REDEFINING COMMERCE UNDER PF GOVERNMENT
THEpromise in the run up to the 2011 general elections was based on the platform of sustainable empowerment for the locally owned innovative citizens.
The Patriotic Front under late President Michael Sata came under the platform of using the protectionist approach to promote Zambia’s economic participation.
However, no smooth sailing was assured in the immediate period after the transfer of power from the MMD administration as the following problems were common sense.
For locally driven wheels of commerce to thrive, there was need for the new government to proactively carry on with the policies that would stimulate economic participation of local business.
Some of the notable problems that the PF inherited were the low participation of the citizens in the economic activities among them manufacturing, industry and trade.
It was a popular view among the players in the market that the locals were discouraged from taking an active role in the commercial activities aggravated by the high costs of doing business.
Some of the factors which caused the increase in the cost of doing business included the level of taxation for corporations, the reduced government incentives in certain sectors, the statutory obligations payable to different regulatory government agencies among others.
The other factor which had an adverse implication on the cost of doing business includes the limited international agreements between Zambia and her neighbours.
The issue of SME financing scheme equally was a hurdle for the new entrants on the market. One other problem that the PF inherited was the poor management of government empowerment programmes. As regards local participation in the economy, there was no certainty in the policies which encouraged reservation of certain policies for Zambian-owned businesses. The Zambians were subjected to unfair competition with the giants on the market.
Reforming commerce, there were measures that were taken to ensure that the economic reforms to be purely Zambian driven. Among the measures that the government had taken some mitigation measures:
Firstly, the government reduced the number of licences that are required to do business as a way of reducing the cost of doing business;
- Government also introduced the financing schemes for local businesses;
- The Government also came up with deliberate policies to encourage commerce by reserving businesses for Zambians among them chicken raring, black making, haulage.
Zambia signed bilateral agreements with other countries among them Congo and Angola. On August 12, 2015 Zambia signed the boarded agreement with the Democratic Republic of Congo. On January 30, 2016, Zambia signed a Trade Agreement with Angola and it has increased trade relations between the two countries.
This is what has been accomplished and the next write up focus on what the PF intends to do after August, 2021 to enhance Commerce, Trade and Industry as espoused in its manifesto.