PRESIDENT Rupiah Banda has said Government will review the competition policy in line with the National Development Plan and other business reform programmes to reduce the cost of doing business in Zambia.
Mr Banda said the evaluation of the competition policy according to the National Development Plan would make the country more competitive regionally and internationally.
“I am sure that our efforts in the business reform programme which include trade and competition will enable Zambia achieve its Vision 2030 of becoming a middle-income country,” Mr Banda said.
In a speech read for him by Commerce, Trade and Industry Minister Felix Mutati during the UNCTAD conference on Trade and Competition Policy in Lusaka yesterday, Mr Banda said the role of the competition authority in ensuring equitable access to wealth for all citizens was critical for both economic and social development.
President Banda said there was need to have a system of policy monitoring and evaluation of competition law enforcement in the country.
“I do understand that almost all the countries in the southern region have competition laws and institutional frameworks or are in the process of doing so. I am also aware that there is growing need for collaboration in the enforcement of competition laws,” he said.
Mr Banda noted that competition and consumer protection were important pillars of any result-oriented development initiative hence the role of Government and key stakeholders such as donors and other cooperating partners.
Mr Banda said technical assistance to the developing competition authority was important to ensure that they understand not only what but also how to achieve the objectives of the competition policy on the ground.
He observed that for a country to develop, there was need to trade with other countries of which success in trade was dependent on how a country uses its competitive advantages.
Mr Banda explained that this could not be achieved if the domestic economy from which export goods originate was not a hub of fair competition.
He said it was not possible to attain a sustainable trading system where the trade environment was uncompetitive for fair growth and development of business.
It is for this reason that countries need to have a sound legal system to deal with all matters that would adversely affect trade within their domestic economies themselves before they can reasonably deal with external trade disputes and gain from the same.
President Banda said economic growth in a market economy was based on a competitive environment, which prevents abuse in the market and ensures the production of quality goods and services.
“We encourage large firms to come into our markets and there is also need for our governments to support micro, small and medium size business along side large firms,” he said.
[Times of Zambia]
A speech read on his behalf :-@:-@:-@:-@:-@
Kaya>>>>> which Zambians???? the Zambianchinese businesses
NO amount of intimidation and repression can turn an otherwise unpopular leader into a popular one.
A leader who selects repression as a preferred method of engagement with the people is headed for certain disaster.
This is something that Rupiah Banda and those that surround him should understand and factor into their planning. It is now very clear that Rupiah is going to try and rely on repression to secure his second term in office. If anyone was in doubt, what happened in Mufumbwe should serve as a useful warning on the kind of leadership that Rupiah is providing.
WINDFALL TAX mining tax please,,imagine what that would do to UTH or UNZA/CBU,mutanda chavuma rd, etc etc,,,
The cost of doing business in Zambia will always be high as a long as certain fractures exist in the economy. A lot of business in Zambia face long term financing problems and as a result cannot grow and compete favorably with businesses such as the Chinese and others. Most businesses depend on high interest cost facilities from the Commercial banks. Whilst these facilities are short term working capital support instruments, they are profit eroders in the long term. There is need to encourage local companies to list on the securities market. For those small ones let there be an Alternative Investment Market for them. This is to enhance their financing in order to grow. Look at Lafarge, it raised most of its project finance from LuSe for its new plant. We need a lot of financial innovation…
Cont’d frm #5
in the local businesses to reduce costs.
It is quite embarrassing for Zambia to see a country like Malawi gaining a seat on the G20. In short Malawi has more increased income and growth than Zambia and these have given them equal influence as that of RSA to be accommodated on a bigger table of G20 as opposed to the former fire-brand table of the G7. This shows to me that we still have unnecessary structures in our economy that are promoting vices such as corruption and bribery, real diseases for growth.
Mavimba, i appreaciate your views but dissagree that the reason for Malawi having a seat on the g@) is coz of more income and growth. no no no.Zed has a bigger economy, more income and more growth than Malawi. As for listing on luse, the Lusaka stock excahnge has been promoting an alternative window for such purposes.
The cost of doing business in Zambia is very high, the reason being too many requirements that includes licences. Todate, they require audited accounts for all limited companies irrespective of their sizes. The lowest you can pay an auditor is between k5m to k15m . Most of these small companies dont make that much. This has very serious repercussions on the government.
Doing business in zambia is the highest in the region,,i have waited to hear this news that they will reduce the cost,it actually didn’t make sense at first it was fifty thousand dollars then it was increased to half a million dollars then to 250,000 dollars,,,today is still at 250,000 dollars as a micro,small or meduim business it will be insane to even want to do business at this amount ,it’s these small to medium businesses that help to grow the economy.please i hope this will be revised soon especially in today’s economic crisis the govt should act soon ,if we didn’thave copper the chinese would’nt even know where zambia is,so consider the small businesses also that way we can develop zambia.