS WHICH THE NEW DAWN GOVERNMENT HAS BEEN WORKING TOWARDS RESOLVING.
GUEST OF HONOUR , LADIES AND GENTLEMEN AS PRIVATE SECTOR PLAYERS WE APPRECIATE THE COMMITMENTS THE GOVERNMENT HAS ANNOUNCED SUCH AS ITS ROLE TO DESIGN AND IMPLEMENT TOGETHER WITH PARTNERS’ POLICIES TO ATTRACT AND SECURE INVESTMENTS IN SECTORS SUCH AS AGRICULTURE, MINING, TOURISM AND MANUFACTURING THAT MUST DRIVE THE ECONOMY OF THIS COUNTRY AND CREATE THE MUCH NEEDED JOBS FOR THE MANY UNEMPLOYED ZAMBIANS BUT THIS CAN ONLY BE ACHIEVED WITH AN AFFORDABLE COST OF DOING BUSINESS IN THE COUNTRY.
ON THIS NOTE GUEST OF HONOUR, LADIES AND GENTLEMEN ALLOW ME TO TAKE THIS OPPORTUNITY TO COMMEND ONE OF THE COMMERCIAL BANKS FIRST NATIONAL BANK ( FNB) WHO IS ALSO A MEMBER OF THE ZAMBIA FEDERATION OF EMPLOYERS FOR HAVING TAKEN ADVANTAGE OF THE GOVERNMENT POLICY TO ATTRACT AND SECURE INVESTMENTS IN THE PRIORITY SECTORS BY SETTING ASIDE OF A SUM OF K 5 BILLION FOR THE GROWTH OF THE PRIVATE SECTOR OF WHICH OVER K 2 BILLION HAS BEEN RESERVED TO SUPPORT THE GROWTH OF SMES WITH LOW INTEREST RATES AND FLEXIBLE TENURES TO MEET THE NEEDS OF THE PRIVATE SECTOR.
FINALLY GUEST OF HONOUR, LADIES AND GENTLEMEN, ZFE WOULD LIKE TO COMMEND THE KAIZEN INSTITUTE OF ZAMBIA FOR HAVING ORGANISED THIS CONFERENCE AND WE INVITE THE INSTITUTE TO WORK WITH THE ZFE SECRETARIAT IN ROLLING OVER ITS ACTIVITIES AMONG PRIVATE SECTOR ENTITIES AND HELP IN AREAS OF PRODUCING THE BEST QUALITY OF PRODUCTS AT LOW COSTS OF PRODUCTION COUPLED WITH CUSTOMER SATISFACTION AND TIMELY DELIVERY.
WE BELIEVE IN THE KAIZEN CONCEPT THAT TODAY MUST BE BETTER THAN YESTERDAY AND TOMORROW MUST BE BETTER THAN YESTERDAY.
THANK YOU ALL FOR YOUR TIME.