THE ZAMBIA FEDERATION OF EMPLOYERS IS GRATEFUL AND HAPPY TO JOIN THE WORKERS IN ZAMBIA AND THE REST OF THE WORLD IN THE COMMEMORATION OF THIS VERY IMPORTANT INTERNATIONAL LABOUR DAY OF 1ST MAY. THIS IS A VERY IMPORTANT DAY WHEN THE WORLD GETS REMINDED ABOUT HOW SIGNIFICANT LABOUR IS IN THE PRODUCTION PROCESS OF THE BUSINESS ENTITIES, HOW IMPORTANT LABOUR IS TO THE PUBLIC SECTOR WHEN IT COMES TO THE PUBLIC SECTOR SERVICE DELIVERY TO THE GENERAL PUBLIC THAT SEEK PUBLIC SERVICES.
ALLOW ME THEREFORE TO TAKE THIS OPPORTUNITY TO CONGRATULATE ALL THE ZAMBIAN WORKERS FOR COMMEMORATING THIS VERY IMPORTANT DAY. WE OFFER PRAISES TO THE ZAMBIAN WORKERS FOR HAVING BEEN AVAILABLE AND FOR HAVING BEEN A CRITICAL FACTOR OF PRODUCTION IN OUR ENTERPRISES AND IN THE COUNTRY.
GUEST OF HONOUR, DISTINGUISHED GUESTS LADIES AND GENTLEMEN, THIS YEAR’S LABOUR DAY CELEBRATIONS IN ZAMBIA ARE BEING HELD UNDER THE THEME ‘’ ACCELERATING JOB CREATION FOR ECONOMIC GROWTH’’. THE QUESTION ONE WOULD WANT TO UNDERSTAND IS ABOUT WHAT THIS THEME MEANS AND WHERE IT SHOULD TAKE US TO.
IT IS CLEAR AND UNDISPUTABLE THAT CURRENTLY THERE ARE SO MANY ZAMBIANS THAT ARE ELIGIBLE TO WORK BUT THEY HAVE NO JOBS. THIS SITUATION OF BEING UNEMPLOYED HAS PUT SO MANY PEOPLE IN DESTITUTE POSITIONS SUCH AS NOT FINDING IT EASY TO PUT FOOD ON THE TABLE ESPECIALLY WHEN THE COST OF LIVING HAS BEEN SKY ROCKETING SINCE THE COVID-19 YEARS TO THIS VERY DAY. EMPLOYMENT EITHER IN THE FORM OF SALARY BASED JOBS OR BEING A SUCCESSFUL ENTREPRENEUR BRINGS DIGNITY TO INDIVIDUALS AND THEIR FAMILIES. IT BECOMES A SOURCE OF WEALTH AND THEREFORE ANY ACTION TO ACCELERATE JOB CREATION AT THE NATIONAL LEVEL WILL NO DOUBT BE A SOURCE OF ECONOMIC GROWTH AS THE THEME STATES.
GUEST OF HONOUR, LADIES AND GENTLEMEN, ECONOMISTS LIKE THE FATHER OF ECONOMICS, ADAM SMITH WILL HOWEVER ARGUE THAT IT IS ECONOMIC GROWTH THAT MUST BE REALIZED FIRST BEFORE JOB CREATION. THIS IS SO BECAUSE ECONOMIC GROWTH IS A PRIMARY FOCUS OF MACRO-ECONOMICS, WHICH RELIES ON QUANTIFIABLE METRICS SUCH AS GROSS DOMESTIC PRODUCT (GDP) OR AGGREGATE NATIONAL INCOME. ON THE OTHER HAND, ECONOMIC DEVELOPMENT IS ABOUT SPECIFIC OUTCOME MEASURES SUCH AS NUMBER OF JOBS THAT SUPPORT QUALITATIVE IMPROVEMENTS IN PEOPLE’S LIVING STANDARDS.
ACCORDINGLY, THIS THEME THEREFORE, IS REMINDING US ABOUT GROWING OUR ECONOMY IN A MANNER THAT MUST ENABLE THE COUNTRY CREATE MORE AND BETTER DECENT JOBS FOR THE PEOPLE OF ZAMBIA. WE SHOULD THEREFORE ASK OURSELVES AS GOVERNMENT, PRIVATE SECTOR AND THE LABOUR MOVEMENT ABOUT WHAT POLICIES OR MECHANISMS HAVE BEEN PUT IN PLACE OR MUST BE PUT IN PLACE TO GROW THE ZAMBIAN ECONOMY TO A LEVEL THAT CAN CREATE THE ANTICIPATED NUMBER OF JOBS TO ABSORB A GOOD NUMBER OF THE UNEMPLOYED ZAMBIANS.
GUEST OF HONOUR IT MUST BE CLEAR AND IT IS A FACT THAT ECONOMIC GROWTH LEADING TO ACCELERATING JOB CREATION CANNOT JUST HAPPEN BUT IT MUST BE SUPPORTED BY PRO-EMPLOYMENT MACRO-ECONOMIC POLICIES AND SECTOR SPECIFIC STRATEGIES THAT CAN CONTRIBUTE TO STRUCTURAL TRANSFORMATION AND TO MEET THE OPPORTUNITIES AND CHALLENGES FOR SUSTAINABLE JOB CREATION INCLUDING DELIBERATE INTERVENTION BY THE STATE AND OTHER ACTORS. THE STATE MUST CREATE AN ENABLING MACROECONOMIC ENVIRONMENT EMBRACING THE PRIVATE SECTOR, CREATING A CONDUCIEVE LEGAL AND ADMINISTRATIVE ENVIRONMENT THAT IS FRIENDLY TO BUSINESS, EDUCATING THE PEOPLE AND KEEPING THEM HEALTH. IT REQUIRES PROVIDING THE RIGHT INGREDIENTS IN THE PRODUCTIVE SECTORS WITH THE MOST OPTIMUM AND EFFICIENCY LEVEL OF IMPLEMENTATION OF SUCH POLICIES.
ZFE ACKNOWLEDGES THE FACT THAT THE NEW DAWN GOVERNMENT IS MINDFUL OF THIS FACT AND HAS SO FAR MADE STRIDES IN CREATING AN ENABLING BUSINESS ENVIRONMENT AS CAN BE EVIDENCED BY PRONOUNCEMENTS IN THE 2023 NATIONAL BUDGET SUCH AS INCENTIVES AND MEASURES TARGETING THE AGRICULTURE SECTOR, THE TOURISM SECTOR, AND THE MINING SECTOR WHICH IS COMMENDABLE.
HOWEVER, THE CURRENT HIGH COST OF FUEL IS PUTTING THINGS IN THE REVERSE AS IT MAKES THE COST OF TRANSPORTING PRODUCTS VERY HIGH AND IMPACTING ON THE COST OF BOTH DOING BUSINESS AND LIVING.
IT IS ALSO OUR VIEW IN THE ZAMBIA FEDERATION OF EMPLOYERS THAT WHILE THE GOVERNMENT HAS A RESPONSIBILITY TO CREATE AN ENABLING ENVIRONMENT FOR PRIVATE SECTOR TO GROW, NOTHING SHOULD PRECLUDE THE STATE FROM PARTICIPATING IN RUNNING BUSINESS THROUGH STATE OWNED ENTERPRISES AS ONE OF THE WAYS OF CREATING MORE AND BETTER JOBS IN THE COUNTRY BUT ALSO AS A MECHANISM TO RAISE ADEQUATE REVENUE FOR PUBLIC SERVICE DELIVERY.
WE BELIEVE THAT THIS IS THE IDEA BEHIND THE CREATION OF THE INDUSTRIAL DEVELOPMENT CORPORATION (IDC) WHICH IS A STATE OWNED ENTERPRISE THAT IS CHARGED WITH THE MANDATE TO SPEARHEAD THE ZAMBIAN GOVERNMENT’S COMMERCIAL INVESTMENT AGENDA AIMED AT STRENGTHENING ZAMBIA’S INDUSTRIAL BASE INCLUDING RURAL INDUSTRIALISATION AND DEVELOPMENT ACTIVITIES AND JOB CREATION.
WHILE WE NOTE THE INVOLVEMENT OF IDC IN SETTING UP OR IN INVESTING IN TERMS OF SHAREHOLDING IN COMPANIES SUCH AS SUPERIOR MILLING, MARCOPOLO TILES COMPANY, MUNUSHI FRUIT COMPANY, NITROGEN CHEMICALS ZAMBIA ,ZAMPALM, ZAMBEZI CASHEW COMPANY, EASTERN TROPICAL COMPANY AND KALENE HILLS FRUIT COMPANY OF WHICH SOME ARE NOT EVEN IN FULL OPERATION ESPECIALLY THOSE IN RURAL AREAS, WE WISH TO SEE IDC TAKING KEEN INTEREST IN THE MINING SECTOR AND SETTING UP A STATE OWNED ENTERPRISEOR ENTERPRISES IN THIS SECTOR TO MINE AND UTILISE THE GREAT POTENTIAL THAT LIES IN OUR MINERAL RESOURCE ESPECIALLY IN GOLD AND SUGILITE.
IT IS OUR CONSIDERED VIEW THAT A MOVE BY THE STATE TO PARTICIPATE IN THE MINING SECTOR WILL GENERATE ADEQUATE REVENUE IN ADDITION TO THAT WHICH THE STATE COLLECTS FROM TAX PAYERS. IN THIS WAY THE STATE REVENUE ENVELOP WILL INCREASE AND ACCORDINGLY FINANCIAL CHALLENGES IN PUBLIC SERVICE DELIVERY WILL BE MINIMIZED TO A GREATER EXTENT. STATE PARTICIPATION IN RUNNING BUSINESSES MAY ALSO PROVIDE A BASIS FOR THE STATE NOT TO OVER TAX ITS CITIZENS AS IS THE CASE NOW.
GUEST OF HONOUR LET ME USE THIS OPPORTUNITY TO REMIND THIS GATHERING THAT THERE IS CURRENTLY A VIEW THAT WAS RECENTLY EXPRESSED BY ONE OF THE ZAMBIANS WHICH WAS PUBLISHED BY THE MAST NEWSPAPER ON 10TH MARCH 2023, ENTITLED “ HALT THE DANGEROUS MADNESS IN THE ENTIRE MINING SECTOR, NATIONALISE IT AND FREE ZAMBIA FROM DEBT, UNDERDEVELOPMENT AND POVERTY” IN THIS ARTICLE THE GENTLEMAN HAS OPINED THAT IN ORDER TO ADDRESS WHAT HE HAS CALLED THE DANGEROUS LEVELS OF HUNGER , MALNUTRITION, POVERTY, UNEMPLOYMENT AND INEQUALITIES AFFECTING THE MAJORITY OF THE ZAMBIANS, A GOVERNMENT WITH SUCH CHALLENGES WOULD USE A STATE OF EMERGENCE AND NATIONAL DISASTER TO AMONG OTHER THINGS , NATIONALISE THE LAND, MINERAL SECTOR AND OTHER STRATEGIC SECTORS AND INDUSTRIES IN ORDER TO LAY THE FOUNDATION FOR NATIONAL RENEWAL , TRANSFORMATION AND DEVELOPMENT. THE FUNDAMENTAL ISSUE HE HAS RAISED IS THE OWNERSHIP , CONTROL AND BENEFITS OF ZAMBIA’S MINERAL WEALTH WHICH HE HAS ARGUED THAT THE CURRENT SITUATION OF MINERAL OWNERSHIP BY THE PRIVATE SECTOR IS EXPLOITATIVE TO THE ZAMBIAN PEOPLE AS IT DOES NOT GIVE THE GOVERNMENT THE NEEDED OPPORTUNITY TO RAISE ADEQUATE REVENUE FOR SERVICE DELIVERY. OUR COLLEAGUES IN THE CHAMBER OF MINES HAVE RESPONDED AND DISAGREED WITH THIS VIEW WHICH THE MAST PUBLISHED ON 17TH APRIL 2023 HOLDING A VIEW THAT THE STATUS QUO OF THE PRIVATE SECTOR OWNING AND CONTROLLING THE MINING SECTOR MUST CONTINUE.
OUR VIEW ON THIS MATTER GUEST OF HONOUR IS THAT THERE SHOULD BE NO NATIONALISATION OF THE MINING SECTOR OR ANY OTHER SECTOR BUT INSTEAD THE STATE MUST PARTICIPATE IN RUNNING BUSINESS IN THE MINING SECTOR AND IN ANY OTHER SECTOR SUCH AS AGRICULTURE BY INVESTING IN NEW ENTERPRISES LIKE A GOLD OR COPPER MINE WHOLLY OWNED BY THE STATE OR IN A PUBLIC PRIVATE PARTNERSHIP ARRANGEMENT WHERE THE STATE’S SHARE HOLDING IS SIGNIFICANT.
GUEST OF HONOR, LADIES AND GENTLEMEN AS WE DISCUSS THE SUBJECT OF ACCELERATING JOB CREATION WHICH MUST BE SPREAD GEOGRAPHYCALLY WE WISH TO RECOGNISE THE FACT THAT THE NEW DAWN GOVERNMENT STRATEGY OF NOT ONLY HAVING INCREASED THE CONSTITUENCY DEVELOPMENT FUNDS TO THE CURRENT K 28.3 MILLION BUT ALSO ENSURING THAT THE FUNDS ARE RELEASED TO THE CONSTITUENCIES IS A MECHANISM THAT CAN SUPPORT ACCELELATION OF JOB CREATION THROUGH THE DEVELOPMENTAL PROJECTS THAT ARE TAKING OFF AT CONSTITUENCY LEVELS WHICH EFFECTIVELY HAS DECENTRALIZED THE FINANCING OF THESE DEVELOPMENTAL PROJECTS FROM THE HEADQUARTERS IN LUSAKA. WE BELIEVE STRONGLY THAT WITH PROPER GUIDANCE AND CREATIVITY APPROACHES TO THE UTILISATION OF THE CDF A NUMBER OF PEOPLE’S LIVING STANDARDS WILL BE RAISED INCLUDING THOSE IN THE RURAL AREAS.
THE NEW DAWN ADMINISTRATION HAS SET A PASSÉ FOR DEVELOPMENT AND EMPLOYMENT CREATION TO BE SPREAD GEOGRAPHICALLY. THERE IS ALREADY EVIDENCE OF SUCCESS STORIES ON CONSTITUENCY DEVELOPMENT FUNDS AND WE COMMEND THE GOVERNMENT FOR THE ACHIEVEMENTS AND THOSE MEMBERS OF PARLIAMENT AND LOCAL AUTHORITIES FOR THE SCORES SO FAR MADE.
GUEST OF HONOUR, WE WISH TO THANK AND COMMEND THE ENERGY REGULATION BOARD (ERB) FOR REJECTING THE PROPOSAL FROM ZESCO TO REDUCE THE LIFELINE UNITS FROM 100KWH TO 75KWH FOR RESIDENTIAL CUSTOMERS AND FOR DIRECTING THE UTILITY COMPANY TO MAINTAIN THE CURRENT LIFELINE UNITS AT 100 KWH AT A REDUCED TARIFF FROM 47NGWEE/KWH TO 40NGWEE/KWH AS A HUGE NUMBER OF RESIDENTIAL CUSTOMERS CONSTITUTE OUR EMPLOYEES WHOSE INCOME IS ALREADY ERRODED BY THE HIGH COST OF LIVING. WE ALSO WISH TO COMMEND ZESCO FOR HAVING ACCEPTED THIS DIRECTIVE.
OUR CONCERN HOWEVER GUEST OF HONOUR IS OVER THE APPROVED MULTI – YEAR TARIFFS FROM 2023 TO 2027 ON COMMERCIAL TARIFFS WHICH ARE SCHEDULED TO BE INCREASED OVER THIS PERIOD OF TIME AND THE SAID IMMEDIATE INCREASE. MUCH AS WE APPRECIATE THE FACT THAT ZESCO HAS BEEN FACING FINANCIAL CHALLENGES MAINLY ARISING FROM THE GROWING GAP BETWEEN REVENUE OPERATING AND MAINTENANCE COSTS AND ALSO THAT IT MAKES BUSINESS SENCE FOR ZESCO TO RECEIVE POSITIVE RETURNS ON ITS INVESTMENTS, WE FEAR THAT THE IMMEDIATE INCREASE IS IN EXCESS OF 290% AND THIS HAS A LOT OF DEVASTATING EFFECT ON MANUFACTURING INDUSTRIES WHICH ULTIMATELY MAY END WINDING UP, AND TRUE IN EVERY SENSE ON THE PROPOSED MULTI – YEAR TARIFF INCREMENTS WILL RAISE THE COST OF PRODUCTION WHICH WILL EFFECTIVELY ADD TO THE CURRENT HIGH COST OF LIVING.
I THANK YOU ALL FOR LISTENING AND MAY OUR GOOD LORD BLESS US ALL.