REMARKS BY THE ZFE PRESIDENT MRS MYRA SAKALA NGOMA AT THE 2023 POST BUDGET ANALAYSIS DISCUSSION AT SOUTHERN SUN RIDGEWAY ON SATURDAY, 8TH OCTOBER 2022
THE DIRECTOR OF BUDGET MR. WILLIES CHIPANGO REPRESENTING THE MINISTER OF FINANCE AND NATIONAL PLANNING HON DR. SITUMBEKO MUSOKOTWANE,
OTHER SENIOR GOVERNMENT OFFICIALS PRESENT
STANBIC BANK CEO, MR MWINDWA SIAKALIMA
THE CHIEF EXECUTIVE OFFICER CHAMBER OF MINES, MR. SOKWANI CHILEMBO
CHIEF EXECUTIVE OFFICERS FROM ZFE MEMBER COMPANIES
MEMBERS OF THE ZAMBIA PRIVATE SECTOR ALLIANCE PRESENT
THE ZCTU SECRETARY GENERAL, MR. COSMAS MUKUKA
MEDIA REPRESENTATIVES PRESENT HERE
DISTINGUISHED GUESTS
LADIES AND GENTLEMENT.
THE ZAMBIA FEDERATION OF EMPLOYERS WOULD LIKE TO CONGRATULATE THE GOVERNMENT FOR PRESENTING THE 2023 NATIONAL BUDGET TO THE NATION THROUGH THE MINISTER OF FINANCE AND NATIONAL PLANNING DR. SITUMBEKO MUSOKOTWANE UNDER THE THEME “STIMULATING ECONOMIC GROWTH FOR IMPROVED LIVELIHOODS “. IN OUR VIEW THE 2023 NATIONAL BUDGET IS AN INSPIRING AND JOB RICH BUDGET WHICH IF IMPLEMENTED WILL YIELD SOME POSITIVE RESULTS IN REGARDS TO EMPLOYMENT CREATION AND IN RAISING THE LIVING STANDARDS OF THE ZAMBIAN PEOPLE.
DISTINGUISHED GUESTS YOU MAY WISH TO KNOW THAT THE ZFE HAS OVER THE YEARS BEEN ADVOCATING AND LOBBYING THE GOVERNMENT TO CREATE AN ENABLING ENVIRONMENT FOR SUSTAINABLE ENTERPRISES AS WE STRONGLY BELIEVE THAT A STRONG INDUSTRIAL BASE IN ANY COUNTRY IS A BACKBORN FOR SUSTAINED CREATION OF DECENT JOBS IN A COUNTRY.
OUR ANALYSIS OF THE 2023 NATIONAL BUDGET IS THAT THE NEW DAWN GOVERNMENT HAS REALISED THE NEED TO CREATE OPPORTUNITIES FOR ZAMBIANS TO FIND A PATH TO EMPLOYMENT OPPORTUNITIES EITHER THROUGH ENTREPRONEURSHIP OR BY GETTING EMPLOYED IN COMPANIES WHOSE SUSTAINABILITY IS GUARANTEED.
IT IS A BUDGET IN OUR VIEW THAT HAVE TOUCHED ON A NUMBER OF MEASURES THAT WILL UNLOCK THE POTENTIAL THAT THIS COUNTRY HAS IN EMPLOYMENT CREATION TO GREAT EXTENT
MACRO ECONOMIC OBJECTIVES
WE WELCOME THE MACROECONOMIC OBJECTIVES THAT HAVE BEEN SET TO BE ATTAINED IN THE YEAR 2023 SUCH AS TO :
- ATTAIN A REAL GDP GROWTH RATE OF AT LEAST 4.0 PERCENT
- REDUCE INFLATION TO WITHIN THE TARGET BAND OF 6-8 PERCENT BY THE END OF THE YEAR
- MAINTAIN INTERNATIONAL RESERVES ABOVE 3 MONTHS OF IMPORT COVER AND THE OBJECTIVE TO LIMIT DOMESTIC BORROWING TO NOT MORE THAN 3.0 PERCENT OF GDP.
WE BELIEVE THAT MAINTAINING A SINGLE DIGIT INFLATION RATE WILL BE HELPFUL IN BRING DOWN LENDING RATES AND ALSO IN BRINGING DOWN PRICES OF GOODS AND SERVICES WHICH EFFECTIVELY SHOULD BE A MECHANISM OF REDUCING THE COST OF LIVING.
AGRICULTURE SECTOR
IN THE AGRICULTURE SECTOR THE BUDGET IS PROGRESIVE AS IT HAS PROPOSED CERTAIN MEASURES MEANT TO STIMULATE EMPLOYMENT CREATION SUCH AS INCREASING CROP PRODUCTIVITY AMONG SMALL SCALE FARMERS, THROUGH AN IMPROVEMENT IN THE EXTENSION SERVICE DELIVERY WHERE BY THE GOVERNMENT HAS COMMENCED THE RECRUITMENT OF 256 EXTENSION OFFICERS AND THE STATEMENT THAT ADDITIONAL EXTENSION SERVICE OFFICERS WILL BE RECRUITED DURING THE YEAR 2023. ALSO THE TARGET TO REACH OUT TO 1,500,000 SMALL HOLDER FARMERS TO BE PROVIDED WITH EXTENSION SERVICES THROUGH PHYSICAL VISITS AND EXTENSION PLATFORMS TO BE COMPLEMENTED WITH ENHANCED IRRIGATION FACILITIES AND THE INTENDED FISP REFORMS TO INCLUDE ACCESS TO FINANCE AND SUPPORT FOR VALUE ADDITION ARE VERY GOOD MEASURES THAT WILL PROMOTE EMPLOYMENT CREATION IN THE AGRICULTURE SECTOR.
EQUALLY THE INCOME TAX CONCESSIONS FOR 15 YEARS ON INCOME TO BE GENERATED FROM LOCAL SALES OF CORN STARCH BY AGRO- PROCESSING BUSINESSES OPERATING IN MULTI- FACILITY ECONOMIC ZONES, INDUSTRIAL PARKS OR RURAL AREAS ARE VERY GOOD MEASURES THAT WILL PROMOTE VALUE ADDITION IN THIS SECTOR. GIVEN THAT THE CONCESSIONS WILL ALSO COVER RURAL BASED AGRO- CORN PROCESSING SOME WORK MUST BE DONE TO RAISE AWARENESS ON THE TAX CONCESSIONS TO THE RURAL BASED PEOPLE IN ORDER FOR THEM TO UTILISE THE TAX INCENTIVES. WE BELIEVE THAT THIS MEASURE SHOULD ATTRACT OUR YOUTH AND WOMEN WHO MAY HAVE LEFT THE RURAL AREAS TO THE URBAN AREAS IN SEARCH OF EMPLOYMENT TO TAKE ADVANTAGE OF THE INCENTIVES PROVIDED AND MAKE USE OF THE AVAILABLE LAND IN THEIR DISTRICTS OF ORIGIN AND VENTURE INTO CORN STARCH PROCESSING AND BECOME SELF EMPLOYED. THE CDF FUNDS PROPOSED TO BE INCREASED TO K28 MILLION PER CONSTITUENCY CAN BE ONE OF THE SOURCES OF FUNDING TO THE YOUTH WHO SHOULD VENTURE INTO CORN STARCH PROCESSING.
TOURISM SECTOR
WE COMMEND THE MINISTER’S CONSIDERATION TO CONTINUE TO PROMOTE TOURISM DEVELOPMENT BY PROVIDING INCENTIVES TO ATTRACT MORE INVESTMENT INTO THE SECTOR SUCH AS THE PROPOSAL TO SUSPEND CUSTOMS DUTY ON IMPORTS OF SELECTED FIXTURES, CAPITAL EQUIPMENT, MACHINERY, AND SAFARI GAME VIEWING VEHICLES FOR THE PERIOD OF 3 YEARS UP TO 31ST DECEMBER 2025 AND THE PROPOSAL TO WAIVE VISA REQUIREMENTS FOR TOURISTS FROM CERTAIN COUNTRIES AS OUTLINED IN THE NATIONAL BUDGET SPEECH. GIVEN THE DEVASTATING EFFECTS OF THE COVID 19 PANDEMIC ON THIS SECTOR WHICH ALSO RECORDED THE HIGHEST NUMBER OF JOB LOSSES. IT IS ONLY LOGICAL THAT THE SECTOR RECEIVES THE INCENTIVES AS ANNOUNCED BY THE MINISTER SO THAT THE SECTOR CAN BE RESTORED TO ITS VIABILITY AND CONTRIBUTE TO EMPLOYMENT CREATION IN THE COUNTRY.
DEBT SUSTAINABILIT
WE COMMEND THE GOVERNMENT FOR THE STEPS SO FAR TAKEN IN MOVING TOWARDS DEBT RESTRUCTURING AS WE RECALL THAT THE PREVIOUS ADMINISTRATION HAD ENGAGED A CONSULTANT TO HELP ON THIS ISSUES WHICH DID NOT YIELD RESULTS. WE CAN ONLY WISH THE GOVERNMENT SUCCESS ON THIS ISSUES GIVEN THAT WITH THE IMF SUPPORT PROGRAMME IN PLACE, THERE IS NOW AN ENGAGEMENT WITH THE CREDITORS TO CONCLUDE THE DEBT RESTRUCTURING IN THE HOPE THAT THE DEBT STOCK CAN BE BROUGHT DOWN TO AN AFFORDABLE LEVEL.
OUR GREAT CONCERN AS BUSINESS WHICH WE BELIEVE IS A CONCERN OF EVERY WELL MEANING ZAMBIAN IS THAT DEBT REPAYMENT SHOULD NOT LEAVE THE COUNTRY IN A DISTRESSED POSITION TO BE UNABLE TO HAVE ADQUATE RESOURCES TO FUND ESSENTIAL SERVICES AND INFRUSTRACTURE DEVELOPMENT. IT IS COMMENDABLE THEREFORE THAT THE GOVERNMENT HAS BEEN ABLE TO SECURE THE EXTENDED CREDIT FACILITY AND WE HOPE THAT OUR CREDITORS WILL MOVE WITH US TO CONCLUDE THE DEBT RESTRUCTURING.
IMPROVING BUSINESS ENVIRONMENT
THE PROPOSAL BY THE MINISTER TO REVISE THE BASIS ON WHICH ENVIROBMENTAL IMPACT ASSESSMENT FEES ARE CHARGED FROM THE VALUE OF THE INVESTMENT TO A GRADUATED POLLUTION- BASED CLASSIFICATION CHARGE WILL LOWER THE COST OF DOING BUSINESS AND IT IS A WELCOME MOVE TO US IN THE PROVATE SECTOR.
TAX AMNESTY ON PENALTIES AND INTEREST
AS INDUSTRY WE WELCOME THE TAX AMNEST OFFERED ON PENALTIES AND INTEREST WHICH HAS BEEN STATED TO COVER PENALTIES AND INTERESTS ACCUMULATED UP TO 30TH SEPTEMBER 2022. WE HOWEVER WISH THAT THE PERIOD TO BE COVERED COULD BE EXTENDED TO 31ST DECEMBER 2022 GIVEN THE FACT THAT THE NEGATIVE EFFECTS OF THE COVID 19 PANDEMIC WHICH HAS NESSISTED THIS AMNESTY ARE STILL BEING FELT. PROBABLY WE CAN GET A COMMENT ON THIS ITEM FROM THE MINISTRY OF FINANCE AND NATIONAL PLANNING ON OUR REQUEST TO EXTENT THE PERIOD TO BE COVERED TO 31ST DECEMBER 2022.
THANK. YOU EVERY ONE FOR YOUR TIME.