Private Sector Development Reform Programme (may 2009)

(This Document is the Property of the Government of the Republic of Zambia)

PRIVATE SECTOR DEVELOPMENT REFORM PROGRAMME (PSDRP)

PSDRP II 2009-2014 Programme Document FINAL DRAFT May 2009

Table of Contents Abbreviations and Acronyms Preamble PSDRP II Summary

3 4 8

1.0

Introduction and Background

10

2.0

Situation Analysis

12

2.1

12

3.0

Existing challenges to business

PSDRP II Programme Focus

14

3.1 3.2

14 14

Priority reform areas Guiding principles of PSDRP II

4.0

Programme Goal

15

5.0

Programme Purpose

15

6.0

Specific objectives, outputs and activities 6.1 Business licensing and regulatory reforms 6.2 SME development 6.3 Labour and skills development 6.4 PPP development 6.5 Trade expansion

15 15 16 18 19 19

7.0

Cross cutting PSD issues 7.1 Capacity building 7.2 Reform communication 7.3 Gender Mainstreaming 7.4 Ease of Doing Business Ranking

20 20 21 22 22

8.0

Zambia PSD Strategy

23

9.0

Program strategies

24

10.0 Institutional Structure

25

11.0

28

Implementation process

12.0 Monitoring and Evaluation

28

13.0

29

Sustainability

14.0 Risk and assumptions

29

15.0

29

Budget Annexes

2

Abbreviations and acronyms BDS Business Development Services BRU Business Regulatory Unit CEE Citizens Economic Empowerment DSC Deputy Secretary to Cabinet ERDC Economic Restructuring and Development Committee FNDP Fifth National Development Plan GRZ Government of the Republic of Zambia ICT Information and Communication Technologies JASZ Joint Assistance Strategy for Zambia LA local Authority LFA Logical Framework Analysis LG Local Government M&E Monitoring and Evaluation MCTI Ministry of Commerce Trade and Industry MDG Millennium Development Goals MoFNP Ministry of Finance and National Planning MOU Memorandum of Understanding MRB Monthly Reform Backstopping (meeting) MSME Micro Small and Medium Entrepreneurs MSTVT Ministry of Science Technology and Vocational Training PACRO Patents & Companies Registration Office PMU Programme Management Unit PPD Public Private Dialogue PPP Public Private Partnership PQPS Plant Quarantine & Phytosanitary Service PS Permanent Secretary PSD Private Sector Development PSDRP Private Sector Development Reform Programme RIA Regulatory Impact Assessment RMM Risk Management Matrix SAG Sector Advisory Group SC Steering Committee SI Statutory Instrument SME Small and Medium Enterprises TA Technical Assistance TPIN Tax Payers Identification Number WB World Bank WC Working Committee ZABS Zambian Bureau of Standards ZBC Zambian Business Council ZBS Zambian Business Survey ZDA Zambia Development Agency ZIBAC Zambian International Business Council ZPA Zambia Procurement Agency ZRA Zambia Revenue Authority

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PREAMBLE The Government of the republic of Zambia strongly believes that the private Sector is the engine of growth. This belief was stated at the beginning of the liberalisation of the economy and it still stands today. The establishment of a framework namely the private sector development reform programme (PSDRP) is a testament of this belief. The PSDRP is therefore an expression and a demonstration of the how Government will set about the enhancement of a competitive business environment. The PSDRP II document outlines the framework of Governments private sector development reforms in Zambia. As a Government programme and to enhance ownership by all of Government, the process of consultations will continue for over the next six months. It should be noted that although the document encompasses the main elements of the reform framework, the PSD strategy that is to be developed will set out the broader and long term Government direction and contribute to a dynamic and flexible document. The Strategy will help the PSDRP II document reflect the linkages with other PSD programmes, such as the Triangle of Hope, Capacity Building for Private Sector Development, the World Bank Seed Programme, Jobs and Prosperity Programme and other new initiatives such as those that will be supported by USAID. In recognition of the fact that reforms are a continuous process and require the full engagement of Government machinery, further consultations on phase 2 of the PSDRP will take place over a six months period i.e. from June through December 2009. The six months period will entail deepening of the document, utilising information from key surveys such as the Zambia Business Survey, finalising baselines and developing the Zambia PSD Strategy, setting up a monitoring and evaluation framework, maintaining the reform momentum of PSDRP I and firming up Governments long term resource commitments. The first six months of PSDRP II will be referred to as the interim period of PSDRP II and specific activities outlined in Table 1 below. These activities will be the focus for six months. The activities that will be undertaken in six months should thus be considered when reading this document. A detailed budget for the six months has been provided as Annex 4 while the detail budgets for 2010 and 2011 will be undertaken during the six months interim phase and the details for 2012 -2014 will be done in 2011.

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TABLE 1

PSD RP I I ACT IO N P LA N JU NE -DE CEM BER 2 00 9 Ac tivit y

Acti ons req uire d

1. Deepening the • PSDRP Document

Time Fr ame Consultative meetings with June various Ministries and August regulatory Authorities on PSD reforms at different levels. Meetings to internalize and integrate the LFA and agree on monitoring and reporting arrangements.

•

Meetings to develop the implementation plan and develop annual targets.

•

Meetings with the private sector

• 2. Undertake • baseline studies

Meetings with various Cooperating Partners. Identify required data and June existing baseline (such as business license inventory & Zambia Business Survey).

•

Request for TA to develop TOR June and baseline framework.

•

Procure Consultancy(s) for the baseline study.

•

Undertake baseline(s)

•

Disseminate findings

• 3. Develop the M& • E framework for PSDRP II •

• •

Bu dge t (Z MK)

– Buy in and GRZ 500,000,000 ownership of PSDRP II enhanced. Ministries and Regulatory Authorities include some PSD activities in their 2010 annual plan and budget.

•

and

Deliv era ble

PSDRP baseline developed.

II 500,000,000

June July –Sept

validate

October

October Finalise final baseline study document July Recruitment of M& E Officer Identify TA to support July development of the M&E Sept system December. Development of M&E system Dissemination of M&E system

5

December

PSDRP II M& E 300,000,000 system

4. Develop • Management Information System (MIS) for PSDRP II •

Identify TA to support August development of the MIS system. October Development of M&E system

5. Implementation • of Business Licensing Reform •

Development of BLR implementation matrix Identify consultancy to draft legal instruments for license eliminations Drafting of legal instrument for license elimination Processes to submit legal instruments for issuance Meetings with MoFNP to agree on processes and activities to include PSD on MTEF Ministries to include PSD process in annual budgets Development of performance based incentive system Planning and budgeting meetings with Ministries and regulatory authorities Develop activity plan with DB TA Finalise and sign MOU with Mauritius Board of Investments Formalise Zambia DB committee

• • 6. Consultative • meetings with MoFNP to include PSD in the MTEF • & other Ministries • 7. Review • activities and budget for 2010 8. Monitoring • Doing Business Indicators • • 9. Public Private • Sector Dialogue (PPD) Capacity • building 10. Develop • Reform Communication Plan and Implementation framework 11. Coordinating • and monitoring MSME data • • 12. Reforms

Labour

June June

PSDRP MIS system

200,000,000

BLR implementation matrix

2,532,000,000

Legal instrument issued to eliminate unnecessary licenses

June July JuneOctober

MTEF includes 200,000,000 PSD Budget line for PSD created in GRZ budgets.

November December

PSDRP II Annual 145,794,116 Plan and budget for 2010 June - Reform 60,000,000 December momentum sustained

Enhanced 789,000,000 Mapping of business July –Sept. Private Sector association capacity needs participation Identify activities and training for both private sector and public sector in PPD - Reform 682,000,000 Meetings with FIAS June Communication Communications TA and August and stakeholders to develop the implementation communication and plan implementation plan. Support formation of the MSME Council Coordinate dissemination of the MSME (ZBS) findings Coordinate TA and support setting up of the CGS • Developing the labour productivity indicator

6

June

MSME formed

Council 2,456,000, 000

June June August June August

–

504,000,000

•

13. Development • of the PSD Strategy • • 14. mainstreaming • Gender 15. Trade • Expansion 16. Programme Management Contingency Gr and Total

Development of skills SeptemberNovember development strategy in June

Identify best practice developing PSD strategies Procure Consultancy

PSD strategy developed

800,000,000

July AugustOctober August

Strategy development Gender Mapping Integration of EIF into PSDRP II

July - Dec June - Dec

Gender needs in 100,000,000 PSD identified 1,457,000,000 1,646,205,884 200,000,000 13 ,93 0,0 00

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PSDRP II SUMMARY Programme Name:

Private Sector Development Reform Programme (PSDRP II)

Goal: To promote and facilitate the development of a competitive business Environment in Zambia in order to contribute to job and wealth creation’. Purpose: To increase business access to markets and finance and reduce costs of doing business in Zambia. Key outcome: Competitive Business Environment Key results: Administrative procedures/requirements and compliance costs reduced by 30% MSMEs operating in the formal sector increased by % 1 MSMEs accessing loans increased by%2 Number of employees on permanent employment in the private sector increased by%3 At least 10 PPPs operational and providing improved infrastructure and services Ease of Doing Business ranking improved from 100 to 50 Programme Duration: June 2009 – June 2014 Budget:

K180.0 billion

Financing: GRZ with supplementary support from Cooperating Partners Priority Areas: 1. 2. 3. 4. 5.

Business licensing and regulatory reform SME Development Labour and labour Productivity PPP development Trade expansion

Cross cutting Issues: a. Capacity building for private sector reform in GRZ b. Reform communication c. Gender Mainstreaming 1

The % will be quantified in six months time after the baseline has been completed The % will be quantified in six months time after the baseline has been completed 3 The % will be quantified in six months time after the baseline has been completed 2

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d. Ease of Doing Business Ranking Implementation: Ministries and Regulatory authorities Management: - Strategic: Deputy Secretary to the Cabinet – Finance & Economic development - operational: PSD Unit, Ministry of Commerce Trade and Industry Description: In order to address the business environment an implementation framework in the Private Sector Development Reform Programme (PSDRP) was established. The PSDRP II document has been developed as the follow up to the PSDRP which closed at the end of March 2009. PSDRP II is set on the foundation built by the PSDRP in the implementation of reforms in Zambia. A comprehensive evaluation of the PSDRP was undertaken which identified some key lessons and made recommendations which have been incorporated into the PSDRP II document. The PSDRP II is a 5 year programme running from 2009 - 2014, which targets to fast track and accelerates private sector reforms in a number of key sectors which are expected to lead to an improved competitive business environment.

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1.0 Introduction and Background The Private Sector Development Reform Programme is an expression of the Government of the Republic of Zambia’s commitment to reform the business environment in Zambia. The Government believes that improvements in the business environment through the reduction of the cost of doing business will positively contribute to economic growth and to wealth creation. The World Bank Doing Business Report, which studies 181 countries, has in their 2009 report ranked Zambia as 100 in the ease of doing business. This reflects that compared to other countries the business environment in Zambia is not yet favourable. Some of the indicators used to assess ease of doing business are licensing, access to finance, business registration and time taken to import and export goods. As a result businesses are not competitive and this tends to discourage the growth of the private sector. In order to address the business environment an implementation framework in the Private Sector Development Reform Programme (PSDRP) was established. The PSDRP II document has been developed as the follow up to the PSDRP which closed at the end of March 2009. PSDRP II is set on the foundation built by the PSDRP in the implementation of reforms in Zambia. A comprehensive evaluation of the PSDRP was undertaken which identified some key lessons and made recommendations which have been incorporated into the PSDRP II document. The PSDRP II is a 5 year programme running from 2009 - 2014, which targets to fast track and accelerates private sector reforms in a number of key sectors which are expected to lead to an improved competitive business environment. The PSDRP II is a Government programme that will be supported by cooperating partners through supplementary financial resources and or technical assistance. Since 1991 the Government of Zambia has focused on policies that encourage increased private sector led economic growth. Economic reforms in the late 1990s brought some tangible benefits, with a greater focus on fiscal discipline, better governance and promoting private-led economic growth. Fundamental to this has been the privatisation of state owned enterprises and the desire to attract foreign and local investment in a variety of sustainable economic activities. However despite economic growth in the past few years the performance of the private sector has not yet met the desired expectations of poverty reduction. Following years of modest economic growth, it became clear that Private Sector Development (PSD) required additional support to help create sustainable jobs and a more diverse local economy. This was based on the recognition that PSD growth will only take place in the context of an enabling and competitive investment climate.

10

In 2004 a framework was established for private sector development following a review that showed that implementation of initiatives required a formal structure within which to operate and coordinate the reforms. In order to address this, Private Sector Development was formally identified as a priority of government policy at the National Consultative Forum in 2004 By November 2005, a base document was drawn up that identified six fields of reform that would form the basis of a Memorandum of Understanding between the Government of the Republic of Zambia (GRZ), the private sector, represented by the Zambia Business Forum (ZBF) and a group of donors. The MOU spelt out the different roles and responsibilities of the three partners and acted as the guiding document for the PSDRP. Positive world market prices for copper and sound GRZ policies over the recent past years have been able to provide Zambia with a good level of Macro economic stability evidenced by limited budget deficits, positive economic growth, reduced inflation, and high interest rates. However global dynamics continue to have adverse effects on world copper prices. Like many African countries Zambia’s GDP growth continues to be below the targets set by NEPAD. Meanwhile government has further embraced the need for support to private sector development as the engine for economic development expressed in its Fifth National Development Plan (FNDP) for the period 2006-2010. The FNDP is organized around the theme of “broad-based wealth and job creation through citizenry participation and technological advancement”. In addition, the Vision 2030 of making Zambia a middle income economy and Zambia’s commitment to achieving the Millennium Development Goals (MDGs) underpins the strong commitment for creating a favourable business environment. PSDRP II has made use of the findings, lessons learnt and recommendations of the evaluation of PSDRP. The evaluation has provided valuable insights into the direction of the next phase of the private sector reforms. In particular recommendations have been made on the following aspects: 1. 2. 3. 4.

Institutional set up Reform processes Project processes Priority areas

A summary of the main findings are provided in Annex 2. In addition to the evaluation and other relevant reports, extensive consultations with key stakeholders both from the public as well as the private sector have been undertaken in developing PSDRP II.

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2.0 Situational Analysis The current economic crisis is being transmitted to the developing world in at least four channels, rapid decline in commodity prices, reduced investment, decline in remittances and decline in Aid. Zambia has been affected by the effects of reduced copper prices, job losses, reduction in the number of tourists coming to Zambia and a scale back in investments. Sub Saharan African economic growth has been cut from over 5% to around 3.5 % for 2009 (IMF World Economic Outlook January 2009). Zambia’s GDP growth target (2009 budget) has been set at 5 % with an inflation target of 10 %. Although copper has had little impact on rural poverty it has however led to a decline in urban poverty which means that with the reduced copper prices the Government has to deal with the negative effects of both rural and urban poverty. In such a scenario the temptation is to put certain programmes on hold or to reduce support to programmes. However, since the policy agenda for private sector reforms still remains high it is expected that Government will continue with the PSDRP especially as Zambia continues to be a high cost of doing business destination. In view of this improving the business environment is high on the Zambia private sector development agenda. In this regard, the current economic crisis has compounded the situation and has led to the urgency to scale and further accelerate the private sector development agenda. Notwithstanding the achievement made during the period 2006 – 2008, the private sector still faces a number of challenges. 2.1 Existing Challenges to Business The Zambian private sector faces a number of challenges some of which are mentioned below: 2.1.1 Licences and regulations Businesses operating in Zambia are required to adhere to numerous licenses which also have a number of processes and procedures attached. As a consequence the current licensing regime puts a heavy financial and non financial burden on businesses. The weakness of the business licensing and regulatory framework has been recognised in the first phase of PSDRP through the Business Licensing Reform Report which has recommended reforms to reduce the number of licenses and unnecessary processes and procedures. 2.1.2 High cost of inputs The high costs of major inputs such as fuel and imported raw materials make Zambia a relatively expensive place to do business. Regionally it puts Zambia at a disadvantage as neighbouring countries are more competitive. 2.1.3 Inadequate Infrastructure Although improvements have been made in infrastructure development Zambia still is in dire of substantial amount of investment in infrastructure such communication, energy, border facilities, rail, road etc. 2.1.4 Access and costs of finance Although sound macro-economic management policies by GRZ have reduced inflation and interest rates, access and cost of finance remains a key constraint to 12

further private sector development, especially for the Micro Small Medium Enterprises (MSMEs). 2.1.5 Labour regulations Current labour laws, with extreme high level of redundancy/severance payments, make it difficult to provide employees with pensionable contracts. This results in high levels of employee engagement on short term fixed contracts or casualisation. 2.1.6 Low productivity There are many reasons for low labour productivity. The major ones highlighted by the private sector are the inadequate skills demanded by industry and poor attitudes to work. 2.1.7 Complicated trade arrangements Current trade arrangements make it difficult to export and import goods. Zambia has the potential to engage in substantial additional regional trade, however due to trade barriers such as long and complicated border clearance processes, businesses are not able to fully utilise business opportunities in the region. 2.1.8 Obtaining and transferring ownership of land and properties Ownership and transfer of fixed properties follows a number of long and often not very transparent procedures, which currently can only be undertaken through a centralised system. This makes it difficult for the private sector to transact and own immovable property, which compounds the access to finance as collateral is hard to obtain. The challenges mentioned above were recognised in 2004 when the PSDRP I was being developed. The overall objective of PSDRP I (2006 - 2008) was to lay the foundation for faster sustained private sector led growth by improving the investment climate. The programme was developed around the following six reform areas: i. Policy environment and institutions ii. Regulations & laws iii. Infrastructure iv. Business facilitation & economic diversification v. Trade expansion vi. Local empowerment From the above six reform areas a number of reform priorities were identified which were then implemented by 17 working groups, committees, and sector/other bodies. An evaluation of the PSDRP was undertaken in December 08 – February 09 to assess the implementation of the programme. The evaluation shows that although much work had been done, actual outcomes improving the competitiveness for the Zambian private sector are not yet visible. Nevertheless in a number of areas (business licensing, labour reforms, PPP) a good foundation has been created for actual reform implementation which can improve the competitiveness of Zambia.

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3.0PSDRP II PROGRAMME FOCUS 3.1 Priority Reform Areas The PSDRP II programme needs to be dynamic and responsive to the needs of both the local and foreign investors. An important lesson learnt from the first phase of PSDRP was the need to focus on a limited number of priority areas to ensure results in a relatively short period of time. The selection of priority areas was based on the following considerations: a) b) c) d) e)

Ability to address challenges to business Work done under phase I of the programme PSDRP evaluation report Ability to bring fast results at private sector operating level Specific focus on SME development

Based on the above the following priority reform areas for PSDRP II have been selected: 1. 2. 3. 4. 5.

Business licensing and regulatory framework SME development Labour and productivity development PPP development Trade expansion The reforms will be further prioritised in the Tourism, Agriculture and Manufacturing sectors.

• • • •

The following cross cutting areas have been identified as key support in the implementation of PSDRP II: Capacity building Reform communication Gender mainstreaming Doing business ranking To provide the overall Government long term perspective of and commitment to private sector development, PSDRP has prioritised the development of the PSD strategy within the first six months of the programme implementation.

The programme will provide tangible results on quick wins within 6-18 months which will contribute to enhancing the competitiveness of the private sector, through a reform process that delivers inputs to outputs that lead to implementation and impact in priority areas. 3.2 Guiding Principles of PSDRP II The following will be the guiding principles of the PSDRP II: 3.2.1

Result oriented:

14

The programme will focus on delivering specific and measurable outputs and outcomes aligned to GRZ PSD objectives. In all instances, GRZ and private sector will consider an output from the PSDRP II process as one that has a tangible impact on improving the business environment for the private sector and contributing to Zambia’s competitiveness. 3.2.2 Commitment Government will demonstrate high level political commitment for PSD reforms. This will be evidenced by formal prouncements, budget support and changes in policies, laws and administrative processes and procedures. 3.2.3 Public-Private Dialogue (PPD) PPD will be at the core of PSDRP II at various levels and will be seen as a tool to engage the private sector in the reform process. 3.2.4 Co-ordination PSDRP will have a clear separation between operational functions and strategic management functions. 3.2.5 Harmonisation In the spirit of harmonisation, PSDRP II will be recognised by Cooperating Partners as the framework for supporting PSD programmes in Zambia. As was recognised in the Memorandum of Understanding (MOU) of 2005 between Government and PSD Cooperating Partners. The MOU distinguishes two complementary funding modalities namely basket funding and bilateral funding. In this regard all Cooperating Partners should recognise the PSDRP II as the framework under which all PSD supported initiatives and programmes will be coordinated. 4.0PROGRAMME GOAL To promote and facilitate the development of a competitive business environment in Zambia in order to contribute to job and wealth creation’. PSDRP II will contribute to the central theme of Zambia’s Fifth National Development Plan (FNDP), which is broad-based wealth and job creation and links in to Vision 2030 (“A prosperous Middle-income Nation by 2030”). The program will also be contributing to the attainment of MDGs 1 (eradicating poverty) and MDG 8 (development of global partnerships for development). 5.0PROGRAMME PURPOSE The purpose of PSDRP II is to increase business access to markets and finance and reduce costs of doing business in Zambia. 6.0SPECIFIC OBJECTIVES, OUTPUTS AND ACTIVITIES 6.1BUSINESS LICENSING AND REGULATORY REFORMS

15

The costly and cumbersome business licensing regime in Zambia has been identified as a critical constraint to business and private sector development. Most business licensing processes and procedures lack transparency are time consuming and in many cases unnecessary. The web of laws, regulations and administrative procedures serves to increase the cost of doing business and impedes private sector development. Many laws and regulations are obsolete and licensing practices have, in the main, not kept pace with modern technologies. More intractable problems result from the volumes of inter-related and overlapping legislation, leading to duplication in the licensing system, and the compartmentalisation of administration/licensing authorities and departments. Government successfully completed the first phase and is now in the process of agreeing on implementing the recommendations of the business licensing reforms Report which will culminate into phase II. 6.1.1 Objective To reduce unnecessary business licensing requirements to reduce the costs of doing business

procedures

and

6.1.2 Outputs 1. Reduction in the number of licenses 2. Reduction and streamlining of licensing requirements 3. Establishment of E-registry 4. Establishment of a Business Regulatory Unit (BRU) 5. Establishment of E-governance systems, providing electronic licensing service delivery and net working/co-ordination/information sharing among regulatory authorities 6. Business registration systems decentralised 6.1.3 Activities 1. Advocacy for Cabinet approval of the Business Licensing Reform Report 2. Issuance of legal instrument to revoke illegal licenses 3. Organize sensitization seminars for stakeholders 4. Organise ministerial meetings to agree on the implementation 5. Amendment of various legislation regarding business licenses 6. Establish a tracking system for business licensing reforms 7. Acquire hardware and design software 8. Identify host for the E-registry 9. Setting up the BRU 10. Set up the e-platform/system for targeted regulatory authorities 11. Undertake an inventory of business licenses 6.2 MSME DEVELOPMENT The desire for the Micro, Small and Medium Enterprises (MSMEs) sector to grow is premised on the understanding that development of section of the economy would lead to poverty reduction and improved quality of life of households through wealth and job creation.

16

Even though this premise has been widely accepted, MSMEs in Zambia face a lot of constraints in running their businesses. The most common constrains sighted include inaccessibility to finance and markets; high cost of borrowing from the commercial banks; shortage and high cost of inputs; poor infrastructure; lack of appropriate tools and machinery; lack of skilled labour; shortage of affordable and decent premises; unavailable utility services; low technical and entrepreneurial skills and a harsh business environment. The Government, through various institutions, has tried to support the MSME sector through a number of initiatives. Notable ones being the creation of the Citizens Economic Empowerment Commission (CEEC); the introduction of the Business Development Services (BDS) Voucher Scheme which provides access to subsidised business advisory services for MSMEs; the introduction of the business linkages programme and the tailor made MSME training in access to markets and finance. Much more effort still needs to be made in this sector to assist the MSMEs to graduate into large enterprises. PSDRP II will have the development of the MSME sector has one of its priorities as already mentioned above. It will mostly concentrate on synergizing development efforts in this sector. The lack of synergy has been seen as one of the biggest problems in the efforts being made to enhance the sector. Many stakeholders are involved in one way or the other in trying to assist but the net effect is minimized due to information asymmetry and lack of coordination. PSDRP II will therefore work with all the various sectors in an effort to maximize the benefits in a holistic manner. The synergies will be through coordination, both at the level of dialogue and at monitoring and evaluation levels. The MSME sector is huge when measured in the number of entrepreneurs with over 3.8 million Zambians operating their own business. The sector has an important role to play in reducing poverty in the country however it largely operates informally and is faced with impediments in areas of access to finance, infrastructure, access to Business Development Services, access to land, etc. 6.2.1 Objective To stimulate the growth of the MSME sector in Zambia

6.2.2 Outputs 1. 2. 3. 4. 5. 6. 7.

Develop indicators for the MSME policy MSME policy approved and implemented Credit guarantee scheme for MSME established and operational MSME incubators programme established and operational SME access to finance and market training programme rolled out by ZDA Develop synergies among various stakeholders in the SME sector MSME council established

6.2.3 Activities 1. Develop a comprehensive MSME implementation framework 2. Develop system for the MSME credit guarantee scheme 17

3. Implement recommendations of the National Business Incubator consultancy report 4. Development of tracking system for CEE and BDS 5. Develop tracking system for the MSME access to markets and finance programme 6. Develop case studied of successful MSMEs 7. Undertake MSME training tracer studies 8. Dissemination of the ZBS report findings 6.3 LABOUR AND PRODUCTIVITY DEVELOPMENT Labour law reforms started in 2006 with the creation of the Labour Law Reform Working Group (LLRWG). The 2004 PDSRP action plan had a number of priority areas one of which was Law and regulations which focused on the review of legislation that have direct impact on business. The labour laws were identified as being a significant impediment to the growth of the private sector in Zambia because of some of the provisions in the laws increase the cost of doing business like the cost of hiring and firing. The high cost of severance package is one of the impediments that prevent business from employing more people on a permanent basis. Besides labour productivity is hampered by the gap between practical vocational skills demanded by the private sector and those produce by the education system. There are currently only three (3) public universities and relatively a large number of technical and vocational training colleges offering skills training. In addition, there are number of private universities, such as Cavendish University, Zambia Open University, Australia Institute of Business and Technology, and Northrise University. There are still opportunities for investment in the education sector especially in university and tertiary education by the private sector. 6.3.1 Objective To enhance private sector capacity to create employment and improve labour productivity 6.3.2 Outputs 1. Reforms pertaining to business related labour laws completed and implemented. 2. Labour reforms pertaining to retirement and redundancy/severance packages completed and implemented 3. Systems for measuring and developing labour productivity in Ministry of Labour or Productivity Centre established 4. Skills development strategy developed 6.3.3 Activities 1. Organise sensitization seminars for stakeholders on business related labour laws 2. Hold consultations with stakeholders to agree on reform to be undertaken 3. Develop system for measuring labour productivity 4. Organise change management workshops 5. Undertake Skills needs assessment survey 18

6. Business related labour laws review 7. Develop systems for measuring labour productivity 8. Develop job creation indicators 9. Undertake labour force survey 10. Identify best practices in skills development 11. Engage consultant to develop skills development strategy 12. Finalise skills development strategy 6.4 PPP DEVELOPMENT The Government has identified PPPs as a viable means of infrastructure development that can effectively address the constraints of finance and management that it faces. The intention of Government is to engage the private sector in the development of infrastructure and services through Public-PrivatePartnerships. In this regard the government launched the PPP policy. Through the PSDRP II, Government will continue with its facilitative role of encouraging and enhancing private investment in the sector. This will be done through the PPP Unit under the Ministry of Finance and National Planning. The issues to be pursued in this regard will be to see the enactment of the PPP Bill and the continued capacity building of both the private and public sector in PPPs. 6.4.1 Objective To enhance private sector investment in infrastructure development 6.4.2 Outputs 1. PPP bill enacted 2. PPP unit operational 3. Capacity of public and private sectors for PPP arrangements developed 6.4.3 Activities 1. Dissemination of PPP policy and Act 2. Training and sensitisation workshops for public and private sector in PPP arrangements 3. Development of PPP systems (Manuals for Operating systems, Contract models, Monitoring system) developed 6.5 TRADE EXPANSION Trade expansion is about putting in place measures that are intended to create a more favourable environment for trade to take place. It is through cheaper and faster and easier transporting of goods across borders that that businesses can respond more positively and access both regional and international markets. The expansion thus entails issues surrounding regulation and licensing and making sure processes and procedures are transparent and streamlines. According to a study on transport costs and prices in Africa a 20% reduction in cross border crossing has a positive increase of 18% on sales and between 10-15% decreases in transport prices in southern Africa. To improve the coordination and maximise benefits from all trade-related technical assistance programmes being coordinated by the Ministry of Commerce, Trade and Industry, the programmes are coordinated using the Integrated Framework (IF). To ensure the IF is coordinated with Government’s other 19

activities related to private sector development, in line with the MoU, the IF is regarded as the trade expansion component of the PSDRP II, integrating the IF management mechanisms into de PSDRPII. The IF-Programme for Zambia will constitute the implementation plan for the Trade facilitation. Trade expansion reforms will focus on creating practical improvements, making trade easier for the private sector. 6.5.1 Objective To address barriers to trade expansion and enhance the capability of Zambia to efficiently and effectively take advantage of trade opportunities abound in the regional and other international markets. 6.5.2 Outputs 1. Increased coherence in the policy, regulatory and legal framework for trade expansion in Zambia 2. Improved trade facilitation and border infrastructure & procedures 3. Enhanced productive capacities in prioritised sectors 4. Increased legitimacy of the standards, quality assurance, accreditation and metrology (SQAM) national system and product acceptability in the local, regional and international markets. 5. Enhanced capacity to trade policy analysis, formulation, negotiation, and discourse among PSDRP Stakeholders and in the Ministry of Commerce, Trade and Industry. 6. Increased regional and international market access and penetration of Zambian products 7. Enhanced effectiveness in supervision, programming and implementation of EIF and synergies and scale effects resulting from the better coordination MCTI coordination and other trade-related technical assistance initiatives 6.5.3 Activities 1. Conducting a comprehensive SQAM Assessment Study (Legislation, institutions, infrastructure – including laboratories and personnel) 2. Implementation of the SQAM Assessment Study recommendations 3. Provision of support for value chain mapping, sector strategy development and implementation. 4. Conduct and implement the findings of an Assessment and Capacity Needs Study of Government Printers 5. Setting up of a Trade Infrastructure Development and ICT facilities Fund within PSDRP 6. Training, workshops, seminars and meetings 7. Provision of support for gathering and disseminating market intelligence 8. Provision of support for undertaking trade promotion and market development activities 7.0 CROSSCUTTING ISSUES 7.1 Capacity Building for private sector reform in PSD Capacity building within government structures to develop buy-in and ownership for private sector reforms, will form a vital aspect of PSDRP II. Government Ministries by their nature are not inclined to include private sector reforms in their daily activities. To ensure that there is buy-in, commitment and 20

understanding specific interventions need to be made to ensure that private reforms are mainstreamed and institutionalised. It was observed in the PSDRP I that the Private Sector was weak and fragmented. In PSDRP II will therefore support capacity building for the private sector to effectively engage government in PSD issues. The capacity building will complement the efforts of the Capacity Building for private sector development programme which focuses on the MCTI and its Statutory Bodies. PSDRP II will go further than the MCTI and include other Economic Ministries and Regulatory authorities to make them more responsive to the business environment issues. In particular Capacity building in key institutions that have a private sector mandate such as the Zambia Development Agency will receive particular focus and support. 7.1.1 Objective To develop and strengthen the responsiveness to PSD interventions

capacity

of

government’s

7.1.2 Outputs 1. Ministries and regulatory authorities annual work plans and budget include private sector reform activities. 2. Best practices identified and internalised within ministries and regulatory authorities 3. Customer charters developed 4. Effective mechanism to respond to private sector needs established 5. Capacity to undertake Regulatory Impact Assessments (RIA) created within Ministries and regulatory authorities. 6. Private sector engagement strengthened 7. Customer charters developed 8. Incentives for reform champions established 9. Implementation of PSD reforms enhanced 7.1.3 Activities 1. Training in analysis of reform issues, reform planning, Regulatory Impact Assessment (RIA) and budgeting 2. Workshops and sensitisation in change management 3. Criteria developed for incentives, rewards and awards for reform champions 4. Training the private sector in advocacy skills, lobbying and RIA 5. Study Tours to learn best practices 7.2 Reform Communication Reform communication is an effective tool that can be used to create awareness and support for private sector reforms. It is also an opportunity for the stakeholders to appreciate and participate in the reforms. Although a communication strategy was developed in PSDRP I, its design was flawed and as a consequence its implementation was partial. In PSDRP II, emphasis will be placed on communication to build momentum for reforms and full implementation of the communication plan. 7.2.1 Objective 21

To create broad awareness Development Reforms

and

support

for

Private

Sector

7.2.2 Outputs 1. Reform Communication plan developed 2. Broad awareness and support for PSD reforms created and enhanced 7.2.3 Activities 1. Develop an implementation plan 2. Brand PSD reforms will be branded to ensure wider recognition 3. Create synergies between and across reforms 4. Identify and communicate reform success stories 5. Communicate reform results 6. Communicating the link between “Doing business” publications and PSDRP 7. Communicating impact in selected industries 8. Regular review of communication tools 7.3 Gender mainstreaming Gender plays an important role in socio-economic development. Gender affects all sectors including the private sector. Studies have shown that the level of education attained by men and women determines their level of participation in the formal employment sector. The participation of all Zambians on an equal footing, in the economic activities of the country is cardinal for increased economic growth and reducing the poverty levels. It is, therefore, imperative that gender considerations in the growth of the economy be recognised and embraced by all. The majority of women in Zambia are limited to managing micro and small businesses mainly due to their limited access and control over resources. In order, to ensure equity in doing business in Zambia policies and laws should be tailored and in some cases targeted to women. In situations were women have been assisted the impact of the various interventions such as increased access to finance need to be assessed so as to ensure there is growth of female owned enterprises. 7.3.1 Objective To enhance and facilitate the inclusion of a gender dimension in private sector reforms. 7.3.2 Output Gender mainstreamed in private sector reforms 7.3.3 Activities 1. Gender mapping 2. Surveys on current situation and needs 3. Surveys to assess impact of PSD interventions

22

7.4Ease of Doing business Ranking

Doing business reports are annual reports published by the World Bank. The Doing Business Report investigates regulations that enhance business activity and those that constrain it. The following indicators are measured: 1. Starting a business, 2. Dealing with construction permits, 3. Employing workers, 4. Registering property, 5. Getting credit, 6. Protecting investors, 7. Paying taxes, 8. Trading across borders, 9. Enforcing contracts and 10. Closing a business. The indicators are used to analyse economic outcomes and identify what reforms have worked, where and why. Economies are ranked on their ease of doing business, from 1 – 181, with first place being the best. A high ranking on the ease of doing business index means the business environment is conducive to the operation of business. According to the Doing Business (DB) 2009 Report Zambia’s ease of doing business ranking improved from 116 to 100 out of a total of 181 countries. This is an improvement of 16 places. In the next five years the target is to move in the top 50 counties in the world, among the top three in Africa and recognition as a top reformer. Although the Doing Business rankings are not the only bench mark that the PSDRP II will use, the rankings will be used to help the PSDRP focus on deepening reforms whose results will be monitored annually. Some of the key activities that will be undertaken towards improving Zambia’s ranking are itemised below 7.4.1 Activities 1. Sensitisation of various stakeholders on the DB indicators 2. Capacity building for implementing ministries and regulatory authorities 3. Formalisation of the Doing Business Committee Technical assistance for the ease of doing business will be sought from the World Bank Doing Business Project Team. 8.0ZAMBIA PSD STRATEGY In recognition that Zambia does not have a PSD strategy PSDRP II has prioritised the development of the strategy within the first six months of its implementation. The strategy is expected to provide the following benefits: 1. 2. 3. 4.

Outline the broader agenda of PSD Provide institutional/budgetary support to PSD Institutionalise private sector reform within government Provide a framework to include all PSD initiatives

23

The Zambia PSD Strategy will provide an opportunity to expand the programme and reflect the inclusion of all PSD Activities supported by cooperating partners whether through the basket funding or other separate programmes. 8.1Objective To develop a comprehensive and systemic government owned PSD agenda 8.2 Output Zambia PSD Strategy developed 8.3 Activities 1. Consultations with stakeholders 2. Identify best practices 3. Identify appropriate technical assistance 4. Finalise PSD strategy development The development of the PSD strategy should take cognise of the need to reduce disjointed PSD initiatives. 9.0 PROGRAMME STRATEGIES To ensure effective programme implementation the following strategies will be used: 9.1Public Private Dialogue Public Private Dialogue (PPD) is an effective and transparent mechanism for public and private sector engagement on private sector development issues. It promotes inclusiveness, trust, confidence and accountability. PPD will be at the centre of the reform processes. Within PSDRP II, PPD will take place at all levels of policy and legislation processes such: 1. Zambia International Business Council (ZIBAC) 2. Zambian Business Council (ZBC) 3. Sector Advisory Group (SAG) 9.2Few Priority Areas Unlike PSDRP I, PSDRP II will concentrate on fewer priority areas that will allow for deepening and ensuring results in the shortest period of time. 9.3Effective monitoring An effective M&E system is key to the tracking of progress and reform results. Therefore an M&E will be part the design of PSDRP II.

9.4Benchmarking PSDRP II will use benchmarking as a tool for assessing Zambia’s performance against better performing countries in private sector reforms. In PSDRP I Mauritius was selected as a country benchmark for Zambia against on the ease of doing business and other private sector reforms. 24

PSDRP II will work towards achieving the private sector development indicators/milestones in the Performance Assessment Framework (PAF) 2008 2010. 9.5Performance Incentives The PSDRP will recognise and publicise Ministeries and Regulatory Authorities that perform and deliver results. A performance system will be developed to link results to resources released. 9.6Donor Government PSD Dialogue To improve communication about the implementation of the PSDRP II, informal monthly meeting between the PSD unit and the donors and formal Semi Annual review meetings between PSD donors and High level Government representation will be held. 10.0Institutional Structure Some of the key finding in the PSDRP evaluation highlighted the bottlenecks which hindered the effective implementation of the private sector reforms. The notable ones being the infrequency of Zambia Business Council meetings, inadequate representation of private sector by ZBF, the shift in focus of Steering Committee from strategic issues to management matters and limitations experienced by PMU. The PSD unit will continue being housed in MCTI under the Directorate of Planning and Information. The PSD unit will continue to have a dual reporting structure, for the purposes of administrative reporting it will report to the PS MCTI. For strategic issues the unit will report to the Steering Committee through the DSC-FED. It is important to note that added responsibilities of the PSD unit are directly link to creating an efficient project reform process. This project reform process should be distinguished from the reform process which is managed and implemented by the line ministries. In other words the PSD unit’s mandate is to facilitate, coordinate and monitor the reform process. To strengthen theses functions it is envisioned that some of the current positions such as Administrator and Accountant will be merged into one position of Finance and Administration Officer and that new positions for Procurement Officer and Monitoring and Evaluation Officer will be created. The key activities that will be implemented in the first six months of the programme are shown in table 1. In view of the above, the institutional structure for PSDRP II is shown in Figure 1 and Table 2. Figure 1 shows the delineation between strategic and operational issues while table 2 shows the roles and functions of the different bodies.

25

Figure 1: Institutional Structure Strategic issues • • •

Zambi a Business C ouncil ( ZBC) Chair H E the President 12 Economic Cabinet Ministers 10 Private Sector representatives

Zambi a Int ernation al Busin ess Ad visory C ouncil

• • • •

Econom ic Restructuring Co mmit tee ( GRZ) • H E the President • 12 economic Cabinet Ministers Progress report PSD reform permanent agenda item

Chair H E the President 10 international advisors 12 economic Cabinet ministers Private sector

Monthl y R ef orm Backstop ping (MRB) me eting • DSC • 3 key PSs • 3-4 Key businessmen Monthly meeting

• • • • • •

Steeri ng C ommit tee DSC (Chair) Economic advisor to H E the President PSs (MCTI, MoFNP, Justice, Labour & Home Affairs 3 Private sector (Sectoral Associations) 2 Private sector champions (key business(wo)men) 3 Donors will attend as observers

•

•

Sector Ad visory Gr oup (SA G) PS MCTI chairs 3 donors, Ministries, private sector & civil society

Meets quarterly

Operational issues PS - MCTI • PS reports to SC and DSC

Lin e Mi nistry: Reform implementation • PS reports to SC and DSC

Lin e Mi nistry: Reform implementation • PS reports to SC and DSC

Lin e Mi nistry: Reform implementation • PS reports to SC and DSC

PSD Unit

• PSDRP Co-ordinator • Project Officers x4 (responsible for reform specific portfolio/WCs) • Communication Officer • Support functions (accounts, etc.)

Key f unctions • Co-ordination & facilitation reform process • Reform performance management system-dashboards Reporting Planning

to

Worki ng C ommit tee : • Chair Director • Director reports to PS

Worki ng C ommit tee : • Chair Director • Director reports to PS

Director

26

Worki ng C ommit tee : • Chair Director • Director reports to PS

Table 2 PSDRP II Institutional structure: functions and roles Body /Inst itution Zambia International Business Advisory Council (ZIBAC)

Zambia Business Council (ZBC)

• • • • • • •

• GRZ Economic Restructuring and Development Committee (ERDC) PS MCTI Permanent Secretaries’ Quarterly meetings Steering Committee (SC)

• • • • • • •

Co mposi tion H E the President (chair) Economic Cabinet Ministers 10 International Advisors Private sector representatives Secretariat/ PSD Unit H E the President (chair) Economic Cabinet Ministers Private Sector representatives Secretariat/ PSD Unit H E the President (Chair) 12 Economic Cabinet Ministers PS MCTI Secretary to Cabinet (Chair) DSCs All PSs

• DSC (Chair) • Economic Advisor to H E the President • PSs (MCTI, MoFNP, MoJ, MLSS and MLGH) • 3 Private Sector associations representatives • 2 Private sector champions

• Sector Advisory Group (SAG)

3 donors (observers) • Secretariat/ PSD Unit • PS MCTI chairs

• 3 donors

Key func tions • To provide advice to the President • To advice the President on international best practices

Frequenc ies

• To raise key issues concerning the business environment • Review the country’s economic performance • Monitor PSDRP progress

• Semi annual

• PSD issues to be a permanent agenda item

• Regular meetings

• Administrative responsibility for the PSD Unit • PSD issues to be a permanent agenda item

• N/A • Meets quarterly

• Strategic support to PSDRP II • Approval of annual plan & budget for PSDRP II

• Meets quarterly

• Once a year

• Monitoring reform outcomes

• Monitoring PSD Unit • Facilitation of Ministries buy-in to the PSD Process Convene ZBC meetings

• Feedback on results (check ToRs)

• Meets quarterly

• Backstopping support to reform processes

• Monthly meetings (part of weekly DSCPSD meetings)

• Reform implementation and monitoring

• Regular

• Facilitate and coordinate PSDRP II • Development of PSDRP II performance

• Regular

• Private Sector • Ministries

• Civil Society Monthly Reform Backstopping (MRB) Meeting Line Ministries PSD Unit

• • • • • • •

Academia Secretariat/ MCTI – P&I DSC 3 PSs 3-4 Key businesspersons PS Line ministry staff

• PSD co-ordinator • Programme Officers x4 • Communication Officer • Procurement Officer • M & E Officer • Finance & Admin Officer • Support functions – Executive Assistant,

management system/monitoring dash boards for Reform and Project processes • Provision of monitoring dashboards to MRB And SC

Accounts Assistant, Office Assistant & Driver Working Committee

• Ministry representatives (Director level-chair) • Private sector representatives • Line ministry

• PSD Unit programme officer (part of Secretariat)

27

• Plan and support the actual reforms • Develop action plan, targets and timelines

• Monthly

11.0IMPLEMENTATION PROCESS In implementing reforms the following two distinct processes will be used: 1. The PSD reform process 2. The PSD project process 11.1Reform Process Implementation of reforms will be carried out within the relevant line ministries and developed in the working by GRZ staff and the private sector. Reforms take place at three levels namely: 1. Laws 2. Policies 3. System Among the above three, reforms of systems is the fastest to implement and provide tangible results. In recognition of this PRDSP II will stronger emphasis on reforms that focus on system change and faster and tangible results. 11.2Project Process The project Process is the delivery mechanism of the reforms. This project process will require the coordination of the stakeholders listed in table 2. In order to ensure effectiveness and efficiency in the project process there should be adherence to responsibilities and timeframes by the various parties. Ministries and Regulatory Authorities will develop annual work plans and budgets for approval by the Steering Committee. They will then be expected to provide annual reports. The Ministries and Regulatory Authorities that will be implementing the reforms under the priority areas and cross cutting areas are listed in Annex 6. The plans and the reports will be consolidated by the PSD Unit. All the funds released will be subjected to annual programme Audits, included sub-granted funds. In this regard the PSD unit will source for appropriate TA to further to elaborate the reform and project processes and develop the appropriate tools. 11.3 Programme Funding The Government will provide resources for the programme directly or through the implementing Ministries. The Government support will be supplemented by Cooperating Partners with financial and technical support. In order to enhance and effectively monitor the private sector development, PSDRP II funding mechanism will be flexible 28

and incorporate more than one mechanism. Although the basket funding will be the desired and preferred option, alternative support such as Bilateral and Technical support that is targeted to the priorities of PSDRP II will also be possible. The Funds for private sector reforms are thus expected to evolve from basket funding to budget support. 12.0Monitoring and Evaluation The logical framework will form the key tool for the monitoring and evaluation of PSDRP II. It will also be used as interactive tool to enable the achievement of results. Since the LFA will be critical element of the monitoring, its regular review will be an ongoing process. The LFA will also be validated through the baseline study. The PSDRP II will establish a baseline for the whole programme. The baseline data will be generated within the first six months of the programme and will assist in the further developing and refining the indicators. To demonstrate the programme effectiveness, two industries in the Tourism and Agricultural sectors will be selected and a tracking system incorporated into the monitoring framework. This will be done through formative research process. In recognition of the dynamism of the reforms it will be necessary to undertake a midterm review of the programme so as to maintain flexibility and respond to changing circumstances. To measure the overall impact that PSDRP II will have on the business environment and its contribution to job and wealth creation it will be necessary to undertake an end of programme evaluation. TA will be required to develop the overall M&E framework. The evaluation of PSDRP II will have three elements namely quarterly reviews, mid-term review and the final evaluation. The mid-term review and final evaluation will be evaluated by external evaluators. 12.1Reporting Arrangements The PSD unit will be responsible for the coordination and integration of the reporting on the progress of results. The PSD Unit will produce semi annual and annual progress reports against the logical framework. Beneficiary Ministeries and regulatory authorities will be required to submit reports t0 the Steering Committee n a quarterly basis. 13.0Sustainability PSDRP II will ensure that mechanisms are put in place to sustain the benefits of reforms. Sustainability of the benefits of reforms and the continuation of the reforms will go beyond the lifespan of the programme. This will be done through institutionalisation, continued government commitment and ownership, and the provision of resources for reforms. The framework within which sustainability will be articulated will be the PSD strategy. 14.0Risks and assumptions Risk management recognises a range of possible outcomes arising out of uncertainty, provides structured systems for identifying and analysing those risks, and for devising and implementing appropriate responses. A risk analysis of the PSDRP II has been prepared in the form of a Risk Management Matrix (RMM), which is presented in Annex 3. 15.0Budget 29

The summary budget for PSDRP II for the period 2009 – 2014 is provided in annex 5.

Annexes Annex 1: Annex 2: Annex 3: Annex 4: Annex 5: Annex 6:

LFA Summary of PSDRP evaluation Risk Management Matrix PSDRP II budget for 2009 PSDRP II 2009-2014 budget PSDRP II Implementation by Ministry/Institution

30

31

An nex 1: LF A Hier ar ch y of Ob je ct iv es To promote and facilitate the development of a competitive business environment in Zambia in order to contribute to job and wealth creation

Pur pos e To increase business access to markets and finance and reduce costs of doing business in Zambia.

Ob je ct iv el y V erifiabl e I nd ica tor s ( OVI s) 1. Number of jobs created by the private sector 2. Improved “doing business ranking” 3. Increased private sector investment

Mea ns of v erific atio n 1. Economic Report 2. Labourforce surveys 3. PSD unit surveys 4. ZDA reports 5. BoZ reports 6. CSO reports 7. Doing business publication 8. World Economic Forum Competitiveness Survey 9. ICA Investment Climate Assessment Study

Ass umpt ion s • High Level Political commitment to PSD reforms • Political Stability • Continued macro economic stability • Continued support from Cooperating partners for PSD reforms • No Further deterioration in the World Economy

Spe cific ob je cti ve 1 To reduce the number of licenses and unnecessary business licensing procedures and requirements.

Outp ut s 1.1 Reduction in the number of licenses 1.2 Reduction and streamlining of licensing requirements 1.3 Establishment of E-registry 1.4 Establishment of a Business Regulatory Unit (BRU) 1.5 Establishment of E-governance systems, providing electronic licensing service delivery and net working/co-ordination/information sharing among regulatory authorities 1.6 Decentralised business registration systems Act ivi ties 12. Advocacy for cabinet approval of the Business licensing reform Report 13. Issuance of legal instrument to revoke illegal licenses 14. Organize sensitization seminars for stakeholders 15. Organise ministerial meetings to agree on the implementation 16. Amendment of various legislation regarding business licenses 17. Establish a tracking system for business licensing reforms 18. Acquire hardware and design software 19. Identify host for the E-registry 20. Setting up the BRU 21. Set up the e-platform/system for targeted regulatory authorities 22. Undertake an inventory of business licenses

Obj ec tiv ely V erifi able I ndi cato rs (OVI s) 1. Administrative procedures/requirements and compliance costs for business licenses reduced by 30 %

Mea ns of v erific atio n

Ass umpt ion s

1. 2.

Reduction in number of licenses and streamlining of procedures leads to reduced compliance costs

1.1.1 1.2.1

1.1.1.1 PACRO annual reports 1.2.1.1 Minutes of Local authorities meeting 1.3.1.1 PSD unit reports 1.4.1.1 MCTI reports 1.5.1.1 Online checks 1.6.1.1 Doing Business reports 1.7.1.1 PSD surveys

1.3.1 1.4.1 1.5.1 1.6.1

Number of Licenses eliminated Number of licensing procedures/requirements reduced New Act for BRU enacted Ministries and Regulatory Authorities using computer based licensing Number of PACRO offices Number of Local Authorities appointed as PACRO agents

Inpu ts 1. 2. 3. 4. 5. 6. 7. 8. 9.

Fuel Office consumables Conference facilities Allowances (Local and abroad) Short term TAs Consultancy fees Communication Hardware and Software Transport

3. 4.

Business Licensing Inventory Business Licensing Reform Committee Report Revenue Impact Assessment Report Sector based Surveys

• •

Cabinet approves the BLRC Report There is sufficient buy in for Business Licensing Reforms from private sector, ministries, regulatory authorities and local authorities

Spe cific ob je cti ve 2 To stimulate the growth of the MSME sector in Zambia

Outp ut s 1.1 Develop indicators for the MSME policy 1.2 MSME policy approved and implemented 1.3 Credit guarantee scheme for MSME established and operational 1.4 MSME incubators programme established and operational 1.5 SME access to finance and market training programme rolled out by ZDA 1.6 Develop synergies among various stakeholders in the SME sector 1.7 MSME council established

Obj ec tiv ely V erifi able I ndi cato rs (OVI s) 1 Increase in the number of MSMEs that operate in the formal sector 2 Number of jobs created by MSMEs

Mea ns of v erific atio n

Ass umpt ion s

1. 2. 3 4 5 6

• •

2.1.1

2.1.1.1 2.2.1.1 2.3.1.1 2.4.1.1 2.5.1.1 2.6.1.1 1.7.1.1 2.8.1.1 2.9.1.1 2.10.1 2.11.1

2.2.1 2.3.1 2.4.1 2.5.1 2.6.1 2.7.1 2.8.1 2.9.1

Act ivi ties 1. Develop a comprehensive MSME implementation framework 2. Develop system for the MSME credit guarantee scheme 3. Implement recommendations of the consultancy report 4. Development of tracking system for CEE and BDS 5. Develop tracking system for the MSME access to markets and finance programme

Increase in the number of MSMEs able to access loans Increase in the number of MSMEs accessing business development services Number of MSMEs covered by CGS Increase in the number of MSMEs in the incubator centres Number of MSMEs accessing business from targeted large corporation (linkages programme) Number of MSMEs accessing CEE loans Number of MSMEs trained under tailor made programmes Enactment of Credit reference bureaus Act Number of MSME surveys and coordinated M&E efforts undertaken

(All the information will be disaggregated by Gender) Inpu ts 1. 2. 3. 4. 5. 6. 7. 8.

Fuel Office consumables Conference facilities Allowances (Local and abroad) Short term TAs Consultancy fees Communication Hardware and Software

2

ZBS reports CEEC reports ZDA reports Reports from Business Associations FinScope Survey CSO reports ZBS reports CEEC reports ZDA reports DBZ reports ILO reports Reports from Business Associations CRB reports BAZ reports FinScope Surveys Reports from large corporations CSO reports

Political commitment to the MSME sector Approval of the MSME policy

6. 7. 8.

Develop case studies of successful MSMEs Undertake MSME training tracer studies Dissemination of the ZBS report findings

Spe cific ob je cti ve 3 To enhance private sector capacity to create employment and improve labour productivity

Outp ut s 3.1 Reforms pertaining to business related labour completed and implemented. 3.2 Labour reforms pertaining to retirement and redundancy/severance packages completed and implemented 3.3 Systems for measuring and developing labour productivity in Ministry of Labour or Productivity Centre established 3.4 Skills development strategy developed Act ivi ties 1. Organise sensitization seminars for stakeholders 2. Develop system for measuring labour productivity 3. Organise change management workshops 4. Skills needs assessment survey 5. Business related labour laws reviewed 6. Develop job creation indicators 7. Undertake labourforce survey

9.

Transport

Ob je ct iv el y V erifiabl e I nd ica tor s ( OVI s) 1. Increase in the number of employees on permanent employment in the private sector

Mea ns of v erific atio n 1. ZFE reports 2. Ministry of Labour statistics 3. CSO statistics 4. ILO reports

3.1.1

3.1.1.1 3.2.1.1 3.3.1.1 3.4.1.1 3.5.1.1 3.6.1.1

3.2.1 3.3.1 3.4.1

Legislation enacted and implemented New law on minimum wage and redundancy packages enacted System for measuring labour productivity in place Increased participation of private sector in provision of skills development

Inp ut s 1. Fuel 2. Office consumables 3. Conference facilities 4. Allowances (Local and abroad) 5. Short term TAs 6. Consultancy fees 7. Communication 8. Hardware and Software 9. Transport

3

TEVETA reports MSTVT reports Ministry of labour reports Productivity centre reports LO reports ZFE reports

Ass umpt ion s • Tripartite council consensus on labour reforms • Political commitment to labour reforms

Spe cific ob je cti ve 4 To enhance private sector investment in infrastructure development

Ob je ct iv el y V erifiabl e I nd ica tor s ( OVI s) 1. Ten (10) PPPs operational and providing improved infrastructure and services

Mea ns of v erific atio n 1. Signed PPP contracts 2. PPP unit reports

Outp ut s 4.1 PPP bill enacted 4.2 PPP unit operational 4.3 Capacity of public and private sectors to undertake PPP arrangements built

4.1.1 4.2.1 4.3.1

4.1.1.1 4.2.1.1 4.3.1.1

Act ivi ties 4. Dissemination of PPP policy and Act 5. Training and sensitisation workshops for public and private sector in PPP arrangements 6. Development of PPP systems

PPP Act enacted PPP unit operational Training in PPPs

Inp ut s 1. 2. 3. 4. 5. 6. 7. 8. 9.

Fuel Office consumables Conference facilities Allowances (Local and abroad) Short term TAs Consultancy fees Communication Hardware and Software Transport

4

Parliamentary records PPP unit reports PSD reports

Ass umpt ion s Private sector has the capacity to participate in PPPs.

Spe cific ob je cti ve 5 To address barriers to trade expansion and enhance the capability of Zambia to efficiently take advantage of trade opportunities abound in the regional and other international markets

Outp ut s 5.1 Increased coherence in the policy, regulatory and legal framework for trade expansion in Zambia 5.2 Improved trade facilitation and border infrastructure & procedures 5.3 Enhanced productive capacities in prioritised sectors 5.4 Increased legitimacy of the standards, quality assurance, accreditation and metrology (SQAM) national system and product acceptability in the local, regional and international markets. 5.5 Enhanced capacity to trade policy analysis, formulation, negotiation, and discourse among PSDRP Stakeholders and in the Ministry of Commerce, Trade and Industry. 5.6 Increased regional and international market access and penetration of Zambian products 5.7 Enhanced effectiveness in supervision, programming and implementation of EIF and synergies and scale effects resulting from the better coordination MCTI coordination and other trade-related technical assistance initiatives

Obj ec tiv ely V erifi able I ndi cato rs ( OV Is) 1. Volume of exports on an annual basis 2. Quality of exported products 3. Diversity of export products 4. Efficiency of trade facilitation and logistics 5. Status of poverty measures including poverty head count, poverty gap and poverty gap squared measures

Mea ns of v erific atio n

Ass umpt ion s

5.1.1

Commercial, trade and Industrial policy approved and launched by 3rd quarter of 2009 (EIF)

• •

•

5.1.2

National commodities export strategy formulated and endorsed by 3rd quarter of 2009 (EIF)

5.1.3

National services export strategy formulated and endorsed by 3rd quarter of 2010 (EIF)

5.1.4

Intellectual Property Legislation revised by 2nd quarter of 2010 (EIF) Chirundu One Stop Border Posts (OSBP) fully operational by end of 2010 (EIF/PSD Unit) Nakonde-Tunduma OSBP developed and launched by 2013 (EIF/PSD Unit) Infrastructure improved at Nakonde, Kasumbalesa, Kazungula, Katima Mulilo and Livingstone border posts by 2013 (PSD unit) ZABS, PQPS and ZRA systems at HQ linked to key border posts (Nakonde, Kasumbalesa, Kazungula, Katimamulilo and Livingstone) by 2013 (EIF) Three modern weigh bridges linked constructed and linked to HQ in Lusaka (EIF) Operations of government printer revamped and upgraded by 2012 (PSD Unit). Number of importers and clearing agents taking advantage of trade facilitation initiatives such as Accredited Clients Scheme and Advanced Declaration increased by 40% (estimation by 2013) (EIF/PSD Unit)

5.2.1 5.2.2 5.2.3 5.2.4

5.2.5 5.2.6 5.2.7

5

• • • • • • • • • • • • • • • • • • •

Policy document Commodities Export Strategy document National Services Export Strategy Intellectual Property Legislation Chirundu One Stop Border Post Nakonde-Tunduma border posts Infrastructure audit System audit at the borders PQPS, ZABS and ZRA Weigh bridges audit Ministry of Works and Supply Government printers trade facilitation working group ZRA Institutional surveys on client charters existence ZRA and other border agencies Skills Audit Exporter audit report/ZDA Product surveys Skills audit SQAM assessment study document Survey of policy, legislation, infrastructure, institutional set up, capabilities, skills and procedures Verification visit to the EPM trade policy centre EPM TP centre launch report

• • • • • • • • •

The Zimbabwean government will be committed to implementing elements of the OSBP under their jurisdiction The Tanzanian government will be committed to implementing elements of the OSBP under their jurisdiction Ministry of Works and supply will be committed and proactive ZABS, PQPS and ZRA will remain committed and proactive. Ministry of Works and supply will be committed and proactive Clients and clearing agents will be responsive and take advantage of the Measures Implementation partners will be responsive and committed UNZA and other implementation partners will remain committed to setting up the Trade Policy Centre Stakeholders will have interest in being trained in trade policy Stakeholder will have interest in attending Trade Discourse

5.2.8

All public institutions playing a key role in trade facilitation develop client/service charters by 2012 (PSD Unit) 5.2.9 Number of days it takes to exit or enter the major border posts reduced to less than 1.5 days by 2012 (EIF/PSD Unit) 5.2.10 Equipment upgraded in ZABs PQPS and ZRA HQ and satellite offices by 2013 (EIF) 5.3.1 Volume, diversity and quality o Skills of products from priority sectors increased by 2013 (EIF - monitoring) 5.3.2 Skills of producers and facilitators in the sectors improve by 2013 (EIF - monitoring) 5.4.1 SQAM Assessment study conducted by end of 2009 5.4.2 SQAM related policy, legislation, infrastructure, institutional set up and capabilities, skills and procedures realigned as per the recommendations of SQAM study by 2013 5.5.1 A trade policy training centre establish at the University of Zambia by end of 2009

5.5.2 5.5.3

5.5.4

5.5.5 5.5.6 5.5.7

At least ten (10) local persons trained as trainers of trainers and trainee in trade policy and related matters by end of 1st quarter of 2010 At least twenty (20) PSDRP stakeholders trained in trade policy, policy analysis, drafting, negotiations and advocacy at the EPM centre annually starting from 2010 At least six (6) PSDRP stakeholders facilitated and supported to participate in trade policy-related training at identified institutions annually At least three (3) trade discourse and awareness stakeholder round tables held in different selected parts of Zambia annually At least forty (40) stakeholders participate in each trade discourse round table held At least 2 issue-based short-term consultancies provided to each of the Ministry’s four technical departments every

6

• • • • • • • • • • • • • •

• •

Training of trainers training report from the EPM TP centre and NIU EPM TP centre training report EPM TP centre trade policy course student register IF NIU activity reports Course participants’ reports Skills/on job performance assessment Trade discourse stakeholder round table reports TEWG activity reports Trade discoursed stakeholder round table participants’ register MCTI technical departments Reports from regional economic communities’ secretariats. ZDA ZDA Beneficiaries’ information gathering, management and dissemination techniques, skills and systems assessment EIF focal point NIU staff record EIF NIU activity reports

year up to 2013 Reduced tariff and non-tariff barriers in regional and international markets by 2013 Two market research missions undertaken in identified markets every year Two trade missions/or exhibitions/trade fairs undertaken in identified markets every year Market information gathering, management and dissemination techniques, skills, and systems improved to support institutions EIF National Implementation Unit support: Focal Point Advisor, National Trade Expert and 2 Project Officers recruited and retained for the duration of the project Trade Expansion Working Group planning retreats, meetings, workshops and other activities supported throughout the duration of the project

5.6.1 5.6.2 5.6.3 5.6.4 5.7.1

5.7.2

Act ivi ties 1. Conducting a comprehensive SQAM Assessment Study (Legislation, institutions, infrastructure – including laboratories and personnel) 2. Implementation of the SQAM Assessment Study recommendations 3. Conducting a GAP assessment and Capacity Needs Study of Government Printers 4. Setting up of a Trade Infrastructure Development and ICT facilities Fund within PSDRP 5. Training, workshops, seminars and meetings 6. Provision of resources for foreign and local travel 7. Provision of resources for short-term consultancies 8. Provision of budget line for the EIF NIU staff operating costs 9. Undertake market research 10. Undertake trade fairs/missions

Inpu ts 1. 2. 3. 4. 5. 6. 7. 8. 9.

EIF NIU personnel Motor vehicle Fuel Office consumables Conference facilities Trade infrastructure development and ICT facilities fund Productive capacities enhancement fund Allowances (Local and abroad) Short term TAs

7

Spe cific ob je cti ve 6 To develop and strengthen the capacity of government’s responsiveness to PSD interventions

Outp ut s 6.1 Ministries and regulatory authorities annual work plans and budget include private sector reform activities. 6.2 Best practices identified and internalised within ministries and regulatory authorities 6.3 Customer charters developed 6.4 Effective mechanism to respond to private sector needs established 6.5 Capacity to undertake Regulatory Impact Assessments (RIA) created within Ministries and regulatory authorities. 6.6 Private sector engagement strengthened 6.7 Incentives for reform champions established 6.8 Implementation of PSD reforms enhanced Act ivi ties 1. Training in analysis of reform issues, reform planning, RIA and budgeting 2. Workshops and sensitisation in change management 3. Criteria developed for incentives, rewards and awards for reform champions 4. Training the private sector in advocacy skills, lobbying and RIA 5. Study Tours to learn best practices

Obj ec tiv ely V erifi able I ndi cato rs (OVI s) 1. Increased GRZ budget allocations for private sector reforms 2. Ministries/regulatory authorities develop and implement reforms through annual workplans and budget

Mea ns of v erific atio n

Ass umpt ion s

1. 2. 3.

1.

6.1.1

6.1.1.1 6.2.1.1

6.2.1 6.3.1 6.1.1 6.5.1 6.6.1

Performance based incentives in place Reform issues taken up within Ministries and regulatory authorities Number of reform champions active in reforms Annual work plans and budget include reform issues Number of ministries and regulatory authorities using RIA Identified best practices implemented

Inpu ts 1. Fuel 2. Office consumables 3. Conference facilities 4. Allowances (Local and abroad) 5. Short term TAs 6. Consultancy fees 7. Communication 8. Hardware and Software 9. Transport

8

Reports by Ministries Yellow book MTEF

6.3.1.1

Ministries’ work plans and budgets Ministry and regulatory authorities reports PSD unit report

Ministries and Regulatory Authorities receptive to change

Spe cific ob je cti ve 7 To create broad awareness and support for Private Sector Development Reforms

Outp ut s 7.1 Broad awareness and support for PSD reforms created and enhanced Act ivi ties 1. Develop a implementation plan 2. Brand PSD reforms will be branded to ensure wider recognition 3. Create synergies between and across reforms 4. Identify and communicate reform success stories 5. Communicate reform results 6. Communicating the link between “Doing business” publications and PSDRP 7. Communicating impact in selected industries 8. Regular review of communication tools

Obj ec tiv ely V erifi able I ndi cato rs (OVI s) 1. Number of people aware about PSD reforms 2. Number of active champions supporting PSD reforms 3. Number of print and electronic media supporting PSD reforms

Mea ns of v erific atio n

Ass umpt ion s

1. 2. 3.

Continued and enhanced political reinforcement of reform communication

7.1.1 7.1.2

7.1.1.1 7.1.1.2 7.1.1.3

Positive perception of PSD reforms Reform communication plan developed and implemented

Inpu ts 1. Fuel 2. Office consumables 3. Conference facilities 4. Allowances (Local and abroad) 5. Short term TAs 6. Consultancy fees 7. Communication 8. Hardware and Software 9. Transport

9

PSD reports Audience surveys General surveys

Perception surveys PSD reports Communication plan

Annex 2:

Su mmary of

PSD RP ev aluation

Background The Private Sector Development Reform Programme (PSDRP), which commenced at the end of 2005 and was supposed to finish end of 2008 was evaluated during the period December 2008 to February 2009. The evaluation made a thorough investigation of the programme structures, the results achieved and the difficulties it has faced. As there is interest by the GRZ as well as the cooperating partners to develop and implement a second phase of PSDRP, the evaluation has made specific recommendations how PSDRP II could be established. Main findings The main findings are listed below: • The component structure was not helpful to project management as they were too broad to report against and had limited focus on actual reform areas • Private sector high level policy dialogue was disengaged, private sector interest were less central to the programme at the highest level • The bottom up orientation of the process created reform bottlenecks • The PSD-SC set out as a strategic body but increasingly became a management committee • The PMU is called management unit but has roles of a secretariat assigned to it • ZBF is not the only private sector representative in Zambia and ZBF is not universally accepted as representing the private sector vis-à-vis government in PSDRP • Many Working Groups (15) were established and while many recommendations, policies, laws, Acts and Bills were drafted precious few have led to reforms that have been fully enacted • The PSD Reform Process for specific reforms was not mapped out and specific bottlenecks were not identified. There was no performance management system in place to track the progress of the process and most reforms have not gotten enacted/implemented • The PSD Project Process was not mapped out and specific bottlenecks were not identified. There was no performance management system in place to track the progress of the project process and this coupled with a PMU with limited operational management authority has led to undue delays having a major negative effect on the PSD Reform Process • Status of reforms under PSDRP is provided in table 3 below:

Table 3: Status of reforms under PSDRP (from Key findings per PSDRP objective) # 1

Objective Policy Environment & Institutions

2

Regulations & Laws

3

Infrastructure

Results • ZDA operational • Small claims court opened but not busy • Amended labour law in consultation at cabinet level • Reduced time for business start up (Pacro) • Reduced time for VAT refunds • 3 ICT bills pending approval

Business facilitation & economic diversification

• PPP draft bill approved and PPP unit established • Business licensing report produced • Land bank system

5

Trade Expansion

• Sector groups (housing, tourism and livestock) reports • Plans and studies only

6

Local Empowerment

• Citizens Empowerment bill passed

4

• MSME policy drafted

Conclusion • One out of eight outputs achieves

• No actual change at private sector level yet • Benefit at private sector level • Benefit at private sector level • No actual change at private sector level yet • 1 PPP MoU signed • No actual change at private sector level yet • More land available for development • Reports but no reform • Nor results with regards to increasing Zambian competitiveness • Not resulting in practically increasing MSME economic empowerment • Policy not approved, no practical results yet

Table 1 clearly shows that although much work has been done actual outcomes improving the competitiveness for the Zambian private sector are few. Key conclusions and recommendations for further reforms The key conclusions and recommendation for further reforms are listed below: • Continued reforms are key to Zambia’s further development • Due to lack of practical tangible results at Zambian competitiveness level, the Zambian private sector is loosing interest in the reform program. PSDRP II will need to provide tangible results within 6-18 months maximum • PSDRP II should built on the work done by some of the different reform working groups within the first phase PSDRP • Donors are willing to fund phase 2 of the programme however need to have a clear proposal with a clear results and indicators of results framework • Key reforms will need to be undertaken within the ministries and ownership at that level needs to be ensured. Working Committees should be anchored in relevant ministries • ZBC or an advisory body should be reactivated • Low profile high level advisory body comprising of top private and public sector should be established able to provide support to reform processes • ZBF is not needed as exclusive gate keeper for the private sector. PSD can be represent itself through sector associations on a rotational basis • SC should move from operational to strategic matters • PMU, to be renamed PSD Unit needs management responsibility for the operational management of the program • Ensure the development of performance indicators/dashboards at all levels within the reform and project processes 2

• PSDRP bottom-up orientations (through Working Committees) through ministry structures to cabinet will need to be complemented by high level GRZ support/backstopping. This should be based on information provided through effective performance management systems/dashboards with regards to both the actual reform process as well as the PSDRP II project process • Monitoring of PSDRP should be on attaining outputs in specific reforms areas as well as outcomes • Communication needs interface with the public and the private sector • Need to have communication on tangible results achieved by the reform processes Future program areas • Reduced regulations and licenses • Liberalisation of labour markets • SME development • 2 other sectors

3

4

An nex 3: Risk ma nageme nt matri x Ris k E vent Lack of ownership in Ministries and Regulatory Authorities, result in reforms being blocked or delayed

The reform project process is unable to provide effective support to the Working Committees and Line Ministries in developing and implementing reforms

Ris k C on seq ue nc e • Reduced outcomes • Loss of interest private sector • PSDRP II fails

• •

Reform outputs do not lead to outcomes/practical results at private sector level

•

Lack of political will and commitment to pursue reforms

•

•

•

PSD Unit has difficulty to establish performance dashboards for reform & project processes, develop communication plan, monitoring

• •

Reform process not effectively supported by the project process Reduced outcomes

Lik eli hood H

M

Imp ac t H

Ris k P rio rit y 5

H

4

H

3

Ris k M it iga tion Str at eg y • Development of specific performance indicators/dashboards at all reform process steps will enable the program to see where bottlenecks are • MRB meeting will provide backstopping support to unblock reform process based on dashboards • Capacity building to GRZ • Chairperson Working Committee (Director) reports to PS, PS reports to SC & DSC • PSD Unit has mandate to facilitate and co-ordinate PSDRP II • Each reform will be supported by a PSD project manager responsible for facilitating reforms in Line ministries • Development of specific performance indicators/dashboards at all project process steps will enable the program to see progress and take action • MRB meeting will provide backstopping support to unblock reform project process based on dashboards • Outcome measurement matrixes developed • PPD at many levels within PSDRP II will ensures rapid feedback on non delivery of outcomes

Zambia’s competitiveness not improved Private sector will loose interest and disengage

L

Loss of interest in GRZ structures Reduced outcomes

M

H

4

• • •

PPD structures Development of Zambian PSD strategy Reform results will increase political commitment

Loss of effectiveness of the programme Reduced outputs and outcomes

M

H

4

•

Ad hoc TA for establishment of performance indicators/dashboards, analysis of reform processes, monitoring and development of communication plan

Respo ns ibilit y • PSD Unit

• MRB • PSD Unit • Chairperson WC, PS • PSD Unit • PSD Unit project manager • PSD Co-ordinator

• MRB • PSD Unit • ZIBAC, ZBC, SAG, MRB Working Committee • ZIBAC, ZBC, SAG, MRB Working Committee • PSD Unit • All • PSD Unit, TA

SC, and SC, and

systems

2

Priority listing of risks Likelihood High High Medium High Medium Low Low Medium Low

Impact High Medium High Low Medium High Medium Low Low

Risk Priority 5 4 4 3 3 3 2 2 1

Annex 6: Ref orm Ar ea Business licensing and regulatory reform

PSDRP II IMPLEMENTATION BY MINISTRY/INSTITUTION Obj ec tiv e • •

All Government Ministries and Regulatory Authorities All Local Authorities

To stimulate the growth of the MSME sector in Zambia

• • • • • • •

ZDA BoZ DBZ MCTI ILO Credit Reference Bureau MLSS

• • • • • • • • • • • • • • • •

MoFNP MCT MWS MCTI ZDA ZRA ZABS Immigration Dept ZWMA All Economic Ministries All Regulatory Authorities All local Authorities PAC (Cabinet Office)) PSMD (Cabinet Office) PSD Unit All PSD Stakeholders (Government, Private sector, Cooperating Partners & Civil Society) GIDD All Economic Ministries All Regulatory Authorities All local Authorities Government Regulatory Institutions Local Authorities

SME Development

Labour and labour Productivity

To enhance private sector capacity to create employment and improve labour productivity To enhance private sector investment in infrastructure development

PPP development

Trade expansion

Capacity building for private sector reform in GRZ

Impl eme nt ing Mi ni st ry /In sti tu tio n

To reduce unnecessary business licensing procedures and requirements to reduce the costs of doing business

To address barriers to trade expansion and enhance the capability of Zambia to efficiently and effectively take advantage of trade opportunities abound in the regional and other international markets.

To develop and strengthen the capacity of government’s responsiveness to PSD interventions

Reform communication Zambia PSD strategy

To create broad awareness and support for Private Sector Development Reforms To develop a comprehensive and systemic government owned PSD agenda

Gender mainstreaming

To enhance and facilitate the inclusion of a gender dimension in private sector reforms.

Doing Business Reforms Activities

Ensure implementation of the FSDP by appointing a committee to oversee its implementation

• • • • • •

•

2

Relevant Government Ministries