REPUBLIC OF ZAMBIA
MINISTRY OF COMMERCE, TRADE AND INDUSTRY ANNUAL REPORT 2018 Ministry of Commerce, Trade & Industry New Government Complex (8th - 10th floors) Along Nasser Road Lusaka
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Shorthorn Printers Ltd. Tel: +260 211 240 120 REPUBLIC OF ZAMBIA
MINISTRY OF COMMERCE, TRADE AND INDUSTRY
ANNUAL REPORT 2018
Contents LIST OF ACRONYMS AND ABBREVIATIONS ...... iii FOREWORD ...... v ACKNOWLEDGEMENTS ...... vii 1.0 INTRODUCTION ...... 1 Mandate and Functions ...... 1 Vision Statement ...... 1 Mission Statement ...... 1 Policy and Department Structure ...... 2 Top Management Level Structure of the Ministry in 2018 ...... 3
2.0 DEPARTMENTAL FUNCTIONS ...... 4
3.0 STATUTORY BODIES AND INSTITUTION FUNCTIONS ...... 5
4.0 2018 PROGRAMME IMPLEMENTATION AND ACHIEVEMENTS...... 6
4.1 General Overview ...... 6
4.2 Management and Administration ...... 6
4.2.1 Human Resource Management...... 6
4.3 Planning and Budget Implementation...... 8
4.3.1 Ministerial Annual Work Plans and Budget ...... 8
4.3.2 Budget Performance ...... 8
4.3.3 Internal Audit ...... 10
4.4 Policy, Strategy and Regulation Reforms/Law Development ...... 10
4.4.1 Policy Development:...... 10
4.4.2 Strategy Development:...... 11 4.4.3 Regulation/Law Development ...... 12 4.5 Ease of Doing Business Reform...... 13 4.6 Investment Promotion ...... 13 4.7 Export Promotion ...... 15 4.8 Domestic Trade and Competition ...... 15 4.8.1 Competition and Consumer Protection Tribunal ...... 15 4.8.2 Product Safety , Standards and Quality ...... 16 4.9 Trade Promotion...... 16 4.10 Intellectual Property Rights...... 17 4.11 Formalization of Informal Sector Trade...... 17 4.12 Trade Facilitation and Expansion...... 17
2018 Annual Report Page i 4.13 Business Linkage Programme ...... 20 4.14 Cooperatives Development ...... 21 4.15 Industrial Development ...... 23 4.16 Information Provision and Dissemination...... 26 4.17 Annual Reporting Requirements ...... 26 4.18 Events and Cross Cutting Issues ...... 26
5.0 DONOR FUNDED PROJECTS IN THE MINISTRY...... 27
6.0 CHALLENGES ...... 31
7.0 RECOMMENDATIONS...... 31
8.0 CONCLUSION AND 2019 OUTLOOK...... 32
Page ii 2018 Annual Report LIST OF ACRONYMS AND ABBREVIATIONS
ACP African Caribbean and Pacific AGOA African Growth Opportunities Ac AU African Union BDS Business Development Support CCPC Competition and Consumer Protection Commission CEEC Citizen's Economic Empowerment Commission COMESA Common Market for Eastern and Southern Africa CTI Commerce, Trade and Industry DRC Democratic Republic of Congo EIA Environment Impact Assessment EIF Enhanced Integrated Framework EPAs Economic Partnership Agreements ESA Eastern and Southern Africa EU European Union FDI Foreign Direct Investment FOCAC Forum for the China-Africa Cooperation FTA Free Trade Area GDP Gross Domestic Product GLTF2 Great Lakes Trade Facilitation Project ICT Information Communication Technology IPR Intellectual Property Rights ITC International Trade Centre KIZ KAIZEN Institute of Zambia LCTFP Lobito Corridor Trade Facilitation Project LDCs Least Developed Countries LS-MFEZ Lusaka South Multi Facility Economic Zone LuSE Lusaka Stock Exchange MCTI Ministry of Commerce, Trade and Industry MFEZ Multi-Facility Economic Zone MoU Memorandum of Understanding MSME Micro Small and Medium Enterprise MTEF Medium Term Expenditure Framework NEST National Export Strategy NIP National Industrial Policy NIU National Implementation Unit NQP National Quality Policy NTBs Non-Tariff Barriers NTEs Non-Traditional Exports OSBP One-Stop-Border Post OSS One Stop Shop PACRA Patents and Companies Registration Agency RDC Recurrent Departmental Charges RISM Regional Integration Support Mechanism SADC Southern Africa Development Community SADC TRF SADC Trade Related Facility Project SNDP Seventh National Development Plan SPS Sanitary and Phyto-sanitary SPT SADC Protocol on Trade UNIDO United Nations Industrial Development Organization WB World Bank
2018 Annual Report Page iii WTO World Trade Organization ZABS Zambia Bureau of Standards ZACS Zambia Agricultural and Commercial Show ZAM Zambia Association of Manufacturers ZAMCOPS Zambia Music Copyright Protection Society ZARRSO Zambia Reprographics Right Society ZATP Zambia Agribusiness and Trade Project ZCSA Zambia Compulsory Standards Agency ZDA Zambia Development Agency ZMA Zambia Metrology Agency
Page iv 2018 Annual Report FOREWORD
The 2018 Annual Report highlights milestones attained by the Ministry of Commerce, Trade and Industry during the implementation of programmes and activities in 2018 as guided in the National Development Plan.
The Ministry has eight Statutory Bodies that are mandated to implement its statutes and programmes. These are Zambia Development Agency (ZDA); Zambia Bureau of Standards (ZABS); Competition and Consumer Protection Commission (CCPC); Zambia Metrology Agency (ZMA); Zambia Compulsory Standards Agency (ZCSA); Patents and Companies Registration Agency (PACRA); Citizens Economic Empowerment Commission (CEEC); and Business Regulatory Review Agency (BRRA).
In the period under review, the Ministry recorded a number of successes despite the many challenges faced. Among them was the launch of the 2018-2021 Ministerial Strategic Plan alongside the National Industrial Policy, National Local content Strategy and National Investment Promotion Strategy. These documents shaped the focus of the Ministry in the review period. As outlined in the Strategic Plan, the Ministry will continue to focus on promoting the growth and competiveness of industry and commerce as espoused in the 7th National development Plan and Industrialization and Job Creation Strategy. thereby, contributing to wealth and job creation. in to create an enabling business to spur the growth and development of enterprises including cooperatives.
In the area of Cooperatives development, the Ministry implemented further measures to streamline the administration of Cooperatives. Sensitisation efforts to increase value chain development of cooperatives resulted in the registration of 74 Cooperatives in the non- agriculture sector.
Other notable highlights of 2018, were the operationalization of two projects, the Great Lakes Trade Facilitation Project (GLTFP) that facilitates cross border trade by increasing the capacity for commerce and reducing the costs faced by Small Scale Cross Border Traders and the Lobito Corridor Trade Facilitation Project (LCTFP) which seeks to accelerate growth in domestic and cross-border trade along the Lobito Corridor.
In order to promote standardisation and quality assurance of products, the Ministry operationalized the Zambia Metrology Agency (ZMA) charged with the responsibility of overseeing national measurements and regulating scientific, industrial and legal metrology. The Zambia Compulsory Standards Agency (ZCSA), a former inspectorate Unit of the Zambia Bureau of Standards was also operationalized to conduct market surveillance for products that
2018 Annual Report Page v fall within the scope of compulsory standards and administer, maintain and ensure compliance with compulsory standards. The role of the Zambia Bureau of Standards (ZABS) in certification and standards was strengthened.
Further, the Business Regulatory (Amendment) Bill, 2018, and Border Management and Trade Facilitation Bill, 2018 were enacted into law in December, 2018. The Business Regulatory (Amendment) Act, 2018 will provide for an efficient, cost effective and accessible business licensing system and improve the business environment whilst the Border Management and Trade Facilitation Act, 2018 is meant to provide for coordinated border management in order to enhance trade between Zambia and its trading partners through the establishment of systems and mechanisms for the efficient movement and clearance of goods at Zambia's border posts.
I am very confident that my Ministry will continue working hard to accelerate private development and SME support efforts towards vision 2030 without leaving any one behind. My Ministry will also build on lessons learned and challenges of 2018 to perform even better in 2019.
It is an honour for me to share with you the 2018 Annual Report and I sincerely hope that the report will provide useful information on the programmes and activities my Ministry undertook in the year.
Hon. Christopher Yaluma, MP MINISTER OF COMMERCE, TRADE AND INDUSTRY
Page vi 2018 Annual Report ACKNOWLEDGEMENTS
On behalf of the Ministry of Commerce, Trade and Industry, I am delighted to present the 2018 Annual Report, which highlights the programmes that were implemented during the year under review.
I am grateful to all members of staff in the Ministry for the hard work and commitment exhibited during 2018, which culminated into successful implementation of programmes and activities. I hope and trust that the members of staff will continue with the same commitment in the years to come to foster national development.
Many thanks also go to Cooperating Partners in the Ministry who continued to supplement government's efforts towards attainment of inclusive development of growing the Zambian economy. In particular, I would like to recognise the United Nations Development Programme (UNDP), European Union (EU), African Development Bank (AfDB) and the World Bank (WB).
To you our Cooperating Partners, we appreciate you as our partners in national development and going forward, I hope that we shall continue working together as a formidable team towards achieving the country's developmental goal as espoused in the 7NDP in our ambition of becoming a prosperous middle-income nation by 2030.
Kayula Siame Permanent Secretary MINISTRY OF COMMERCE, TRADE AND INDUSTRY
2018 Annual Report Page vii
1.0 INTRODUCTION
This annual report presents the programmes and activities carried out in the year 2018 by the Ministry of Commerce, Trade and Industry (MCTI) in line with its mandate and responsibilities. The report also highlights the challenges that were encountered during the period under review and proposes recommendations. It concludes with an outlook for the year 2019.
1.1 Mandate and Functions The Ministry of Commerce, Trade and Industry (MCTI) is responsible for formulating and administering policies as well as regulating activities in the trade and industrial sectors in order to enhance the sectors contribution to sustainable social economic growth and development for the benefit of the people of Zambia.
The specific functions of MCTI as contained in the Government Gazette Notice Number 836 of 2016 are as follows: - (i) Business Names; (ii) Business Regulation; (iii) Commercial, Trade and Industrial Policy; (iv) Companies; (v) Competition and Consumer Protection; (vi) Cooperatives Development; (vii) Copyright; (viii) Industrialisation Policy; (ix) Industrial Research; (x) Intellectual Property; (xi) Investment Policy; (xii) Micro, Small and Medium Enterprises; (xiii) Development Privatisation Policy (xiv) Standardisation, Standards Quality Assurance; and (xv) Weights and Measures.
The Ministry is also responsible for the following Statutory Bodies and Institutions: - (a) Business Regulatory Review Agency (BRRA); (b) Citizens Economic Empowerment Commission (CEEC); (c) Competition and Consumer Protection Commission (CCPC); (d) KAIZEN Institute of Zambia (KiZ); (e) Patents and Companies Registration Agency (PACRA); (f) Zambia Bureau of Standards (ZABS); (g) Zambia Compulsory Standard Agency (ZCSA); (h) Zambia Development Agency (ZDA); (i) Zambia Metrology Agency (ZMA) and (j) Competition and Consumer Protection Tribunal.
1.2 Vision Statement “A SMART and value Centred Ministry of Commerce, Trade and Industry” The vision statement serves as the guiding principle in promoting the growth and competitiveness of businesses and in providing efficient and effective services.
1.3 Mission Statement “To promote and facilitate inclusive growth and competitiveness of industry and commerce”. To effectively achieve this mission the Ministry will anchor its operations on a set of ten (10) all-
2018 Annual Report Page 1 encompassing core values, which include: i) Integrity; ii) Accountability; iii) Transparency; iv) Innovation; v) Professionalism; vi) Team Spirit; vii) Impartiality; viii) Excellence; ix) Pro-activeness; and x) Courtesy.
1.4 Policy and Department Structure At Policy level, the Ministry is headed by the Cabinet Minister and the Permanent Secretary who is the Controlling Officer.
The Ministry has seven (7) Departments, namely; Planning and Information, Industry, Finance, Foreign Trade, Domestic Trade and Commerce, Cooperatives Development, and Human Resources and Administration. In terms of geographical coverage, the Ministry has its presence in Lusaka and has also structures at Provincial and District levels under the Department of Cooperatives.
Page 2 2018 Annual Report Top Management Level Structure of the Ministry in 2018
Hon. Christopher B. Yaluma, MP Minister
Ms. Kayula Siame Permanent Secretary
Mrs. Mando M. Pasi Mr. Paul Lupunga Mr. John Mulongoti Director Human Resource Director Planning & Information Director Industry & Administration
Mrs. Georgina N. Kasapatu Mrs. Lilian S. Bwalya Mr. Shadreck Mungalaba Mr. Levy Mwanza Director Domestic Trade Director Foreign Trade Director Cooperatives Director Finance & Commerce
2018 Annual Report Page 3 2.0 DEPARTMENTAL FUNCTIONS
2.1 Department of Human Resources and Administration The Department of Human Resources and Administration is responsible for the provision of administrative, financial and logistical support services in order to ensure effective operation of the Ministry. The Department is also responsible for managing and developing human resources in order to improve staff welfare and service delivery.
2.2 Department of Planning and Information The Department of Planning and Information is responsible for coordinating the formulation of policies, monitoring and evaluation of Ministry policies, coordinating the development of strategic and work plans, development and management of information systems, preparation of budgets and resource mobilization.
2.3 Department of Industry The Department of Industry is charged with the responsibility of formulating and administering polices in the industrial sector in order to enhance the sectors contributions to sustainable social economic growth and development.
2.4 Department of Domestic Trade and Commerce The Department of Domestic Trade and Commerce is responsible for stimulating growth of the commercial and trade sectors through the formulation of strategies and policy instruments aimed at enhancing the competitiveness in the commercial and trade sectors as well as facilitation of trade.
2.5 Department of Foreign Trade The Department of Foreign Trade has the mandate of stimulating the growth of Zambia's export trade through the formulation of policies, strategies and facilitation of international trade relations. The Department is responsible for the integration of Zambia's trade sector into the regional and multilateral trading systems through carefully negotiated trade agreements.
2.6 Department of Cooperatives The Department of Cooperatives has the mandate of promoting and facilitating the formation and growth of viable business-oriented cooperatives in order to steer socio-economic development, job creation, income generation and wealth creation.
2.7 Department of Finance The Department of Finance is responsible for matters relating to the management and control of public funds, including implementing budgets and financial management systems as well as maintaining systems and procedures in the Ministry.
2.8 Cooperatives College The mandate of the College is to offer both short and long term-training to both school and non- school leavers in cooperative development and agribusiness studies. Currently the College offers 3-year Diploma in Agribusiness Management and a 2-year certificate in Cooperative Development and Agribusiness Management.
Page 4 2018 Annual Report 3.0 STATUTORY BODIES AND INSTITUTION FUNCTIONS The following are the functions of the respective Statutory Bodies under the Ministry that are charged with the responsibility of implementing the Ministry's mandate.
3.1 Patents and Companies Registration Agency (PACRA) The Patents and Companies Registration Agency (PACRA) has the mandate to operate a legal system for registration and regulation of companies as well as the registration and Protection of intellectual property. The Agency also administers the collateral registry under the Moveable Property and Security Interest legislation.
3.2 Citizens Economic Empowerment Commission (CEEC) The Citizens Economic Empowerment Commission (CEEC) has a mandate to promote broad based and equitable economic empowerment of citizens that are or have been marginalized or disadvantaged and whose access to economic resources and development capacity has been constrained due to various factors such as race, sex, educational background, status and disability.
3.3 Zambia Development Agency (ZDA) The Zambia Development Agency (ZDA) is responsible for fostering economic growth and development in Zambia through promoting trade, investment and an efficient, effective and coordinated private sector led economic development strategy. The Agency also has a role to develop an internationally competitive Zambian economy through innovations that promote high skills, productive investment and increased trade.
3.4 Zambia Bureau of Standards (ZABS) Zambia Bureau of Standards (ZABS) is a specialized Agency serving the country in the field of standardization, standards formulation, and quality assurance, scientific and industrial metrology. The Bureau is responsible for promoting the production and importation of products that meet quality standards at national and international levels.
3.5 Competition and Consumer Protection Commission (CCPC) The Competition and Consumer Protection Commission (CCPC) is a Statutory Body established with a dual mandate to protect the competition process in the Zambian Economy while protecting and enhancing the welfare of consumers. The mandate of the Commission cuts across all economic sectors. CCPC regulates competition in the Zambian economy to avoid restrictive business practices, abuse of dominant position of market power, anti- competitive mergers and acquisitions and cartels as these erode consumer welfare. 3.6 Business Regulatory Review Agency (BRRA) The BRRA is a specialized Government Agency through which the Executive arm of Government ensures that the quality of regulation is improved. The Agency seeks to ensure that businesses are regulated in a fair, equitable, and transparent manner and for specific and legitimate reasons.
2018 Annual Report Page 5 3.7 Zambia Compulsory Standards Agency (ZCSA) ZCSA is a former inspectorate Unit of the Zambia Bureau of Standards, and now with a strengthened responsibility of conducting market surveillance for products that fall within the scope of compulsory standards and administer, maintain and ensure compliance with compulsory standards.
3.8 Zambia Metrology Agency (ZMA) Now has the responsibility of overseeing and regulating scientific, industrial and legal metrology. The Agency promotes the equitable use of measurements in commercial transactions, law enforcement and protects society from the consequences of false measurements.
3.9 Kaizen Institute of Zambia (KIZ) This is a support institution for industry, and has a mandate to spearhead the implementation of creativity and innovation in order to increase productivity in various sectors of the economy to accelerate the realisation of economic targets the country has set.
4.0 2018 PROGRAMME IMPLEMENTATION AND ACHIEVEMENTS 4.1 General Overview During the review period the Ministry focused on re – aligning its policies to the Seventh National Development Plan (7NDP) with the view of meeting the National aspirations outlined in the Vision 2030. This was evidenced by the launch of the 2018 – 2021 Ministerial Strategic Plan and Balanced Scorecard; National Industrial Policy; National Investment Promotion Strategy; and National Local Content Strategy. The Ministry also reviewed the existing policies which include; the Trade Policy, Micro, Small and Medium Enterprises (MSMEs) Development Policy; Competition and Consumer Protection Policy; National Intellectual Protection Policy; National Cooperative Development Policy and the National Quality Policy. In implementing its policies, the Ministry prioritised programmes that are discussed in the sections below:
4.2 Management and Administration 4.2.1 Human Resource Management During the period under review, the total staff establishment was 418 (Four Hundred and Eighteen) inclusive of the Minister and the Permanent Secretary. Forty-One (41) positions in the staff establishment were vacant on account of being frozen. Treasury Authority is required to activate them.
Page 6 2018 Annual Report Table 1 indicates the summary of the Establishment register for the Ministry as at 31st December, 2018. Table 2 on the other hand shows the movement of staff to and from the Ministry during the review period.
Table1 Summary Staff Establishment Register – 2018
DEP ARTMENT TOTAL FILLED VACANT FROZEN ESTABLISHME POSITIONS POSITIONS POSITIONS NT Minister 1 0 0 0 Permanent Secretary 1 0 0 0 Human Resource & 116 111 1 4 Administration Finance 11 11 0 0 Planning & Information 25 21 1 3 Industry 19 17 0 2
Domestic Trade 12 12 0 0
Cooperatives Department 171 145 0 26 Foreign Trade 15 15 0 0 Cooperatives College 47 41 0 6 Total 418 375 2 41
Table 2: Summary of Staff Movement - 2018 Nature of Movement Number of Officer Recruitments 12 Incoming 11 Transfers Outgoing 10 Secondment to Other Institution 3 Separation 4 Unpaid Leave 2
Table 3: Summary of Staff on Long-Term Training – 2018 Type of Training Number of Officers Male Female Diploma - - Degree 2 0 Masters 1 1 TOTAL 3 1
2018 Annual Report Page 7 Table 4: Summary of Staff on Short -Term Training
Training Programme Number of Officers Male Female 2018 Seminar on Development and Construction of Cooperation 3 17 Zone for Zambia Best Available Technique/Best Environmental Practice 0 1 First Global Cross – Border E Commerce Conference 1 0 Quality Infrastructure Development in Support of World Trade 0 2 Seminar for Quality Safety & Supervision for Officials from 2 0 Developing Countries Seminar on Food & Drug Inspection Quarantine for Zambia 5 7 Seminar on Trade Facilitation for Developing Countries 3 0 TOTAL 14 27
4.3 Planning and Budget Implementation 4.3.1 Ministerial Annual Work Plans and Budget During the period under review, the 2019 Ministerial Annual Work Plan and Budget were prepared in order to ensure that the financial resources were allocated to Ministerial objectives and programs to support effective implementation. The Ministry also prepared the 2019 Budget Policy Statement and Ministerial Budget Briefs which were successfully presented in Parliament by the Cabinet Minister.
4.3.2 Budget Performance The Ministry operated in accordance with the Medium Term Expenditure Framework (MTEF) for the period 2017-2018. A total budget of K491.7 million was allocated to the Ministry in 2018 compared to K 597.2 million allocated in 2017, representing about 18 percent reduction.
In terms of budget releases, K234.9 million was funded, representing about 48 percent of the total allocated budget in 2018. The pattern was similar in 2017 were 43 percent was funded out of the total allocated budget.
Page 8 2018 Annual Report Figure 1: MCTI 2018 and 2017 Budget Allocations Comparative to Budget Releases
234,868,169.25
FUNDING
259, 532,312.36
491,736,907.00
APPROVED/AUTHORISED ESTIMATES
597,278,873.00
0.00 200,000,000.00 400,000,000.00 600,000,000.00 AMOUNT
2018 2017
Of the total allocated budget, K491.7 million was to Grand Aided Institutions, representing 47 percent of the total budget, while the Recurrent Departmental Charges (RDCs) had a total budget of K234.7 million representing 48 percent of the total budget. Further, Personal Emoluments and Non-Financial assets had an allocation of K25.9 million and K770 million respectively. This represents 5 percent and 0.2 percent of the total budget.
Figure 2, provides a further illustration of the budgeted allocation against releases by category.
2018 Annual Report Page 9 4.3.3 Internal Audit During the year under review, the following audits were carried out at the Ministry Headquarters:
(a) Post Audit of Recurrent Departmental Charges (RDC) for the period January to June 2018. The objective of the post audit was to ascertain the extent of compliance with procurement, stores and financial regulations and also to ensure that Imprest paid out to officers was retired according to the specified requirements;
(b) Four (4) Quarterly Audit of Ministerial arears to ascertain the total amount of outstanding bills for the Ministry for 2018;
(c) Monthly audit verification of Payroll inputs;
(d) Income and Expenditure Audit of Cooperative College to ascertain whether all the Revenue collected was banked in time, procurement procedures were being adhered to during the procurement of goods and services at the College; and
(e) Audit of grants disbursed and operations of Chipata Provincial Cooperative.
Further, the Internal Audit Unit conducted the following Specific Audits on the Ministry's Statutory Bodies:
(a) An Investigative Audit at Zambia Metrology Agency (ZMA) to ascertain the extent of fraudulent activities at the Agency;
(b) Audit of Citizens Economic Empowerment Fund to ascertain whether all Individual files for Client were complete with all the relevant documentation, all clients whose loans were overdue for commencement of repayments, the extent of default on loans, availability of Security on the collateralized Loans and adherence to the CEEC Credit Policy and Act;
(c) Audit of Zambia Agri-Business and Trade Project for the period of January to June 2018. The objective of the audit was to ascertain the extent of compliance with procurement, stores, Imprest paid out to officers was retired according to the specified requirements and also the Impact assessment of various activities in the provinces.
4.4 Policy, Strategy and Regulation Reforms/Law Development
The following are among the policy, legal and regulatory reforms that the Ministry embarked on with the view to creating a framework that supports and enables the private sector to flourish.
4.4.1 Policy Development: i. National Industrial Policy (NIP) The NIP was approved by Cabinet and launched in May, 2018. The aim of the Industrial Policy is to facilitate sustainable economic growth through industrialisation. It is designed to guide the accelerated growth of the manufacturing sector and increase efficiency in utilisation of natural resources. The Policy will also guide the development of an Industrial sector driven, by building strong partnerships that promote domestic innovation through Research and Development.
ii. National Trade Policy (NTP) The NTP was approved by Cabinet and is expected to be launched in 2019. The Policy is aimed at facilitating the creation of an enabling economic environment in Zambia to support private investments and ensure effective participation of private sector players in regional and international trade, as well as
Page 10 2018 Annual Report enable the development of domestic productive capacities, and contribute to the expansion of Zambia's international trade.
iii. Revision of the National Intellectual Property Policy The Policy was reviewed and submitted to Cabinet Office – Policy and Analysis Coordination (PAC) for consideration. PAC raised issues that require attention before the policy is tabled at the Cabinet meeting. The Revised National Intellectual Property Policy is expected to enhance the appreciation of intellectual property as an economic tool that has the potential to contribute to solving developmental challenges in the economy.
The Revised National Intellectual Policy takes into consideration the following. (i) the aspects of intellectual property system which were not adequately covered by the policy;
(i) best practices and recent development in the areas of IP at international and regional levels; and
(ii) challenges and lessons learned during the 5 years of implementation.
iv. The review of Micro, Small and Medium Enterprise Development Policy The review of the: Micro, Small and Medium Enterprise (MSME) Development Policy commenced. The MSME Development Policy has an implementation period of ten (10) years, that is, 2009-2019. The MSME Policy was developed to provide guidance and direction on all activities and development efforts related to MSMEs to ensure sustainable growth of the sector.
4.4.2 Strategy Development:
i) The National Export Strategy (NEST) was approved and will be launched in 2019. The Export Strategy seeks to enhance the export sector's contribution to Zambia socio-economic development. ii) The National Investment Promotion Strategy was approved and launched together with the Investment Guide in the second quarter of 2018. The implementation of the Strategy contributed to the country being awarded the “2018 Best State Strategy for attracting investments” at the Africa Investment Forum held in Paris, France; iii) The National Local Content Strategy, was developed and launched in the second quarter of 2018. The strategy is aimed at fostering business linkages in growth sectors as well as promote commercial bonds between Micro, Small and Medium enterprises. Additionally, the strategy will promote business linkages between local enterprises and transnational corporations. iv) The 2018-2025 AGOA Response Strategy and Action Plan for Zambia was launched in May, 2018. The Strategy provides a prioritized roadmap for developing export competitiveness for Zambia under the AGOA trade preference program; v) The Zambian Leather Value Chain Strategy, the process of development commenced during the period under review. The strategy is aimed at transforming Zambia's leather value chain from the production and export of raw materials and partly processed products to the production and export of high-quality value-added products; vi) The 2019-2021 National Cooperatives Development Strategy was developed, with the objective of reviving the growth and development of the cooperatives in the country across all sectors; and vii) The Rural Industrialisation Strategy implemented by CEEC– The Ministry in collaboration with ZDA and support of the ILO YAPASA Project commenced the development of the agribusiness incubator. The objective of the strategy is to facilitate the requisites infrastructure and structured capacity building of high growth innovative start-ups and nascent existing MSMEs in order to enhance survival, growth and competitiveness. To
2018 Annual Report Page 11 this effect a draft agribusiness technology incubator proposal has been developed for consultations with key stakeholders before submission to Cabinet for approval.
4.4.3 Regulation/Law Development The following are among the legal and regulatory reforms that the Ministry embarked on with the view to creating a framework that supports and enables the private sector to flourish.
i. Border Management and Trade Facilitation Act, 2018 The Border Management and Trade Facilitation Act, 2018 was enacted into law in December, 2018. The objective of this Act is to provide for coordinated border management in order to enhance trade between Zambia and its trading partners through the establishment of systems and mechanisms, and provision of interventions, for the efficient movement and clearance of goods at Zambia's border posts. The Bill seeks to streamline border operations by enhancing coordination among Border Agencies through the introduction of a lead agency.
ii. Business Regulatory (Amendment) Act, 2018 The Business Regulatory (Amendment) Act, 2018, was enacted into law in December, 2018. The amendment will provide for an efficient, cost effective and accessible business licensing system and improve the business environment.
iii. The Zambia Development Agency (Amendment) and Investment, Trade and Enterprise Development Bill (ITED) To strengthen the Zambia Development Agency in fulfilling its mandate, the process to repeal and replace the Zambia Development Agency Act No. 11 of 2006 with the Zambia Development Agency Bill, 2019 had commenced. The provisions that dealt with investments, trade and enterprise development were separated and developed into an independent Bill called Investment, Trade and Enterprise Development Bill (ITED), 2019. The Bill will provide for mechanisms to strengthen, promote economic growth and development in the country. It will further support expanded investments through joint ventures and partnerships between local and foreign investors. The Bills had been submitted to the Ministry of Justice for legislative drafting.
iv. Amendment Bills on CCPC Consumer Competition and Protection (CCP) Bill was submitted to the Ministry of Justice for Legislative Drafting. The Competition and Consumer Protection Act provides for the promotion of competition as well as protection of consumers from unfair trading practices. The proposed law is expected to provide more clarity in the implementation as well as address the lacunas in the current law thereby enhancing the provisions for safeguarding and promoting competition and protecting consumers against unfair trading practices.
v. Cooperative Societies Bill, 2018 Cooperative Societies Bill, 2018 was developed and submitted to Ministry of Justice for legislative drafting. It is expected that once enacted, the Bill will contribute to broad-based and inclusive socio- economic development, wealth building, job creation, bridge the gap between the poor and the rich as well as contribute towards rural development and poverty reduction.
vi. Trademarks Bill The Bill has been submitted to the Ministry of Justice for legislative drafting. The intent of the Bill is to provide for the registration and protection of trademarks, service marks, collective trademarks, certification trademarks, and geographical indications.
Page 12 2018 Annual Report vii. Zambia Institute of Marketing Bill The Bill was submitted to the Ministry of Justice for legislative Drafting. The Amendment Bill will bring a more orderly and coordinated approach in the Marketing and Advertising industry which is currently unregulated thereby creating a self-regulatory mechanism in the marketing professional.
viii. The Merchandise Marks Bill, 2018 The Bill was submitted to the Ministry of Justice for legislative Drafting and will repeal the Merchandise Marks Act, 1958. All provisions will be incorporated in the Trade Marks Bill, 2018. The intent of the Bill is to repeal the Merchandise Marks Act of 1958; and provide for matters connected with, or incidental to, the foregoing.
ix. Trade Remedies Bill The Ministry reviewed and validated the Draft Trade Remedies Bill, and developed a Cabinet Memorandum to seek approval in principal from Cabinet Office to introduce this new legislation. The intent of the Bill is to strengthen the legal and institutional framework related to trade remedies in Zambia in order to protect the domestic industry from unfair trade practices using the appropriate trade instruments under the WTO Agreements and other agreements Zambia is party to. The Ministry also resubmitted to the World Bank, the Terms of Reference for the Review of the Control of Goods Act and the request for support to engage legal drafters to review the same.
x. The Business and Intellectual Property Agency Bill, 2018 The Bill developed and submitted to the Ministry of Justice for legislative drafting and is currently under review. The intent of the Bill is to amend the Patents and Companies Registration Agency Act No. 15 of 2010 in order to take into account the Institution's increased mandate and rename the Patents and Companies Registration Agency to Business and Intellectual Property Agency (BIPA).
xi. Implementation of National Quality Infrastructure (NQI) Laws The implementation of the National Quality Infrastructure (NQI) laws i.e. the Compulsory Standards Act No. 3 of 2017; the Metrology Act No. 6 of 2017; and the Standards Act No. 4 of 2017 commenced at the beginning of 2018, with the establishment of the Zambia Compulsory Standards Agency and Zambia Metrology Agency. The role of Zambia Bureau of Standards was also redefined in line with the amended legislation. The NQI legislation contributes to technology upgrading and absorption, and protecting consumers and the environment resulting in enhanced trade and competitiveness of Zambian products.
4.5 Ease of Doing Business Reform According to World Bank Ease of Doing Business 2019 Report, Zambia was ranked 87 out of 190 economies in 2018, compared to the rank of 85 recorded in 2017. Further Zambia was ranked 7th in Sub-Saharan Africa and 4th in both SADC and COMESA. Zambia handed over the baton of Presidency of the Ease of Doing Business to Ivory Coast.
4.6 Investment Promotion During the review period a number of Investments promotion missions were undertaken locally and outside Zambia including the investment missions in Finland, China, Turkey, Egypt, Angola, India and Japan. The Ministry also attended the 10th World Investment Forum themed “Investing in Sustainable Development” and Zambia was awarded with a certificate of participation. Key outcomes were: consideration of using mineral reserves to attract investment for sustainable development; strengthening of inter-agency committees on investment; the SheTrades initiative under ITC to consider including women entrepreneurs dealing in food supplements; the focal point for the SheTrades project to have a link to the Ministry; and ITC to engage Natsave Bank for the SheTrades initiative roll-out.
2018 Annual Report Page 13 Other investment promotion activities include: business fora in Ndola, Kabwe and Kasama held during the Zambia International Trade Fair, the Central Province Expo and the Northern Province Investment Expo, respectively. The Provincial Investment and Expos are meant to show case each Province's unique resources, investment and business opportunities, increase trade and to also unlock private sector finance and investment in various parts of the country.
The Northern Province Investment Expo attracted investment interest by Jiangxi United Industrial Development Company who intend to establish a Multi - Facility Economic Zone/Industrial Park in Central Province. A further six companies signed letters of intent with the Provincial Administration and the Zambia Development Agency to invest in different sectors of the economy, which include: § Mikalile Trading Limited pledged US$ 12 million to establish shopping mall and hotel in Kasama; § African Eagle Hotels & Resorts pledged to invest US$ 30 million to develop a hotel on a 100 hectares piece of land at Kasaba Bay and Nsumbu National Park in Mpulungu District; § Nsama Investment Holdings Limited International pledged US$ 100 million to establish hotels and lodges along the Kasaba bay; § Lufubu Hydro Power Company expressed interest to invest, by signing, US$ 700 million in a hydropower station on Lufubu River; § Tullow Oils pledged to support Lukashya and Mansa Trades with US$ 50, 000 each; and Seth James Group of Companies, a Nigerian company pledged US$1.5 billion to develop hotels, lodges, golf course, and other infrastructure along the Kasaba Bay.
Central Province Expo, equally attracted a good number of both local and foreign companies to invest in the province, which include: § Jiangxi United Industrial Investment Limited, pledged to invest over USD 600 million in setting up of an Industrial Park in Chibombo district. The Ground-Breaking Ceremony was graced by His Excellency, Mr Edgar Chagwa Lungu, President of the Republic of Zambia and the project commence within 2019; § Nanchang White Horse Aviation Technology, a Chinese company expressed interest to invest USD 12 million in aviation technology in Kabwe. The firm intends to set up a manufacturing plant for drones and related gadgets and devices subject to approval by relevant authorities in the country; § Morgan Risheng Group, also a Chinese company expressed interest to invest 100 megawatts solar plant in Kabwe with investment valued at USD150 million; § Aulia Agro Equipment Industries Limited, a consortium from Pakistan is interested to set up agro industries and agro-processing plants in the Province, with specific interest in cotton seed edible oils, soap and animal feed; § Chibombo Paprika Production, Green Crop field Investment Limited a Lusaka based company intends to invest USD 72 million in the establishment of a Paprika Plantation and a Processing Plant; § Ngabwe Solar Power Project, Africa Limited a Namibian company, has acquired already 100 hectares of land to establish a 10 megawatts solar plant in Ngabwe. The firm is also set to construct 250 housing units in the area in partnership with the district council under the Public Private Partnership (PPP) agreement; § Two manganese processing plants in Kapiri Mposhi, and Serenje have reached advanced stages; § MGC Power Corporation, a solar power company intends to construct an 80 megawatts solar plant worth USD 20 million in Itezhi – tezhi; § Zhongkai International Cassava Plant, a Chinese firm has set up USD 8 million bio fuel plant in Chibombo district. The company intends to invest an additional USD 10 million in agriculture schemes to promote cassava growing as a raw material; and
Page 14 2018 Annual Report § SVARN Infratel Limited of India, has expressed interest to invest USD 75 million in water purifying technology in the province.
4.7 Export Promotion Total Exports were valued at K 94.7 billion in 2018 compared to K 76.5 billion recorded in 2017, representing an increase of 23.8 percent. The major exports by product category comprised intermediate goods at 84 percent, consumer goods at 9 percent, and raw materials at 4 percent and capital goods at 3 percent.
On the other hand imports were value at K 99.3 billion in 2018 compared to K 76.1 billion recorded in 2017, representing an increase of 18.5 percent. The major imports by product category comprised capital goods at 37 percent, consumer goods at 27 percent, intermediate goods at 19 percent and raw materials at 17 percent.
The performance of trade in 2018, therefore, implied that the year closed with a trade deficit of K4.6 billion compared to a trade surplus of K0.4 billion recorded in 2017.
The value of the Non-Traditional Exports (NTEs) earnings increased by 30 percent from K18 billion in 2017 to K 23.4 billion in 2018. The top 10 NTEs were: sulphuric acid; articles of stone and other mineral substances; bullion semi-manufactured forms; electric energy; tobacco; sulphur; portland cement; raw cane sugar; stamp impressed paper, check forms, banknotes, postage and revenue stamps; and manganese ore and concentrates. The value of these top 10 NTEs collectively accounted for 41 percent of the total NTEs value in 2018.
The increase in NTEs earnings can be attributed to increased focus on growing the number of entities that are engaged in Non-Traditional Exports, with the number of exporting entities increasing to 2,343 in 2018 from 2,265 enterprises in 2017.
The Major Markets for the NTEs was the SADC and COMESA region at 67.9 percent and 53.4 percent, respectively. The major NTEs comprised: sulphuric acid; maize, excluding seed for sowing; raw cane sugar; portland cement; tobacco, partly or wholly stemmed or stripped; gold, including gold plated with platinum; wire of refined copper; cobalt oxides and hydroxides; and articles of cobalt.
4.8 Domestic Trade and Competition
4.8.1 Competition and Consumer Protection Tribunal During the year 2018, the Tribunal continued to hear appeals and applications emanating from the decisions of the Competition and Consumer Protection Commission (CCPC). Parties who are aggrieved by a decision of the Commission have the right to file an appeal before the Tribunal, pursuant to Section 60 of the Competition and Consumer Protection Act, No. 24 of 2010 and may also indicate reliefs sought, if any.
During the review period the Tribunal handled about 46 appeals and applications, of which, twenty (26) were new appeals and applications and the remaining twenty (20) matters were those brought forward from the previous years. Of the total 46 appeals and applications handled in 2018, 91.3 percent emanated from Lusaka Province, 4.3 percent from Copperbelt Province and 2.2 percent each from Central Province and Southern Province. In terms of sectors, most cases emanated from the retail business, information communication, insurance, agro-processing, technology and automotive and education sectors. Further, 47.8 percent of the total 46 appeals/applications were competition related, whilst 52.2 percent were consumer related.
2018 Annual Report Page 15 4.8.2 Product Safety, Standards and Quality The Ministry engaged the Zambia Bureau of Standards and the Zambia Compulsory Standards Agencies regarding conducting of random tests on some imported Mazoe Drink to ascertain the product standard and quality compliance as stipulated in the National Guidelines and prescribed standards. It was noted that the Preliminary Report showed that the Mazoe was fit for consumption and had met all key safety and quality requirements as prescribed in the Zambian National Standard for Fruit Flavoured Drinks.
Arising from public media reports regarding unscrupulous practices by some companies engaged in the production and packaging of potable or treated bottled water, the Zambia Metrology Agency undertook compliance inspections in Choma, Chipata, Ndola, Kitwe and Lusaka. The inspections were carried out at production plants and retail outlets in April 2018.
The Agency took a corrective measure by suspending the manufacture, supply and sale of pre-packaged potable water of large denominations of 18.9L, 20L and 21.8L for a period of 60 days. The Agency further gave a 48 hour ultimatum to manufacturers, suppliers and sellers to recall bottled water in the said denominations. In May 2018, the Agency undertook inspections on twenty-two (22) sites which resulted in nine (9) of the manufacturers having their suspensions lifted, and two (2) failing their assessments, while eleven (11) manufacturers of bottled water had fulfilled all the regulatory requirements. The twenty (20) compliant companies were authorised to manufacture, package, supply and trade in potable water packaged in 18.9, 20L and 21.8L container sizes.
4.9 Trade Promotion i. Agriculture and Commercial Show. The Ministry successfully exhibited at the 2018 Agriculture Commercial Show Zambia (ACSZ) under the theme “Sustainable Economic Development” alongside its Statutory Bodies and Projects. The Show was graced by His Excellency, Mr. Edgar Chagwa Lungu, President of the Republic of Zambia.
ii. Dubai 2020 Expo In preparing for the Dubai 2020 Expo, Zambia signed the participation contract with the United Arab Emirates Government. Further, the selection of the pavilion design was finalised and the Expo organisers will do the construction at no cost.
iii. China International Import Expo (CIIE) The Ministry led a delegation to the first ever China International Import Expo (CIIE) held in Shanghai, China. Through the CIIE, Letters of Intent for $75 million per annum for Pork Exports, $10 million for Cashew Nuts and $35 million were signed. The actualization of exports is expected to be implemented in 2019.
iv. Proudly Zambian Campaign To promote local products, the Ministry through the Zambia Association of Manufacturers (ZAM) has been working with the private sector to promote the buying and use of Zambian products. During the review period, the Application Model and Logo for the Proudly Zambian Campaign was developed and launched during the 'Proudly Zambian' Expo in November, 2018 held under the theme “think local first”. ZAM has been spearheading operationalisation of the campaign and encouraging the local businesses to start applying for the usage of the Proudly Zambian Campaign logo.
Page 16 2018 Annual Report v. Market Access by local Manufacturers in Supermarkets The Ministry undertook a Domestic Trade Survey in Lusaka, Southern and Copperbelt Provinces with the purpose of determining the challenges faced by local firms in accessing markets for their products in most supermarkets. The findings revealed that the criteria for selecting suppliers was not readily available and conditions set by supermarkets were not very easy to meet. The study also showed that the local firms had limited information about export markets and policies that promote the growth of MSMEs. Further, the study revealed that supermarkets had challenges with the quality and packaging of locally produced products as well as inconsistency by suppliers to meet contractual obligations. On the basis of the findings of the studies the main recommendations included: the need for the Local suppliers/MSMEs to ensure that their products are certified by ZABS in order to meet the local and international standards; and Supermarkets need to make information available to the suppliers and the general public on the criteria and conditions for selection of products that are put on the shelves. This would enable the MSMEs to effectively utilise the available market opportunities in the supermarkets.
4.10 Intellectual Property Rights During the period under review the Ministry sent a number of World Intellectual Property Organisation note verbal on IP notifications and meetings to PACRA for consideration and information. The Ministry issued two Public Notice through Zambia Reprographics Right Society (ZARRSO) directing all institutions and business entities who in their operations made or cause reproductions of copyright protected works to obtain Copyright Reproduction Licenses from ZARRSO to legalize the copying to extents permissible under the license in accordance with the law. The other public notice was issued through Zambia Music Copyright Protection Society (ZAMCOPS), directing all music users and business entities, who in their operations use copyrighted music, to obtain Music Copyright Licenses from ZAMCOPS to legalize the usage of the music. This is aimed at promoting innovation as the innovators and would be able to benefit from their works through collection of loyalties.
4.11 Formalization of Informal Sector Trade The Simplified Registration System (SRS) was developed to capture trade and related statistics in the informal sector. It was piloted in Lusaka and Livingstone as well as the Copperbelt Province with a view of obtaining a better understanding of the informal sector dynamics including other challenges affecting traders in the aforementioned markets. The Pilot also revealed that the system needed further improvement and harmonized with other informal sector registration systems. The Ministry has since been working with relevant stakeholders such as ZRA and NAPSA to harmonize their registration systems with the SRS.
4.12 Trade Facilitation and Expansion During the period under review a number of interventions were undertaken to enhance regional and international trade. Notable developments included the following:
i. One Stop Border Posts The implementation of the One Stop Border Posts (OSBP), at each border post was at different levels as follows: § The Nakonde OSBP has been under pilot since, 2017. Unsolicited proposal for the upgrade of the Nakonde Border Post to have a modern Truck Park and a Trade Centre was under consideration through a PPP arrangement, which if implemented will facilitate for smooth traffic flow and decongest the border; § The Chirundu OSBP, has been operationalised but only the passenger terminal is working as an OSBP. The Commercial Traffic is not yet an OSBP as the ASYCUDA systems has not yet been
2018 Annual Report Page 17 interfaced. Works with Zimbabwe are underway and the models to share the ASYCUDA data have developed. Passenger Clearance time has been reduced from 5 days to within a day; and § The bilateral agreements for the Livingstone/Victoria Falls OSBPs was signed.
ii. Formalizing of Small-Scale Cross Border Trade The Ministry continued its efforts in enhancing and formalizing trade flows for small-scale cross border traders. The Ministry facilitated meetings between stakeholders and the International Trade Center (ITC) to discuss implementation of selected activities for the Cross-Border Trade Initiative programme aimed at facilitating small-scale trade across borders of targeted countries. Among the issues discussed were increasing security and higher incomes for small-scale cross-border traders, and increasing small-scale cross-border trade flows in the COMESA/Tripartite region, leading to higher revenue collection for governments at targeted borders. The formalization was done through institutional capacity building and better data collection and monitoring.
The country report on e-Trade rapid assessment on Zambia was launched during the first Africa e- Commerce Week held in Nairobi, Kenya in December, 2018. The outcome of the meeting was that Zambia needs a comprehensive e-Commerce Strategy. The Zambian Information and Communication Technology Agency (ZICTA) in conjunction with the local authority, needed to accelerate the Street Naming and House Numbering Project to facilitate easy location of places. This is considered vital in facilitating delivery of traded products, especially through e-Commerce.
iii. The Common Market for Eastern and Southern Africa (COMESA) The Ministry participated in the Twentieth COMESA Heads of State and Government Summit which was held at Mulungushi International Conference Centre in Lusaka from 18th to 19th July 2018. The Twentieth Summit was historic in that the Summit brought in the first female Secretary General, Ms. Chileshe Mpundu Kapwepwe and marked the end of tenure of office of Mr. Sindiso Ngwenya after serving the organization for three and half decades. It was at this Summit that the Common Market expanded from 19 to 21 Member States. COMESA brought back a founder member, Somalia, and the other new member was Tunisia.
Further, COMESA and EU signed an agreement to launch the €53 million trade facilitation project in which the Nakonde and Mwami-Mchinji borders are earmarked to benefit from this project.
iv. Southern African Development Community (SADC) The 38th Summit of SADC Heads of State and Government was held from 17th to 18th August, 2018 in Windhoek, Namibia under the theme: Promoting Infrastructural Development and Youth Empowerment for Sustainable Development. The Ministry participated in the discussions on issues relating to regional integration such as the performance of the SADC Economy, implementation of the SADC Industrialisation Strategy, and Continental Integration among others.
During the 37th Trade Negotiation Forum – Services meeting held from 5th to 9th November, 2018 in Johannesburg, South Africa, the Ministry prioritized strengthening of service related infrastructure aimed at creating conditions for attracting investment and build capacity in the services sector.
The Ministry also validated the National Implementation matrix in December, 2018. The matrix gives Zambia's position on the ratification of the SADC Trade in Services Protocol as per the directive of the Committee of the Ministers of Trade.
Page 18 2018 Annual Report v. COMESA-EAC-SADC Tripartite Free Trade Area (TFTA) To effectively participate in regional trade discussions that secure market access for products of export interest to Zambia, the Ministry participated in a series of meeting concerning the Tripartite Free Trade Area (TFTA) Agreement. The Ministry will engage the public and private sectors on the possible ratification of the TFTA Agreement. COMESA, SADC and the East African Community (EAC) Member States were given up to April, 2019 to ratify the TFTA Agreement. Other than creating the market access, the TFTA will address the challenge of overlapping membership.
vi. African Continental Free Trade Area (AfCFTA) Zambia was part of the launch of the African Continental Free Trade Area (AfCFTA) which was held on 21st March, 2018. Zambia signed the declaration launching AfCFTA at the 10th African Union (AU) Extraordinary Summit.
To ensure favorable modalities for trade in goods and services, the Ministry participated at the 7th Meeting of the AU Ministers of Trade which took place from 13th to 14th December, 2018 in Cairo, Egypt. The main outcome of this meeting was adoption of 7% and 3% as the parameters for categories of products that will be designated as sensitive and excluded products. However, the Group of Seven Countries made a reservation to conclude their discussions on modalities for trade in goods on the margins of the January, 2019 Summit. The meeting also agreed to the principle of the minimum threshold for liberalization of trade in services.
vii. The African Caribbean, Pacific (ACP) Group of States To ensure that Zambia maintains and expands existing preferential market access into the EU market, the ACP Ministerial Trade Committee was held from 24th and 25th October, 2018 in Brussels, Belgium. The major issues discussed during these meetings related to Progress made on ACP-EU trade relations post 2020; status of implementation of economic partnership agreements, developments related to EU trade relations, including the status of UK's exit from the European Union; trade capacity building programmes and the EU list of non- cooperative tax jurisdictions, among others.
The Ministry took part in the 108th Session of the ACP Council of Ministers which discussed, among other issues, negotiations for a new ACP–EU Partnership Agreement, ACP agricultural value chains development, and dimensions of the ACP-EU Joint Parliamentary Assembly in the New Post Cotonou Agreement. Zambia, through the Ministry of Commerce, Trade and Industry, took part in the first ACP- EU Joint Ministerial Central Negotiating Group meeting which took place on 14th December, 2018. On the amendment of the Georgetown Agreement, Zambia will finalize reviewing the draft amendment of the Georgetown Agreement. The meeting also looked at the establishment of an information center in Equatorial Guinea.
viii. Bilateral Trade Agreements Subsequent to the signing of the Zambia-Angola Bilateral Trade Agreement on 21st January, 2016 in Luanda, and the Zambia-Democratic Republic of Congo Bilateral Trade Agreement in August 2015 in Lusaka, Statutory Instrument No. 74 of 2018 was issued on 21st September, 2018 by the Minister of Finance to facilitate implementation of the Bilateral Trade Agreements. The Government of the Republic of Zambia through the Ministry of Commerce, Trade and Industry notified its counterparts accordingly and requested for updates from the counterparts on how far internal processes had gone with regard to facilitating implementation of the Bilateral Trade Agreements.
2018 Annual Report Page 19 ix. Joint Permanent Commission Between Zambia And Zimbabwe The Ministry facilitated the 17th Joint Permanent Commission (JPC) Session that was held from 22nd to 23rd October, 2018 in Lusaka. Subsequent to the 17th JPC, a Technical Meeting at Chirundu was held on 13th December, 2018. Zambia and Zimbabwe reviewed the Chirundu implementation work plan aimed at addressing operational challenges at the Chirundu Boarder Facility. In addition to the Agreement which was signed between Zambia and Zimbabwe to establish the Victoria Falls – Livingstone One Stop Border Post, the two agreed on the operational manual for the Victoria Falls OSBP.
x. The World Export Development Forum (WEDF) The Ministry, in collaboration with the International Trade Centre (ITC), hosted the 18th Edition of the World Export Development Forum (WEDF) which was held from 10th to 12th September, 2018 in Lusaka, Zambia. The Forum attracted over 1000 local and international participants. During the Business to Business (B2B) meetings, WEDF provided a platform for exchanging business ideas between 35 local and 40 international companies.
The Zambian chapter of the She Trades was also launched during WEDF and an MoU, involving USD200, 000 was signed to funding activities for a pilot project. The She Trades aims to facilitate market access for Zambian women entrepreneurs at both regional and international level. 10 Women entrepreneurs out of the targeted 50 were linked to International Markets.
xi. Lobito Corridor Trade Facilitation Project The Lobito Corridor Trade Facilitation Project, funded by African Development Bank (AfDB) was launched. The project is aimed at accelerating growth in domestic and cross-border trade along the Lobito Corridor through the implementation of harmonized trade facilitation instruments, strengthening coordination of joint corridor development activities, and fostering effective participation of SMEs in value chains.
4.13 Business Linkage Programme The Ministry with other partners, continues to link growth oriented MSMEs to large markets. These MSMEs are supported with various Business Development Support (BDS) Services to accelerate growth and graduation. Some examples of market linkages and access in 2018 include the following among others: (i) Cassava Commercialization in Kalumbila and Mansa; Government has partnered with Premiercon Starch Ltd, Copperbelt Energy Corporation, CEEC, Kalumbila Mine, Ministry of Agriculture and Small Holder Farmers and Chinese Academy for Tropical and Agriculture Sciences (CATAS) in the commercialization of cassava and have, therefore, facilitated Market Access to Kalumbila Mine, Zambeef, initiated an MOU between CEEC and Premiercon Starch for capacity building and an MoU with CATAS for capacity building;
(ii) Pineapple Farming in Ikelenge and Mwinilunga; the Ministry has partnered with Shoprite, Pick and Pay and Choppies, Ministry of Agriculture and secured a market for pineapple farmers in Ikelenge and Mwinilunga to Shoprite, Pick and Pay; and Choppies. Further, ZDA has sensitised and facilitated clustering of farmers into cooperatives;
(iii) Horticulture; the Ministry through in partnership with International Labour Organisation, Ministry of Agriculture, NCCI, Shoprite, Pick and Pay and Choppies, DBZ, CEEC, ESAP, Musika, Kalumbila Mine, Lumwana and Kansanshi have engaged stakeholders in the development of an agribusiness value chain incubators in North-Western Province;
Page 20 2018 Annual Report (iv) Soya farmers ; The Ministry, through ZDA has been working with Copperbelt Energy Corporation, ILO, ESAP, IDE, Mpongwe Bulima Cooperative, Premier Greenview in the development of the soya beans value chain . 1,000 Soybeans smallholder farmers on the Copperbelt have been linked through cooperatives and aggregators including Mpongwe Bulima, Marsh Enterprise, Plexus Agro, Albion and Premier Green to the CEC Biodiesel Production programme.
(v) Groundnuts; Secured a market for Peanut butter processors of Chibombo Women Cooperative and Abundant Foods in Kitwe to Shoprite, Pick and Pay, Zero foods, Mpongwe Bulima Linking peanut butter manufacturers to raw material (groundnuts) producers and markets including Shoprite and Pick and Pay;
(vi) Milk processing; Assisted Kwashama Cooperatives by linking the company to Parmalat Market , provide capacity building training , linkages to feed and equipment suppliers and linkage to credit; and
(vii) Western Province Cooperative Symposium programme to link cooperatives to markets was organized in Mongu. It was the first of its kind and attracted 250 cooperators from different cooperatives.
4.14 Cooperatives Development i. Cooperative Registration During the period under review, the Ministry targeted to register 2,000 cooperatives out of which 1,901 were registered of which, 1,827 in agriculture, 36 in financial, 25 in mining, 5 in artisans, 4 in marketing, 1 in tourism, and 3 in transport. Further, 12 Cooperatives issued with certificate of Gold Mining in the mining sector. This is a clear indication of significant improvement towards diversification of cooperatives to the non-agricultural cooperatives from the traditional agricultural oriented cooperatives.
To reduce the cost of doing business in the context of people wishing to register cooperatives from Lusaka, the registration process is automated using the PACRA platform. Lusaka is already using the PACRA platform and plans are underway to roll out to other Provincial towns with Chipata and Kitwe the immediate towns under consideration as soon as logistics are made available. Table 5, shows the registered cooperatives in 2018 distributed by Province.
Table 5: Register ed Cooperatives – 2018
Province Agricultural Non-Agricultural Total Central 151 7 158 Copperbelt 155 6 161 Eastern 468 19 487
Luapula 44 0 44 Lusaka 141 27 168 Muchinga 116 0 116 Northern 115 2 117
North-Western 45 4 49 Southern 525 5 530 Western 67 4 71 Total 1827 74 1901
2018 Annual Report Page 21 ii. Cooperative Education and Training
During the period under review capacity building activities were conducted and included the following: a) Smallholder Productivity Promotion Programme (S3P) assisted the Ministry with funds to carry out sensitization on the value chain promotion in three (3) provinces of Zambia namely; Luapula, Northern and Muchinga Provinces. The first sensitization meeting was held in Chipata for the purpose of exposing staff on the Community Markets for Conservation (COMACO) value chains. Later, a series of sensitization meetings were held in specific provinces on the selected cooperatives earmarked to receive management support from S3P. The cooperatives were Kawambwa and Mbala District Cooperative Unions as well as Mbesuma and Chembe Malata COMACO cooperatives in Chinsali District. The Management support included employing a Manager and Book Keeper for each of the four (4) selected Cooperatives and pay them salaries for 12 months; b) The National HQ also collaborated with the Ministry of Labour to train ex-miners in the area of cooperative management. The trainings were held in Kabwe and Solwezi; c) The Resettlement Department under the Office of the Vice-President engaged the Ministry to train refugees earmarked for integration. About 30 cooperatives were trained in Maheba refugee camp in Solwezi and Mayukwayukwa camp in Kaoma; and d) The Ministry also collaborated with the Ministry of Agriculture under ESAPP to draft the capacity building guidelines.
iii. Cooperatives Inspection and Audit a) Inspections Selected District Cooperatives Union and primary cooperatives were inspected in Central and Copperbelt provinces with the view of appreciating the successes and challenges they are facing. Notably most cooperatives are operating at minimum capital levels and need to mobilize capital both internally (shares) and externally (grants, loans and others). The poor business performance of cooperatives had a negative effects on their governance in the sense that AGMs and other meetings where members participate in decision making were rarely held. Some cooperatives have been identified for deregistration in the districts but the cost of deregistration is a major impediment in actualizing this process. b) Arbitrations An arbitration of disputes was undertaken in some cooperatives notably Buntungwa MPCS in Chibombo District and Mwandi MPCS in Mwandi District. The process of arbitration for both cooperatives is yet to be finalized. There are many other cooperatives that are facing challenges in terms of management and governance and need to be visited, however, funds have been limited. Other issues that need arbitration are issues of land disputes and disposal of assets. c) Investigations (i) An investigation of North Western Province Cooperative Union (NWPCU) was done in April 2018 after concerns were raised by the Provincial Minister regarding the disposal of assets. A preliminary investigation was done and it was concluded that a follow up forensic audit investigation be undertaken.
(ii) Central Province Cooperative Union: following investigations into CPCU and the removal of the Board, the Manager sued the Registrar of Cooperatives in the High Court of Kabwe. The outcome of the court case was in favour of the Registrar. The Annual General Meeting was convened for the CPCU and a bonafide board was elected into office.
Page 22 2018 Annual Report iv. Cooperative Promotion Through Trade Related Facility (TRF) Project Under the Trade Related Facility (TRF) Project, a project funded by the European Union (EU) through SADC, a number of activities were lined up which include the following; a) Formalisation of illegal mining activities in Petauke and Rufunsa Districts: So far, thirteen (13) Mining Cooperatives have been formed from the initial target of four (4). Three of these cooperatives are in Rufunsa while ten (10) are in Petauke. b) Capacitating the formed Mining Cooperatives with modern equipment: The Project has also procured key modern equipment which will be handed over to the Mining Cooperatives. Among the equipment procured, based on the recommendation of Ministry of Mines include; a) Four (4) Gold Detectors; c) One (1) Microscope; C) Two (2) Shaking Tables. The Project is also in the process of procuring Four (4) Sluice Boxes and (12) Panning dishes. The procured equipment is expected to be officially handed over in March 2019. c) Geological Mapping: The Project supported the Ministry of Mines, through the Geological Survey Department (GSD), to undertake geological audits in Petauke and Nyimba Districts. The Report confirms traces of gold deposits in Petauke District with Nyimba recording no traces. d) Development of a Model By-Law (Templet): The By-Law that existed was predominately focused on Agriculture. Therefore, a template of the by-law was redesigned to also focus on Mining. Other than the aforementioned interventions, the Ministry also lobbied for Technical support to strategically deal with other exigencies in the Mining sector. For example, the Ministry with technical support from the EU funded TradeCom II Project, managed to develop an export diversification strategy for gold and gemstones sub-sector. The Strategy, which is in the hands of the Ministry of Mines, once finalised and implemented will be key in further promoting production and trade. e) Presidential Milling Initiative (Solar Powered Mills) Initially a total of 2000 solar mills were expected to be installed but were reduced to 1583, of which 1,553 for maize and 30 for rice. The reduction was due to; the funds available being USD 170 Million instead of the initial USD200 Million, upgrade of the Solar Mills to the 2nd and 3rd Generation, and also due to the addition of two (2) Provincial Service Training Centres. As at end of 2018, a total of 1,255 Solar Milling Plants were installed and handed over t o cooperatives. Each installed Solar Milling Plant creating at least 3 jobs, which translates to a total of 3,765 jobs created.
4.15 Industrial Development i. Bilateral Investment Treaties - State to State The Ministry facilitated the signing of one Bilateral Investment Treaty with Turkey and is in the process of finalising the negotiations with Japan. ii. SADC/COMESA Council of Ministers of Industry Meetings: a) The Ministry facilitated the SADC Meeting on Copper Beneficiation, Energy Storage/Batteries and Mining Goods/Services Value Chains from 8th to 10th October, 2018 at Radisson Blu hotel in Lusaka, Zambia which recommended a number of key actions that would form a roadmap towards the development of the three value chains, inclusive of the realisation of the identified investment projects; b) The Ministry participated in the SADC Industrial Development Forum and the SADC Council of Ministers of Trade meeting which recommended the domestication of the SADC Industrialisation Strategy and the development of the SADC National Indicative Costs for the
2018 Annual Report Page 23 rollout of the Strategy; and c) The Ministry facilitated the development of the SADC National Indicative Costs which was attended by various line Ministries, Chambers of Mines, Chambers of Industry and other private sector players. A draft Indicative Cost was developed. iii. UNIDO Industrial Development Programmes Meeting (a) The Ministry attended the 46th Session of the UNIDO Industrial Development Board. During the meeting, it was announced that the UNIDO Secretariat had agreed in principle for four (4) new Partnership for Country Programme countries of which Zambia is one. (b) The UNIDO Country Programme Framework Programme Implementation Unit (PIU) was established. The PIU Coordinator has since been engaged and started work; and (c) His Excellency, Mr. Edgar Chagwa Lungu, President of the Republic of Zambia was awarded with a medal of recognition as a Champion of the Third Industrial Development Decade for Africa (IDDA3) by the United Nations Industrial Development Organisation. This was in recognition of Zambia’s Industrialisation Agenda based on enhanced inter and intra continental partnerships.
iv. Bilateral and Multilateral Meetings The Ministry attended the following meetings where it promoted both inward and outward investments and strengthened bilateral and multilateral relations. a) ECOSOC Forum from 23rd to 26th April, 2018 in New York, USA; b) All Africa Leather Fair from 8th to 10th June, 2018, in Addis Ababa, Ethiopia; c) India – South Africa Business Summit from 29th to 30th April, 2018 in Johannesburg, South Africa; and d) The Japan – Africa Public – Private Economic Forum held from 3rd to 4th May, 2018 in Johannesburg, South Africa.
v. Industrial Monitoring and Evaluation The Ministry conducted industrial monitoring and evaluation of enterprises in priority sectors with a view to measure the effectiveness of industrial policies and to strengthen understanding around the many multi-layered factors underlying industrial performance and growth. In all these undertakings, the profiles of the Companies visited were raised business bottlenecks such as Branding and Packaging were addressed. vi. Development of Multi-Facility Economic Zones and Industrial Parks a) Lusaka South Multi-facility Economic Zone (LS-MFEZ) · Five (5) companies were in operation with a combined actualized investment of USD 64.8 Million, with over 288 jobs created. This is in the Malt, Medicines, Fertilizer and Tobacco Sectors. Further, 11 Companies were under construction with USD 235.9 Million investment and 996 jobs created. This brings the total actualized investment as at end of 2018 to USD 300.7 Million and 1,284 actualized jobs. · A total of 34 applications for companies were received in 2018, out of which 14 companies' applications have been approved with pledged investment levels of USD 241.5 Million.
b) Chambishi Multi-Facility Economic Zone So far 40 companies, with investment valued at USD2.2 billion worth of investment and 8,560 jobs created as at end of 2018.
c) Lusaka East Multi-facility Economic Zone (LE-MFEZ) 13 companies are under operation with an investment of about USD45.4 Million and 398 jobs created as at end of 2018.
Page 24 2018 Annual Report d) Roma Industrial Park Projected Investment is USD24.1 Million. As at end of 2018, actualized investment was at USD21.0 Million, with actualized employment at 646.
Besides the already existing MFZEs, Government has continued promoting the establishment of new MFEZs which include:
a) Kafue Iron and Steel Economic Zone, the Commissioner of Lands has identified 1,000 hectares of land offered to ZCCM-IH the co-developers of the zone in Mphande Forestry in Kafue for development of the Economic Zone. Further, ZCCM-IH and UMCIL are now discussing modalities of establishing a Special Purpose Vehicle;
b) Kalumbila MFEZ, The Commissioner of Lands has offered 80 hectares of land to Kalumbila Town Development for establishment of the zone. The developer is now processing Title Deeds and the Master Plan which will be submitted to ZDA for declaration as Economic Zone; and
c) Jiangxy Corporation Limited has expressed willingness to develop an MFEZ in Chibombo. A Ground breaking Ceremony was conducted by His Excellency Mr. Edgar Chagwa Lungu, President of the Republic of Zambia. The MFEZ will cover 600 hectares of land, with an initial investment of 300 million U.S. dollars in the first phase which will create more than 5,000 jobs. vii. Manufacturing Sector Development During the period under review, the Ministry facilitated the following programmes:
a) Construction of the Industrial Yards for Solwezi, Ndola, Kasama, Mongu and Chipata commenced and they are on schedule to be completed in 2019. Land was acquired a little later for the industrial yards in Kitwe, Kafue and Mansa and construction of those is expected to be completed in 2020. At completion, the Industrial Yards will result in the creation of more than 4,000 light-manufacturing jobs in the target Districts.
b) The launch by His Excellency Mr. Edgar Chagwa Lungu, President of the Republic of Zambia of: § 60Million USD Global Industries Soya Bean Crushing Plant, creating 300 direct jobs and 1,500 indirect jobs; § 200Million USD Pharmaceutical Factory at Lusaka East MFEZ; and § 200Million USD China National Building Material – Zambia Plant (Simona Cement) creating 400 direct jobs and once fully operational will create 2,500 jobs for Zambians; c) The commissioning by Hon Christopher Yaluma, MP, Minister of Commerce, Trade and Industry; § 30Million USD Zambia Breweries expansion project of the packaging line on the side lines of the 58th Zambia International Trade Fair; and § 50Million USD ME Long Teng Grinding Media (Z) Limited in Kalumbila aimed at manufacturing mill balls for the mining industry. d) With the support from COMESALLPI, trained 23 artisans in vegetable tanning and 28 artisans in foot wear design. viii. Implementation of National Quality Policy The Ministry in collaboration with ZABS and ZATP facilitated the 3rd Zambia Annual Quality Award, which saw different companies being awarded in the following categories for both Large and SMEs: Company of the Year; Product of the Year; Exporter of the Year; Service of the Year; Individual Media Awards; Zambian Agro Exporter; Zambian Female Agribusiness Entrepreneur of
2018 Annual Report Page 25 the Year; Zambian Young Entrepreneur of the Year; and Zambian Agro Supporting Company of the Year in which had no entries.
4.16 Information Provision and Dissemination Apart from taking advantage of a number of exhibitions and shows as platforms for information provision and dissemination to the public, the Ministry also held seven press briefings on a number of topics, twelve press releases on key matters, nine media tours where both the Honorable Minister and Permanent Secretary were in attendance and finally the production and airing of three documentaries. During the period under review, the Ministry continued to provide and disseminate trade and industrial information to both internal and external users as and when requested. The information provided was mainly on trade, industrial and commercial sectors.
The Ministry also published the MCTI Newsletter highlights on the key activities undertaken by the Ministry. Additionally, the Ministry published an internal Statistical Bulletin to inform on the analytical statistical trend analysis on the performance of the commerce and trade sectors. Other notable activities include the launch of the 2018-2021 Ministerial Strategic Plan and balanced score card in May 2018. The National Industrial Policy and National Investment Promotion Strategy were also launched at the same event.
Further, the Ministry undertook sensitization workshops in Kafue District during the international women's day and 16 days of Activism Against Gender Based Violence where a Cooperative was financially empowered to expand their business.
Additionally, a total of 700 brochures were distributed to the public during shows and International Cooperative Days. The brochures that were printed included the following: Benefits of Cooperatives, Cooperative Governance, Savings and Credit Cooperatives, Cooperative Identity and Cooperative Formation and Registration.
4.17 Annual Reporting Requirements In fulfilling, the reporting requirements of the Seven National Development Plan (7NDP) as well as the 2018-2021 Ministry Strategic Plan, the Ministry prepared Quarterly and Annual Monitoring and Evaluation Reports, and submitted to Ministry of National Development Planning for further reporting, through the relevant 7NDP Clusters. The Ministry further, provided an input into the 2018 Economic Report that provide an analytical report on the country's economic and social performance.
The Ministry also prepared the 2017 Annual Report during the first quarter of 2018. The Report was submitted to the National Assembly and Cabinet Office.
4.18 Events and Cross Cutting Issues The Ministry participated in commemorating the following events, among which included cross cutting issues during the period under review: a) International Day of Cooperatives; b) International Credit Union Day; c) World Standards Day; d) Public Service Day; e) Labour Day; f) International Women's Day; g) Youth Day; h) World Consumers Rights Day;
Page 26 2018 Annual Report i) World Intellectual Property Day j) International Day for Persons with Disabilities; k) 16 Days of Activism Against Gender Based Violence; and l) International AIDS day The Ministry with its Statutory Bodies also undertook sensitization workshops in Kafue District during the international women's day and 16 days of Activism Against Gender Based Violence.
5.0 DONOR FUNDED PROJECTS IN THE MINISTRY During the period under review, a number of donor funded projects were operational to support programme implementation in the Ministry. Below are the specific Projects and some of the major achievements/milestones. a) Enhanced Integrated Framework The overall objective of Zambia Enhanced Integrated Framework (EIF) Tier 1 National Implementation Unit Sustenance and Capacity Enhancement (NIUSCE) Project is to reinforce and sustain capacity of MCTI to effectively plan, implement and coordinate the Aid for Trade initiatives in Zambia. Specific objectives of the Project are to: support MCTI effectively formulate and implement trade related policies and strategies; assist Zambia effectively mainstream trade into her National Development Plans and strategies; contribute to ensuring coordinated delivery of trade-related technical assistance by donors and implementing agencies in Zambia; and assist Zambia secure resources in support of initiatives that address the updated Diagnostic Trade Integration Study (DTIS) Action Matrix priorities.
The EIF Tier 1 NIUSCE Project is now in its second phase and operations commenced in late August 2016. The focus of the Project is institution capacity building for the designated Main Implementing Entity (MIE), the Ministry of Commerce, Trade and Industry, and other National Implementation Arrangements (NIAs) as well as the mainstreaming of trade in institutional and sectorial development plans and strategies. The Project builds on Tier 1 Phase I which was implemented from April, 2010 to 31st July, 2014.
The Project has generally achieved the project objectives on all the outcomes. The Project interventions have supported MCTI to effectively formulate and implement trade related policies and strategies, notably the Export Strategy and Trade Policy. Working with local institutions, the Project contributed to building institutional capacity for trade policy analysis through training ministry staff on trade policy analytical tools. For sustainable human resource development, the Project has facilitated the introduction of the trade policy and development courses at public universities to equip students with skills in trade mainstreaming, formulation of policy and strengthening trade negotiations, among others.
The Project has also assisted with regard to ensuring coordinated delivery of trade-related technical assistance to Zambia, including facilitating the establishment of the GRZ-Donor Platform, which addresses cooperation around trade related matters and leverages additional resources to implement the priority actions in the updated Diagnostic Trade Integration Study (DTIS) Matrix. Through identified gaps, cooperating partners have been able to identify possible areas for support.
b) Zambia Agribusiness and Trade Project (ZATP) The Zambia Agribusiness and Trade Project (ZATP) is a project of the Government of the Republic of Zambia supported by the World Bank and implemented by the Ministry of Commerce, Trade and Industry (MCTI). The Project was effected in July 2017 and officially launched on 4th October 2017. The project will be implemented over a period of five years, through to 2022. ZATP comprise three
2018 Annual Report Page 27 components: (1) Market Linkages in Agribusiness; (2) Strengthening the Regulatory and Institutional Framework for Agribusiness and Trade; and (3) Project Management and Monitoring & Evaluation. The Development Objective of the project is to contribute to increased market linkages and firm growth in agribusiness. Major achievements under each project component included:
Component 1a: Market Linkages in Agribusiness § Two Phases of Outreach activities were conducted. The first phase in 5 initial regions Lusaka, Central, Copperbelt, Eastern and Southern provinces. Specifically, in Lusaka, Chipata, Ndola, Livingstone and Kabwe districts. The second phase outreach activities were conducted in Lusaka, covering 3 districts Chongwe, Chilanga and Kafue. The project reached out to at least a total of 1,238 farmers in 128 cooperatives both at district and community level with a total of four off-takers participating.
The aim of the outreach activities was to orient key stakeholders (PPAACs), Producer Organizations and buyers and other stakeholders on how the project intends to build Productive Alliances in Zambia.
§ The first round of Call for Proposals covering Lusaka and Southern Province was issued following the conclusion of outreach activities in the three (3) provinces. A total of forty one (41) out of forty five (45) concepts received from Lusaka and Southern provinces were developed into full proposals. The next stage is to support the Producer Organisations to develop business plans. The implementation of these plans is scheduled for 2019.
§ A synopsis of the value chains so far for Lusaka and Southern province indicates that the majority (46%) of POs in Lusaka are in Horticulture (Vegetables and fruits) followed by Poultry (15%) while 42% (majority) of the POs in Southern region are in dairy value chain followed by Horticulture as indicated in figure 1 and 2 respectively.
Sub component 1b: SME Supplier Development Program § In developing initial beneficiaries of Marketconnect, the project participated in the World Bank funded Bootcamp which resulted in 10 SME winning different prizes. The Bootcamp winners are earmarked to be the first beneficiaries of MarketConnect. Subsequently, nine (9) out of the 10 SMEs were sponsored and supported during the Zambia International Trade Fair in Ndola, Zambia.
§ Recruitment of the MarketConnect Consultant was in progress during the reporting period but is expected to be finalised in 2019.
Component 2: Strengthening the Regulatory and Institutional Framework for Agribusiness and Trade § Focus was on engaging beneficiary Statutory Bodies on Disbursement Linked Indicators (DLIs) particularly the verification process and supporting Statutory bodies in coming up with action plans. § 11 out of a total 13 DLIs had been completed by end of 2018. The attainment of 11 DLIs triggered disbursements to all beneficiary Statutory Bodies amounting to USD2.7 Million.
c) Great Lakes Trade Facilitation (GLTF2) Project The Great Lakes Trade Facilitation (GLTF2) Project was operationalized in 2018. GLTFP2 is expected to cover Zambia, Burundi, DRC, and Tanzania with COMESA playing a coordinating role like the first project. In Zambia, the project will be comprised of four components namely: improving core trade infrastructure and facilities in the border areas; implementation of policy and procedural reforms and
Page 28 2018 Annual Report capacity building to facilitate cross border trade in goods and services; improving service delivery by agencies at the border/port and citizen engagement; and implementation support, communication, monitoring and evaluation. In other words GLTF2 Project seeks to accelerate growth in domestic and cross-border trade along the Lobito Corridor through the implementation of harmonized trade facilitation instruments, strengthening coordination of joint corridor development activities, and fostering effective participation of small and medium enterprises (SMEs) in value chains. The GLTF is a 5 years project which cost USD79 million.
During the period under review, the Project was under a Preparation Stage, with the following preliminary stages undertaken: initiated the procurement plan, following through with all the required internal approvals; PIU Staff underwent training of World Bank procedures, processes and systems; Developed the Terms of Reference (TOR) for Feasibility; Environmental Impact Assessment (EIA); Master-Plan Designs and Baseline studies. Project Steering Committee (PSC) adopted the ToRs with minor adjustments; and Expression of interest (EOI) for Feasibility and Study and Masterplan designs was advertised in the Print media, which 19 (nineteen) expression of interest were received out of which six firms were shortlisted.
d) Skills Development and Entrepreneurship Project The Skills Development and Entrepreneurship Project-Supporting Women and Youths (SDEP-SWY) is financed by an ADB Loan of USD 30 Million complemented by a USD 5.25 Million in-kind contributions from Government of the Republic of Zambia (GRZ). The Project Goal is to contribute to job creation, promotion of gender equality and poverty reduction in Zambia while supporting in particular women and youth through skills development and entrepreneurship. To achieve this goal, the project shall facilitate the construction of 8 Industrial Yards in 7 provinces and provide support to Cassava Value Chain development in target districts of Mansa in Luapula Province, Kasama in Northern Province and Solwezi in North Western Province, with market development interventions extending to Lusaka and Copperbelt Provinces as well.
The Specific Project Objectives include: § To enhance MSMEs competitiveness through the development of industrial clusters in the light manufacturing subsector; § To strengthen rural smallholder farmer cooperatives and enterprises in the cassava value chain through stimulation of markets for commercialization and solutions to supply side constraints; and § To strengthen institutions for the enhancement of economic opportunities. The achievement of all objectives shall be pursued through the mainstreaming of gender equality at all levels and will contribute to the implementation of the Industrialization and Job Creation Strategy.
During the review period, the construction of the Industrial Yards for Solwezi, Ndola, Kasama, Mongu and Chipata Districts commenced and are on schedule to be completed by August 2019. Land was acquired a little later for the industrial yards in Kitwe, Kafue and Mansa and construction is expected to be completed in the first half of 2020. At completion, the Industrial Yards will result in the creation of more than 4,000 light-manufacturing jobs in the target Districts.
The project identified tertiary cassava seed multipliers of which over 50 percent were women. The project anticipates that the yields of the farmers will increase from the average 5 tonnes per hectare to 20 tonnes per hectare. Additionally, the draft National Cassava Strategy was validated and scheduled for launch in 2019.
2018 Annual Report Page 29 e) Lobito Corridor Trade Facilitation Project (LCTFP) The Ministry, in collaboration with the African Development Bank (AfDB), launched the Lobito Corridor Trade Facilitation Project (LCTFP) in 2018, which will run for a period of 3 years with a budget of USD 8.4 million. The project seeks to empower SMEs in the agriculture sector with basic equipment for value addition, reduce gender inequality by empowering women involved in trading and entrepreneurship, and empower border agencies with enhanced capacity for service delivery around the Lobito Corridor. Specifically, the Lobito Corridor Project Aims to: • Accelerate Growth in Domestic and Cross Border Trading via Trade Facilitation Instruments. • Strengthen Coordination of Joint Corridor Infrastructure. • Facilitate effective participation of Small and Medium Enterprises in the value chains. • Mainstream Gender and increase/consolidate participation of women in Economic activities. • Promote the Lobito Corridor as a short route for mining firms in DRC and Zambia
During the review period the following progress was made against the Plan, largely to do with preparatory stage which include; preparation of the Terms of Reference (ToRs) and procurement plan and processes such as Expression of Interest (EoI) and issuance of Request for Proposal (RFP).
f) United Nations Industrial Development - Zambia Country Programme (UNIDO) The United Nations Industrial Development Programme (UNIDO) Country Programme in Zambia is designed to enhance UNIDOs support to the development and implementation of a road map towards sustainable and inclusive industrial development to the Seventh National Development Plan (7NDP). The UNIDO-Zambia Country Programming Framework (2017-2021) focuses on areas with high growth for job creation, women and youth empowerment, economic diversification and increase in exports. The focus areas include; (i) Promotion of Industrial Clusters (ii) Agribusiness Development (iii) Enhancement of Industrial Statistical Capacity (iv) Investment Promotion (v) SME promotion (vi) Energy and Environment. During the review period, the country programme was at inception stage and focused on Resource Mobilisation to develop projects that will implement activities to support the outlined components in the UNIDO-Zambia Country Programming Framework. In addition, UNIDO is supporting the Zambian Government to position the country on the industrial path by becoming a Programme for Country Partnership (PCP) and champion the 3rd Industrial Development Decade for Africa (IDDA3). g) SADC Trade Related Facility Project The SADC Trade Related Facilitation (SADC TRF) Project focuses on reducing customs duties and other barriers to trade on imported products amongst SADC Member States and to attain higher level of compliance and implementation of commitments made thereby contribute towards sustainable development in the country.
At regional level the TRF Project is being implemented with the aim to assist Zambia implement commitments made under the SADC Protocol on Trade (SPT). The main objective is to attain higher level of compliance and implementation of commitments made thereby contribute towards sustainable development in the country. At National Level, the specific objectives include the following; § To contribute towards industrial development of selected sectors § To promote trade facilitation through effective customs cooperation and implementation of the e-certificate window and reducing the gap in knowledge on rules of origin; § To ensure domestic preparedness for services trade liberalisation under SADC;
Page 30 2018 Annual Report The specific areas of support include; Enhancing customs cooperation, Technical Barriers to Trade, Sanitary and Phytosanitary Measures, Rules of Origin, Trade Facilitation, Industrial Development, Trade Promotion and Development and Trade in Services . Major achievements during the review period include those related to Technical Barriers to Trade (TBTs) and Sanitary and Phytosanitary (SPS), such a Procurement of Bulking Tanks and stand-by generators; Procurement of Mobile Testing Equipment; Development of training modules; and Evaluation of e-certification project for plant and plant products for Zambia Agricultural Research Institute (ZARI). a) Regional Integration Capacity Building Project (RICB) The Regional Integration Capacity Building project phase II is an initiative which has been developed within the context of the Regional Integration Support Mechanism (RISM) which is part of the COMESA Adjustment Facility (CAF). Drawing resources from the 10th European Development Fund (EDF), the RICB II is implemented by the Ministry of Commerce, Trade and Industry (MCTI) in Zambia. RICB II builds on the gaps identified in RICB I and is therefore oriented towards capacity building and policy reforms and are sectoral with focus on those areas that were identified in RICB I as critical to unlocking the growth potential of the focus sectors.
Zambia, being a member state of COMESA and a key devoted player in the regional integration agenda, exemplified through her participation in the COMESA FTA, the Customs Union discourses and the ensuing Tripartite Free Trade Area (T-FTA), was eligible to receive project support under the RISM COMESA facility for RICB II. The total support to Zambia under RICB II is Euro 1,008,460.00.
The RICB II project is anchored on one overall objective and a specific objective as elucidated below: · Overall Objective; to contribute to the acceleration of Zambia's participation in regional economic integration. · Specific Objective; to contribute to building the productive capacities of SMEs in selected value chains and improve the business environment of the economy.
6.0 CHALLENGES Despite the successes of the Ministry during the period under review, a number of challenges were faced which included but were not limited to the following: 1. Inadequate funding from the Treasury to implement programmes and pay out-standing arrears; 2. Overall there is insufficient means of transport making it difficult to effectively undertake activities and this is especially acute in the districts; 3. Inadequate staffing levels; and 4. Inadequate ICT equipment. 5. The Cooperative College has dilapidated and inadequate office buildings as well as poor student accommodation.
7.0 RECOMMENDATIONS Ø The Ministry will pursue innovative ways of financing development, through enhanced cooperation with the private sector and development financing mechanisms; Ø Need to implement decentralised monitoring and evaluation systems by taking advantage of existing lower level structures (Districts and councils) to conduct joint monitoring of programmes and projects to save on costs and promote ownership; Ø Need to create synergies on empowerment programmes/funds and programmes such as skills development and entrepreneurship, agribusiness, trade facilitation and promotion, to promote attainment of higher impacts; Ø Collaboration with other line Ministries to effectively participate in its respective clusters and Technical Working Groups under the 7NDP Implementation arrangement.
2018 Annual Report Page 31 8.0 CONCLUSION AND 2019 OUTLOOK The Ministry will continue to make determined efforts to fulfil its mandate and to contribute to the achievement of the Ministerial objectives. The Ministry intends to focus on programmes that are aligned to nation's three of the five clusters/pillars as outlined in the 7NDP, in particular the clusters relates to: economic diversification; reducing development inequalities; and conducive governance environment for diversified and inclusive economy. Specifically, the programmes will focus on promoting industrialisation and the contribution of the private sector to job creation and ultimately wealth creation. Further, the Ministry will work towards assuring an enabling policy and regulatory environment, while enhancing the capacity of the businesses, particularly cooperatives and Small and Medium Enterprises (SMEs) to take advantage of the enabling environment through targeted interventions. The Ministry will emphasise production and trade of quality value addition to products based on the various natural resource endowments of the country to support industrialisation, growth and diversification of exports.
Page 32 2018 Annual Report
Hon. Christopher Yaluma, MP interacting with exhibitors during the Intellectual Property Day
Participants at the Stakeholders meeting consulting on the Africa Continental Free Trade Area Agreement pose for a picture with Hon. Christopher Yaluma, MP Minister of Commerce, Trade and Industry and the Permanent Secretary Ms. Kayula Siame.