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Friday 16 March 2018

HH spells out how UPND will create jobs and improve livelihoods | WestMac Media

By Staff Writer, Lusaka 
United Party for National Development (UPND) President, Hakainde Hichilema says the mining sector remains the dominant economic sector in Zambia, accounting for over 70 percent of foreign exchange earnings. 

However, Mr Hichilema who is also an economist says despite the dominance of this sector, its contribution to employment creation has been very low, owing in part to the current capital intensive mining technologies. 

“While the mining sector is not likely to deliver significant direct employment opportunities, it could, with the right incentive package and through linkages with small scale enterprises, be a source of significant indirect employment creation. 

“Small scale enterprises have been proven, the world over, to be engines for economic growth, employment creation and poverty alleviation. This is so because of their agility and employment of min-max model for productivity. What this means is that they employ minimal means in their production but with maximum impact. Essentially they meet the three basic tenets of a good business. Faster. Cheaper. Better; this, a large corporation cannot do. With the basic means of production employed, this means small scale enterprises can be set-up in rural areas too,” he says. 

He explains that Zambia started off on a promising note in the 1970s, with the establishment of the Small Scale Industry Development Organization (SIDO), which nurtured and developed small scale business. 

“It was from SIDO that companies such as Mwinilunga Pineapples, Mongu Cashew Nut, Mansa Batteries, and Luangwa Bicycle Industry – famous Eagle bicycles – were established. These were promising enterprises, which provided employment opportunities to significant numbers of our rural populations. Unfortunately, SIDO was disbanded in the early 1990s, when anything connoting socialism was done away with. That was completely the wrong position to take and the results are there for all to see. Had the promotion of small scale industries continued, of course with some adjustments, employment creation and poverty alleviation would have been much easier to achieve. Having been voted on a platform of ‘more jobs and more money in people’s pockets’, one would have expected the PF Government to have vigorously fought for the restoration and establishment of small scale industries. In reality they have not. After cheating small scale traders that they would be empowered by reserving some business ventures to nationals, PF have effectively been on a mission to sell off every conceivable business including national assets to foreigners. This has seen our small scale businesses in a head to head competition with foreigners selling farm produce like tomatoes and onions or involved in activities such as chicken rearing,” says Mr Hichilema. 

The opposition leader suggests that PF must and should implement positive discrimination, a model which works on the basis of excluding foreign investors from participating in certain sectors of the economy. 

“For a firm to set up in a foreign country means they have capital that by far will surpass any indigenous firm. On allowing wholesale foreign investment, we are killing local industry. Does the PF not know that local businesses are being killed in the process? Of course they know! The reason is simple: they have allowed petty trading by foreigners for one simple reason: to get commissions from the foreign businesses to finance their party! Because of their fake promises and disjointed approach to small scale businesses, PF have even stopped talking about the fantasy of ‘more jobs and more money in the pockets’ that they sung about in 2011! Money is going in individual’s pockets at the expense of the poor people,” he explains. 

He further explains a UPND Government will reignite growth of small scale industries through facilitating access to concessional financing. 

“This will allow maximum participation for the majority of our people. It has been established world-wide that Small scale enterprises are a proven intervention for immediately creating jobs and reducing poverty above all for sustainable economic development. A UPND in government will facilitate small scale enterprises development through,” says Mr Hichilema. 

In a statement, Mr Hichilema charged that 'access to funding' is undeniable and is the biggest obstacle to starting up in business is financing for both capital expenditure and working capital to meet immediate expenses. 

“Reforming the CEEC and Development Bank of Zambia to address this financing gap is UPND’s priority,” he stated. 

He said his party has observed contract discrimination in the country. 

“We have seen a lot of road contracts being awarded to foreign companies. These foreign companies use fellow foreign companies as suppliers. Our construction contracts will be strictly bundled in such a way that local suppliers benefit e.g. there is no way a foreign company can be supplying quarry dust to another foreign company,” charged Mr Hichilema. 

On value addition, Mr Hichilema pointed that this is a huge industry, farmers cannot be supplying raw sunflower to cooking oil companies, they can process that oil such that the only thing the bulk suppliers do is purifying the cooking oil supplied by the small scale industrial producer. 

“What this does is that the by product of this process –sunflower cake – is then used by farmers to feed their livestock. Zambia still imports potato crisps. Why? Because our local producers have no means to supply ready-made potato crisps that can fry for only 5 minutes and they are supplied. These are only a flavour of what the UPND will do for the small scale industries when they get into power. With this formalisation, it will be easy to collect taxes for Government to invest in social service of health, education and water and sanitation,” he explained.

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