- THE GUEST OF HONOUR, YOUR EXCELLENCY THE PRESIDENT OF THE REPUBLIC OF ZAMBIA, MR. HAKAINDE HICHILEMA
- THE PRESIDENT OF THE ZAMBIA CONGRESS OF TRADE UNIONS, MR. BLAKE MULALA;
- THE PRESIDENT OF THE UNITED FEDERATION OF EMPLOYERS IN ZAMBIA MR. HAMFREY MONDE
- THE CHIEF JUSTICE, DR. MUMBA MALILA, STATE COUNSEL
- YOUR HONOUR THE SPEAKER OF THE NATIONAL ASSEMBLY, MRS NELLY B. K MUTTI;
- HONOURABLE MINISTER OF LABOUR & SOCIAL SECURITY, MRS. BRENDA MWIKA TAMBATAMBA MP AND OTHER CABINET MINISTERS PRESENT;
- THE PROVINCIAL MINISTER OF NORTHWESTEN PROVINCE
- THE SECRETARY TO THE CABINET, PATRICK K. KANGWA;
- HER WORSHIP THE MAYOR OF SOLWEZI
- THE COUNTRY DIRECTOR INTERNATIONAL LABOUR ORGANISATION FOR ZAMBIA, MALAWI AND MOZAMBIQUE MR.WELLINGTON CHIBEBE
- MEMBERS OF THE DIPLOMATIC CORPS
- ALL SERVICE CHIEFS PRESENT
- SENIOR GOVERNMENT OFFICIALS PRESENT;
- MEMBERS OF THE PRESS
- DISTINGUISHED GUESTS, LADIES AND GENTLEMEN
I AM GLAD TO HAVE BEEN ACCORDED AN OPPORTUNITY TO SPEAK ON BEHALF OF EMPLOYERS ON THIS IMPORTANT DAY OF THE WORKERS WORLD OVER WHICH THE ZAMBIAN WORKERS ARE CELEBRATING UNDER THE THEME “BUILDING RESILIENCE: WORKERS AT THE HEART OF ZAMBIA’S ECONOMIC RECOVERY” MAY I ON BEHALF OF ALL THE EMPLOYERS IN ZAMBIA EXTEND SPECIAL GREETINGS TO ALL THE WORKERS IN THE COUNTRY AND WISH THEM A HAPPY LABOUR DAY CELEBRATION.
GUEST OF HONOUR LADIES AND GENTLEMEN THIS YEAR’S THEME IN OUR VIEW IS AN EXCITING ONE. IT IS EXCITING IN THE SENSE THAT IT IS A CALL ON THE GOVERNMENT AND THE EMPLOYERS IN THIS COUNTRY THAT AS THE COUNTRY MAY FACE ECONOMIC ADVERSITIES THE PROCESS OF RESILIENCE OR SIMPLY SAY THE PROCESS OF OVERCOMING THE ECONOMIC ADVERSITIES MUST CARRY THE WORKERS ALONG. ONE MAY INTERPRET IT TO ALSO MEAN THAT IT IS AN OFFER FROM OUR WORKERS THAT THEY ARE EQUAL TO THE TASK IN HELPING OUT IN ECONOMIC RECOVERY INITIATIVES IN THE COUNTRY.
THIS THEME CLEARLY DEMANDS THAT IN BEING RESILIENT TO TOUGH TIMES OR CHALLENGING ECONOMIC SHOCKS THE PROCESS OF COUNTERING SUCH MUST BE INCLUSIVE IN TERMS OF ENGAGEMENT WITH WORKERS. AS EMPLOYERS WE WISH TO THANK THE WORKERS FOR OFFERING THEIR SERVICES THROUGH THIS THEME THAT THEY MUST BE CALLED UPON TO BE PART OF SOLUTIONS FOR ECONOMIC RECOVERY.
IT IS A WELL KNOWN FACT THAT LABOUR IS A CRITICAL FACTOR OF PRODUCTION AND THEREFORE, A MEANS THROUGH WHICH ENHANCED PRODUCTIVITY CAN BE ACHIEVED SO AS TO ATTAIN NATIONAL ECONOMIC RECOVERY. WE THEREFORE TAKE THIS OPPORTUNITY TO THANK THE ZAMBIAN WORKERS FOR HAVING BEEN A MEANS OF PRODUCTION THROUGH WHICH THE COUNTRY HAS SCORED SOME ECONOMIC MILESTONES.
WE ALSO WISH TO ENCOURAGE EMPLOYERS OUT THERE THAT WHEN FACED WITH HARD TIMES IN OUR BUSINESSES BRING THE WORKERS TO YOUR HEART IN LINE WITH THIS THEME, AND DO NOT RUSH TO DECLARING EMPLOYEES REDUNDANT.INSTEAD EMPLOYERS MUST ENGAGE THE WORKERS IN CONSULTING THEM FOR WORKABLE SOLUTIONS TO MAKE THE COMPANY OR COMPANIES TO GET BACK TO A SOUND FINANCIAL POSITION WHICH MAY COME THROUGH ENHANCED PRODUCTIVITY.
OUTLINING A BIT OF ECONOMIC CHALLENGES FACED IN OUR COUNTRY ZAMBIA, GUEST OF HONOUR, DURING THE FIRST QUARTER OF 2024, THE STRICT MONETARY POLICY IMPLEMENTED BY THE BANK OF ZAMBIA TO CONTROL INFLATION BEGAN TO AFFECT THE PRIVATE SECTOR ADVERSELY. THIS WAS PRIMARILY DUE TO THE DECREASE IN THE MONEY SUPPLY AND THE WEAKENING OF THE KWACHA, WHICH HAD A DETRIMENTAL IMPACT ON DEMAND. CONCIDING WITH THESE EVENTS, THE 2024 DROUGHT HAS ALSO NEGATIVELY IMPACTED THE AGRICULTURAL SECTOR, LEADING TO REDUCED FOOD PRODUCTION, ELECTRICITY GENERATION, AND WATER SUPPLY.
AS A RESULT OF THE DROUGHT WHICH HAS ADVERSELY AFFECTED AGRICULTURAL ACTIVITIES IN SOME PARTS OF ZAMBIA, MAIZE AND MEALIE MEAL PRICES ARE PROJECTED TO REMAIN HIGH, WHICH COULD POSE A THREAT TO THE COUNTRY’S FOOD SECURITY. ALREADY, THE DROUGHT HAS CAUSED ZESCO TO IMPLEMENT LOAD MANAGEMENT DUE TO THE LIMITED ENERGY SUPPLY. ADDITIONALLY,THERE WILL BE REDUCED REVENUES FROM EXPORTS OF ELECTRICITY BUT THE COUNTRY WILL INCUR HIGHER COSTS AS IT CONTINUES TO IMPORT ELECTRICITY TO MITIGATE THE INSUFFICIENT LOCAL SUPPLY.
ADDRESSING THE ANTICIPATED FOOD INSECURITY AND LOW PRODUCTIVITY IS CRITICAL, PARTICULARLY IN LIGHT OF THE RISE IN POVERTY LEVELS IN THE COUNTRY, WHICH INCREASED FROM 54.4% IN 2015 TO 60% IN 2022 DUE TO LACK OF JOB OPPORTUNITIES AND DECLINING LABOUR EARNINGS WHILE THE COST OF LIVING CONTINUES TO RISE. THE URBAN POPULATION HAS BEEN HIT HARDEST, WITH A POVERTY RATE OF 31.9% IN 2022, WHILE RURAL POVERTY HAS REMAINED CONSISTENTLY HIGH, EXCEEDING 75% SINCE 2010. GUEST OF HONOUR FAILURE TO IMPLEMENT APPROPRIATE POLICIES COULD EXACERBATE THE CYCLE OF POVERTY FOR BOTH URBAN AND RURAL HOUSEHOLDS, WHICH MAY LEAD TO A DEEPER VICIOUS CYCLE OF POVERTY.
ENERGY PRICES ARE PROJECTED TO REMAIN HIGH DUE TO THE IMPACT OF THE DROUGHT ON HYDROELECTRICITY GENERATION CAPACITY, RESULTING IN THE CONTINUATION OF ELECTRICITY RATIONING AND DISRUPTIONS TO ECONOMIC ACTIVITIES IN THE COUNTRY. THIS ANTICIPATED INCREASE IN ENERGY PRICES IS ALSO BASED ON THE POTENTIAL RISE IN INTERNATIONAL PRICES OF ENERGY PRODUCTS, WHICH CAN BE ATTRIBUTED TO ONGOING GEOPOLITICAL RISKS, SUCH AS THE RUSSIA-UKRAINE WAR AND THE ISRAELI-HAMAS CONFLICT IN GAZA. THESE RISKS COULD LEAD TO SUPPLY CHAIN DISRUPTIONS AND ESCALATING SHIPPING COSTS, THEREBY CONTRIBUTING TO THE OVERALL INCREASE IN ENERGY PRICES.
DOMESTIC INTEREST RATES IN 2024 HAVE REMAINED HIGH, HOWEVER, THE PROSPECTS OF PRICE INSTABILITY REMAIN HIGH IN 2024 GOING INTO 2025 DUE TO SEVERAL REASONS SUCH AS; INSTABILITY OF THE DOMESTIC CURRENCY AGAINST THE US DOLLAR, ANTICIPATED REDUCTION IN MAIZE PRODUCTION THAT MAY RESULT IN IMPORTS OF THE COMMODITY AND OTHER RELATED PRODUCTS RESULTING IN THE INCREASED DEMAND FOR THE US DOLLAR, ANTICIPATED INCREASED IMPORTATION OF ELECTRICITY TO COMPLEMENT THE LOW DOMESTIC ENERGY SUPPLY, AND THE CONTINUED WORSENING IN GLOBAL ECONOMIC CONDITIONS AS A RESULT OF MULTIPLE COMPLEX AND INTERCONNECTED CRISES SUCH AS INFLATION, CLIMATE CHANGE, THE RUSSIA-UKRAINE WAR, ISRAELI-HAMAS WAR IN GAZA AND SUPPLY CHAIN DISRUPTIONS.
THE MEASURE THAT HIS EXCELLENCY THE REPUBLICAN PRESIDENT MR. HAKAINDE HICHILEMA HAS ANNOUNCED AMONG OTHERS THE PLACEMENT OF SPECIAL FOCUS ON INVESTMENTS IN WATER DEVELOPMENT FOR AGRICULTURE AND ENERGY PRODUCTION AS WELL AS THE PROVISION OF WATER TO HOUSEHOLDS, LIVESTOCK AND WILDLIFE MAY REQUIRE SOME LABOUR TO BE AT PLAY WHICH WILL DEMONTRATE ATTAININING RESILIENCE WITH THE WORKERS AT THE HEART OF ECONOMIC RECOVERY. THIS IS COMENDABLE.
GUEST OF HONOUR, DISTINGUISHED GUESTS , WE WISH TO COMMEND THE NEW DAWN GOVERNMENT THAT IN 2023, ZAMBIA REACHED AN AGREEMENT ON DEBT RESTRUCTURING WITH ITS OFFICIAL BILATERAL CREDITORS THAT WAS CONSISTENT WITH THE PARAMETERS OF THE JOINT WORLD BANK-IMF DEBT SUSTAINABILITY FRAMEWORK. IN MARCH 2024 ANOTHER AGREEMENT WAS REACHED WITH SOME OF THE EUROBOND HOLDERS TO THE SUM OF US$ 3 BILLION WHICH EFFECTIVELY IS AN INGREDIENT THAT WILL HELP ZAMBIA ATTRACT NEW INVESTMENTS, GENERATE NEW JOBS AND GIVE RELIEF TO GOVERNMENT COFFERS THEREBY PRIORITIZING URGENT MATTERS SUCH AS THE ON GOING DROUGHT.
WE COMMEND AND CONGRATULATE HIS EXCELLENCY THE PRESIDENT MR. HAKAINDE HICHILEMA FOR HIS PERSONAL EFFORTS IN ENSURING THAT AGREEMENT ON DEBT RESTRUCTURING COULD BE ACHIEVED. WE BELIEVE THAT HAVING AN EXTENDED PAYMENT PLAN IN OUR DEBT SERVICE WILL FREE SOME RESOURCES TO BE APPLIED TO OUR PRODUCTION SECTORS WHICH IS ALSO A PATH TO ATTAINING RESILIENCE AND A BRIGHT FUTURE FOR THE PEOPLE OF ZAMBIA.
WE FURTHER WISH TO COMMEND THE NEW DAWN GOVERNMENT FOR HAVING APPROVED THE ISSUANCE FOR A STATUTORY INSTRUMENT THROUGH CABINET CALLED THE CUSTOMS AND EXCISE (SUSPENSION) (WHEAT) REGULATION, 2024 THAT HAS PROVIDED FOR THE SUSPENSION OF DUTY ON IMPORTATION OF 100,000 METRIC TONNES (MT) OF WHEAT.
THIS MEASURE WHICH WILL ALLOW THE MILLERS TO MEET THE SHORTFALL IN THE SUPPLY OF WHEAT ON THE LOCAL MARKET AND TO ALLOW MILLERS TO CONTINUE PRODUCTION IN THE FACE OF LOW SUPPLY OF THE COMMODITY BEFORE COMMENCEMENT OF THE HARVESTING SEASON WHEN NATIONAL WHEAT STOCKS ARE EXPECTED TO BE SUFFICIENT IS A CLEAR DEMONSTRATION OF RESILIENCE TO THE DROUGHT ADVERSARY WHICH ALSO PROVIDES A WAY THROUGH WHICH THE MILLERS WILL SUSTAIN THE CURRENT JOBS WHICH IS IN LINE WITH THIS YEARS’ LABOUR DAY THEME.
WE ALSO NOTE AS EMPLOYERS AND COMMEND THE NEW DAWN GOVERNMENT FOR THE DECISION TAKEN THROUGH CABINET TO RATIFY THE INTER – GOVERNMENTAL MEMORANDUM OF AGREEMENT (IGMOA) ON THE ESTABLISHMENT OF THE SADC CENTRE FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY AS PART OF ZAMBIA’S COMMITMENT TO SADC THROUGH THE SADC PROTOCOL ON ENERGY AND IN ACCORDANCE WITH ARTICLES 26 AND 27 OF THE SADC CENTRE FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY.
THIS STEP TAKEN BY THE GOVERNMENT WILL IN OUR VIEW CULMINATE INTO ACCESS TO MODERN ENERGY SERVICES AND SECURITY BY IMPROVING ENERGY EFFICIENT AND ENERGY SERVICES.
WE FIND THIS MEASURE OR CABINET DECISION TO BE EXTREMELY VALUABLE AS IT IS A MECHANISM TO COMPLIMENT THE SUPPLY OF ENERGY WHICH IS CURRENTLY IN SHORT SUPPLY AS WITNESSED BY THE ON-GOING LONG HOURS OF LOAD-SHEDDING OF ELECTRICITY ENERGY. THIS MEASURE TO INCREASE ENERGY SUPPLY IN THE COUNTRY WILL MAKE AVAILABLE THE ENERGY THAT IS REQUIRED TO RUN THE MACHINES IN INDUSTRY FOR CONTINUED PRODUCTION AND IT ALSO SPEAKS TO THIS YEAR’S LABOUR DAY THEME ON RESILIENCE: WORKERS’ AT THE HEART OF ZAMBIA’S ECONOMIC RECOVERY AS SUSTAINABILITY OF COMPANY OPERATIONS IS IN ITSELF SUSTAINABILITY OF EMPLOYEES IN EMPLOYMENT.
GUEST OF HONOUR, LADIES AND GENTLEMEN AS WE SPEAK ABOUT ECONOMIC RECOVERY WE CANNOT LEAVE OUT THE ISSUES OF DEVELOPING INDUSTRY DEMAND DRIVEN SKILLS. CONSIDERING THAT FOR A LONG TIME THERE HAVE BEEN NO COLLABORATION BEEN INDUSTRY AND THE TRAINING INSTITUTIONS IN THE AREA OF SKILL DEVELOPMENT, AND IN ORDER TO CLOSE THIS COLLABORATION GAP WE HAVE AS EMPLOYERS COME TO A REALIZATION THAT THERE SHOULD BE INCREASED ENGAGEMENT BETWEEN INDUSTRY AND OTHER RELEVANT STAKEHOLDER IN SKILLS DEVELOPMENT. ACCORDINGLY, WE ARE CONVINCED THAT INDUSTRY CAN MAKE A FORMIDABLE CONTRIBUTION TO THE DEVELOPMENT OF DEMAND DRIVEN SKILLS THROUGH SECTORAL APPROACHES AS AN EFFECTIVE WAY TO ACHIEVING THE GOAL OF BRINGING THE WORLD OF WORK AND THE WORLD OF EDUCATION AND TRAINING CLOSER.
IT IS OUR UNDERSTANDING AND BELIEF THAT A SECTORAL APPROACH WHICH WILL TYPICALLY BE SOME FORM OF INSTITUTIONAL SET – UP TO BRING TOGETHER KEY STAKEHOLDERS IN A SECTOR TO CARRY OUT THE WORK OF IDENTIFYING SECTOR SKILLS AND AGREEING ON CURRICULUM DEVELOPMENT THAT IS SECTOR SPECIFIC WILL ADDRESS THE CURRENT SKILLS SHORTAGES AND MISMATCHES THAT INDUSTRY HAS FOR A LONG TIME BEEN COMPLAINING ABOUT. GUEST OF HONOUR, LADIES AND GENTLEMEN THIS SECTORAL APPROACH TO SKILLS DEVELOPMENT IS ALREADY TAKING PLACE IN OTHER COUNTRIES WHERE THE INSTITUTIONS THROUGH WHICH SECTOR SKILLS ARE BEING DEVELOPED ARE CALLED SECTOR SKILLS COUNCILS OR SECTOR SKILLS BODIES.
GUEST OF HONOUR, LADIES AND GENTLEMEN THIS APPROACH TO THE DEVELOPMENT OF SKILLS THAT MEET INDUSTRY NEED IS CENTRED ON MAN POWER DEVELOPMENT THAT BRINGS ON BOARD WORKERS IN ACHIEVING RESILIENCE WITH WORKERS AT THE HEART IN ECONOMIC RECOVERIES.
YOUR EXCELLENCY THE PRESIDENT SIR, MAY I NOW TAKE THIS OPPORTUNITY TO INDICATE TO YOU SIR THAT WE AS EMPLOYERS TOGETHER WITH OUR WORKERS IN THIS COUNTRY ARE AGGRIEVED BY THE DECISION TAKEN BY CABINET INTENDED TO TAKE BACK THE NATIONAL HEALTH INSURANCE MANAGEMENT AUTHORITY ( NHIMA) TO THE MINISTRY OF HEALTH. CONSIDERING THAT THE NATIONAL HEALTH INSURANCE SCHEME THOUGH A HEALTH SCHEME IS AN INSURANCE SCHEME AND A SOCIAL SECURITY SCHEME IT MUST CONTINUE BEING HOUSED IN THE MINISTRY OF LABOUR AND SOCIAL SECURITY WHICH IS THE MINISTRY THAT IS SPECIALIZED IN ITS WORK OF SOCIAL SECURITY. NHIMA IS AN INSURER WHOSE ROLE IS TO PAY FOR THE HEALTH SERVICES THAT THE SCHEME MEMBERS WILL HAVE OBTAINED FROM THE HEALTH CENTRES AND NOT TO BE USED TO PROCURE DRUGS . IT WILL BE WRONG TO THINK THAT THE FUNDS IN NHIMA SHOULD BE USED FOR PROCURING DRUGS TO BE STOCKED IN OUR PUBLIC HEALTH CENTRES. THE MINISTRY OF HEALTH SHOULD FOCUS ON IMPROVING THE HEALTH FACILITIES SO THAT NHIMA CAN CHANNEL MORE PATIENTS TO PUBLIC HEALTH FACILITIES AND PAY FOR THE HEALTH SERVICES TO BE OFFERED BY THE PUBLIC HEALTH CENTRES.
THE OTHER MAJOR REASON NHIMA MUST CONTINUE BEING HOUSED AT THE MINISTRY OF LABOUR AND SOCIAL SECURITY SIR IS THAT THE SCHEME IS 90% FUNDED BY THE WORKERS AND EMPLOYERS IN THE FORMAL SECTOR AND ACCORDINGLY IT IS A PAYROLL BASED CONTRIBUTORY SCHEME AND THE MINISTRY RESPONSIBLE FOR PAYROLL BASED SOCIAL SECURITY SCHEMES IS THE MINISTRY OF LABOUR AND SOCIAL SECURITY.
FURTHER THE EMPLOYERS’ AND WORKERS’ ORGANISATIONS WHOSE MEMBERS ARE THE FUNDERS OF NHIMA ONLY HAVE A PLATFORM TO BE CONSULTED AND TO CONTRIBUTE ON WORK PLACE BASED ISSUES AT THE MINISTRY OF LABOUR AND SOCIAL SECURITY AND NOT AT THE MINISTRY OF HEALTH. IT WILL BE BAD GOVERNANCE AND A RISK TO THE MONEY PUT IN BY EMPLOYERS AND WORKERS IF NHIMA MOVED TO THE MINISTRY OF HEALTH. . IT IS NOT ENOUGH THAT EMPLOYERS AND WORKERS ARE ON THE BOARD OF NHIMA. THEREFORE OUR STRONG APPEAL TO YOU SIR IS THAT LET NHIMA REMAIN AT THE MINISTRY OF LABOUR AND SOCIAL SECURITY. WE ARE READY TO ENGAGE FURTHER ON THIS TOPICAL MATTER YOUR EXCELLENCY THE PRESIDENT IF YOUR OFFICE COULD AVAIL US SOME TIME.
IN ENDING MY REMARKS, ALLOW ME TO CONGRATULATE THE HARD WORKING WORKERS IN THIS COUNTRY THAT WILL BE RECEIVING LABOUR DAY AWARDS THROUGH OUT THE COUNTRY. I ENCOURAGE THOSE THAT WILL NOT BE RECOGNISED THIS YEAR TO WORK EXTRA HARD SO THAT IT WILL BE THEIR TURN TO RECEIVE AWARDS NEXT YEAR. I WISH EVERY WORKER A PLEASANT LABOUR DAY AND MAY OUR GOOD LORD BLESS US ALL.
THANK YOU.