SPEECH BY THE PRESIDENT OF THE ZAMBIA FEDERATION OF EMPLOYERS MRS MYRA SAKALA NGOMA AT THE TRIPARTITE CONSULTATIVE LABOUR COUNCIL MEETING HELD ON WEDNESDAY 18TH JANUARY 2023 AT THE GOVERNMENT COMPLEX
- 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;
- THE PRESIDENT OF THE FEDERATION OF FREE TRADE UNIONS OF ZAMBIA MR. CHINGATI MSISKA;
- THE ACTING PERMANENT SECRETARY IN THE MINISTRY OF LABOUR AND SOCIAL SECURITY MR. ZACHARIA LUHANGA;
- SENIOR GOVERNMENT OFFICIALS PRESIDENT;
- THE ILO DIRECTOR FOR ZAMBIA, MALAWI AND MOZAMBIQUE, MR GEORGE OKUTHO;
- REPRESENTATIVES FROM THE MEDIA HOUSES;
- DISTINGUISHED GUESTS, LADIES AND GENTLEMEN;
ALLOW ME TO BRING NEW YEAR FRATERNAL GREETINGS TO YOU FROM THE ZAMBIA FEDERATION OF EMPLOYERS’ AND ITS GENERAL MEMBERSHIP THROUGHOUT THE COUNTRY.
WE ARE GLAD TO BE AT THIS SPECIAL TRIPARTITE CONSULTATIVE LABOUR COUNCIL MEETING WHICH HAS BEEN CALLED TO DO AN INTROSPECTION INTO THE CURRENT LOAD SHEDDING OF SUPPLY OF ELECTRICITY AND THE COVID-19 SITUATION AS POSITIVE CASES HAVE BEEN REPORTED TO BE INCREASING IN THE PAST FEW DAYS DURING THIS FIRST MONTH OF JANUARY 2023. THE INTROSPECTION HAS BECOME NECESSARY ESPECIALLY WHEN ONE THINKS OF HOW THE NEW MINIMUM WAGES THAT HAVE BEEN ADJUSTED UPWARDS CAN BE IMPLEMENTED IN THE MIDST OF THE SEVERE LOAD SHEDDING AND RISING COVID – 19 CASES IN THE COUNTRY.
GUEST OF HONOUR IT IS UNFORTUNATE THAT WHEN EVERYONE WAS THINKING THAT LOAD SHEDDING OF ELECTRICITY WAS A THING OF THE PAST WE HAVE FOUND OURSELVES IN IT AGAIN ALL BECAUSE THERE HAVE NOT BEEN STRATEGIC PLANNING ON HOW TO ADDRESS THIS CHALLENGE. ALL WE DID AFTER THE FIRST EXPERIENCE OF LOAD SHEDDING WAS TO WAIT FOR THE RAINS TO COME IN THE HOPE THAT THE KARIBA DAM WAS GOING TO BE FILLED UP AND NEVER EXPECTED THAT THE KARIBA WATER LEVELS MAY GET LOWER AGAIN . SO WE COULD NOT COME UP WITH A LASTING SOLUTION TO THE LOAD SHEDDING PROBLEM.
IT IS UNFORTUNATE THAT THE COUNTRY IS NOW FACED WITH A DISRUPTION IN THE POWER SUPPLY WHICH IS CREATING OPERATIONAL CHALLENGES IN THE INDUSTRY AS IT IS LOWERING THE LEVEL OF PRODUCTION. PEOPLE RUNNING SMALL BUSINESSES WHO CAN NOT EVEN AFFORD ALTERNATIVE ENERGY LIKE THE USE OF GEN SETS ARE NOW GOING ON EMPTY STOMACHS BECAUSE THEY CAN NO LONGER RUN THEIR BUSINESSES FOR A REASONABLE NUMBER OF HOURS THAT CAN ENABLE THEM GENERATE ADEQUATE REVENUE.
GOING BY THE FINDINGS OF THE 2021 LABOUR FORCE SURVEY THAT OUT OF THE 3, 164, 748 EMPLOYED POPULATION ONLY 936, 941 ARE EMPLOYED IN REGISTERED FIRMS AND INSTITUTIONS WHILE 1,373,657 AND 854,151 ARE EMPLOYED IN INFORMAL UNDERTAKINGS AND HOUSEHOLDS, IT MEANS THAT THE LOAD SHEDDING IS MAKING THE LIVES OF 2,227,808 INFORMAL SECTOR PLAYERS AND HOUSEHOLD EMPLOYEES VERY HARD .
THE COVID 19 CASES TOO THAT ARE ON THE INCREASE ARE A SOURCE OF CONCERN AS IT MAY LIKELY BE AS WAS THE CASE IN THE YEARS 2020 AND 2021WHERE WE HAD TO INTRODUCE NEW WORKING APPROACHES OF WORKING FROM HOME WHICH BECAME VERY DIFFICULT TO SUPERVISE AND HAD SOME COST ELEMENT ATTACHED TO IT. THIS TOO HAS AN EFFECT ON THE WORKING POPULATION AS SOME BUSINESS ENTITIES COMPLETELY DIE OFF. AGAIN WE NOTE FROM THE COMPARISONS OF THE 2020 AND 2021 LABOUR FORCE SURVEY THAT THERE WAS A 6% DECLINE IN THE NUMBER OF PEOPLE WHO WERE EMPLOYED IN REGISTERED FIRMS FROM 1,000,594 IN 2020 TO 936,941 IN 2021 REPRESENTING 63, 653 PEOPLE HAVING LOST THEIR JOBS FROM THE FORMAL SECTOR WHILE THE IDEAL SITUATION SHOULD HAVE BEEN TO RECORD A GROWTH RATE.
GUEST OF HONOUR LADIES AND GENTLEMEN, THE TWO SITUATIONS OF THE LOAD SHEDDING AND COVID 19 PANDEMIC PRESENT A SERIOUS THREAT TO SUSTAINABILITY OF INDUSTRY, THEY PRESENT A SERIOUS THREAT TO CREATION OF EMPLOYMENT IN THE COUNTRY , THEY PRESENT A SERIOUS THREAT TO PEOPLE’S JOBS AS THEY CARRY A RISK OF JOB CUTS IN THE COUNTRY NOT ONLY BECAUSE EMPLOYERS WILL DECIDE TO CUT JOBS BUT ALSO BECAUSE SOME BUSINESS ENTITIES MAY COMPLETELY DIE OFF.
SINCE COMPANIES HAVE TO REMAIN IN BUSINESS THEY WILL NOW OPT FOR ALTERNATIVE SUPPLY OF ENERGY AND THE MOST COMMON ALTERNATIVE IS THE USE OF GEN SETS.
GUEST OF HONOUR DISTINGUISHED LADIES AND GENTLEMEN WE ARE AWARE THAT UNLIKE IN THE PAST YEARS OF LOAD SHEDDING WHEN THE PRICE OF FUEL WAS LOW TODAY’S COST OF FUEL HAS GONE UP AND A CONTINUED USE OF GEN SETS IN THE INDUSTRY AND OFFICES JUST MAKES THE COST OF DOING BUSINESS IN THE COUNTRY VERY HIGH . HIGH COST OF DOING BUSINESS IN ANY ECONOMY IS ON ITS ON AN ISSUE OF GREAT CONCERN TO THE PRIVATE SECTOR AND THIS CONCERN AND WE BELIEVE THAT THIS IS A SHARED CONCERN WITH THE GOVERNMENT AND OUR COLLEAGUES IN LABOUR MOVEMENT IN THE COUNTRY BECAUSE IT IS ALSO A SERIOUS THREAT TO EMPLOYMENT CREATION AND SUSTAINABILITY OF JOBS.
MUCH AS IT CAN BE APPRECIATED THAT THE LOAD SHEDDING IS CREATED BY LOW WATER LEVELS IN THE KARIBA DAM IT IS ALSO TRUE THAT AS A COUNTRY WE HAVE NOT BEEN STRATEGIC ON THE ISSUE OF SUPPLY OF ENERGY OVER THE YEARS AND THEREFORE, IT IS HIGH TIME WE STARTED PLANNING STRATEGICALLY TO PUT IN PLACE A SUSTAINABLE SOURCE OR SOURCES OF ENERGY SO THAT WE CAN AVOID SIMILAR OCCURRENCES IN FUTURE. WE NEED TO PUT IN PLACE A STRATEGIC PLAN THAT MUST MAP OUT OUR WATER BODIES THROUGHOUT THE COUNTRY AND IDENTIFY THE ONES THAT CAN BE USED TO GENERATE ADEQUATE POWER IN SEVERAL PARTIES OF THE COUNTRY.
GUEST OF HONOUR, LADIES AND GENTLEMEN ZFE WOULD LIKE TO TAKE THIS OPPORTUNITY TO COMMEND THE NEW DAWN GOVERNMENT IN PARTICULAR OUR REPUBLICAN PRESIDENT MR. HAKAINDE HICHILEMA FOR THE MOVE HE TOOK TO ENGAGE MAAMBA COILLERIES LIMITED TO HAVE THEIR SCHEDULED MAINTENANCE OF THE 150 MW GENERATOR PERIOD REDUCED IN ORDER TO HELP REDUCE LOAD- SHEDDING WHOSE DISCUSSIONS HAVE CULMINATED INTO HAVING MAAMBA COILLERIES GET BACK ONLINE TO START FEEDING POWER INTO THE NATIONAL GRID. WE BELIEVE THAT THIS WILL HELP OUR COLLEAGUES IN ZESCO TO REDUCE FURTHER ON THE LOAD SHEDDING HOURS.
WE ARE FURTHER ENCOURAGED AND WISH TO COMMEND THE REPUBLICAN PRESIDENT ON THE INITIATIVES HE HAS UNDERTAKEN LIKE THE REPORTED SIGNING OF A MEMORANDUM OF UNDERSTANDING ( MOU) AND A LANDMARK JOINT DEVELOPMENT AGREEMENT BETWEEN ZAMBIA AND THE UNITED ARAB EMIRATES, AIMED AT FACILITATING MASSIVE INVESTMENT IN RENEWABLE ENERGY IN OUR COUNTRY.
IT IS INDEED VERY GOOD NEWS THAT THROUGH THE SIGNED MOU AND THE JOINT DEVELOPMENT AGREEMENT OUR ZESCO WILL PARTNER WITH MASDAR WHICH THE NATION HAS BEEN INFORMED IS A KEY INVESTMENT FUNDING ENTITY OF THE UNITED ARAB EMIRATES TO FORM A JOINT VENTURE IN DEVELOPING AND DEPLOYING LARGE SCALE SOLAR PROJECTS ACROSS THE COUNTRY ESTIMATED AT US$2 BILLION WHICH WONT BE A LOAN BUT SIMPLY CAPITAL INJECTION IN OUR COUNTRY. THIS IS REMARKABLE IN THAT IT SHALL NOT ONLY BRING THE CURRENT CHALLENGES OF LOAD SHEDDING TO AN END BUT ALSO THAT IT SHALL SPUR ECONOMIC GROWTH AND WILL BE A SOURCE OF EMPLOYMENT CREATION IN THE COUNTRY.
GUEST OF HONOUR , LADIES AND GENTLEMEN, LET ME END MY SPEECH BY THANKING YOU FOR YOUR TIME TO LISTEN TO MY SPEECH.
THANK YOU.