Maravi

Temporal employment affecting human resource growth – Mutati

Temporal employment affecting human resource growth – Mutati
By Chiwoyu Sinyangwe
Thu 01 Apr. 2010, 04:00

COMMERCE minister Felix Mutati has revealed that the government is undertaking reforms to determine why it is difficult to employ or terminate employment as part of the developments to reduce the cost of doing business.

During the World Bank- sponsored discussion under the theme: ‘What do we mean by export competitiveness and how can countries achieve it in an uncertain world’, Mutati said the emphasis by most foreign investors to focus on temporal employment was depriving the country of the capacity to grow human resource needed for economic growth.

He also said the government was looking at the possibility of reducing the business licences in the country from current 517 to 347 as part of the strategy to reduce the cost of doing business.

“We are also looking in the reform areas, issues regarding labour reforms,” Mutati said. “Why is it that it is difficult to employ or terminate employment? Why is it that the private sector, increasingly, are focusing on temporal employment? And because, if they focus on temporal employment, then they don’t develop skills of the people. So, we are undertaking reforms in that particular area.”

And Mutati said the cost of energy and transport in the country was the highest source of impediment to achieving competitiveness as both accounted for close to 25 per cent of the total input in export production.

Mutati said the country was looking at ways of diversifying its economy from mono-dependence on the copper industry to sectors like tourism, value addition and livestock.

“In Zambia, it’s predominantly the cost of power supply, the transport cost. We need to address these two elements,” said Mutati. “These are the answers that are going to create competitiveness, the platform for the private sector to be able to be productive. Our estimate currently is that the inefficiency in the domestic business environment can contribute to as much as 25 per cent to the overall cost of the product. Now, if you have that increased cost, then there is no way you are going to be competitive.”

Labels: CASUALISATION, FELIX MUTATI

posted by MrK @ 3:00 PM