COVID-19 | Private Sector Working Group To Ensure Smooth Flow Of Essential Goods And Services Formed.

Zambia and South Africa have formed a private sector working group to create a framework that is targeted at ensuring the smooth flow of essential goods and services during the COVID-19 lockdown of most SADC countries.

At the economic sustainability and emergence purpose meeting held in Lusaka on Thursday, the two countries discussed the necessity of ensuring that South African Chain stores operating in Zambia open their doors wider to local producers and suppliers to ensure that there is business continuity and empowerment during the Covid-19 period and beyond.

Speaking at the meeting held at the Ministry of National Development Planning, Finance Minister Dr. Bwalya Ng’andu said the Zambian Government has placed sustenance of the value chain and continued empowerment of local businesses at the centre of its economic sustainability and emergence purpose plans for the immediate term and the future.

Dr. Ng’andu, who was also the convenor and Chairperson of the meeting, encouraged the Zambian private sector to ramp-up participation in the value-chain and take advantage of the internal market platforms while maintaining quality standards, regular supply and stable prices to the greatest extent possible.

Meanwhile, South African High Commissioner George Nkosinati Twala said his office is ready to work with Zambian authorities to facilitate strengthened engagement between private sector players of the two countries and ensure that the value and supply chains are kept in motion.

Mr. Twala called for a proactive review of trade and economic affairs that need to be reviewed in the entire value chain to ensure a fast paced programme that will mount a lasting positive impact on the future economic relations between the two countries.

Among the other key issues discussed was import substitution, mutual market access, supplier payment systems, banking and financial services, transport and logistics, smoothening of regulatory matters, border clearance and transit insurance, and the creation of the Zambia and South Africa working group on trade and economic facilitation during COVID-19 and beyond.

Zambia was represented by Fisheries Minister Professor Nkandu Luo, Development Planning Minister Alexander Chiteme, Commerce Minister Christopher Yaluma, Transport, Communication Minister Mutotwe Kafwaya and the Finance Minister Dr. Bwalya Ng’andu.

Others were Development Planning Permanent Secretary Chola Chabala, Monitoring and Evaluation Permanent Secretary Danies Chisenda, Commerce and Industry Permanent Secretary Mushuma Mulenga and ZRA Commissioner General Kingsley Chanda.

The Zambian private sector was represented by officials from the Zambia Association of Chamber of Commerce and Industry (ZACCI), Zambia Association of Manufacturers (ZAM), Zambia National Farmers Union (ZNFU), Zambia Horticultural Association, and Zambia Private Sector Alliance.

South Africa was represented by the South African High Commission and members of the Association of South African Businesses in Zambia.

Deputy Secretary to Cabinet Christopher Mvunga will chair the working group.

And Professor Luo said her Ministry was in the process conducting an inventory of livestock import-export permits.

She stated that COVID-19 had presented an opportunity for the country to adopt an evidence based approach in assessing the impact of fresh and processed cross-border consumer products on the health and well-being of citizens.

Mr. Chiteme said as a term of reference for the working group, the issue of rental charges in major shopping malls located in different parts of the country needed to be examined conclusively to ensure that Zambian businesses are accommodated on more affordable terms and conditions especially now that Covid-19 had impacted negatively.

And Mr. Kafwaya assured the meeting that his Ministry had commenced engagement with the Ministry of Health and other stakeholders in the logistical-chain in order to develop guidelines and rules for cross-border transporters during the Covid-19 lockdown period in some SADC Countries.

Speaking at the same event, Shoprite General Manager Charles Bota said the chain store buys 43 per cent of its goods from the local market and 39 per cent from local agents who import from outside the country. He said the shop only imports 18 per cent of goods.

He encouraged local small-scale businesses to form cooperatives and benefit from economies of scale, value addition and quality and business improvement schemes.

ZACCI president Jerome Kawesha called on South African Chain Stores to engage the Zambian private sector regularly and deal with the perception that they deliberately constrain access of local producers and suppliers into their supermarkets and other businesses such as hotels.

“We would like to see South African businesses in Zambia signing off-take agreements with our people [local businesses],” said Dr. Kawesha while the ZAM representative Rosetta Chabala added that during this period, “there is need to exhaust local supply capacity before resorting to imports.”

The Zambian Government team also held a meeting with the Business Council Emergency Task Force (BCET) Against COVID-19, at which the Chairperson, Jason Kazilimani, proposed some measures for consideration by the Government.

The measures included prohibiting and curtailing speculative trading in the kwacha, promoting close engagement of the banking and financial services sector and Covid-19 affected borrowers to forestall business stagnation and closures and facilitation of the importation of fuel and fertilizer by the private sector.

The other measures included cutting all non-priority expenditure from the budget as well as Examining the full impact of the employment code of 2019 on businesses during Covid-19.

This is according to a statement issued by Ministry of Finance spokesperson, Chileshe Kandeta.

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