PRESIDENT Edgar Lungu has directed the Industrial Development Corporation (IDC) to immediately review and reconstitute all Boards of its subsidiary companies to realign them with the industrialisation and job creation agenda.
Mr Lungu who is also chairman of the IDC said the boards of all subsidiaries should be aligned in line with job creation agenda as set out in the ruling Patriotic Front’s manifesto.
This is contained in a statement release to the media today by his Special Assistant to the President for Press and Public Relations, Amos Chanda. This was after the meeting held at state House today.
Earlier, the President met Treasury and Central Bank Officials at State House to discuss the state of the Zambian economy focusing on stabilisation of the kwacha, maize marketing, energy security and options for economic diversification.
Those who attended the meeting include Finance Minister Alexander Chikwanda, Secretary to the Treasury Fredson Yamba, Deputy Finance Minister Christopher Mvunga, Bank of Zambia Governor Danny Kalyalya, Deputy BOZ Governor Dr. Bwalya Ngandu and two senior economists. State House Officials who included Special Assistant to the President (Press and Public Relations) Amos Chanda, Special Assistant to the President (Economic) and Special Assistant to the President (Policy Implementation and Monitoring were also in attendance.
Below is the full statement
PRESIDENT LUNGU ON THE IDC’S INDUSTRIALIZATION AND JOB CREATION
LUSAKA, (Thursday, September 10, 2015)–Following the Industrial Development Corporation (IDC)’s assumption of shares of state-??owned companies, His Excellency, Mr Edgar Chagwa Lungu, President of the Republic of Zambia has directed IDC to immediately review and reconstitute all the Boards of its subsidiary companies to realign them with the industrialisation and job creation agenda as set out in the ruling party’s manifesto.
The President, who is the IDC Board Chairperson, says the key objectives of the IDC as approved by the Board Meeting held today (10 th September 2015) are as follows:
1. To improve and realize value of Government investments in state-??owned enterprises (SOEs) through improved management and strategic orientation;
2. To undertake industrialization and diversification of the economy including rural development through creation of new industries;
3. To partner with private enterprises with high growth potential thereby creating opportunities and capacity development;
4. To mitigate the financial burden of supporting SOEs away from the treasury through improved viability and sustainability;
5. To contribute towards accelerating job and wealth creation, alleviation of poverty among the people and economic growth by investment in areas and sectors where the private sector may have challenges;
6. To promote the participation of women and youths in viable green projects through strategic partnership and projects.
The Head of State says the IDC must engage its subsidiaries to align their strategic thrust and direction to Government’s Industrialization and Job Creation Agenda, monitor conformance and performance in pursuance of growth, profitability, and sustainability. This will be in addition to the need to promote sound corporate governance.
Accordingly the IDC will immediately review and reconstitute the Boards of its subsidiary companies. The IDC’s priorities and interventions will target sectors that have a comparative advantage and in which labour intensive activities can be most effectively used to expand output. The IDC Board has prioritized its interventions in the four growth sectors: Agriculture, Infrastructure, Manufacturing and Tourism.
Following the share transfer, all line ministries will now focus on policy making thereby giving IDC direct mandate and authorization on behalf of GRZ to oversee performance and accountability of these SOEs.
IDC’s oversights responsibilities include all aspects of governance, commercial, financing, operational and all matters incidental to the interests of the State as shareholder.
The Corporation is a tool to enhance domestic capital formation, wealth creation and preservation by focusing on exploiting our country’s advantages in natural resources and actively developing industries and enterprises to create jobs.
SPECIAL ASSISTANT TO THE PRESIDENT
(PRESS AND PUBLIC RELATIONS)