President, Rupiah Banda says the high cost of transport in Africa has negatively impacted on Africa’s competitive capacity on the global economic market.

Speaking during the official opening of the North South Corridor Donor Pledging Conference which opened in Lusaka today Mr. Banda said there is need for Africa to adopt an integrated approach for public and private sector partnership in efforts of improving the state of infrastructure.

He acknowledged efforts initiated at national and regional levels in efforts of addressing the challenges confronting the development of the continent.

He expressed hope that the North-South Corridor project, once implemented, would remove infrastructure bottlenecks along the corridor with the objective of contributing to sustained economic growth and development.

He welcomed the initiative by COMESA, SADC and EAC to embark on the infrastructure development effort aimed at reducing the cost of doing business in the region.

The project also focuses at simplifying and harmonization of customs’ procedure and legislation as well as developing the energy sector.

“The project will focus on the simplification and harmonization of customs procedures and legislation. Harmonization of information technology systems and electronic customs managements system, harmonization to axle load and vehicle dimensions of road transit charges regulations and carrier licenses, regulatory issues relating to performance monitoring as well as energy development in the sub region,” Mr. Banda.

President Banda expressed hope that the project could be replicated to other regions on the continent with a view to enhancing the flow of goods for enhanced trade.

President Banda noted that the economic crisis in Africa has been compounded by limited infrastructure and the lack of sufficient energy required for the expansion investment.

Mr Banda observed that increased foreign investment flow in the region has exerted pressure on the existing infrastructure.

“Africa’s situation has further been compounded by limited infrastructure and a lack of sufficient energy to cater for expansion in investment activities that have emerged in the recent past,” he added.

“ In addition, the increase in the flow of foreign investment and the expansion of economic activities in the region, in the recent past, has added pressure on existing infrastructure,” he added.

The Two day high level meeting attended by South African President, Kgalema Motlanthe, Kenya’s Mwai Kibaki and Uganda’s Yoweri Museveni which has attracted about 350 participants is aimed at mobilizing resources for infrastructure development in the three regions.

Mr. Banda has assured the COMESA-EAC-SADC community of Zambia’s commitment towards the implementation of the North-South Corridor infrastructure development project.

He said said government is affecting policy measures focusing at infrastructure development through increased resource allocation.

Mr. Banda said Zambia is already making headway in the development of border facilities and streamlining border processes in line with the objectives of the regional infrastructure development project.

He indicated that the Chirundu Border is undergoing redesigning to a One-Border-Stop-Point while the Zimba-Livingstone Road is currently being upgraded.

Mr Banda is also confident that regional efforts to improve infrastructure and trade could help reduce effects of the current global economic recession on the regional economy.

Earlier, African Union Deputy Chairman, Erastus Mwencha, welcomed the collaboration by the three regional bodies as it is in line with the AU’s objective of promoting integration and cooperation in efforts of promoting economic development on the continent.

Mr Mwencha emphasized the need for infrastructure development as it is key to addressing economic challenges on the continent.

And speaking on behalf of EAC Chairman, Paul Kagame, Uganda President Yoweri Museveni, attributed the economic problems the continent is facing to the absence of social economic transformation.

Mr. Museveni also criticized the exportation of raw materials from Africa as having deprived the continent of the required value for economic development.

He also emphasized the need for increased partnership on the global scale to effectively tackle the effects of the global economic current.

SADC Chairman Mr Motlanthe said there was abroad consensus on the need to develop infrastructure as it plays a significant in stimulating economic growth and enhancing intra-Africa trade.

The North South Corridor is a combination of two traditional corridors 9 Durban corridor and the Dar-es Salaam Corridor linking the port of Durban and others in Southern Africa to the Eastern Port of Dar-es Salaam .

The Durban corridor and others in Southern Africa to the Eastern Port of Dar – es Salaam .

Improvement to the corridor will implemented sequentially and will lead to transport cost savings and Africa based businesses in the order of US 150 million per year.

World trade Organization Director General Pascal Lammy said Aid for Trade is essential to support Africa’s own economic growth agenda.

He said the corridor is an example of a highly innovative regional aid for trade approach that can transform competitiveness and enhance regional trade flows.

“ The corridor projects will promote development and poverty alleviation in the southern Africa region and promote deeper regional integration, ‘ he said.

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The conference at Lusaka’s Mulungushi International Conference Centre, has attracted several delegates, including three heads of state.

The presidents who are in the country for the conference are Kenya’s Mwai Kibaki, Kgalema Mothlante of South Africa and Uganda’s Yoweri Museveni.

The North-South Corridor Pilot Aid for Trade Programme is a joint COMESA-East African Community -SADC- initiative that aims to reduce the time and the costs of surface transport.

President Rupiah Banda has called on Africa to improve its infrastructure to remain competitive in the world economy.

Mr Banda says studies have shown that high transport costs impact negatively on Africa’s trade.

He was speaking in Lusaka when he opened the North South corridor aid for trade conference.

The conference has been called to mobilise resources from the donor community and the private sector for infrastructure development in East and Southern Africa.

President Banda said the conference will not only focus on infrastructure development but also on the customs procedures in COMESA, SADC and East African Community,EAC.

The North South Corridor is an initiative of COMESA, SADC and EAC.

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Government has committed itself to implementing recommendations of the national Indaba (dialogue) seeking to find solutions that would ease the effects of the global economic crisis on the Zambian economy.

Vice President, George Kunda told the delegates when he officially closed the Indaba this evening that government would put in place all necessary measures to table the recommendations before cabinet.

Mr. Kunda said this is to ensure that the Indaba recommendations received implementation authority from the highest government level.

“Government has taken note of various recommendations coming out of this Indaba. Government will therefore ensure that all necessary measures are put in place to table these before cabinet to ensure implementation authority is given at the highest level,” he said.

He observed that Zambians in general and in particular delegates to the Indaba, have shown sacrifice, commitment and patriotism by staying for dialogue in the last two days in order to help government find solutions to the global economic crisis.

Mr. Kunda, who is also Minister of Justice, noted that the high turn out for the Indaba was testimony that Zambians wanted immediate solutions to the global financial problems, which have also affected Zambia.

“With your support, government will overcome these challenges,” he said.

He has since called on all local and foreign stakeholders to work together with government to implement the recommendations and realize the desired solutions to the economic challenges facing the country and the world.

The Vice President also paid profound tribute to both local and foreign experts and ordinary delegates for their sacrifice and contributions to the Indaba.

And Professor Oliver Saasa said in winding up rapporteurs, that there was need for government to show political will through supporting the recommendations that came out of the two day Indaba, which was held at Mulungushi International Conference Centre in Lusaka.

Professor Saasa said government should develop a clear plan of implementing the recommendations.

He said there should also be clear and effective monitoring of the implementation of the recommendations, which should be done in a transparent manner.

He however cautioned that as government implements the recommendations, it should be weary of not disturbing the needs of sensitive sectors such as education and health.

Professor Saasa recommended that a task force that would deal with all matters arising from the global economic crisis should be set up, adding that a sustainable investment in human resource should also be encouraged.

And during presentations of the recommendation by specific Indaba groups, the mining group assured the nation that the Zambian mining industry would survive the crisis.

The group has however recommended that a taskforce be set up immediately to evaluate and review the entire mining industry in response to the global crisis.

Group Rapporteur, Sixtus Mulenga, said the Mining Sector in Zambia was still resilient and would therefore not be suffocated by the current global economic crisis.

Presenting recommendations of the group, Dr. Mulenga said the current cost of copper, which is US$ 4,000 per tonne was not very bad to necessitate the dying of the Zambian mining industry.

He said the Zambian mining industry has survived many economic recessions in the past, adding that it would in the same way survive the current global financial crisis.

The group recommended that in the short, there should be a review of the mines and minerals development act and considers restoration and review of the development agreement.

Other short term measures to survive the global economic crisis are the need to develop a policy of encouraging local entrepreneurship in the mining industry and fully implement the Zambia Development Agency Act and the Citizens Economic Empowerment Commission (CEEC).

Dr. Mulenga disclosed that as a medium term measure, the group recommended a reduction of the cost of doing business through e-commerce and single window clearance and provide incentives to domestic suppliers instead of taxing export oriented copper houses.

On the long term basis, the group recommended that there should be a policy stability guarantee, which has however worked well in Zambia in the past.

He said because of good government policies, the country has received about US$ 4 billion as direct foreign investment in the last decade.

He also stressed the need to maximally exploit also mineral potentials which the country has.

Dr. Mulenga said although the mining sector seems to be adversely affected by the economic crisis, chances of regaining its normal operations in the near future were very high.

Meanwhile, the group on energy recommended that Zambia must actualize her full potential in hydro power generation and that a master plan in the sector should be developed in order to foster development in the country.

Among many other groups that made recommendations were the tourism, finance and business.

The indaba, which comprised people from all walks of life and professions, was officially opened yesterday by President Rupiah Banda.

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Kenyan President Mwai Kibaki has arrived in the country for a two day tripartite high level North-South Corridor conference.

Mr. Kibaki touched down at the Lusaka International Airport around 16:40 hours aboard a presidential jet.

He was met by President Rupiah Banda, cabinet ministers, senior government officials and Kenyan nationals living in Zambia.

The Kenyan President was then treated to a variety of Zambian cultural performances before being driven to Intercontinental Hotel were he will be lodging.

Over three hundred delegates have so far confirmed their participation in the Common Market for Eastern and Southern Africa (COMESA)- Eastern African Community (EAC)and Southern African Development Community (SADC) tripartite conference.

South African President Kgalame Motlanthe and Ugandan President Yoweri Museveni are also expected to attend the meeting which will start tomorrow at the Mulungushi International Conference Center in Lusaka.

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The Zambia Revenue Authority (ZRA) has appealed to citizens in the country to faithfully pay taxes if they were to enjoy government’s improved service delivery.

ZRA Director of operations in Northern Province, Charles Shapi, said this when he addressed over 60 Mpulungu businessmen during a tax payers’ seminar held at the civic center on Friday.

Mr. Shapi said it was unfair for people, who neglected to pay tax, to cry for better services from public institutions because it is the same money from the taxes that government utilizes to provide goods and services.

He said ZRA has this year launched the tax payers’ week whose theme is ‘Develop Zambia, Pay Your Taxes’, adding that this initiative will be held at the beginning of every business year, which starts on 1st April, for the authority.

Mr. Shapi explained that the main essence of this initiative is to appreciate the support taxpayers render to the Authority in its duty to collect money on behalf of government.

“Every citizen has a national duty therefore, to give what is due to government if we are to see an emergence of a prosperous Zambia, free of the poverty that has afflicted many our dear brothers and sisters for decades,’’ he said.

He revealed that this year, ZRA has a challenge of raising 70 per cent of the national budget from domestic sources, saying it was incumbent upon every citizen to pay tax to support the budget.

Mr. Shapi warned the business people that it was a criminal offence to evade tax and urged them to pay freely to avoid falling into conflict with ZRA officers.

“As long as you are in business, you can’t avoid taxes, there is a saying that ‘death and taxes are the only two things in life that humans cannot avoid’. Besides, we have several ways of recovering monies from those defaulting or evading tax, so just pay.’’ Mr. Shapi told the gathering.

He explained that amount collected from a citizen will go a long way in enhancing service provision by government, adding that ZRA’s interest is not to be a liability to people but to help facilitate the smooth running of businesses in the country.

And speaking earlier, Mpulungu District Commissioner, Willie Simfukwe, said the initiative which ZRA has introduced will create a mutual understanding between tax payers and officers.

Mr. Simfukwe saying this will in the long run contribute to increased government revenue.

He added that it is this money collected by ZRA which will go towards the recruitment of civil servants like teachers, nurses and Doctors, policemen and others, who will eventually provide adequate and efficient services which the Zambian people are hungry for.

Simfukwe said after the seminar, Mpulungu businessmen must no longer fear ZRA officers but consider each other as partners in national development.

“Even in Biblical times, tax collectors were feared and hated. Jesus for one was criticized for dinning with them but he came out clearly that people must ‘Give to Caesar, what belongs to Caesar’. So ZRA officers are there to do a job for us and must not be feared and hated,” he stated.

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