Sunday, July 21, 2024

Move On State Owned Enterprises Should Embrace OECD Guidelines To The Hilt

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Zambia Chambers of Commerce and Industry (ZACCI) has called on local investors, independently or as consortiums, with interest in the infrastructure business space to capitalize on the proposed reforms targeted for the State-Owned Enterprises (SOE) in Zambia.

The likelihood of the State-Owned Enterprises embracing Public Private Partnership models cannot be far-fetched, in his budget speech, the Minister of Finance and National Planning Situmbeko Musokotwane spoke on the introduction of a State-Owned Enterprises Policy that is believed to a greater extent will enhance the governance in these institutions as it is a necessary measure and the government is applauded for this support mechanism to the State-Owned Enterprises.

In a statement issued to Lusaka Times, by the Zambia Chamber of Commerce and Industry President Chabuka Kawesha, stating that, their institution is calling on the Industrial Development Corporation (IDC) as they undertake the State-Owned Enterprises reform processes and policy enhancement to closely embrace the Organization for Economic Co-operation and Development (OECD) Guidelines for multinational enterprises.

Mr Kawesha noted that the Organization for Economic Co-operation and Development Guidelines must be at the core and be followed by Zambia’s State-Owned Enterprises, in principle they are recommendations from governments and in some cases key stakeholders to multinational enterprises on responsible business conduct that in many cases with attract capital, commercial and technical investment, as they can play a major role in job creation threefold through secondary operatives.

He cited that the Organization for Economic Co-operation and Development Guidelines set standards for responsible business conduct across a range of issues such as human rights, labour rights, and the environment.

Mr Kawesha added that the reformed State-Owned Enterprises must build their capacities to undertake Bankable Feasibility Studies and Reports (BFSR) and within agreed timeframes look at expansions, public listings and tangible contributions to Zambia’s enterprise initiatives.

“The State-Owned Enterprises must also attract affordable financing,” Mr Kawesha said

Mr Kawesha mentioned that the Zambia Chamber of Commerce and Industry recognises and will closely follow the efforts the government plans to deploy with regards to Value Added Tax (VAT) concessions and other incentives, notable is the milk sub-sector and the Information Communication and Technology (ICT) sub-sector.

“We call upon private sector players in this marketspace to make their mark by increasing trade volumes as well as network capacities and ancillary services respectively,” Mr Kawesha said

Last week, Minister of Finance and National Planning Situmbeko Musokotwane announced in the National Assembly during the 2023 National Budget address on the State-Owned Enterprise Management.

Mr Musokotwane noted that the government is concerned about the performance of the state-owned enterprises. In this regard, the government is developing a state- owned enterprise policy to strengthen their governance and improve performance.

Mr Musokotwane added that the Policy will also provide a framework for conducting periodic assessment of state-owned enterprises to ensure appropriate interventions.

Mr Musokotwane stated that stronger governance is also required because of some questionable investment decisions that were made by state enterprises. In particular, cash rich state enterprises shall not be allowed to buy businesses that are of no strategic value or being made to buy existing businesses where the vendors believe only a state-owned enterprise can agree to pay an inflated price.

2 COMMENTS

  1. Do not be fooled by sar-voated poison. Musikteane was a part of theft by RB, through construction deals. He has exempted VAT on daury equipment because his family in that business. Betting tax reduction, VAT removal is for their Lords’ command. S gambling good for Zambia? On mining, they want to take away as much as possible before HH finish his second term. All concessions, property transfer tax for mining rights, mineral tax reduction are well orchestrated underhandcdeals.

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  2. How many state farms going to be opened? Just 4 farm estates can solve unemployment for those ex-PF cadres.

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