MINISTER of Finance and National Planning Situmbeko Musokotwane yesterday signed a statutory instrument (SI) which will ensure that public institutions give preference to Zambian citizens in the procurement of goods and services.
Dr Musokotwane said at a media briefing on April 8 that the SI will give preference to citizen-influenced, empowered and owned companies even if their pricing of goods or services is higher than that of foreign companies.
He said citizens’ companies must ensure that their goods and services are of acceptable quality and that Zambian citizens have significant shares and control in the firms.
Dr Musokotwane said another key element of the SI is a reservation scheme where public procurement of goods not exceeding K3 billion will be a preserve of companies owned, influenced or empowered by Zambian citizens.
“Building or construction works of up to K20 billion will be reserved for citizen-influenced, empowered and owned companies,” Dr Musokotwane said.
He said civil and road works contracts of up to K30 billion will also be reserved for companies belonging to citizens.
Dr Musokotwane said another aspect of the SI is that when a foreign company is awarded a contract that needs recruitment of workers, such companies will ensure that 40 percent of key personnel are Zambians.
“We will give exemptions where this is not practical,” he said.
The minister said regulations contained in the SI will come into force 30 days after the instrument is published in the Government gazette.
Dr Musokotwane advised Zambians to be cautious about the issue.
“We should be careful not to focus too much on believing that if we exclude foreigners, we will be better off. We have Zambians doing business in other countries and if we rush in an uncoordinated manner without focusing on the consequences, our fellow Zambians in other countries will suffer the same consequences,” he said.
He said foreigners in most cases create employment for Zambians and that some businesses like special restaurants are exclusively for foreigners.
“Our prosperity must not be seen in terms of blocking non-Zambians,” he said.
And Dr Musokotwane has commended the World Bank for giving Zambia a US$115 million loan for irrigation development.
“We are very happy because we have been negotiating for this loan for a long time,” he said.
Dr Musokotwane said the loan will enable Government to construct a dam which will service both commercial and small-scale farmers in Central Province.
The World Bank approved the credit for the Irrigation Development and Support Project (IDSP) to help Zambia overhaul its irrigation subsector.
World Bank country manager Kapil Kapoor said the credit facility was approved by the bank’s board of directors on april 7 in Washington DC.
Mr Kapoor said the IDSP will help to reduce the poverty gap between the urban and the rural population.
Mr Kapoor said this in a statement released in Lusaka on April 8.
The irrigation project, which will be developed in proposed selected sites, is expected to be implemented over seven years. It is expected to be completed by June 2018.
Mr Kapoor said the project has four components, including irrigated agricultural support services.
And commenting on some components of the project, World Bank senior agriculturalist Indira Ekanayake said the interventions are expected to ensure that agricultural production and crop diversification happen throughout the year.
This will ensure that Zambia’s abundant water resource and arable land are used profitably to realise Zambia’s potential as a breadbasket.
The goal of Zambia’s Sixth National Development Plan for the agriculture sector is to “increase and diversify agriculture production and productivity so as to raise the share of its contribution to Gross Domestic Product by 2015.
Meanwhile, Dr Musokotwane said he will travel to Washington DC next week for the World Bank and International Monetary Fund spring meetings.
He said the meetings will provide an outlook of the world economy from experts who have gathered data on global economic projections.
Dr Musokotwane will also meet both the World Bank and IMF senior management teams.
He said the gathering will also give him an opportunity to have bilateral meetings with representatives of various countries.
[ Zambia Daily mail ]