HAVING entered the second month of this new-year, I would like to
revisit the 2015 National Budget which took effect some 35 days ago.
To effectively do that, I will focus on the treasury brief of January
7, 2015 by the Secretary to the Treasury, Fredson Yamba.
This forum has always emphasised the need for a mixed economic
arrangement as opposed to the totally free market economy.
While appreciating the many benefits of the free market economy, I
feel developing countries like Zambia are not ready for a total
liberalised economy as market forces sometimes fail to effectively
respond to some conditions due to rigidity in the local market.
In any case, even if some people say that the “government has no
business in business”, governments world-over including those for the
developed West are known for having retained some interests in the
running of some strategic entities.
These entities would include those in the railway, energy and several
other sectors.
It is for this reason that I took interest in the treasury brief
titled 2015 budget – recapitalisation of the state-owned enterprises.
According to Mr Yamba, to safeguard jobs and create employment
opportunities, the Government will continue to strengthen the capacity
and productivity of State-Owned-Enterprises (SOEs).
So, in the 2015 Budget, the Government has put aside funds for
recapitalisation, value chain development, and youth development
programmes.
Among the recapitalisation funds is K70 million for the Development
Bank of Zambia (DBZ) to support the financing of Small and Medium
Scale Enterprises (SMEs).
The DBZ is playing a crucial role in the promotion of the SMEs in the
country and notably the institution received $20 million from the
first $1 billion Eurobond for the same purpose.
Further, K35 million has been allocated for the Lusaka Multi Facility
Economic Zone (MFEZ) to facilitate infrastructure development and
support the growth of the manufacturing sector.
Needless to say that MFEZs and industrial parks are among the surest
ways of creating decent and sustainable jobs for the people in the
country.
The two are able to help revamp the country’s eroded manufacturing
base and promote local value addition of the various raw materials.
To ensure that Zambians participate in these value addition and
job-creation avenues, the government has set aside K83 million for the
Citizens Economic Empowerment Commission (CEEC).
The funds together with another K55 million for youth skills training
and development programmes, will also support value chain development
among citizens.
To unlock the huge potential for growth and employment in the tourism
sector, particularly along the Northern Circuit, Lower Zambezi and
Kafue National Parks, the government has allocated K40 million for
recapitalisation of airport facilities.
A few years ago, the dream of government producing agro inputs on its
own had faded away but now there is renewed hope that soon, the
government’s-supported Farmers Input Support Programme (FISP) will be
solely be made up of locally produced fertilisers.
To move towards that, the government has allocated K30 million for
rehabilitation works at Zambia’s only public manufacturer of
fertilisers, Nitrogen Chemicals of Zambia.
This is in addition to other funds which have been injected into this
institution in the last three years.
The public media houses will receive; K12.5 million for
recapitalisation while another K14 million has been earmarked for
recapitalisation of Zambia Postal Services Corporation (Zampost).
Another K15 million has been earmarked for the recapitalisation of
Government Printers.
The rest of the funds are K10 million for the Micro-Bankers Trust;
K7.5 million for the Zambia Cooperative federation; K15 million for
recapitalisation of ZAFFICO and K60 million for the Public Service
Micro Finance for loans to public service workers;
I concur with Mr Yamba that these interventions will invariably contribute to sustaining economic growth as some of these
organisations and programmes hold the great potential for wealth and
employment while providing job security.
Yes, creation of decent employment has a direct bearing on poverty
levels as it provides income to the people and enables them to access
the basic needs of life.
“To this effect, efforts have been made to promote pro-poor growth
with focus on the promotion of jobs and income earning opportunities,
skills training, and improvement of the quality of jobs,” Mr Yamba
assured.
Interestingly, the Government has already embarked on the design of
industrial clusters that are going to be established in each district
as a way of realising economic independence for our citizens.
This programme will also include market linkages and ensuring
competitive standards of products and services.
By recapitalising its enterprises, the government has led by example
in underscoring that it is the duty of proprietors to scout for funds
for the recapitalisation of their respective entities whenever capital
injection is required.
Instead of looking for additional capital some company owners resort
to increasing the prices of their products and services to
recapitalise their entities.
My view is that capital funds should come from the company owners who
should source them through various ways including borrowing but not by
overcharging the consumers of their products or services.For comments call: 0977 246099, 0955 431442 or e-mail: jmuyanwa@gmail.com