Dodia asks govt to reduce cost of doing business

Dodia asks govt to reduce cost of doing business
Written by Fridah Zinyama
Monday, December 22, 2008 8:48:22 AM

PRIVATE Sector Development Association (PSDA) chairperson Yusuf Dodia has asked the government to find ways of reducing the cost of doing business for Zambia to survive the current economic hurdles.

But finance minister Situmbeko Musokotwane said government is doing everything within its means to reduce the suffering of the people, especially those on the Copperbelt who are likely to suffer from job losses.

Meanwhile, a private sector player Jeremiah Dauya said the government should come up with tax exemptions that will allow local entrepreneurs to engage in productive sectors like manufacturing.

During ZNBC’s National Watch programme yesterday, Dodia said some members of the business community have had to refuse some of the contracts to supply goods as it had become very expensive for them to meet their obligations due to the depreciation of the kwacha.

“Most businesses are finding it difficult to meet their obligations with their clients because of the fluctuating local currency and even when they do fulfil the contracts, they are doing so at no profit at all,” he said.

Dodia further added that the government needed to put in place workable strategies that would help the economy weather the current global economic crisis.

And Dr Musokotwane said Zambia was not the only country experiencing job losses owing to plummeting copper prices, since the neighbouring Democratic Republic of Congo (DRC) was likely to record over 30,000 job cuts in the mining sector.

“The situation could be worse in Zambia but that is not to say that government is not concerned with what is happening in the country,” he said.

When asked on whether the government would further revise the taxes for the workers in order to offset the revenue deficit caused by plummeting copper prices, Dr Musokotwane said he could not comment on such a sensitive topic as the Ministry of Finance was currently working on the 2009 national budget.

And Dauya said a lot of Zambian entrepreneurs had money but were looking for government incentives in order to continue with their ideas.