Implement CEE cautiously, SA urges Zambia
By Chibaula Silwamba
Saturday June 21, 2008 [04:00]
South Africa has advised Zambia to be cautious when implementing the Citizens' Economic Empowerment programme by ensuring that majority Zambians benefit from it. In an interview in Lusaka on Wednesday, South Africa's North Western Premier Edna Molewa said Zambia should be careful as it implemented the empowerment programme, saying there were lessons to draw from South Africa's black economic empowerment (BEE), which only created a few billionaires.
Molewa said her country made a mistake in the implementation of the BEE whereby only a few people benefited and became very rich while the majority of South Africans did not benefit and were still poor.
She urged Zambia to ensure that the economic empowerment programme was as broad-based as possible so that many Zambians could be empowered and not just a few.
Molewa said though the economic empowerment programmes were good, they had to be checked.
She said after discovering that the BEE had only benefited a few people, the South African government decided to review the programme.
"The black economic empowerment is a good policy, however, I think as we went through that back economic empowerment we discovered that it was able to empower just a few people very quickly," Molewa said.
"It was for that reason that we said let us also rather focus on broad-based black economic empowerment and that is the outcome of the commission that was set up by the President Thabo Mbeki and the government to investigate whether we are still on track."
Molewa said the commission had recommended that the BEE should be broad-based.
"The recommendation is that let us have a broad-based empowerment so that you can empower as many people as you can instead of just a few," said Molewa.
The BEE is South Africa's programme aimed at empowering black South Africans.
It is a pragmatic growth strategy that aims to realise the country's full economic potential. Zambia has embarked on a similar programme called the Citizens' Economic Empowerment.
Labels: BEE, CEE
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Mabel Mung’omba is CEE director general
By KASUBA MULENGA
THE Citizens Economic Empowerment (CEE) Commission has appointed Chartered Institute of Marketing president, Mabel Mung’omba, as its director general. Former International Chemicals (Z) Limited general manager and current Commission chairperson, Jacob Sikazwe, announced Mrs Mung’omba’s appointment at a press briefing in Lusaka yesterday. Mr Sikazwe said Mrs Mung’omba had 18 years of experience in the private sector at senior executive management level and was highly qualified in business management.
“I wish to congratulate her on this appointment and charge her with the responsibility of providing strategic leadership and vision to the commission in ensuring that its objectives are met,” he said.
Mr Sikazwe said the CEEC had the vision of promoting the broad based economic empowerment of targeted citizens and companies which Mrs Mung’omba should work towards accomplishing.
And accepting the appointment, Mrs Mung’omba said she received the news with humility and great honour.
She said her understanding of the new role was that the CEEC was supposed to promote the second wave of Zambia’s independence.
“The first was political independence and the second wave is economic which translates into access to good education, water, food and various means of livelihood,” Mrs Mung’omba said.
She felt privileged to serve the CEE as it would support Government and help Zambians to achieve the economic independence of their families.
“I am also aware of the challenges that will come with the job because it is the desire of every Zambian to see it work so that the economic landscape of the country is changed,” she said.
And Ministry of Commerce, Trade and Industry permanent secretary, Davison Chilipamushi, who is also a CEEC commissioner, said Mrs Mung’omba should work towards ensuring that any possible existence of bureaucracy in the commission benefited the people.
Mrs Mung’omba holds an undergraduate degree in Business Administration from the Copperbelt University and three postgraduate qualifications.
She has among other qualifications a Masters in Business Administration with a major in Multinational Finance and International Business, diploma from the Chartered Institute of Marketing, United Kingdom (CIM) and a Cross Sector Partnership qualification from Cambridge University.
She also worked as chief executive for the Africa Health Services, an Anglo American Corporation subsidiary, before joining the start-up team that led to the vision and development of Celtel.
Mrs Mungomba is currently serving as an in-country, African and global consultant on a British Council led Interaction Leadership programme running in 19 African countries.
Government has allocated K120 billion to the CEE, which is supposed to be accessed by successful Zambian applicants for economic empowerment projects.
Labels: CEE, JACOB SIKAZWE, MABEL MUNG'OMBA
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Mabel Mung’omba is CEE director general
By KASUBA MULENGA
THE Citizens Economic Empowerment (CEE) Commission has appointed Chartered Institute of Marketing president, Mabel Mung’omba, as its director general. Former International Chemicals (Z) Limited general manager and current Commission chairperson, Jacob Sikazwe, announced Mrs Mung’omba’s appointment at a press briefing in Lusaka yesterday. Mr Sikazwe said Mrs Mung’omba had 18 years of experience in the private sector at senior executive management level and was highly qualified in business management.
“I wish to congratulate her on this appointment and charge her with the responsibility of providing strategic leadership and vision to the commission in ensuring that its objectives are met,” he said.
Mr Sikazwe said the CEEC had the vision of promoting the broad based economic empowerment of targeted citizens and companies which Mrs Mung’omba should work towards accomplishing.
And accepting the appointment, Mrs Mung’omba said she received the news with humility and great honour.
She said her understanding of the new role was that the CEEC was supposed to promote the second wave of Zambia’s independence.
“The first was political independence and the second wave is economic which translates into access to good education, water, food and various means of livelihood,” Mrs Mung’omba said.
She felt privileged to serve the CEE as it would support Government and help Zambians to achieve the economic independence of their families.
“I am also aware of the challenges that will come with the job because it is the desire of every Zambian to see it work so that the economic landscape of the country is changed,” she said.
And Ministry of Commerce, Trade and Industry permanent secretary, Davison Chilipamushi, who is also a CEEC commissioner, said Mrs Mung’omba should work towards ensuring that any possible existence of bureaucracy in the commission benefited the people.
Mrs Mung’omba holds an undergraduate degree in Business Administration from the Copperbelt University and three postgraduate qualifications.
She has among other qualifications a Masters in Business Administration with a major in Multinational Finance and International Business, diploma from the Chartered Institute of Marketing, United Kingdom (CIM) and a Cross Sector Partnership qualification from Cambridge University.
She also worked as chief executive for the Africa Health Services, an Anglo American Corporation subsidiary, before joining the start-up team that led to the vision and development of Celtel.
Mrs Mungomba is currently serving as an in-country, African and global consultant on a British Council led Interaction Leadership programme running in 19 African countries.
Government has allocated K120 billion to the CEE, which is supposed to be accessed by successful Zambian applicants for economic empowerment projects.
Labels: CEE, JACOB SIKAZWE, MABEL MUNG'OMBA
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Levy, NEC differ over administration of youth and women's funds
By Lambwe Kachali and Mwala Kalaluka
Thursday March 13, 2008 [03:00]
MMD members of parliament and some national executive committee (NEC) members on Tuesday differed with President Levy Mwanawasa during a caucus meeting at State House over the administration and implementation of youth and women empowerment funds through the Citizens Economic Empowerment (CEE) Act. And former lands minister Judith Kapijimpanga fumed at State House security personnel after they blocked her from driving into State House premises using her personal vehicle.
MMD sources disclosed yesterday that that MMD MPs and NEC members expressed concern over intentions by the government to administer the Youth Empowerment and Women Empowerment funds under the CEE.
The source said some members argued that the transfer of such funds would disadvantage the rural youths and the womenfolk, as they would not be able to meet the required conditionalities attached in accessing the money.
The sources said some members of parliament indicated that the step that the government had taken on the funds had the potential to worsen the poverty situation in rural areas.
The source said upon realising that the issue was getting hot, President Mwanawasa said it was not right for NEC and members of parliament to fight the government. The sources said the members told President Mwanawasa that it was not a question of fighting the government but a question of ensuring that the national cake was equally shared among Zambians.
“They said that the way things stand, the rich will become richer and the poor, most of whom are rural dwellers, will become poorer. What criteria will be used to access this fund taking into account that the Act itself is not clear? This was their argument and they wanted proper clarification from the President. But to our surprise, the President thought they are fighting the government,” the source said.
The sources further said they were servants of the people in their respective constituencies and were in dire need of accessing those funds.
It took the members more than 45 minutes arguing and stressing their points to convince President Mwanawasa.
When they failed to reach a compromise, President Mwanawasa declared a division and called for a vote. The source said after considering the impression that might have been created to vote against the President, some members unwillingly voted in favour of President Mwanawasa’s wish.
“You know, you cannot bite a finger that feeds you. Even when all of us were raising our hands up, we still did not agree with the President,” the source said.
And another source said the other issue on the agenda was the revision of the road user fees proposed by RTSA.
The source said it was resolved that the public should be consulted before the Statutory Instrument was signed.
And Kapijimpanga, who went to attend the caucus meeting was told to park her car in the general car park outside State House, as ministers and deputy ministers were ushered in through the main gate after screening. Kapijimpanga, who is MMD chairperson for lands, obliged with the security officers’ advice and parked her car in the general car park.
She was later joined by another NEC official who wanted to know why only those who had flag-flying vehicles were allowed to drive into State House.
“So does it mean that these with flags are more important than NEC members who are the supporters of the party?” the unidentified NEC member asked the security officers.
Kapijimpanga and her colleague, however, went into State House but returned shortly after seeing that another NEC member by the name of Munkole was allowed to drive through the main gate despite him not being a minister or deputy minister.
The duo confronted one of the security officers and asked him why Munkole had been allowed to drive in when they were blocked from doing that.
“I have been a minister; I have been a deputy minister and why are you treating me like this?” Kapijimpanga asked the security officer, who responded that Munkole told them that he was a ‘honourable’.
Kapijimpanga said Munkole was not a ‘honourable’ and that he had just joined the ruling party NEC a few weeks ago.
“Actually, I demand an apology from you because you have treated me like a street pushover,” said Kapijimpanga. “When you set standards, they have to be levelled. I am going to drive in because I was also a minister and deputy minister.”
Labels: CEE, FUNDING, GOVERNANCE, NEC
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Economic sectors given ultimatum to develop codes
By Business Reporter
ALL economic sectors in Zambia have been given six months in which to develop sector codes which would indicate how each sector can participate in the Citizens Economic Empowerment (CEE) programme. CEE chairman, Jacob Sikazwe, said the economic empowerment sector codes would indicate how each sector would participate in the CEE through the provision of opportunities and resources to enhance involvement of citizens in ownership, management and control of national assets.
Mr Sikazwe said over the weekend at Lusaka’s Mika Lodge when he launched guidelines on the development of sector codes that all sectors should begin the process now and come up with the codes within six months.
He said the guidelines would provide a frame work to guide the sectors in coming up with the practical measures for successful implementation of the CEE in Zambia.
“We expect that the development of the codes will be an all inclusive process that will involve all stakeholders such as the major enterprises within each sector, professional associations, the Government, trade unions and civil society,” Mr Sikazwe said.
He said to kick start the process of developing the sector codes, the commission has identified sectors that are considered critical to the development of the economy and whose participation is considered crucial for the success of the programme.
The sectors include financial services, mining, manufacturing, construction, transport, energy, information and communication technology, retail and trade services.
The development of the sector codes is in accordance with the CEE Act which states that the sector codes would assist the commission and individual sectors to measure the economic progress made in achieving broad-based economic empowerment.
Labels: CEE
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CEEC warns foreign investors against using locals as 'fronts'
By Chiwoyu Sinyangwe
Monday January 14, 2008 [03:00]
Citizen Economic Empowerment Commission (CEEC) chairman Jacob Sikazwe has said the commission will not allow foreign investors to use local entrepreneurs as “fronts” in establishing a fourth mobile service company.
Fronting is a false representation of the business’ true equity status in terms of employment equity, ownership, the degree of management participation by indigenous people and the degree of preferential procurement.
This is put into practice by appointing indigenous people on the basis of ‘tokenism’, which is placing them in positions of leadership with no subsequent intention of affording them the authority that traditionally accompanies these positions.
Commenting on the announcement by Communications Authority of Zambia (CAZ) that issuance of the fourth mobile service licence was intended to promote government policy of economic empowerment of citizens, Sikazwe cautioned that under the citizen’s economic empowerment Act, fronting was illegal.
He said CEEC would use all relevant legal instruments within the framework of the empowering Act to block the registration of the company if fronting was proved.
Sikazwe further cautioned locals not to go into fronting on behalf of foreign investors but instead seek meaningful partnerships that would help realise the dream of empowering local citizens.
“We would investigate all cases of suspected fronting in establishing of fourth mobile provider by indigenous people, but the problem is that even Zambians sometimes want go to these foreign investors so that they could be used as fronts, but they must be careful because we will not allow this facility to be abused,” Sikazwe said.
“What we want to see are local people to go into partnerships in terms of shareholding, equity as well as forming joint ventures,” Sikazwe said.
And Sikazwe said working capital should not be seen as a hindrance for local people to set up the fourth mobile company.
“Capital assets should not be an issue. Zambians can go into consortiums, joint ventures or partnerships with foreign investors so that they help to go into this field,” said Sikazwe.”
And Zambia Chamber of Commerce and Industry (ZACCI) chief executive officer, Justine Chisulo, has said there will be need for responsible partnerships between foreign investors and Zambians in the establishment of the fourth mobile company.
Chisulo said while it was unavoidable for foreign companies to get an edge in partnerships with local entrepreneurs because of capital, it was important that indigenous businessmen put the interest of the country first.
“It is unavoidable for foreigners to get an edge over local businessmen because of the advantages they come with. However, people that are going to go into partnerships with foreign entrepreneurs need to put the interest of the country at heart,” said Chisulo.
“In the heads agreement, they should agree to say on how much they should declare as dividends, how much they were going to reinvest into growing the company…so it is about our people having a heart for the country.”
Labels: CEE
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Sichinga urges minimum re-investment on profits
By Chibaula Silwamba
Friday December 21, 2007 [03:00]
Business consultant Robert Sichinga has said there must be a minimum percentage of foreign investors’ profits that must be re-invested in the Zambian economy to yield more profits. Commenting on government’s incentive for foreign investors to have full and unrestricted repatriation of 100 per cent of thier profits, Sichinga said although he was not against 100 per cent repatriation of profits, the foreign investors must re-invest a certain percentage in the Zambian economy.
“I am not against investors repatriating 100 per cent of their profits so long this is backed by law. I would have thought that they would have used Zambia Development Agency Act of 2006 to give effect on that,” he said.
“It’s necessary that mechanisms are put in place to make sure that 100 per cent is not a reduction in capital that has been invested. There must be a minimum threshold for which the investors need to keep within for it to start yielding its profits.”
He also said there must be room for investors to plough back into the economy because the country needed long term investments.
“We need to have long term benefits of that investment,” Sichinga said. “In my opinion, 100 per cent repatriation of net profit will not be bad if there is local participation.”
Sichinga said externalisation of money earned from foreign exchange should be stopped.
“If they (foreign investors) are taking the money, the earnings of the forex proceeds and keep them outside the country then that is definitely wrong because it will not create the profitability and employment and investment that we require, that has to be stopped right away,” he said.
He said the Citizens Economic Empowerment (CEE) would empower Zambians to participate in the improvement of the economy.
“We need to implement the Citizens Economic Empowerment Act of 2006 as quickly as possible so that part of that amount is given to Zambians through the stock exchange,” he said. “So that there is local ownership, not just something that is going to stay for a short while but there must be a good percentage to be held by Zambians.”
Last week, University of Zambia head of Development Studies department Chrispin Matenga said there was need to enact a law that would compel foreign investors to keep at least 50 per cent of their profits in the Zambian economy for a stipulated period.
Labels: CEE, FDI, MINING CONTRACTS, ROBERT SICHINGA
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Martinez urges banks to provide cheaper finances
By Fridah Zinyama
Thursday December 06, 2007 [03:00]
UNITED States Ambassador to Zambia, Carmen Martinez has urged financial institutions in the country to provide cheaper finances to Zambians if the Citizens Economic Empowerment programme is to be successful. And Economics Association of Zambia president Dr Mwilola Imakando expressed concern as to whether a proper mechanism had been put in place to safeguard the funds that would be allocated for the empowerment programme.
In an interview, Ammbassador Martinez said in Zambia the cost of accessing finances was very high and made it expensive for people to access funds.
“Most financial institutions in Zambia are offering interest rates as high as 17-19 per cent and it makes it very costly for ordinary Zambians who are in serious need of funds to access them,” she said.
Ambassador Martinez said the local financial institutions should step in and help Zambians access funds as this would help reduce dependence on donor partners.
“It should not be just about finding financial assistance from donors but the local banks should play a part in empowering the local people as well,” she said.
Ambassador Martinez said unless people had access to finances it would be very difficult for them to be economically empowered.
And Dr Imakando advised the government to come up with a system to ensure that resources that were allocated for the empowerment programme were safeguarded and a revolving fund established to that effect.
“Whatever amount has been allocated for the empowerment programme, government should just be properly grown and revolved,” he said.
Other stakeholders such as the Development Bank of South Africa have expressed interest in supporting the empowerment Act in Zambia.
DBSA executive manager for Private Sector and International Investment Solomon Asamoah said they would like to support projects that were going to help Zambia attain its empowerment goals.
Zambia will next year start implementing the CEE Act and expectations of its success are high as people are hoping to access the much-needed funds that have been set aside to help citizens with workable business proposals.
Labels: CARMEN MARTINEZ, CEE
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Govt to re-introduce Zambianisation committee
By Chibaula Silwamba in Nchanga
Thursday November 08, 2007 [03:00]
THE government will soon re-introduce the Zambianisation committee that will stop foreign cheap labour from coming to Zambia, labour and social security minister Ronald Mukuma has assured. Mukuma on Tuesday expressed concern at unskilled labourers coming to Zambia to do jobs that could be done by Zambians.
“I have to assure you that the interest of Zambian citizens is being taken care of. As a result the government in the laws which are being amended, is going to re-introduce the Zambianisation committee and this Zambianisation committee will mainly look after the interest of Zambians to ensure that we don’t have cheap labour coming into this country to occupy the positions that can be held and done by Zambians,” Mukuma said.
“So the Zambians’ interest is being taken care of in the amended laws that we are going to introduce and therefore nobody should cheat you that these investors are coming to control us. That is not possible.”
He urged Zambians not to worry about investors colonising them.
“That is not true because what is happening is that every investor that comes in will have to operate within the laws of Zambia,” Mukuma said.
“We are currently having a lot of investment in the mining sector and as a result, the employment rate on the Copperbelt Province is increasing at the moment, we have quite a lot of people who have been re-employed compared to the time before the New Deal government came into power.”
He attributed the increase in the number of investors to the good economic policies, which the Mwanawasa government implemented.
Two weeks ago commerce, trade and industry minister Felix Mutati expressed concern at the increasing number of Chinese labourers coming into Zambia.
Labels: CEE, ZAMBIANISATION
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Foreign-owned firms prepare for empowerment legislation
By Walter Muchinguri
SOME foreign-owned companies are beginning to take positions ahead of the enactment of the Indigenisation and Empowerment Bill into law. The Bill is awaiting presidential assent after it sailed through the Lower and Upper Houses. The Bill will seek to enforce the empowerment of indigenous people through the acquisition of majority shareholding in foreign-owned companies. It stipulates that at least 51 percent of a foreign company’s shareholding should be locally owned.
Although there are no notable empowerment deals that have been linked to the issue there has been indications that there have been movements in this regard. The country’s leading mobile services provider, Econet, which is one of the country’s largest black controlled group, recently confirmed receiving overtures from large international groups looking for an empowerment partner but said it has its own priorities and was, therefore, not interested in such deals.
Econet said the companies wanted it to take up a controlling stake in their businesses in Zimbabwe so that they could comply with the new legislation on empowerment.
"We have our own priorities as a company, and they are not about empowerment. If you see us acquire a stake in a business, it is because it fits into our own strategic plan, and it is likely to be something we were already working on for a long time," he said.
Impala Platinum (Implats), the majority shareholder in Zimbabwe Platinum Holdings (Zimplats), recently indicated that it had made concessions ahead of the implementation of the Bill.
The company recently reaffirmed that it had agreements in place that would be taken into account when Government assesses compliance with the Bill.
Under the agreement signed between the Government and Zimplats in May last year, the latter agreed to cede its mining claims in exchange for a combination of empowerment credits and cash.
The Government also agreed to recognise social spending by the company which included building infrastructure such as roads and schools for a combination of empowerment credits.
In this regard Zimplats agreed to release claims amounting to 36 percent of its resource base on the Great Dyke which comprise 51 million ounces of platinum or 99 million ounces of 4E (platinum, palladium. rhodium and gold).
Recently a diversified black-owned group Migdale Holdings acquired a controlling stake in leading freight concern Allan Wack and Shepherd.
Although both parties have indicated that it was a purely business transaction, the market was awash with speculation that the deal was structured with the new law in mind.
There have been other deals that have been cited but these have relatively been low key since they involve smaller companies.
A number of indigenous business people are believed to be lining up to take advantage of any opportunities that may arise as a result of the empowerment legislation.
Reserve Bank Governor Dr Gideon Gono in his Mid-Term Monetary Policy Review Statement proposed a gradual takeover process of companies depending on their capital intensity.
Labels: BEE, CEE, IEB, ZIMBABWE
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‘CEE needs more resources’
By Business Reporter
ADEQUATE resources should be allocated to the Citizen Economic Empowerment (CEE) programme if the initiative is to perform according to the projected goals, Premier Consult Limited managing consultant Oliver Saasa, has said.
Professor Saasa said that the principle behind the CEE was excellent but that the initiative could only be appreciated
if the necessary mechanisms and resources were allocated to it.
Speaking in an interview in Lusaka, Prof Saasa said it was important that technical training for the CEE was conducted with the help of the public/private partnership.
He said this would help smaller businesses to be linked to big ones and enable them manage their businesses properly.
‘‘The CEE is a good paper. What is required is to ensure its effective implementation by ensuring more resources are available,’’ Prof Saasa said.
Permanent Secretary for the Ministry of Commerce, Trade and Industry Davidson Chilipamushi said last week that the Government was on course to ensure effective implementation of the CEE initiative.
Mr Chilipamushi said his ministry was currently putting together various logistics to ensure that the CEE was fully implemented by the end of the year.
The CEE under Act No. 9 of 1996 is an integrated broad-based and multifaceted strategy aimed at substantially increasing participation of citizens at all levels of society in the economy as well as significantly decreasing income inequality.
Labels: CEE, OLIVER SAASA
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We are our own economic liberators
By Godwills Masimirembwa
OUR economic survival is dependent on the actions we take, which actions must be well thought out, appropriate, forthright and courageous, taking into account the social, political and economic situation we find ourselves in.
We need to remind each other of the following anxioms:
l The Government of Zimbabwe has the moral responsibility and power to protect the population and the economy against private predators;
l The IMF, the World Bank, Western capital, profiteers and racketeers among us, will not come to our country’s aid or assistance;
l We have friendly neighbours and in the East, but the ultimate responsibility to restore and prosper our economy is ours;
l We have sufficient resources, which if utilised frugally and prudently, will facilitate the recovery of the economy;
l Thousands of Zimbabweans have access to foreign currency, which, if channelled to the productive sector, will bring about substantial growth of the economy.
Over the past 27 years the Government has taken decisive measures in nation building. There has been significant infrastructure development in the form of hospitals, educational institutions, factory shells for small to medium-scale enterprises. The land redistribution exercise is almost complete.
Despite the existence of sound infrastructure, the abundance of land, and peace, this writer submits that those with access to foreign currency and other resources still need to make a quantum leap to embrace economic patriotism.
Economic patriotism involves embracing as a value system that the prosperity of Zimbabwe and its people is a non-negotiable condition for sustainable peace and development.
Zimbabweans with the capacity to invest need to appreciate that the nation will become richer and therefore make them more prosperous if they invest in it. There is need for a paradigm shift from immediate consumptive behavioural patterns to affirmative action on the investment front.
Imagine if all the foreign currency that is sent home by Zimbabweans in the Diaspora found its way to the Reserve Bank and was used in agriculture and industry.
Imagine if all the foreign currency that is used to buy luxuries was used to buy manufacturing equipment, import raw materials and set up businesses.
But what we witness is that foreign currency received through MTAs is offloaded onto the illegal parallel market.
What we witness is that the bulk of Zimbabweans who have access to foreign currency would rather use it to buy luxuries or invest in foreign lands, rather than invest in agriculture and industry in their own country.
The Government, through the ministries of Finance, and of Industry and International Trade and the Reserve Bank has put in place a raft of measures to curb unpatriotic economic actions in order to promote patriotic economic activities. The punitive measures include the imposition of duty in foreign currency on all luxury goods.
The persuasive measures include the recently introduced 800 percent interest on the Zimbabwean dollar equivalent at the official exchange rate, if foreign currency is sold to Homelink, an authorised dealer, including MTAs or to the Reserve Bank.
When this writer listened to the Reserve Bank of Zimbabwe Governor deliver his Mid-Year Monetary Policy Statement, as indeed he listened to previous ones;
When he recalled the visits by the Reserve Bank Governor to Zimbabweans in the Diaspora to promote the Homelink project; he was and still is convinced that the Reserve Bank governor is a champion of economic patriotism. He appeals to Zimbabweans living in the Diaspora to become equally patriotic by sending foreign currency back home, selling the same to authorised dealers at the official exchange rate, to boost the foreign currency in the country.
Zimbabwe cries out for the imports that the Reserve Bank has categorised No Currency Involved Approved Imports (NCIAIs). The imports, which will not attract duty in foreign currency, are:
Fuel; the engine for economic development; maize and wheat, the food we eat, the bread we queue for; fertilizer, seeds, agro-chemicals and agro-equipment, to ensure successful farming seasons; mining sector consumables, for a prosperous mining sector with the attendant exports and generation of foreign currency; packaging material and industry raw materials, for fully-fledged industrial development and the attendant supply of goods to wholesalers, retailers and ultimately to the consumer; approved medical drugs and medical equipment, for the health of the nation.
Instead of Zimbabweans trading in currency, and in the process wrecking the economy, those with access to foreign currency are being called upon to promote, protect and preserve the economy through investing in the creation of real wealth, rather than opting to become isolated ultra-rich currency traders, surrounded by poverty stricken fellow citizens.
Zimbabweans with access to foreign currency go out in droves to buy and import trinkets or similar sub-standard products. Why don’t we produce our own goods or improve the quality of those currently under production or increase production levels?
Why don’t we invest the little foreign currency we have in all forms of manufacturing, in agriculture and in a commercial sector that is based on what is produced in our factories, on our farms, in our mines, in our electronic and pharmaceutical industries?
There is no legislation that stands in the way of any Zimbabwean with say US$5 000, US$10 000, US$100 000, or whatever sum, from investing the same in the productive sector. In fact, the No Currency Involved Approved Imports window creates an opportunity for business to those who have free funds outside Zimbabwe.
The decision to invest in another country’s trinkets, another country’s worn-out clothes, second-hand cars, rejects, etc, which are then imported into Zimbabwe for resale is a decision that hurts our economic development.
The Reserve Bank Governor’s Mid-Year Monetary Policy Statement is rightly exhorting Zimbabweans to shun spending foreign currency on activities that do not enhance the wealth profile of the country.
However, this writer submits that the Reserve Bank, in its protective role, should go further than merely offering an incentive to Zimbabweans receiving foreign currency through MTAs for them to sell it to authorised dealers or to the Reserve Bank, by sending a clear message that foreign currency received through MTAs is not to be used for speculative purposes or to be traded on the illegal parallel black market. The surest way of doing this is to deem that all foreign currency received through MTAs has been sold to the Reserve Bank at the official exchange rate with the beneficiary being entitled to be paid out the Zimbabwean dollar equivalent at the official exchange rate plus the 800 percent overnight investment incentive.
This writer submits that it is expecting too much to rely on patriotism to expect a person who has received lets say US$1 000 through an MTA to sell the same to an authorised dealer at the official exchange rate, even with the incentive of 800 percent on the overnight investment, in the process foregoing parallel market rates which are currently over 100 percent higher than the official exchange rate and the 800 percent investment incentive combined. The person who receives foreign currency instead of Zimbabwean dollars will ordinarily head for the parallel market instead of heading to an authorised dealer.
To avoid tempting recipients of foreign currency into not only breaking the law but fuelling inflation, the Reserve Bank ought to immediately stop MTAs from paying out foreign currency, but instead direct them to surrender the same to the Reserve Bank, with the beneficiary being paid out the Zimbabwean dollar equivalent plus the 800 percent overnight investment incentive.
The Reserve Bank has identified the "indexing’’ of prices to the parallel foreign exchange rates" as one of the inflation drivers in the economy. This indexing is partly facilitated by the availability of foreign currency on the local foreign currency parallel market.
Putting a stop to MTAs paying out foreign currency to beneficiaries of foreign currency receipts from persons in the Diaspora will reduce foreign currency available on the parallel market
The Reserve Bank has opened the No Currency Involved Approved Imports (NCIAIs) window.
This window opens opportunities in business and in assisting families secure agricultural imports, maize and wheat for food. This is the window that, if taken advantage of, can significantly enhance the industrial and agricultural capacity of the country.
The Governor of the Reserve Bank together with the majority of Zimbabweans pray and wish for a resoundingly successful agricultural season. This writer submits that for the prayers and dreams to become a reality the Reserve Bank should vigorously market the No Currency Involved Approved Imports window to Zimbabweans in the Diaspora for them to fully appreciate that it can be turned into a viable business proposition that benefits not only themselves but Zimbabwe as a whole. It is particularly important that administrative bottlenecks be eliminated to facilitate the smooth inflow of the prioritised imports into the country.
The Reserve Bank Governor’s pro-economic development dispensation which has seen him further reduce interest rates and providing liquidity for real economic development will be complemented by forthright and courageous actions to stamp out the currently prevailing speculative and injurious parallel market currency trading activities.
This writer submits that while inflation is our number one enemy, currency trading is arguably the number one mover of inflation.
The Reserve Bank may not catch all parallel market foreign currency dealers, particularly those who intercept foreign currency at source in order to invest outside the country, but a wider liberal approach to imports for the productive sector, assuring the importers of reasonable return on investment, will guarantee Zimbabwe a significant share of the foreign currency at the disposal of Zimbabweans in the Diaspora.
This writer acknowledges the point made in the Mid-Year Monetary Policy Statement that "a total of US$23 916 546 was received as Diaspora inflows" during the period January 2007 to August 2007, "compared to US$5 201 138 during the same period in 2006".
The question is how much of these inflows found their way to the Reserve Bank at the official exchange rate? If the foreign currency found its way to the Reserve Bank at the official exchange rate, then all is well, and this writer is willing to eat humble pie.
Labels: CEE, THE HERALD, ZIMBABWE
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Transparent wealth creation key in poverty fight -CEE
By Joan Chirwa
Tuesday September 04, 2007 [04:00]
Sikazwe, in an interview, said the essence of the CEE Act was to promote transparency in wealth-creation in all economic sectors. "We need to educate and inform the society about how to get money and use it. Empowerment is about creation of wealth. If we don't create wealth, we will not be able to deal with issues of hunger, disease and poverty," Sikazwe said.
“We cannot share poverty; we can only share wealth. The essence is to create wealth in a sustainable manner, not wealth that is dubiously created and that is when we can address issues of hunger, disease, and poverty."
Sikazwe said economic empowerment of citizens was a fundamental value reflected in various ideologies. "The CEE is based on a philosophy, which says we will target the people who are marginalised to ensure that these people can meaningfully participate in the development of the economy," Sikazwe said.
"Empowerment is of a fundamental value, reflected in various ideologies. An individual human being has a right to make choices about their future and status."
Sikazwe said the empowerment of citizens would not discriminate against people living with HIV/AIDS.
"The CEE Act says among the targeted people are women, people with disabilities, youths as well as people living with HIV/AIDS," Sikazwe said. "When you look at this group, it immediately captures the starting point of the CEE. It creates various strategies that address issues of economic empowerment."
Sikazwe further said the CEE Act clearly stipulates the need for the development of rural areas through the empowerment of rural SMEs.
“It is not a matter of concentrating on those SMEs who are in town. Our focus will also be on those in rural areas because those are the people who really need help to develop," said Sikazwe. "The needs of the people in rural areas are too much. That is why we need to create a partnership with SMEs in rural areas as well as create an avenue for people to migrate into SMEs.”
Labels: CEE
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EAZ calls for adequate interest in mining policy review process
By Joan Chirwa
Tuesday August 07, 2007 [04:00]
ECONOMICS Asso-ciation of Zambia (EAZ) secretary Chibamba Kanyama has called for adequate participation of various stakeholders in the adoption of the new mining policy currently under discussion. Commenting on the draft mining policy that seeks to replace the 1995 piece of legislation, Kanyama said there were a number of interested parties in the operations of the mining industry, hence the need for more participation by all key stakeholders in the review process.
“This process should incorporate all key stakeholders. We have got various registered institutions that represent various groups. We have got the business organisations such as the EAZ, civil society groups and the farmers union,” Kanyama said. “There are so many interested parties including civil society groups who represent a wider spectrum of the Zambian populace. The other important thing to note is to avoid making any commitment especially when we know the consequences such commitments will have on our future generations.”
The government, through the Ministry of Mines and Minerals Development, has come up with a draft policy for the sector that proposes a number of changes in the operations of the mining industry.
According to the draft mining policy, which seeks to replace the one of 1995 that was anchored on attracting investors into the mines as the country privatised the industry; any fiscal provisions in any agreement will be subject to public scrutiny and be gazetted before taking effect.
The draft policy states that all development agreements signed with investors would be subjected to public scrutiny and must be ratified by the National Assembly before taking effect.
Other proposed changes in the draft policy are that the country shall not offer tax holidays in the mining sector but instead develop a friendly tax regime for mining investment.
And Kanyama advised the government to be consistent in the implementation of new policies, taking into account long-term national documents such as the Vision 2030.
“We don’t want posterity to judge us harshly. It is a good thing to have a new mining policy although it has come quite late when numerous investments have already taken place,” Kanyama said.
“The question now is what we are going to do with the development agreements signed under the 1995 policy. While we are discussing the new policy, it is important now that all the existing development agreements are declared null and void and these must be re-negotiated in line with the new policy.”
Under the current policy, the government has the prerogative of negotiating development agreements with investors and giving them any incentives deemed necessary to enhance the investment's viability without seeking Parliamentary approval.
Other proposals include facilitation of indigenous Zambians' participation in mining ventures, which will be guided by the recently-enacted citizen’s economic empowerment Act.
Labels: CEE, CHIBAMBA KANYAMA, DEVELOPMENT AGREEMENTS, EAZ
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Economic empowerment
By Editor
Friday August 03, 2007 [04:00]
As Nelson Mandela once said, the world is not short of words, it needs action. It is easy to coin terms or phrases for this or that policy or programme. However, it is not as easy to match rhetoric - often coated in sweet sounding phrases such as "economic empowerment" - with action. When one looks at the case of Zambia, it is not an exaggeration to say that the country is in many areas not in short supply of rhetoric as far as economic planning is concerned.
Considering the mountains of documents and the piles of data on economic policies that have not been of significant use to the people in terms of economic progress, it is actually an insult and mockery for those in government to continue bombarding the people with pieces of legislation that do not offer any tangible ways of improving their lives. What should be understood is that policy making should not just be about copying what other countries have been doing because some countries may be coming up with certain policy initiatives based on their socio-political or socio-economic history.
The point about policy making is not just to have heaps and heaps of documents containing plans of action. The real issue is to do with the pragmatism that goes with ambitious planning. And this is what President Levy Mwanawasa - never mind his violent reaction to the advice - was being reminded about in Livingstone last week; that it is easy to sit down and draw up a document, advance recommendations and outline plans of action. And this is what Levy and his economic advisors have been doing over the last few years. However, the crux of the matter is whether or not these plans or recommendations are followed to the letter.
As if the policy documents which the government has been making over the years are not enough, we now have what is called the Citizens Economic Empowerment Act, which was assented to on May 12, 2006. According to the preamble, this legislation is:
"An Act to establish the Citizens Economic Empowerment Commission and to define its functions and powers; establish the Citizens Economic Empowerment Fund; promote the economic empowerment of targeted citizens, citizen-empowered companies, citizen-influenced companies and citizen-owned companies; promote gender-equality in accessing, owning, managing, controlling and exploiting economic resources; encourage an increase in broad-based and effective ownership and meaningful participation of targeted citizens, citizen empowered companies, citizen-influenced companies and citizen-owned companies in the economy in order to contribute to sustainable economic growth; remove social customs, statutory provisions or other practices that limit access to any particular gender to skills training that is essential for effective participation in the economic sector; promote the employment of both gender by removing structural and discriminatory constraints that hinder any particular gender from employment opportunities and in so doing ensure equitable income distribution; promote equal opportunity of targeted citizens and citizen-empowered companies, citizen-influenced companies and citizen-owned companies in accessing and being awarded procurement contracts and other services from State institutions; promote Greenfield investment through joint ventures and partnerships between local and foreign investors in order to enhance broad-based economic empowerment; and provide for matters incidental to or connected to the foregoing."
Clearly, everything about this Act is very sweet. Sweet to the point that one may even bite their tongue. But as we have stated already, the most difficult task is not about policy formulation. After all, the government may not even be actively involved in policy formulation as it may just engage consultants to come up with a framework, like we already know that even for tax policy reforms the government has to look to the International Monetary Fund or to the World Bank for our land policy review.
At the expense of sounding cynical, we can say with confidence here that it would not be quite strange to discover that even this Citizens Economic Empowerment Act might just be one of the many policies which turn into white elephants immediately they are endorsed by the government or, in the case of laws, assented to by the President. And the laughable yet annoying irony is that so much money is normally paid to consultants who draft these policies which never really take off. So we are good at creating jobs for consultants to draft policies which we are actually incapable of implementing.
Talking about economic empowerment of citizens, we need to start looking beyond simple mottos or themes. It is futile to engage in debates about economic empowerment if we still have many of our people failing to claim a stake in our economy. It is worthless to talk about economic empowerment if there is no commitment by those in government to ensure that the investments that come into our country have direct positive effects on the people, either through business opportunities or through employment prospects. Economic empowerment is not about cosmetic policy legislation; it is about passing on real economic benefits to the people in ways that we have already alluded to.
Empowerment is about giving opportunities to all the people of Zambia, not just extending generous incentives to external capital or what those in government call foreign investment. Economic empowerment is not about empowering certain sections of groups only; it is about empowering all the people of this country. Economic empowerment should be aimed at creating equality and fairness in the distribution of our national resources.
So as we keep reciting these mottos and themes about economic empowerment - just like we are doing during this year's agricultural and commercial show - let us begin to apply pragmatism to these themes. Otherwise there is no justification in us hanging on to themes or indeed policies which we either have no use for or are not serious about.
Labels: CEE, EDITORIAL
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Empower local entrepreneurs in mining sector, Sichula urges govt
By Fridah Zinyama and Kabanda Chulu
Friday August 03, 2007 [04:00]
ZAMBIA Chamber of Small Medium Business Associations (ZCSMBA) executive secretary Maxwell Sichula has urged the government to find ways of empowering local entrepreneurs in the mining sector saying foreign investors will leave when copper prices go down. And former Zambia Manufacturers Association (ZAM) vice-president Oswald Mwewa has said if given correct financial backing, the Citizens Economic Empowerment (CEE) Act will be implementable.
Meanwhile, in his message to the 81st Zambia Agricultural and Commercial Show which opened yesterday, President Levy Mwanawasa admitted that past economic policies had failed to address poverty levels and unequal distribution of wealth among local citizens. Commenting on the economic performance during the first half of this year, Sichula said several macro-economic indicators were moving in the right direction showing that Zambia’s economy was improving.
"The economy is going in the right direction when looking at the number of investments in key sectors such as mining, manufacturing, tourism and agriculture but the biggest challenge is that all these major developments are in foreign hands," Sichula said.
"It is not a grudge but a reality because very little is trickling down to ordinary Zambians. We want to see more local entrepreneurs getting empowered so that they stake their prowess in their own economy and foreigners should just top up and the government should find ways of doing this since you cannot rely on foreign investors when copper prices goes down."
He said Zambians were the only ones who could be able to sustain the current positive developments obtaining in the economy.
"There is no reason why we cannot sustain these achievements because local entrepreneurs have the capability to develop and drive this economy forward since all their profits will be retained locally," said Sichula.
And Mwewa said the CEE Act was a very good document but it would not help in empowering Zambians unless there was financial backing supporting it.
"As someone who was part of the committee set up to help come up with the CEE Act, I feel that government will only be able to successfully implement the Act if it avails resources to the citizens," he said.
Mwewa said availing finances to the citizens would go a long way in helping them to invest in major sectors of the economy.
"How can anyone who has good ideas contribute favourably to the economy unless they have access to finances?" he wondered.
Mwewa said one of the greatest challenges that most Zambians seeking to embark on business ventures have been experiencing was lack of adquate financing.
"If government, using the CEE Act, avails finances to the public, it will enable most citizens to embark on feasible business ventures that can contribute to sustainable economic development in the country," said Mwewa.
And President Mwanawasa said that government had an obligation to redress and remove various inequalities in the economy hence the creation of the Citizens Economic Empowerment (CEE) Act.
"The growth and development of the country cannot be attained without the participation of the citizenry. Therefore, the CEE Act is a tool for wealth creation and employment generation by integrating economically disadvantaged citizens into mainstream economy," said President Mwanawasa.
Labels: CEE, MAXWELL SICHULA, MINING, SMEs, ZCSMBA
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Govt to use CEE Act to empower Zambians
By Fridah Zinyama
Monday May 28, 2007 [04:00]
MINISTRY of Mines Permanent Secretary Leonard Nkhata has said government wants to use the citizens economic empowerment (CEE) Act to empower Zambians to invest in large-scale mining. Government has been trying to find ways in which to engage indigenous Zambians in the large-scale mining sector.
"To this end, we have been advising foreign investors coming into the country to form joint ventures with local investors," Nkhata said. "This move is meant to help empower local investors who do not have the capacity to embark on capital-intensive projects like copper and cobalt production."
Nkhata said the response had been good as some investors had shown enthusiasm and formed joint ventures with Zambians with licenses.
"Even our chiefs have entered into joint ventures with foreign investors," Nkhata said. "This move is better than indigenous people selling their mines and hence denying themselves a chance for economic empowerment."
He said in order to improve the general performance of the mining sector in the country; government was in the process of reviewing the Mines and Minerals Act.
Nkhata said the revised Act would help make the investment climate better, especially in the mining sector.
"We have realised that participation in the mining sector for indigenous people has been restricted to the small-scale mining," he noted. "We would like to see this situation change as our people become more empowered."
Nkhata said government also hoped to empower Zambians by implementing the Citizens Economic Empowerment Act. "We are hopeful that the CEE Act will increase Zambians participation in mining activities in the country," he said.
Nkhata explained that Zambian citizens would be able to access funds set aside for the empowerment process to invest in capital projects. And on value addition on mining products, Nkhata said his ministry was working hand in hand with the Ministry of Commerce.
"One area we hope to do so, is by establishing economic zones like Chambishi and Chilenje Economic Zones and coming up with policies that will create favourable incentives for investors," he said.
Nkhata said investors could assist Zambia add value to its products by accessing such zones.
"As a ministry, we were asked to do a study on what type of markets were available for value added Zambian products in the region," said Nkhata.
Labels: CEE, LEONARD NKHATA, MINES AND MINERALS ACT
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Zambian businesses
By Alatwafweni twachula pafula
Sunday March 04, 2007 [02:00]
I want to commend President Mwanawasa for launching the Citizen Empowerment Committee and his emphassis that only jobs and services that cannot be done by Zambians should be offered to foreigners. This indeed has been long overdue. This committee should seriously look at sectors of the economy where we do not need foreigners.
Surely, do we need foreigers for example in the following fields; insurance brokers, security service and supply services?
Zambian companies are wallowing in poverty after being squeezed out of business while some have folded up on the pretext that these investors have to be services by their global partners.
It’s about time that this country woke up and let the Zambians benefit from their rich land. The poverty we are experiencing is self-infilicted by authorities who have denied their fellow Zambians a chance to survive. The President should enforce this and you will see a lot of change in peoples’ lives.
http://www.postzambia.com/post-read_article.php?articleId=23389
Citizens' Empowerment
By Mkandawire Stein Kampala – Uganda
Sunday March 04, 2007 [02:00]
President Mwanawasa’s speech when he swore in members of the Citizens Economic Empowerment Commission can not go without comment. From my personal opinion, the President’s speech needs to be debated exhaustively by MPs who are still debating the 2007 budget. MPs need to incorporate new measures of how Zambia as a nation can move away from the donor dependance syndrome. The President’s speech is such an important one that MPs cannot afford to ignore it and start debating The Post editor.
This is the issue that we should see them spend most of their energies on rather than attacking a well meaning Zambian.
However, I find it very difficult to compare Zambia to Kenya. For example, my colleagues from Kenya have told me that their government has intensified tax collection from all business houses, a thing that I doubt if ZRA does. Second, value added tax in Kenya is at 16 per cent whilst in Zambia is at 17.5 per cent, higher than Kenya, PAYE for the highest earned person in Kenya is 10 per cent whilst in Zambia effective 1st April, 2007 it will be at 35 per cent, three and half times higher than Kenya. In Kenya there is no road tax but fuel levy. The more litres of fuel you consume, the more fuel levy you pay.
Uganda at the moment is also trying to borrow from Kenya the idea of fuel levy and abolish road tax. So in all, I would urge the Honourable MPs to examine and debate the President’s speech critically and analytically if need be send an entourage to Kenya and study their tax system and how effective it has been and bring the ideas to Zambia. But so far from the analysis I have given above, Zambia seems to be collecting more taxes than Kenya. How this money is spent is a question that needs more answers than over-burdening the people.
http://www.postzambia.com/post-read_article.php?articleId=23366
Review land tenure system
By Bwalya E. Kona, Gaborone, Botswana
Saturday March 03, 2007 [02:00] Print Article Email Article
The firing of lands minister, Gladys Nyirongo yesterday, 28th February 2007 and the suspension of the commissioner of lands / acting lands Permanent Secretary Frightone Sichone both on corruption allegations, coincide with the discussion we had at the “Watering Hole” somewhere in Gaborone, Botswana over the weekend regarding the concept of “land without value in Zambia”. While some may welcome the firing of the minister and the suspension of his acting P.S, the searching of the Ministry of Land on Thursday March 1, 2007 by security forces, I do not think is a permanent solution to the rot happening at the lands ministry and all municipalities in Zambia.
Zambia’s experience with leasehold tenure system of 1975, has been marred by its association with “free land policies” such as the “land without value” concept and the corruption of the allocation process engendered by those policies.
Even the establishment of the lands Act, 1995 did not change the land tenure system or stop corruption. A system in which a scarce and valuable good is administratively allocated virtually free provides opportunities for corruption. This is exacerbated by the different levels of national and local bureaucracy and one central registry to process the applications which force people to make “short cuts”. Development conditions, which had been one of the justifications for use of leasehold rather than full ownership, may have been formulated with good intentions by the Kaunda regime to get large pieces of land owned by a few, but they were rigid, and in any case were rarely effectively monitored.
The system can also be utilised as pretence for government to take land to punish political dissidents. The system also allows those who control “free land” to illegally distribute to themselves and relatives like what Gladys Nyirongo and Frightone Sichone are alleged to have done.
We need a stable and secure formal land tenure system which is free of corruption from government officials. I therefore propose that the government should revisit the two land tenure systems we have at the moment. The government is also strongly advised to consider a bespoke freehold land tenure system and let land rights exchange hands commercially in a free market. Let land value be dictated by supply and demand forces, after all land in Zambia has value.
http://www.postzambia.com/post-read_article.php?articleId=23395
Lusaka mayor’s suspension
By Temwan
Sunday March 04, 2007 [02:00]
I want to add my voice to the suspension of Lusaka mayor Susan Nakazwe from the Patriotic Front.
I am sure that some people will just approach the mayor's suspension emotionally without really analysing the cause behind that action by the PF leadership.
I stand to be corrected but Nakazwe seems to be one of those people who just took advantage of the PF popularity in Lusaka and Copperbelt to stand on that ticket. No matter what we do, we cannot deny the fact that without PF, Nakazwe would not have been mayor. I stand to be challenged but I wonder if Nakazwe would have won the councillorship in her ward had she stood on another political party’s ticket or if she decided to go it alone as an independent.
The suspension of the Lusaka mayor in my view should serve as an eye opener to other PF councillors. Ignorance will kill you. Please read widely so that people like the minister of local government do not take advantage of your ignorance to scare you over nothing.
I personally had an opportunity to talk to her worship Nakazwe one -on-one and she told me that she worked according to the local government Act. Can she quote any paragraph from the same Act, or she simply thinks that everything Masebo says is correct?
Please Ms Nakazwe, come out in the open and declare your intentions. Why is Masebo so insistent on protecting you
Labels: CEE, LAND, LETTERS, MAYOR
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Govt to include SMEs incentives in CEE Act
By Fridah Zinyama
Thursday March 01, 2007 [02:02]
COMMERCE Permanent Secretary Davidson Chilipamushi (right) has assured Small and Medium Enterprises (SMEs) that their incentives will be included in the Citizens Economic Empowerment (CEE) Act. Chilipamushi’s assurance comes in the wake of complaints by some members of the business community in Southern Province. The business community has said their interests have not been taken care of under the Zambia Development Agency (ZDA), which seems to focus more on bigger investors.
They complained that more incentives were given to bigger investors when SMEs were made to pay more taxes and did not have any special incentives to help them grow. However, Chilipamushi said government would put in place deliberate incentives to support the Zambian citizens. “The CEE Act would help SMEs form partnerships which will help to create equity and fairness in business,” he said.
Chilipamushi said the Ministry of Commerce in collaboration with the Private Sector Development Programme would next month embark on countrywide sensitisation programmes to help create awareness on the CEE.
And Chilipamushi said government would remain firm over the US$500,000 that is required for one to qualify as an investor under the ZDA Act. “We realised that investors coming into the country with US$50,000 did not bring in serious investment,” he observed. Chilipamushi said some so-called investors only came into the country to speculate and left afterwards. “This is why we are putting in place all these measures to ensure that proper investment is brought into the country,” he said.
Chilipamushi also assured investors who had been registered under the Zambia Investment Centre not to worry about being deported. “I am aware that some officers at Immigration have been saying that they would deport all investors who came into the country with investment worth US$50,000,” he said. “It is a technical issue which will have to be addressed by the Ministry of Commerce and home affairs.” ZDA acting director general Glyne Michelo said the ZDA Act would be amended to include more suggestions from stakeholders.
Labels: CEE, SMEs
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