(This Document is the Property of the Government of the Republic of
Zambia)
PRIVATE SECTOR DEVELOPMENT REFORM PROGRAMME
(PSDRP)
COMPLETION REPORT
JANUARY 2006 – MAY 2009
Prepared by the
Private Sector Development Reform Programme
Programme Management Unit
June 2009
Executive Summary
This completion report is a summation of the activities undertaken by the Private
Sector Development Reform Programme (PSDRP) in the period January 2006 – May
2009. It provides a historical perspective about the implementation of the programme
and the status at the end of May 2009.
In 2004 the Government of the Republic of Zambia embarked on an ambitious Private
Sector Development (PSD) Reform Programme with the aim of accelerating private
sector led economic growth. The Private Sector Development Reform Programme was
established as the Government of Zambia reform programme aimed at creating a
favourable and competitive environment for a vibrant private sector. Its goal was to lay
the foundation for faster sustained private sector led growth by improving the
investment climate. It encompassed reforms across various sectors of the economy.
The Government believed that private sector led growth would be achieved through the
creation of a market friendly macroeconomic environment, an enabling regulatory
framework, enhanced infrastructural policy, reduced administrative barriers, economic
diversification, increased exports and broad based economic empowerment and
participation.
The PSDRP was an expansive programme encompassing reforms across various sectors
of the economy. It was designed as a partnership between the Government and the
Private Sector with support from the Cooperating Partners. The PSDRP basket fund
donors were the Governments of the Kingdom of the Netherlands, Finland, United
Kingdom and Sweden. The World Bank provided Technical Assistance for the Business
License Reform and the Public Private Dialogue. The Total committed funds for the
programme were US$10.2 million of which 100% was spent as at the end of the review
period. The PSDRP period which was from January 2006 to March 31 2009 was
preceded by an interim period from May 2005 to December 2005.
A number of reform priorities were drawn up during the interim phase namely:
Administrative Barriers; Citizens Economic Empowerment; Energy; Immigration;
Labour Law; Lands, Livestock Disease Control; Public-Private Partnership in
infrastructure; Small Claims Court; Telecommunications; Tourism; and Trade
Expansion.
These reform priorities were reviewed at the end of December 2007 and three priority
areas were selected for focus in 2008, namely Business Licensing Reform, Micro Small
and Medium Enterprise (MSME) Development and Labour Law Reform.
The implementation structure that was put in place to drive private sector development
in Zambia comprised the Zambia Business Council, Steering Committee, Line
Ministries, Working Groups and the Private Sector Development (PSD) Programme
Management Unit.
Through the Programme the Government approved a number of policies, amended
laws and enacted new laws and created new institutions as a means of contributing to
an improved business environment and an enhanced investment climate. These
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actions were carried out in conjunction with other projects like the Triangle of Hope
and the Millennium Challenge Account (MCA) Zambia Threshold Project.
In summary four policies were approved, namely ICT Policy, National Energy Policy,
PPP Policy and MSME Policy. Five new laws were enacted, ZNTB Act, Tourism and
Hospitality Act, ZDA Act and CEEC Act and amendments made to two Acts namely the
Labour and Industrial Relations Act and Small Claims Act. Two institutions, one
department and one unit were formed namely, ZDA, CEEC, Department of
Communications and approval was granted to establish the PPP Unit. A Credit
Guarantee Scheme to support Micro and Small enterprises access finance was also
established.
The programme made a significant contribution to the increased resources allocated to
the Livestock Industry in the 2009 national budget and the appointment of a Minister
of Livestock and Fisheries following the programme support that was given to the
Livestock Disease and Control Working Group to review the Livestock Industry.
The momentum that was generated in the first phase of PSDRP and the demonstrated
ownership of the reforms by the Government of the Republic of Zambia will be used to
support a second phase of the programme. Although at the start of the Programme the
implementation of the reforms was considered slow, the end can be considered as high.
At
the end of the reporting period Zambia’s ranking on the Ease of Doing Business in the
World Bank Doing Business Report 2009, had improved from 116 places to 100, a
position which the Government has already targeted to improve by 50 %.
One ingredient that is visibly present and demonstrated is the high level political will to
implement private sector reforms. This commitment has already been demonstrated by
the allocation of resources to the private sector development programme in the 2009
National Budget. In the next five years the allocation will increase as private sector
reforms are institutionalised.
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1.0
Introduction and Background
1.1 Introduction
This completion report is a summation of the Private Sector Development Reform
Programme activities undertaken in the period January 2006 to May 31 2009. The
report captures the objective of the programme, the priority reform areas, challenges
faced and achievements made.
The Private Sector Development Reform Programme (PSDRP) was established as the
Government of Zambia reform programme aimed at creating a favourable and
competitive environment for a vibrant private sector. Its goal was to lay the foundation
for faster sustained private sector led growth by improving the investment climate. It
encompassed reforms across various sectors of the economy.
The Programme was developed around six reform areas. Here below are the specific
objectives for each of the reform areas:
REFORM AREAS
REFORM
AREA
REFORM OBJECTIVE
Policy
environment
& institutions
Create
an
enabling
macroeconomic
environment, strengthen the public agencies
that support PSD and enhance public/private
dialogue
Laws
&
regulations
Improve regulatory frameworks and revise
investment code to foster Private Sector
Development (PSD)
Infrastructure
Enhance infrastructural platform for PSD by
encouraging
private
investment
in
infrastructure
Business
facilitation &
economic
Remove administrative barriers to business
entry and operation and facilitate development
of high growth sectors
diversification
Trade
expansion
Create opportunities to access regional and
international markets by Zambian businesses
Citizens
Unlock the growth potential of the MSME
sector through business development support
and local empowerment initiatives
empowerment
From the above six reform areas, a number of reform priorities were drawn up in 2005
namely: Administrative Barriers; Citizens Economic Empowerment; Energy;
Immigration;
Labour Law; Lands, Livestock disease control; Public-Private
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Partnership; Infrastructure; Small Claims Court; Telecommunications; Tourism; and
Trade Expansion.
These reform priorities were reviewed at the end of December 2007 and three priority
areas were selected for focus in 2008, namely Business Licensing Reform, Micro Small
Medium Enterprise (MSME) Development and Labour Law Reform.
The PSDRP was designed as a partnership between the Government, the Private Sector
and the Cooperating Partners through which a private sector development reform
agenda was supported. From inception the private sector was represented by the
Zambia Business Forum (ZBF) while the programme was executed through a basket
fund with contributions from four Cooperating Partners namely, Netherlands, Finland,
Sweden and the United Kingdom. In 2008 Technical Assistance for the Business
Licensing Reform was provided by the FIAS/World Bank.
In addition to the afore mentioned other Cooperating Partners supported the
Government’s private sector development agenda although they did not contribute to
the PSD basket such as the European Union who supported Capacity Building for
Private Sector Development Project, World Bank who supported the SEED Project, the
Japanese Government JICA through the Triangle of Hope Programme and the United
States Millennium Challenge Account through the Zambia Threshold Programme
(ZTP). Efforts were thus combined to avoid duplications such as the establishment of
the Lands and Immigration customer care centres and the computerisation of PACRO
which were supported by the Zambia Threshold Project.
1.2
Background
Zambia liberalised its economy in 1991, and subsequently set in motion policies that
would support the development of its private sector as the engine of economic growth.
Zambia also recognised the important link between investment climate, on one hand,
and increased growth, wealth creation and poverty reduction on the other. At this time
Zambia also felt a need for a new approach to economic management, which placed
emphasis on trade liberalisation; privatisation, better governance, and favourable
investment climate (i.e. right policies and institutions). This, ultimately, would
encourage and attract private investment, raise productivity and increase employment.
As a first step in its pursuit of accelerated economic growth and enhanced private
sector development, Zambia in 2004 embarked on the implementation of the Private
Sector Development Reform Programme (PSDRP) with the aim of reducing the cost of
doing business, encouraging competitiveness in the private sector, enhancing the
investment climate and restoring investor confidence.
The process of formulating the Private Sector Development Programme (PSDRP)
started in June 2002 with the holding of the Copperbelt Diversification Conference in
Kitwe. At this conference, a strategic plan for economic diversification was formulated.
Following the conference, a number of studies and consultations were carried out to
understand the reasons for the slow performance of the local private sector. These
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studies and consultations produced a rich set of recommendations for private sector
led economic growth. However, only few proposals contained in the strategic plan were
implemented. Similarly, recommendations from several private sector development
studies were not implemented.
In 2004 the various private sector development initiatives were reviewed and it was
found that implementation of initiatives had not kept up with expectations. One of the
reasons for this state of affairs was that insufficient attention was paid to the design of
an adequate framework for implementing the diversification strategy. In order to
address this, private sector development was formally identified as a priority of
government policy at the National Consultative Forum in 2004. The Forum held in
Livingstone had strong private sector participation and identified more than 72 areas
of intervention.
Consultations with key stakeholders were made at various levels and in different
forums, including one-on-one meetings and workshops for the private sector and
Permanent Secretaries. All these consultations culminated in the Private Sector
Development (PSD) Forum in 2004 whose purpose was to bring to finality the PSD
action planning process and to agree finally on the implementation structure. The
resulting Draft PSD Reform Action Plan and implementation framework became
known as the Government’s Private Sector Development Reform Programme (PSDRP).
The PSDRP was formulated primarily for laying the foundation for faster and sustained
private sector led economic growth by improving the investment climate.
By November 2005, a base document had been drawn up and agreed upon. The base
document consolidated the 72 areas of interventions into six priority reform areas
which are mentioned above. The six reform areas formed the basis of a Memorandum
of Understanding (MOU) between the Government of the Republic of Zambia (GRZ),
the private sector, represented by the Zambia Business Forum (ZBF) and a group of
Cooperating Partners. The MOU which was signed in December 2005 spelt out the
different roles and responsibilities of the three partners and acted as the guiding
document for the implementation of PSDRP. A Joint Financing Arrangement between
GRZ, and the Donors who had pledged to contribute to the PSDRP funding basket was
signed in April 2006 and disbursement of funds began in June 2006.
The first prioritisation of the reform areas was done in 2005 and it was later decided
that these would continue to be priorities in 2006. Working Groups were formed in
these priorities. The Working Groups were tasked to prepare six month action plans
with performance targets and a budget. In 2007 the reform priorities were reviewed
with a view of quickening the reform process. As a result of the review, a number of
changes were made to the programme document including the reduction in the
number of priority areas to three.
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2.0 Design of Private Sector Development Reform Programme (PSDRP)
2.1 Programme Design
In designing the PSDRP, the following were the guiding principles:
 Consultation and broad ownership in the development of plans
 Mainstreaming implementation through ministries
 Monitoring progress of implementation at a high level
 Resource mobilisation for implementation based on
project/programmes requiring donor support.
a
menu
of
3.0 Implementation structures
In the three years of the programme the implementation structure evolved as the need
to support the faster implementation of reforms became stronger. Figure 1 shows the
implementation structure as at 2006 and figure 2 shows the implementation structure
as at the end of 2008.
Figure 1: Implementation Structure for the PSD Reform Programme
Zambia Business Council (ZBC)
Chair: H E the President
PSD Steering Committee
Chair: Economic Advisor to the President and
Deputy Secretary to Cabinet
Zambia International Business
Advisory Council
Zambia Business Forum (ZBF)
Programme
Coordinating Unit
(PCU)
Permanent Secretary
MCTI
Permanent Secretaries
Line ministry
Implementation
Committee
Permanent Secretaries
Line ministry
Public/Private
Working Group
Public/Private
Working Group
Desk Officers
Implementation of PSD Actions
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Figure 2: Implementation Structure for the PSD Reform Programme
Zambia Business Council (ZBC)
Chair: H E the President
Zambia International Business
Advisory Council
Cabinet
Minister - MCTI
Line Ministries
PSs
``````
Line ministry
PS
MCTI
PSD SC
Chair: DSC & Co-Chair with
ZBF
Liaison Task Force
DSC, ST, SAP
Programme
Management Unit
(PMU)
Public/Private
Working Group
3.1
Zambia Business Council (ZBC) – The ZBC was the highest Public Private
Dialogue body set up to monitor the Private Sector Development Reform Programme
(PSDRP). It was chaired by the Republican President and comprised the economic
ministers and private sector representatives. During the period under review only three
meetings were held. It lost impetus over time and became inactive for over a year partly
due to the illness and subsequent demise of the Third Republican President and the
election of the Fourth President. The Third Republican President played a significant
role in the reforms and he was the pioneer of the PSDRP.
3.2 Zambia International Business Advisory Council (ZIBAC) – At the
request of the Third Republican President and with the support from the United
Kingdom Department for International Development (DFID) and other Donors the
Commonwealth Business Council has provided assistance for the establishment and
meetings of the Zambia International Business Advisory Council (ZIBAC) since it was
established. The Council was set up to provide international business perspectives on
policies and practical measures to help strengthen the investment climate and business
environment in Zambia.
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The Council comprises a team of high level business leaders from a range of countries
and business sectors led by Lord Simon Cairns. The Council has contributed advice
and expertise over the period 2003 – 2009. The ZIBAC was created to provide advice
to the President and Cabinet Ministers. The process included formal meetings in
Zambia with the President and Cabinet Ministers and the business community as well
as periodic interaction with representatives of the business community. Prior to 2006,
four ZIBAC meetings were held while two were held in the period under review.
3.3 Steering Committee: The PSD Steering Committee (PSD-SC) was set up as
the main apex body to drive reform implementation and provide strategic direction for
the programme. The Implementation Committee, a sub committee of the Steering
Committee comprised of 2 Government representatives, 2 private sector
representatives, 2 donors and the PSDRP Secretariat. It was established to review and
approve proposals before ratification of the decisions by the Steering Committee.
The Steering Committee composition changed in 2007 with a reduction in members
from 14 to 6 and the removal of the Implementation Committee. Up to the end of 2007
the committee comprised two Co Chairs, the DSC and the EAP, five Permanent
Secretaries, five ZBF members and two Cooperating Partners. As at the end of the
period under review the Steering Committee was chaired by the Deputy Secretary to
Cabinet and the Chairperson of the Zambia Business Forum and membership included
2 PSs and 3 ZBF members. The Steering Committee had twenty two meetings in the
review period of which more than half took place in 2008. The Committee also
facilitated the approval of all the funding to the Working groups and sector
programmes and the work plans and budgets for the Programme Management Unit
from 2008 onwards.
3.4 Working Groups - A number of working groups/committees/sector
programmes and initiatives were formed or supported to spearhead the
implementation of the reforms.
In September 2005 a number of Working Groups were appointed through a directive
by the Office of the Deputy Secretary to Cabinet. The working groups were composed of
both government and private sector representatives and are chaired by a private sector
representative nominated by ZBF.
PSD Desk officers in all 13 participating line Ministries were appointed to serve as focal
points for PSD activities in the particular Ministries and as secretariat to the Working
Groups. Line Ministries, as well as other organisations involved in PSD, submitted
work plans and proposals to the PCU for new or on-going initiatives, as well as
submitting reports on progress.
The working groups were composed of both government and private sector
representatives and are chaired by a private sector representative nominated by ZBF.
Their primary role was to identify reforms, undertake studies or pilot programmes
under the priority reform areas that would result in proposals to be adopted or
implemented by line Ministries or the Cabinet. The working groups were formed along
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sectoral issues (e.g. infrastructure), functional issues (e.g. trade), and thematic issues
(e.g. SME development) but based on the priority areas. Table 1 shows the working
groups/committees/sector programmes and initiatives that implemented various tasks
under the PSDRP:
Table 1: Working Groups/committees/ sector programmes/initiatives
Working Groups
 Administrative
barriers
 Labour Law Reform
 ICT
 Immigration
 Trade Expansion
 Lands
 Tourism
 PPP
 Livestock
 Energy
 MSME
Committees
 Business
Licensing
Reform
Committee
Sectors
Programmes
 Financial Sector
Development
Programme
Initiatives
 Citizens
Economic
Empowerment
Commission
 Small Claims
Court
 Municipal
Housing Bond
Trust
 Private Sector
Capital Flows
Project
The Action Plan’s high number of actions was grouped, prioritised and sequenced to
focus on reforms that address the private sector constraints and have an immediate
impact. Thus, the PSDRP focused on administrative reforms in the areas of tax,
customs, immigration and business licensing.
3.5
Programme Management Unit (PMU) – At inception of the PSDRP the
Unit was called the Programme Coordinating Unit. The idea to establish the
Programme Coordinating Unit (PCU) was proposed after realising the gap that
existed in the implementation mechanism proposed in Livingstone. The
Government, private sector and the Cooperating Partners all agreed to the idea of
setting up a Project Coordinating Unit (PCU) to coordinate and monitor
performance of the PSD Action Plan.
The name of the Unit was later changed in 2007 to Programme Management Unit.
The change in name was a reflection of the desire to quicken the implementation
process. The Unit continued to be housed in the Ministry of Commerce Trade and
Industry. It reported to the Permanent Secretary MCTI on administrative issues
and to the PSD Steering Committee on Strategic and implementation issues.
The main functions of the Unit were:
(a)
(b)
(c)
Receive and screen submitted proposals before forwarding them to the
Steering Committee;
Provide secretarial services to the Steering Committee and the DBC;
Prepare and distribute documentation well in advance for effective holding
of the DBC Steering Committee and other PSD related meetings;
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(d)
(e)
(f)
(g)
Manage the support fund and process grants for approved proposals;
Monitor performance of the PSD activities in line Ministries;
Monitor and evaluate the overall success of the implementation of the PSD
Action Plan; and
Prepare necessary reports on the implementation process.
In the period under review the Unit executed its role of coordinating and monitoring
the implementation of the private sector reform programme. The Unit was responsible
for coordinating the ZIBAC meetings, ZBC meetings, PSD Steering Committee
Meetings, the PSD quarterly review meeting, the Doing Business Advisory Worksop,
the Workshop for Permanent Secretaries, the Semi Annual Review Meetings, meetings
between the private sector and the Minister of Commerce Trade and Industry.
To enhance coordination and harmonise the PSD projects the Unit coordinated the
liaison task force committee meetings. The Liaison task force committee,
comprising the Deputy Secretary to Cabinet (Finance and Economic Development),
Secretary to the Treasury and Special Assistant to the President (Economics and
Development), which had been formed in 2007 met twice in 2008.
The staffing levels of the Unit increased to a total of 9 with the recruitment of a
Programme Officer and an Accounts Assistant in 2008. The increase in the staff levels
contributed to the efficiency of the programme and timely delivery of the programme
outputs. During the period the Unit was headed by a Programme Coordinator and the
portfolios for the Programme Officers remained relatively stable with a few changes in
2008.
All the PSDRP activities were funded to the Working Groups/ Committees/sector
programmes/initiatives through the PMU who were then responsible for disbursement
of funds for implementation to the Line ministries or implementing institutions. Over
the period 2006 to 2009 all of CPs fulfilled their financial obligations per commitments
made and agreed in the Joint Financing Arrangement in 2006. At the end of the
reporting period Government through the private Sector Reform Programme expended
the programme funds in full. External Audits of the accounts of the financial years
2006, 2007, 2008 and January to March 2009 were undertaken by the Office of the
Auditor General.
3.6 Line Ministries - The various line Ministries, through the Permanent
Secretaries were responsible for implementing the reforms. The PSD desk officers in
the various Ministries acted as focal points for all PSD activities in their ministries.
Line Ministries were thus responsible for accounting for funds received and for outputs
and progress reports of the action plans that had been developed by the various
working groups.
4.0 Overview of Reforms Implemented and Achievements
The Zambian Government has approved policies, amended laws and enacted new laws
and created new institutions as a means of contributing to an improved business
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environment and an enhanced investment climate. These actions were carried out in
conjunction with other projects like the Triangle of Hope and the Millennium
Challenge Account (MCA) Zambia Threshold Project. In summary four policies were
approved, namely ICT Policy, National Energy Policy, PPP Policy and MSME Policy.
Five new laws were enacted, ZNTB Act, Tourism and Hospitality Act, ZDA Act and
CEEC Act and amendments made to Labour and Industrial Relations Act and Small
Claims Act. The detailed work that was undertaken under each of the reform areas are
provided below.
4.1
Business Licensing Reform
The Zambian Government embarked on a comprehensive reform of the business
licensing regime premised on the recognition that many of the existing licensing
requirements and practices present a significant burden to enterprise growth, wealth
and job creation. This reform aims to substantially reduce the number of unnecessary
licensing requirements and make the licensing regime simpler, transparent and
focused on legitimate regulatory purposes.
A Business licensing Reform Committee was constituted in May 2008 with the
mandate to make recommendations to government on which licenses should be
retained, eliminated, or streamlined or reclassified. In addition to the basket funds
Technical Assistance from ICAS/World Bank was also provided. The first phase of this
reform was completed in February 2009 with an inventory of 517 licenses and a report
with recommendations from the Business Licensing Reform Committee on which
licenses should be eliminated, retained, reclassified and amalgamated.
Recommendations were also made on the streamlining of processes and procedures.
At the end of the period under review the report was awaiting approval by Cabinet.
4.2 Micro Small Medium Enterprise (MSME) Development
The MSME Development was established as a reform area at the end of 2007. This was
after recognition that support for the MSMEs required an increased effort. In 2008 the
PSD MSME Working Group was set up, as the coordinating body of all MSME
programmes.
The MSME Development reform area included the coordination of the Business
Development Services (BDS) Voucher Scheme which included the MSME WG being
the Steering Committee of the BDS Voucher Scheme. The Scheme was set up to
increase access of MSMEs to business development services through the Scheme at a
subsidised cost. At the end of 2008 twenty two vouchers had been disbursed in the four
pilot districts of Petauke, Mumbwa, Livingstone and Kasama. It is also worth
mentioning that the ILO counterpart project to the BDS Programme was approved
towards the end of 2008. This is the Broad Based Wealth and Job Creation Programme
which was launched in May 2009.
A MSME Survey conducted by FinMark Trust was expanded to encompass the World
Bank’s Investment Climate Assessment – Rural survey. The combined survey allowed
the coverage to reach all the nine provinces as well as rural and urban enterprises and
was renamed ‘The Zambia Business Survey”. As at the end of the period the
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preliminary findings had been disseminated to a few stakeholders while the full
findings are expected to be disseminated in July 2009.
A Feasibility study on the development of Incubators for MSMEs supported by the
Finnish Government was undertaken and a consultancy report with recommendations
to the Finish Government was made available in January 2009. It was agreed that the
implementation of the recommendations would be incorporated into PSDRP II.
As a response to the poor access to finance and high cost of finance for MSMEs a Credit
Guarantee Scheme (CGS) for MSMEs was established. The CGS was set up after a
consultancy was undertaken on the need for a CGS and the type of scheme that would
be required. The Development Bank of Zambia was selected to operate the scheme
through the management of the CGS fund against which participating financial
institutions would grant loans to MSMEs.
The PSD PMU, working with a number of government institutions and the private
sector developed a tailor made training programme for the informal and micro
enterprise sector. This was aimed at imparting the enterprises in these sectors with the
necessary skills required in running a successful business. Two pilot districts i.e.
Mazabuka and Solwezi were selected and a total of 165 enterprises attended the
training workshops. The training programme also included business clinics and
referrals. Due to the publicity and appreciation of the training, the PMU was tasked to
facilitate another tailor made training for the SMEs that had accompanied the Hon.
Minister of Commerce, Trade and Industry to China. The training on ‘Export
Readiness’ took place in Lusaka.
Most participants noted that one of the most important outcomes of the training
workshops was the opportunity afforded to them to register their businesses with
PACRO, ZDA and ZRA who were some of the key speakers and presenters at the
workshops. The programme was taken up by ZDA who prepared a roll out plan into
seven districts in 2009. In subsequent years the programme is expected to be further
rolled out to the remaining districts.
4.3 Labour Law reform
The labour law reform Working Group targeted their work towards reviewing selected
labour laws and policies and increasing public awareness of labour laws. The working
group was tasked with specific deliverables with regard to the wider labour law
reforms. The following terms of reference guided the group’s work:
I. Review of relevant labour laws that have direct link to business development:
Employment Act CAP 268;Industrial and Labour relations Act; Factories Act
Cap 441
II. Awareness programmes on Labour Laws: Create awareness of the existing
labour laws in Zambia and carry out research on various topical issues on the
labour market.
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The Industrial and Labour Relations Amendment Bill of 2008 was assented into law in
September 2008. The process of amending the Employment Act was not completed as
it was sent back to the Ministry of Labour and Social Services for further review.
A number of tripartite consultative workshops were held to discuss the amendments to
the Factories Act. A draft bill has been developed and yet to be approved by Cabinet
before it is sent to Parliament. The latest Statutory Instruments Numbers 56 and 57 on
minimum wages were issued in 2006. These statutory instruments also cover basic
conditions of employment for vulnerable workers such as issues of dismissal,
redundancy and retirement. Tripartite Consultations to revise these statutory
instruments were finalised but the new instruments were not issued as at the end of the
reporting period.
The Draft National Social Security bill was put on hold until the formulation of the
Labour and Social Security Policy. The Labour and Social Security Policy have since
been submitted to Cabinet for approval. The Occupational Safety and Health Services
Policy were introduced but the approval of the policy has not yet been granted by
Cabinet.
The NAPSA and Compensation Acts were amended and the proposals endorsed by the
tripartite consultative labour council in line with the provisions of the labour and
industrial relations Act.
The regulations for the Private Employment Agencies were formulated and awaiting
further consultations before submission to Cabinet for approval. A Study on private
employment Agencies was conducted and the findings and recommendation are under
discussion with the Labour Council. The ministry undertook a study tour to learn
about best practices in Labour Law Administration in Mauritius.
In terms of research, a study on the operations of the Private Employment Agencies
was undertaken in collaboration with the International Labour Organisation (ILO).
The purpose of the study among other things was to determine how the Private
Employment Agencies (PEAs) operate in a modern economic dispensation as well as
how these agencies can be properly regulated so that they provide smooth recruitment
services for the private sector. The findings of the report reviewed that there was an
urgent need to review the regulations so as to make them responsive to the new
challenges on the market. The research findings and recommendations will be used to
develop a draft regulation for PEAs that will be later subjected to the tripartite
consultations.
The working group carried out a number of awareness activities both in the electronic
and print media. A series of programmes on television were aired that covered critical
issues in the labour sector. Similar programmes were done on the radio and in
newspapers. The working group has completed the production of awareness
pamphlets.
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The Ministry of Labour and Social Security in conjunction with Central Statistical
Office (CSO) undertook a Labour Force Survey. The Labour Force Survey report will
bring out important Labour Sector indicators needed for government and private
sector to make decisions or develop intervention in the sector. The survey was
completed and the findings are expected to be disseminated in July 2009.
4.4 Infrastructure Reforms
The purpose of the reform area was to enhance infrastructural platform for PSD by
encouraging private investment in infrastructure. To this end the Working Group
formulated a draft policy document in respect to establishing Private Public
partnerships (PPPs) in Zambia. A nationwide consultative process was undertaken
through workshops at provincial and national level with the relevant stakeholders.
Substantial comments and contributions were received from participants at these
workshops and included in the final draft document. The PPP Policy was approved by
Cabinet and launched on 27th November, 2008.
The working group in conjunction with SADC Banking Association, who were engaged
as a technical partner in the PPP process for Zambia, facilitated a training workshop
for stakeholders from both the public and private sectors as part of capacity building
initiatives in respect of the implementation of PPPs in Zambia.
The Working Group in conjunction with the help of the SADC Banking Association
through the Support of the Canadian International Development Agency (CIDA)
engaged CIRSIL, India’s leading research, risk and policy advisory firm to undertake
review of the existing legal and institutional framework affecting PPPs in Zambia. Out
of these options, CIRSIL noted that the most practical option would be establishing a
PPP unit as a statutory body housed at the Ministry of Finance and National Planning.
This proposal was approved by Cabinet and endorsed at the launch of the PPP Policy.
The Draft PPP Bill is at the Ministry of Justice awaiting presentation at the second
sitting of Parliament in August 2009.
4.4.1 Municipal Housing Bonds
The National Housing Bonds Trust application to set up Municipal Housing Bonds was
approved in 2007. Through this mechanism finances were expected to be raised
through municipal bonds for housing projects as a form of Public Private Partnership
in infrastructure development. Five pilot districts namely Livingstone, Kitwe, Solwezi,
Chipata and Lusaka were selected to participate in the pilot phase. The approved
funding was to be used for the sub division of five sites, the geo technical survey, and
engagement of a financial Advisor and of sponsoring brokers.
In 2008 the National Housing Bond Trust confirmed their plans to construct 588
houses in a period of 21 months in Kitwe; 200 houses in a period of 12 months in
Livingstone and 400 houses in a period of 18 months in Solwezi and developed a
bankable business plan which was submitted to potential investors for funding.
14
However as at the end of the reporting period the Municipal Housing Bonds were not
issued and the project was not implemented as originally designed and envisioned. The
main reason for the failure was due to the financial crisis which prevented the Trust
from accessing funds from the international financiers, poor management and lack of
supervision by the Ministry of Local Government and Housing and the National
Housing Bonds Board of Trustees.
4.5 Telecommunications reforms
One of the main reforms planned by the ICT working group in 2007 was the
recommendation to Government to liberalise the international gateway IGW). This did
not materialise following Government announcement in April 2007 against
liberalisation of the IGW. From that time the issue was not dealt with until it was
introduced at the ZIBAC VI meeting, during which Government made a commitment
to reduce the gateway fees by December 2009.
A new Communications Department as approved in the ICT Policy which was launched
in 2007 was established and became operational in 2008. However the three Bills i.e.
the ICT, Postal and Electronic Communications and Transactions Bills although
drafted by the Ministry of Justice in 2007, will only be ready for submission to
Parliament in August 2009.
4.6 Energy Reforms
The National Energy Policy was approved in 2008. The final reports of the three
consultancies which were commissioned at the end of 2007 were submitted to the
Ministry of Energy and Water Development (MEWD) and approved by the energy
working group, the energy sector advisory group (SAG) and MEWD at the end of 2008.
The Consultancies were on; Reduction in the cost of petroleum products; Package of
incentives and legislation for increased private sector involvement in the production of
bio-fuels and Legislation of a package of incentives, guidelines and effective
institutional framework for the investment in hydro-power projects.
The working group conducted a study of the Brazil Bio-fuels industry as part of the
process of coming up with a Bio-fuels strategy. A Statutory instrument was issued to
incorporate bio-fuels in the Energy Act and a Joint Cabinet Memorandum was
circulated to incorporate bio-fuels as a priority sector under the Zambia Development
Agency Act.
As a follow up to the approved recommendations of the consultancy reports, the
MEWD has started discussions with the MoFNP to explore ways of implementing the
recommendations from the study on reducing the cost of petroleum products.
4.7 Land Reforms
In 2006, the Ministry of Lands initiated reforms aimed at reducing the total time
required to register or transfer property from 52 days to 16 days. In 2007, a series of
initiatives were instituted to streamline and make transparent the registration of lease,
15
transfer and issuance of a new certificate of title at the lands and Deeds Registry. The
Ministry of Lands computerised its lands registry and set up a customer centre to
eliminate the backlog of registration requests.
Access to land for investment purposes is being addressed through the Land Bank
Programme under which land suitable for various investment projects has been
identified and reserved.
A stakeholder meeting to finalise the guidelines for the land banks was conducted and
final draft guidelines prepared. The guidelines for land banks were approved by the
Ministry of Lands who later held a further review of the guidelines which are yet to be
discussed with stakeholders before they can be printed and distributed
The land audit on the Copperbelt, Central, Lusaka and Southern provinces and soil
sampling and analysis exercise in Senanga district of Western Province were
completed. The cadastral surveying and beaconing exercise for Lusaka, Central and
Southern Provinces was also completed as at the end of the reporting period.
4.8 Immigration Reform
The Working Group work plan was shared with the Zambia Threshold Project so that
activities could be co-financed by the Basket and the ZTP. In order to reduce the
processing time for visa and permits the Immigration Department re-engineered the
Visa/ Permit processing and procedures, developed an IT- based information systems,
the Department’s Website and established a new Customer Service Centre all aimed at
improving service delivery.
In particular ZTP supported the website development, reviewed the procedures used in
assessing and processing of Visa and Permit applications and established a Customer
Service Centre at Department Headquarters. The website was commissioned in 2007
while the customer service centre was launched in 2008. As a result the processing
time reduced by fifty percent and application forms, rules and regulations are available
on line. Visas are now issued within seven days, while permits are issued within
fourteen days.
A new computerized system called Zambia Immigration Management System (ZIMS),
based on the re-engineered processes, was developed and tested. The reengineered
processes and procedures were tested and first applied at the new Customer Service
Centre and rolled out to Chirundu, Livingstone and Victoria Falls border points.
The Working Group visited Uganda Malaysia and Ghana and in-country visits to
Ndola, Kasumbalesa, Livingstone, Kazangula and Katimamulilo border towns. Out of
the tours the following recommendations were made and adopted:
 Establishment of a training school
 Establishment of a fraud unit
 Computerisation of application process and maintenance of client databases
 Appreciation of the need for more transparent customer service centers
 New and modern Immigration Department
16
The fraud unit was established and staff to man the Unit recruited but due to financial
constraints the required equipment was not purchased. The process of establishing the
training school could not be completed as suitable space for the same was not found.
The application process was partly computerized and the Immigration headquarters
underwent significant renovations to make it modern.
A review of the Immigration and Deportation Act was conducted and stakeholders
provided their input into the draft Bill in 2008. The proposed draft bill was however
not taken further and as at the end of the review period it was still with the Ministry of
Home Affairs.
4.9 Livestock Development Reforms
The Livestock Disease Control Working Group (LDCWG) started its consultative
activities at the end of 2007. The Working Group activities comprised the following
activities, Review of the VET delivery system, review of the current livestock industry
and review of the livestock sector coordination. The above reviews have resulted in the
following recommendations:
 Restructure the Department of Veterinary, Establish an animal disease control
emergency fund,
 Revisit and formulate livestock development policies, Establishment of a
National
Livestock Sector Coordinating committee or Livestock Council,
 Review Livestock development plan 2009-2014 and Draft legislation bills for the
reviewed and proposed Act
An important outcome of the recommendations is that the 2009 national budget had a
significant budget allocation for the Livestock Sector as well as the appointment of a
Minister in charge of Livestock and Fisheries.
4.10 Trade Expansion
Two value chain analysis (VCAs) were done on Cotton through Apparel and Livestock
respectively but it was not completed as the Working Group did not identify
consultants to review the two draft VCA reports.
The Working Group held consultations on the National Export Strategy (NES) as a way
of raising awareness. The NES was finalised but no consultations were held at
provincial level. As at the end of the reporting period the Strategy was still in draft
form.
The Working Group noted that trade and production infrastructure is key to the
facilitation and expansion of trade especially at entry and exit points. In view of this,
there was need to carry out an inventory of trade and infrastructure needs at border
points with key export partners. It was agreed that the working group would first focus
on formalization of trade with Angola. However the proposed mission to Angola which
had been scheduled for November 2007 did not take place.
17
A number of Bilateral Trade Agreements with key trading partners were not
concluded. Notable among these were the ones for Congo DR (one of the major
markets for Zambian products) and Angola (useful market especially for North
Western Province). The MOU between North Western Province and Moxico Province
in Angola was cleared by Foreign Affairs and Ministry of Justice but the signing did not
take place.
The Ministry of Commerce, Trade and Industry through the Integrated Framework
(IF) Program submitted a project proposal for capacity building for the IF focal point to
ensure effective management of the IF Program, which will subsequently lead to
capacity building to address the supply-side constraints to production and exports. As
at the end of December 2008 the position of the National Trade Expert and Advisor
were filled.
The Working Group concentrated on planning the integration of the trade expansion
activities into the Integrated Framework (IF) structure and developed a work plan but
no PSD activities were implemented. At the end of the reporting period it was agreed
that the IF would be integrated into the PSDRP II.
4.11 Small Claims Court
The purpose of supporting the Small Claims Court project was to reduce the period of
time taken to deal with cases at the Small Claims Court. The project implementation
was transferred from the Ministry of Commerce Trade and Industry to the Judiciary at
the end of 2007. The pilot phase included two locations in Lusaka and Ndola secured
and 28 Officers were trained. Furniture, office equipment and two vehicles were
purchased. The training of the Adjucators was held in Lusaka and in South Africa.
Training in South Africa included a visit to a Small Claims Court which provided
Commissioners and Clerks and opportunity to witness first hand the proceedings of a
small claims court in session.
Publicity and awareness of the Project was done in 2008 and Parliament approved the
amendments to the Small Claims Bill. The amendments made the operations of the
court relevant to the current time in terms of the threshold levels.
4.12 Tourism Development
Parliament has approved the Tourism and Hospitality and ZNTB Bills and the
President assented to the bills which became law in 2008.
The Ministry undertook study tours to South Africa and Kenya. The team found that
two different systems, one deregulated (semi-autonomous Grading Council) and the
other regulated (Government department) exist in the two countries. The WG
recommended that these findings be discussed with all stakeholders before making
final recommendations.
A total of 300 establishments out of the targeted 1000 Tourism Enterprises were
registered as of December 2007. The purpose of the registration was to encourage
compliance. The Ministry also reproduced and circulated 4000 copies of the Tourism
Policy to its regional offices. All private sector tourism associations were catalogued
18
under the Tourism Council of Zambia and 3000 brochures on facts on private sector
driven tourism were produced and disseminated in 2007.
The home page of the Zambia National Tourism Board was improved. Web visitors can
now view and download the ZTB brochure. With this download in place, it is as good
as walking into an information centre and being able to pick up a brochure.
The review of the Environmental Impact Assessment (EIA) regulations was done and
the following included in the amended regulation
 Review process for EIA brief: Reduced from 40 days to 25 days
 Review process for Environment impact assessment: reduced from 65 to 30
days
 Review of EIA fees, fee will be based on the magnitude of the impact of the
project on the environment
 Introduction of a permit fee paid upfront and License fee paid periodically
However the Minister of Tourism and Natural Resources did not effect the changes by
signing the Statutory Instrument as the recommendations to the regulation would be
incorporated in the revised Environmental pollution and Protection Act. As at the end
of the period the review process had not been completed.
There were no outstanding activities for the Tourism Working Group as at the end of
2007 and thus the Working Group was phased out at the end of 2007. The Ministry
through the Department of Tourism applied to the Steering committee to undertake a
consultancy to develop a regulated classification and grading system for the hospitality
sector. The Consultancy was completed and the final report on the proposed system
submitted to the Ministry for consideration and implementation at the end of 2008.
4.13 Citizens Economic Empowerment
The Citizens Economic Empowerment Act was enacted in 2006. Following this in 2007
a
Countrywide awareness campaign including, radio and TV programmes were
undertaken
to increase awareness. As a result of the campaign the following were realised:
 An educated public aware of the CEE programme
 Increased understanding of the key components of economic empowerment as a
means of promoting inclusiveness during the implementation of CEE
programmes,
 Creation of a platform for developing a working partnership with all the
stakeholders
 Feedback from the public about the CEE Act.
Numerous requests for follow up workshops were received from various sectors
including the Bankers Association of Zambia, the Zambia National Farmers Union, and
the Rotarians Lusaka Chapter to develop sector charters and a sensitization of Business
associations was undertaken.
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A national workshop on best practices in empowerment was held in 2007 in
collaboration with Development Bank of South Africa. The workshop provided a
valuable input into the activities of the Commission. The Working Group was phased
out at the end of 2007 after completing its targeted activities.
The Citizens Economic Empowerment Commission (CEEC) was operationalised in
early 2007 following the swearing in of the Commissioners with an interim secretariat
set up in mid 2007. The permanent secretariat was subsequently recruited in 2008
after which the guidelines for accessing the CEE Fund were developed and the CEEC
fund became operational in September 2008.
The Citizens Economic Empowerment Commission received support in the
development of sector charter guidelines. The capacity building exercise for the various
sectors was held with support from Department of Trade and industry, South Africa.
Only the Agricultural sector developed its sector codes as at the end of the year.
4.14 Administrative Barriers Working Group
The Working Group was established in 2005 and phased out at the end of 2007. At the
beginning of its work the Working Group set out the targets listed below. The Working
Group collaborated with the ZTP to achieve the targets.
1) Reduce the time taken to register a company with Patents and Company
Registration Office (PACRO) from one – two weeks to not more than 3 days
2) At least 30% reduction in the number of licenses required to start-up and
operate a business in Zambia.
3) Reduce the border clearance time to within 24 hrs
4) Reduce the period of VAT refunds from over three (3) months to one month
5) Reduce the period of cases at the Small Claims Court
6) Learn from experience of other countries on best practises in removing
administrative barriers
As at the end of 2007 the following had been achieved:
Target 1 was achieved and the registration of a company at PACRO now takes 3 days
while registration of a business name is done in less than one day. The PACRO office
in Ndola was also launched in this period and in 2008 an office in Livingstone had
been opened as well. These achievements were as a result of ZTP working within the
PSD framework and with the Administrative barriers Working Group and PACRO.
PACRO automated the business registration process and opened a Customer Service
Centre to serve as a one stop-shop for business customers. An interactive website was
established which allows customers to download application forms and complete them
before visiting the office.
Target 2 was not achieved as originally envisioned; instead the work on licensing was
taken up by the Business Licensing Reform Committee in 2008.
Although the Working Group had identified the barriers, targets 3 and 4 were
implemented by Zambia Revenue Authority (ZRA). This reform to reduce the
20
clearance time was done under a pilot project called “Customs accredited clients
programme” which set out to reduce the congestion at border posts. In the first phase
of the pilot four companies with huge volumes of cargo participated and the number of
companies was increased to 15 in 2008. As a result ZRA now inspects an average of
three trucks out of 110 that pass through Chirundu and 15 Border posts are
computerised. ZRA has also reduced the time it takes for VAT refund from over three
months to 21 days and developed and launched a service charter.
Target 5 was achieved by the Small Claims Court after the project implementation was
transferred to the Judiciary. Target 6 was not achieved as the study tour was not
undertaken.
4.15 Zambia Development Agency (ZDA): During the period under review,
Government established the Zambia Development Agency (ZDA) through the ZDA Act
No. 11 of 2006 to act as a one stop facility for local and foreign investors. The Agency
was mandated to promote and facilitate exports, establishment of Multi-Facility
Economic Zones (MFEZs), investment and the development of Small and Medium
Enterprises (SMEs). In 2007 some proposals to amend the ZDA Act were tabled for
consideration. The process of completing the amendment will be undertaken in 2009.
A summary of the above reforms undertaken are provided in Annex 1.
5.0 Policy Study Fund
A policy Study fund was provided for under PSDRP as a tool that could be used for
various studies that could inform the reform process. In addition to studies conducted
by ZBF other institutions such as ZDA, Bank of Zambia and Tourism Council also
utilised the fund.
The Private Capital Flows Project survey which was applied for by ZDA was approved
at the end of 2007. The Survey which was launched in 2008 was a joint effort by the
Bank of Zambia (BOZ), Central Statistics Office and ZDA. During the period under
review the Private Capital Flows survey was completed and the findings disseminated
in 2009. The main findings of the survey revealed that there have been improvements
in the business environment since 2002.
The Tourism Council of Zambia presented a proposal to assess the possible impact of
the visa fees on the Tourism sector which was approved by the Steering Committee.
The output of the assessment was presented to Government for consideration.
The Bank of Zambia was supported to undertake a FINSCOPE II survey. The survey is
expected to provide information about the extent of access to financial services and
institutions. The findings will be disseminated in July 2009.
Zambia Business Forum was funded twice to undertake a study in preparation of
private sector issues for Government to consider in the 2008 and 2009 national
budgets.
21
The Ministry of Commerce, Trade and Industry undertook to review Part XIII of the
Companies ACT “Liquidations and Receiverships” in 2007. The goal of the review was
to ensure that effective measures are put in place for proper management of companies
under liquidation and receivership. The goal was not achieved due to duplication of
work that was identified.
The Ministry then established a Committee to spearhead the review of Part XIII of the
Companies Act. Bank of Zambia was undertaking a review of the whole Act though Part
XII was not in their interest. Consultative meetings were held with the Bank of Zambia,
the World Bank, PACRO, ZCC and MCTI were it was agreed that the Ministry would go
ahead and finalise the review of the legislation on liquidation and receivership in 2008.
At the end of 2008 the reconciliation and consolidation of the work done so far was
completed. The proposed amendments to the Companies Act are expected to be
considered in 2009.
6.0 Information and Communication
The PSDRP communication strategy was completed in 2007 with emphasis on
reaching audiences most important to move the reform process forward and get
continued support of government ministries and other stakeholders for the reform
agenda. The audiences were targeted through meetings, conferences, and a media
campaign which included television, radio, and newspapers.
Doing Business Advisory workshop February 2008: A total of 79 workshop
participants from the Doing Business team- USA, representatives from the
Government, Private Sector and Cooperating Partners participated in the workshop.
The Key discussion point of the workshop was the Doing Business reports in general
and the Doing Business report 2008 with emphasis on Zambia in particular. The
issues raised by the participants related to the sources of information used by the DB
team and the lack of validation with the government and the non recognition by the DB
team of reforms that have taken place and those that were being implemented.
Workshop for Permanent Secretaries (PSs) February 2008:The workshop for the PSs
which included the PS from Cabinet office was held for the purpose of reorienting the
PSs with the PSD Reform programme and the roles of the Ministries in the
implementation of the programme. A total of 30 Officers participated in the workshop
which included the PSD desk officers.
Public Private Dialogue (PPD) Regional Workshop 2008: In recognition of the
importance that public private dialogue plays as a mechanism for achieving an
improvement in the investment climate, a training workshop was organised in Senegal
to include participants from 15 countries. Zambia participated and was represented by
two Officers from the PMU. The workshop focused on building capacity and skills
required to define the reform agenda using Doing Business Indicators and to deliver on
reform agenda and also defining mechanisms for the integration of the gender
perspective into the various programmes.
22
Although the workshop was targeted at facilitators working on IFC projects the PMU
shared its experience and learned from the experiences of other countries. It was
agreed that a Public Private Dialogue (PPD) expert would be requested to visit Zambia
and work with the PMU on enhancing PPD as a mechanism to create change.
A PPD Consultant recruited by the World Bank visited Zambia at the end of 2008 to
review the Zambia PPD and make recommendations. The final report was submitted
and some of the recommendations such as the development of a Zambia PSD strategy
were adopted. The strategy will be developed in the third quarter of 2009.
Public Private Dialogue (PPD) Global Workshop 2009: A Public-Private Dialogue
(PPD) International workshop was held in Vienna, Austria from April 28 th to 30th
2009.The objective of the workshop was to develop knowledge and to better support
the use of PPD as a means for promoting private sector development and reduction of
poverty. When used effectively, the PPD mechanism can assist government’s, donors
and the private sector with the diagnosis, prioritization, implementation and
monitoring of national economic reforms that are required to bring about sustained
economic growth.
To that effect, the workshop comprised of various Co-operating partners namely DFID,
the World Bank, IFC, OECD Development Centre and GTZ. Government and private
sector institutions came from Albania, Armenia, Bangladesh, Cambodia, Cameroon,
Ethiopia, Kyrgyz Republic, Laos, Liberia, Tajikistan, Timo – Leste, Turkey, Uganda,
Vanuatu, Vietnam, Tanzania and Zambia. From Zambia, the two representatives who
attended the workshop were from the Private Sector Development Reform Programme
under the Ministry of Commerce, Trade and Industry.
A number of lessons were shared and learnt during the workshop deliberations. Two
key lessons learnt for Zambia were the need to hold regular high level meetings such as
ZIBAC and ZBC in order to reinforce political will in the implementation of the reforms
and the need to involve high level offices such as the office of the Vice President in the
dialogue as an alternate to the President.
Semi Annual Review meetings: In total four semi annual review meetings were held
over the period under review. At the last meeting held in August 2008, a total of 100
Government, Private Sector and Cooperating partners participated in the meeting. The
meeting was expected to focus on the progress during the period January – June 2008,
the findings of the evaluation and the phase 2 of the programme. The meeting was
curtailed due to the news of the death of the President but before the meeting ended it
was agreed that a new Consultant should be recruited for the evaluation and the
Government through the Minister pronounced Government commitment to the
Reform programme.
Meetings with the private sector: In the period under review a number of meetings
were held with the private sector. The meetings were held to discuss various issues of
concern by the private sector and presenting issues for the Zambia Business Council
Meeting. The information sharing meeting on key reforms such as the business
23
licensing reform report, implementation of Multi Facility Economic Zones and
Government support to MSMEs.
Meetings with Cooperating Partners: Meetings between the PMU and the PSD Lead
Donors were held on a monthly basis as a mechanism to discuss progress and issues
concerning in programme implementation. At a more formal level meetings were also
held between the Minister and the Cooperating Partners.
Consultative meetings on harmonization: The Liaison task force comprising the
Deputy Secretary to Cabinet, Special Assistant to the President, Economic Affairs, and
the Secretary to the Treasury held two meetings with the Minister in this period. The
purpose of the meetings was to harmonise programmes, projects and initiatives
implementing private sector development activities namely, PSDRP, Financial Sector
Development Programme, Millennium Challenge Account, Capacity Building for
Private Sector Development Project and Triangle of Hope. It was recognised that all
the afore mentioned projects were contributing to the PSDRP and that the target group
for all the projects was the private sector. It was agreed that harmonisation was
required at different levels. This need was raised in the evaluation of PSDRP and it is
expected to be further developed in PSDRP II.
Media Breakfast meetings: These meetings started in the second half of 2008 and
featured almost all the working groups. A total of 13 meetings were held. The meetings
were facilitated by the Lusaka Press Club (LPC). The idea was twofold, to build some
capacity in a selected group of reporters on writing articles about PSD as well as
increase the reach and coverage of the Programme.
Dissemination meeting on Doing Business 2009 Report: In the third quarter of 2008
the Doing Business report 2009 was launched and the ranking for Zambia on the Ease
of Doing Business moved up sixteen places from 116 to 100. The programme organised
a dissemination meeting with the private sector and the Cooperating partners at which
the progress and achievements made were acknowledged and the areas of focus for the
next report highlighted.
Meeting with Solwezi Chamber of Commerce: The PMU was invited to meet the
Solwezi Chamber of Commerce to disseminate the PSDRP in 2008. The PMU used the
meeting to assess the needs of the private sector at district level such as Solwezi.
Meeting with the private sector in Kasama District: In 2008 the Programme
Coordinator undertook a visit to Kasama with representatives of the Netherlands and
Finland Embassies. The purpose of the visit was to meet with various district
associations and business enterprises and learn about their issues and how to
encourage PPD at district and provincial levels.
Trade and Agriculture shows: In the period under review the PMU participated in
both the Zambia International Trade Fair (ZITF) and the Lusaka Agricultural and
Commercial shows. At the ZITF held in 2008 PSDRP organized a business luncheon
which was hosted by the Minister of Commerce, Trade and Industry Hon. Felix Mutati.
24
Top on the agenda at this meeting was the presentation by the Zambia-China
Economic and Trade Corporation zone (ZCCZ) on the development of the Chambishi
Economic Zone.
Press Advertisements and Press releases: Several advertisements including one in the
November, 2008 Sawubona magazine, the South African Airways in-flight magazine,
was released. The advertisement in Sawubona in particular was made in order to
extend the reach of PSD awareness and sensitization as the magazine’s circulation is in
the order of three million worldwide. It also complemented the magazine’s special
feature on Zambian tourism.
A press release was issued through the programme for the MSME survey and a lot of
interest was received from the general public about the survey. In addition a press
statement on the Business Licensing Reform Launch and the PPP policy launch were
also issued to the public.
Electronic Record System: The programme embarked on the development of an
electronic-based records system as a way of keeping its valuable information in
electronic form.
PSD Supplement: Eleven editions were produced in 2007 and 2008. The popularity of
the supplements increased significantly over time when a human face was given to the
reform stories.
PSD Magazine: The first edition of the Zambia Business Reforms Magazine was
published n 2008. The magazine augmented the supplements.
TV and Radio Programmes: Twenty six live shows were aired on Radio Phoenix and
thirteen on ZNBC television in 2007 and 2008. The shows featured government
officials, the private sector, working groups and members of the PSD Implementation
Committee. A number of subjects on PSD reforms were covered which included the
PSD reform process, administrative barriers to business, citizens economic
empowerment, public private partnerships, telecoms reforms, land reforms,
immigration, livestock and disease control, trade expansion, ZDA & SMEs
development, and labour law reforms. Members of the business community and the
public were allowed to phone-in to the live shows where they expressed their concerns
about the reforms and the cost of doing business. As a way of increasing the reach of
PSD awareness four community radio stations, namely, Oblate Liseli in Mongu, Breeze
FM in Chipata, Solwezi FCC in Solwezi, and Sky FM in Monze were selected to
broadcast pre recorded PSDRP radio programmes.
Three documentaries were developed and aired in 2008, one on ZIBAC V and the other
two on the MSME training programmes. The documentaries were aired on both Muvi
TV and ZNBC.
25
In the last half of 2008 PSD embarked on the re-development of the programme
website in order to make it user friendly, dynamic and interactive. The website
development was completed in April 2009.
At the end of the year the Investment Climate Advisory Services formerly FIAS
provided Technical Assistance for the development of a reform communications plan
which will be implemented in PSDRP II.
ZBF hosted two Annual Review Conferences in the period under review to consolidate
issues for discussion at the Zambia Business Council and ZIBAC and undertook a
sensitisation campaign among its member associations in three districts.
7.0 Ghana Conference
An African Regional Consultative Conference, under the theme Creating Better
Business Environments for Enterprise Development; African and global lessons for
more effective donor practices was held in Ghana in November 2007. The PSD
programme sponsored a team of nine persons from the public and private sector. The
Zambian delegation made three presentations on the following topics;



Intuitional Architecture and Design of the PSD programme
PPP, The Significant Other
Fighting Corruption One Step At A Time
The main recommendations from the conference were:
 PSDP to include a gender dimension in the reforms process
 There should be a follow up on the experience from Kenya in Business Licensing
Reform
 The PSDRP should review its communication campaign to ensure more effective
way of informing the public about the reform programme.
Of these recommendations the first and last one will be followed through in PSDRP II,
while the second one was implemented.
8.0 Regional Reformers Conference, Arusha
A Regional Reformers Conference was held at the end of 2008 in Arusha. Six countries
from East Africa and one form Southern Africa participated in the Conference.
Representatives from Bangladesh attended as observers. The participants included
representatives from Government, private sector and the World Bank. The Zambian
team of 7 comprised three from the PMU, one from MLGH and three from ZBF.
The purpose of the conference was to create a forum in which regulatory policy makers,
experts and representatives of the private sector could meet to exchange views and
experiences. The conference was aimed at increasing reformers’ understanding of
critical success factors for regulatory governance and capacity building, while achieving
greater political buy-in to reform, enable genuine lesson learning at the
implementation level and develop a strong and sustainable network of reformers.
Experiences were shared on the extent to which different countries had been successful
in regulatory reform.
26
9.0 Study tour to Mauritius
The Zambian Government through the Private Sector Development Reform
Programme (PSDRP) undertook a study to Mauritius from 1st March 2009 to 4th March
2009. The delegation was composed of officers from the PSD Unit, Ministry of
Commerce, Trade and Industry, Citizen’s Economic Empowerment Commission,
Patents and Company Registration Office, and Ministry of Labour and Social Security.
The study tour was aimed at learning best practices on business reforms in general and
Doing Business Indicators in particular. The delegation focused on general reforms
undertaken, institutional structures for reforms, core implementers of reforms, specific
work done on doing business, key elements and strategies for doing business and
programmes in support of MSME.
The delegation visited and held discussions with officials in thirteen institutions
including the Board of Investment, Registrar of Companies, Ministry of Finance,
Mauritius Revenue Authority and the Bank of Mauritius. The key lesson learnt from
the study was that for business reforms to succeed there must be strong political will
and commitment.
10.0 PSDRP Evaluation
The Private Sector Development Reform Programme (PSDRP) underwent an
evaluation in the period December 2008 to February 2009. The purpose of the
evaluation was to establish how much the PSDRP had contributed to the need for
quicker and more effective change in the business environment. Four main objectives
of the evaluation were developed: 1) take stock of the PSDRP, 2) identify issues,
challenges, constraints for implementation, 3) assess potential changes in programme
direction, and 4) suggest specific recommendations on strategies and ownership. A
summary of the key findings and recommendations are attached as Annex 2
11.0 Challenges
The following are the main challenges that the programme faced in implementing the
programme:
a) Working Groups were very slow in responding to calls to submit action plans
and reports. They did not adhere to deadlines when providing updates and
expenditure reports
b) The approval process at cabinet and parliament did not move at the same pace
as the work of the WGs
c) PSD laws and policies appeared not to be a priority in the approval process.
d) Working Groups deliverables were not easy to quantify because they were
process oriented.
e) There was resistance to change at institutional level mainly due to institutions
failing to see long-term gains that lie beyond the momentary; short-term loses of
revenue or influence which they would likely suffer because of the reforms.
f) While the Government had a big picture of wanting reforms to encourage
private investments as a means to creating jobs and reducing poverty,
27
institutions focused on the immediate benefits that would accrue to them. This
lack of convergence of interests and aspirations greatly slowed down the reform
implementation.
g) The Government ministries did not all have the same zeal to implement the
reforms. This was because, for some, the reforms were not viewed as part of
their job description and therefore they saw their participation as extra work for
which remuneration was demanded.
12.0 Lessons Learnt
 The PSD reform action plan was not fully mainstreamed into GRZ ministries at
design stage. This resulted in the lack of full ownership of the programme at
institutional level, which in turn also resulted in the slow pace at which the
programme was implemented.
 Although there is evidence that the process of programme design was consultative,
there seems, at the institutional level, to be a serious lack of ownership of
responsibility of programme implementation; and this has resulted in the generally
low levels of institution’s commitment. There could be only one plausible
explanation for this: a strong sense of co-ownership of the programme design
process and of the programme objectives was not fully shared among all the
stakeholders at design stage.
 Political will is an important aspect in implementing reform. National leaders,
especially those in Government, must have a clear vision in as far as economic
reforms are concerned, and a very clear perception of the reforms agenda. They all
must feel a strong sense of ownership of the reforms and must be willing to express
their political will in driving the reform agenda forward. Once this is achieved, the
problem which is being experienced currently, where there are so many voices
giving different and often contradictory messages on the reforms will be greatly
ameliorated.
 Zambia has been able to achieve more in terms of the macroeconomic stability in
the past two or so years. This is because macroeconomic reforms are easier to
implement than microeconomic reforms due to the fact that a few key actors are
involved in their implementation, and also because Government can occasionally
resort to using its discretionary powers when things are not moving as fast.
 With respect to microeconomic reforms, although members of the public would
want to see microeconomic benefits immediately, especially given the high levels of
poverty in the country, it is true to say that microeconomic benefits only follow after
the macroeconomic base has been set. Moreover, benefits from micro-level reforms
are not visible immediately.
 Having the Monitoring and Evaluation (M&E) framework put in place as afterthought – i.e., after the programme design was done and its implementation
commenced, as opposed to making it an integral part of the design – is one of the
flaws of the PSDRP design. As an M&E system is intended to define progress
indicators, means of progress/results verification. It is also intended to define the
Programme environment for each of the key reform actors – political leaders,
public and private sectors including the PMU, the SC, WGs, ZBC, the M&E system
28

also facilitates feeding of information from the programme as it is implemented not
the formal national reform policy formulation processes;
The programme design did not incorporate a communication strategy for informing
and disseminating programme achievements to all who have a stake and interest in
private sector development. The consequent lack of information on the reform so
far caused the general members of the public in Zambia not to appreciate fully the
achievements gained and challenges faced in the course of implementation of the
reforms.
13.0 Conclusion
The PSDRP was an ambitious programme perceived by many as the panacea for
enhancing the investment climate and addressing constraints faced by the private
sector. The Government of the Republic of Zambia has demonstrated its commitment
to the programme by developing structures to support its implementation.
Furthermore, it has also recognised the need to seek external assistance in order that
additional resources may be secured to implement the programme.
In spite of the challenges faced and the slow implementation it is worth noting that the
PSDRP has contributed to an improvement in the business environment and an
enhanced investment climate. As the second phase of PSDRP begins, the lessons learnt
have been taken into account in the design as well as the weaknesses that were pointed
in the evaluation report.
29
ANNEX 1
PSDRP implementation matrix – May 2009
PSDRP WG
Business Licensing Reform
(BLR)
Deliverables
1. Launch of BLR
2. Quick wins Report
3. Business license inventory
4. Report on Recommendations to
GRZ
5. Set up an e- registry
6. Set up a regulatory unit
Outputs
 Business
License
Reform
Committee (BLRC) established.
 Business
License
reform
launched in Livingstone.
 Consultative meetings held with
Government and private sector
on Business License Reform
(BLR).
 Committee presents first draft to
Permanent
Secretaries
and
holding further consultations
with some Ministries.
 Quick wins report with 30
licenses
recommended
for
elimination identified.
 Committee of PS is formed to
finalise the BLR Report.
 The committee of PSs presents
its final report to Secretary to
Cabinet (SC).
Status
 The report has been
submitted to Cabinet.
 Establishment of the E
registry and the regulatory
unit are awaiting approval
of the report.
MSME Development
1. Develop
coordination
framework for MSMEs
2. MSME Policy development
3. MSME Survey
4. Development of products for
MSMEs for access to Finance
5. Design of a credit guarantee
scheme

MSME
policy
stakeholder
meeting held.
MSME survey launched
Access o finance and markets
programme for MSEs developed
Draft SME policy finalised and
submitted to cabinet.
CGS developed and to be hosted
by DBZ

Amended Labour laws:

The Industrial and Labour
Relations Amendment Bill of
2008 assented into law in
September 2008.
Statutory instruments numbers
56 and 57 revised
Draft factories bill has been
developed
Draft National Social Security bill
developed
Labour & social security policy
drafted
Radio and TV programme
undertaken
Small Claims Court established
in Lusaka and Ndola.
Training for Small claims Staff
completed.
Small claims Court Bill was

Wider Labour Law Reform
1. Employment Act Cap 268
2. Factories Act Cap 441
3. Industrial and Labour Relations
Act Cap 269
4. Awareness programmes on
Labour Laws undertaken
Regulation
of
private
employment agencies.









Small Claims Court
1. Implementation of Small Claims
Court
2. Amendment of Small Claims
Court Bill











The MSME Policy was
approved by Cabinet
MOU for the establishment
of CGS was signed
MOU for the rollout of the
access to finance and
markets programme for
MSEs was signed.
The revised SI 56 and 57
are yet to be issued.
Draft factories bill yet to be
approved by cabinet
Consultation process over
the Labour & social security
policy are underway.
Process of amending the
Employment Act will start
afresh
Labourforce
survey
undertaken,
awaiting
dissemination of findings
Funds for the Small Claims
Court have been provided
for in the yellow book of
2009.
The Commissioners for the
30
drafted and
Cabinet
submitted
to

Energy reform



Reduction in the cost of
petroleum products
Package of incentives reviewed
and legislated for private sector
involvement in the production
of
Bio-fuels
and
other
Alternative fuels
Review and legislate package of
incentives,
guidelines
and
operational
framework
for
investments in hydro-power
projects

Reports
on
the
three
consultancies completed and
submitted
 The study tour undertaken to
Brazil
 Revised energy policy approved
by cabinet.
 Joint Cabinet memorandum to
incorporate bio fuels as a
priority sector under the Zambia
Development Agency Act was
done.
 Statutory instrument issued to
incorporate bio fuels in the
energy Act.
Outputs

Department of communications
was established
ICT Bill, Postal Bill and ECT Bill
drafted
ICT Policy approved

PACRO systems computerised
PACRO decentralized to Ndola
and Livingstone
ZRA systems computerised

PSDRP WG
Deliverables
ICT reforms
1. Cabinet
Conveyance
on
liberalisation of the IGW.
2. Information and Communication
Technology (ICT) Act enacted.
3. Department of Communications
established

1. Reduction in the time taken to
register a company with PACRO
from one- two weeks to not
more than 3 days;


Administrative Barriers




Small Claims Court have
been sworn in by the Chief
Justice
Offices opened in Lusaka
and Ndola
Studies completed and
accepted by MEWD
MEWD
is
holding
discussions with MoFNP on
the recommendations made
in the studies.
Status


2. At least 30% reductions in the
number of licenses required to
start-up and operate a business
in Zambia;

3. Reduce the border clearance
time to within 24 hrs



4. Reduce the period of VAT
refunds from
over
three
months to one month;
The draft bills will be
submitted to Parliament in
July 2009
Gateway fees will be
reduced by December 2009
PACRO computerized and
decentralized to Ndola and
Livingstone
ZRA
computerized
15
border posts
Time at Chirundu reduced
to 3 hours per truck
Only three tucks inspected
at Chirundu per day
Study tour cancelled
Licensing
component
incorporated in Business
Licensing Reform
2. Learn from experience of other
countries on best practices in
removing
administrative
barriers and avoid pitfalls at
design and/or implementation
phases of the project.
Public-Private partnerships
(PPP)
1. National Policy on Public-Private
Partnerships
and
Implementation Strategy
2. Adoption of legal framework for
PPP



PPP Policy approved by Cabinet
PPP Bill drafted
The establishment of a PPP unit
to be housed at the MoFNP was
approved by Cabinet


The PPP unit being set up
The PPP Bill to be
submitted to Parliament in
July 2009.

Enhanced Integrated Framework
(EIF) developed
National implementation Unit
established and staff recruited

EIF will be incorporated
into PSDRP II as the trade
component
5. Long term strategies for PPPs
established
Trade Expansion
1. Develop action plan with the
objective of expanding trade.
2. Develop proposal from VCAs for
consideration by WTO Aid-ForTrade facility.
3. Raise awareness among private

31
sector
issues
NHBT
about
trade
1. Introduction
of
Housing Bonds
related
Municipal





Standard
Charted
bank
appointed financial arrangers.
Bridging Finance mobilised
Construction
finance
commitments received
Most of the funds will be raised
externally.
NHBT has advertised houses for
sale in Livingstone, Kitwe and
Solwezi.

Housing bonds have not
been issued
CEE Act enacted
CEE Commission established
with CEO and other officers
recruited.
Guidelines to access CEE funds
developed

Guidelines for CEEC fund
developed
CEEC funds disbursed
1. Public
Communications
campaign
undertaken
to
educate the general public on
the
Citizens
Economic
Empowerment Strategy.


PSDRP WG
Deliverables
Outputs
Status
Tourism Development
1. Tourism and Hospitality, and
ZNTB Bills enacted.


Citizens Economic
Empowerment
2. One Tourism Licensing and
Authorisation Best practices
report produced.
3. Draft Subsidiary legislation on
tourism
licensing
and
authorisation developed.



Tourism and Hospitality Bill
Enacted
Zambia National Tourist Board
Bill enacted
EIA fess revised


The
working
group
completed its work in 2007
In 2008 Department of
Tourism
Developed
grading
and
standards
systems
4. One stop shop for efficient
Tourism
Licensing
and
Authorisation created under the
Department
of
Tourism
Development.
5. Streamlined
authorisation
procedures.
licensing
/
and inspection
6. 5000
information
booklets
produced
on
streamlined
licensing / authorisation and
inspection procedures.
7. 1000
Tourism
enterprises
legally / officially registered i.e.
both accommodation and other
tourism enterprises.
8. One National and four Regional
Tourism Inventory Data bases
created.
9. EIA regulations on payment
modalities / pricing structure of
EIAs
agreed
upon
by
stakeholders.
10. Tourism
launched
Policy
officially
11. National Tourism Development
Master Plan developed.
12. Tourism Website enhanced
32
1. Land Policy
2. Land
Banks
Identification
Programme
3. Improvement
of
land
information system
4. Improvement
of
land
information
system,
Land
Survey, lands and Deeds and
the land advocacy
5. Business Process Analysis and
Re-engineering
6. Efficient processes associated
with land transaction and
allocation.
State-of-the-art
Lands Registration and title
deeds management system and
improvement to the LIMS
software and hardware
7. Enhance public perception on
MoL and prevention of Fraud
and Corruption
8. Establishment
of
a
land
Integrity Committee.
9. Implementation of internal and
external
communications
Programmes

PSDRP WG
Deliverables
Outputs
Immigration
1. Improved timing and efficiency

Land reforms
2.
3.
4.
5.
6.
7.
of the processes for entry and
exit into Zambia and approval
of work and self employment
permits.
Development of a website
Reduced
perception
of
corruption at ID
Border Management Task Force
(BMTF)
Streamlined immigration regime
and structure to further shorten
investor application procedures
and further clarify, increase
reliability
and
obtain
consistency.
Solutions into the housing and
administrative requirements to
increase working hours at
Chirundu Immigration Control
Point. Solutions are also
required taking into account
new and necessary ICT and
service delivery requirements
for the new infrastructure
under construction at Chirundu
and Katima Mulilo Border Posts.
Trained
and
confident
manpower leading to efficiency
gain in operations. Appreciation
and understanding of best
practice, ICT, infrastructure
standards for staff leading to
ease of mindset change and
embracing best practices and




Land audit completed in four
provinces
Cadastral survey completed in
four provinces
Senanga soil sampling analysis
exercise completed.
Customer
services
centre
established
Guidelines for land banks
approved
Customer Services Charter for
Department
of Immigration
launched

The revisions of the land
policy awaits the enactment
of the new constitution
Status
 The revised Immigration
Act is awaiting submission
to Parliament.
33
standards.
8. Improved
immigration
information services that also
offer on-line enquiries and
filling
of
applications
by
applicants.
9. ICT based work processing
routines
and
management
information systems strategy
developed and supported by:
new office lay-out plans for
Department of Immigration
head office and selected
borders; staff training and
development needs assessment
conducted
to
guide
implementation of capacity
building
programme
and
delivery
of
change
management and customer
care courses.
10. Knowledge gained by WGI on
best practices from other
countries in the region and
Malaysia.
11. WGI gains on-site knowledge of
operations at selected borders
of
the
Department
of
Immigration
12. Final reports from consultants
and other activities of the WGI
provided
to
the
PSD
Implementation Committee
13. Amend Immigration Act
PSDRP WG
Livestock disease control
Deliverables
1. Review of Veterinary Delivery
System.
2. Review of Past Donor Driven
Livestock Projects/ Programme.
3. Review of Past and Present
Policy Environment
Outputs
Recommendations were made by
the working group on improving the
livestock industry and controlling
diseases. The following are the
recommendations of the working
group:
1. Improve coordination of the
Industry. This will require the
creation of specific structures
handle livestock issuers:
 Create a separate Ministry
that focuses on livestock. This
is aimed at increasing the
profile of the industry and
allows
it
to
contribute
effectively to the national
economy.
 Create the Livestock Council
by an Act of Parliament. This
will handle all issues of
professionalism by all players
in the industry.
 Create voluntary District Task
Forces that will handle and
allow
for
community
involvement
in
livestock
disease control issues at the
Status
Livestock budget allocation
in 2009 budget increased
 Minster of Livestock &
Fisheries established.
 Government
agreed
to
implement
the
recommendations of the
working group.

34
2.
3.
4.
5.
6.
7.
8.
ZDA
1. ZDA
Act harmonized with
Immigration and CEE Acts
1.
2.
3.
4.
district level. This initiative
will create ownership of the
disease control programme at
grass root level.
Create an Emergency Disease
Control Fund independent of the
normal budgetary allocation to
livestock development
Adhere to well defined disease
control vaccination programmes.
Carry out animal identification
programmes, disease control
vaccination programmes.
Harmonise the Public Health Act
so that the Ministry of Health,
local government and the
Veterinary department have
separate but complementary
roles in meat inspections at
meat slaughter facilities.
Livestock related Acts to be
reviewed and updated in line
with the current regional and
international trends.
Draft and enact the Poultry
Industry Act to regulate the
poultry industry.
Advocate for improved animal
and feed security. Improve feed
and
livestock
safety
by
increasing the penalties for
cattle rustling/theft and causing
bush fires that destroy pasture
especially on private properties.
ZDA formed by an Act of
Parliament
ZDA fully operational
One stop shop established and
operational
ZDA Act amended
1.
ZDA Act in the process of
being reviewed
ANNEX 2: SUMMARY OF PSDRP EVALUATION FINDINGS AND
RECOMMENDATIONS
MAIN FINDINGS:
1. 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
2. Private sector high level policy dialogue was disengaged, private sector interest were
less central to the programme at the highest level
3. The bottom up orientation of the process created reform bottlenecks
4. The PSD-SC set out as a strategic body but increasingly became a management
committee
5. The PMU is called management unit but has roles of a secretariat assigned to it
6. 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
35
7. 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
8. 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
9. 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
KEY CONCLUSIONS AND RECOMMENDATIONS FOR FURTHER
REFORM:
1. Continued reforms are key to Zambia’s further development
2. 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
3. PSDRP II should build on the work done by some of the different reform working
groups within the first phase of PSDRP
4. Donors are willing to fund phase 2 of the programme however they need to have a
clear proposal with a clear results and indicators of results framework
5. 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
6. ZBC or an advisory body should be reactivated
7. Low profile high level advisory body comprising of top private and public sector
should be established and be able to provide support to the reform processes
8. ZBF is not needed as exclusive gate keeper for the private sector. Private Sector can
represent itself through sector associations on a rotational basis
9. SC should move from operational to strategic matters
10. PMU, to be renamed PSD Unit needs management responsibility for the
operational management of the program
11. Ensure the development of performance indicators/dashboards at all levels within
the reform and project processes
12. PSDRP bottom-up orientation (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
13. Monitoring of PSDRP should be on attaining outputs in specific reforms areas as
well as outcomes
14. Communication needs interface with the public and the private sector
15. Need to have communication on tangible results achieved by the reform processes
36
The evaluation suggested the following future reform areas:
1. Reduced regulations and licenses
2. Liberalisation of labour markets
3. Small and Medium Enterprises (SME) development
4. Two (2) other sectors
37