NUMBERS DON’T LIE: RETIREMENT BENEFITS, JOB CREATION AND ECONOMIC REVIVAL IN A PANDEMIC EYES ON THE YOUTH VOTE!
One of the challenges that the change of retirement age from 55 to 60 years entailed was holding back retirement for five years for workers who should otherwise have retired and been paid off and replaced by new workers. This matter has brought a window
A EARLYPEEP into ancient this year, Egypt, a one letter went of viral, the purportedly world’s written greatest by the Teaching civiliService sations, Commission reveals of that Zambia ancient in which Egyptians teachers were invented told that arithmetic their retirement and should mathematics be in line to with aid the their pro- visions tax assessments of the Law at and the time colof their lections. employment!
In In this short regard, the Egyptian all teachers tax employed before 2015 when
collectors created statistics the Law on retirement age was
to aid their precise underammended from 50 years for
standing of their economy early retirement and 55 years for normal and overall retirement ancient to 55 Egypyears for tian early development. retirement, 60 years for normal No wonder, retirement the and biblical 65 years for story late of retirement, Joseph’s would brothers have to selling leave the their teaching little service! brother
for It is sacks commonly of grain argued was due that the to law Egypt’s does respect not work for in and ret- rospect! use of This statistics meant which that those alsupporting ways aided the their removal econoof the affected my’s productivity teachers and from kept the teaching Egypt food service secure had a when point. Yet, other others nations contended faced that famthe changed ine. law had been thrust on the affected teachers! The Attor- ney General assured that there was nothing to worry about.
the 2008 global financial crisis, Enterprise Risk Management (ERM) emerged as a critical issue in the most varied sectors of industry or- ganisations. Today, with the world crippled by the novel coronavirus (COVID-19), the practice is now considered as the must have tool for the en- hancement of corporate gover- nance that should strengthen sound decision-making pro- cesses.
The ECZ Chief Elector
Firstly, it may be important to
al Officer, Mr. Kryti
draw a distinction between the
cous Patrick Nshinda
traditional risk management and enterprise risk manage-
no’s briefing on May
ment. As obvious as it may ap-
10, 2021, revealed that
pear, it is the word “Enterprise” that 24.4 makes percent the difference. or 1, 714, Tra-
881 of the registered
ditional risk management is a bottom-up process that focuses
voters are youth be
primarily on losses, costs and
tween 18 and 24 years
the negative side of risk; heavy
old while voters older
on compliance and specifica-
than 24 years and up
tion and mainly reactive. While enterprise risk management,
to 34 years old ac
on the other hand, has a much broader count for scope 29.6 as percent it considers
or 2, 080, 098 voters.
all the risk factors faced by the organisation, and it helps the Board and management make informed decisions according to
When the Electoral Comits acknowledged risk appetite.
mission of Zambia (ECZ) While ERM like the traditional
announced the breakdown risk management does consid- er of compliance the August it 12, is a 2021 top-down regprocess ister of that voters, prevents their and use mit- of igates statistics losses was and meant looks to for enop- portunities able the citizens in adversity to apprefor the organization ciate the composition thereby creating of value the 2021 and ensuring electoral that populathe or- ganisation’s tion dynamics. objectives Let us are look met with at minimal these population disruptions. dy
namics ERM is age a bigger by age picture and see risk management how this will that impact adopts a the ho- listic August approach 12, 2021 to elections. managing risk, The placing ECZ it Chief within Electoral a portfolio of Officer, things that Mr. need Kryticous to be Patman- aged rick in Nshindano’s order that the briefing organi- zation on May achieves 10, 2021, its revealed objectives. While that 24.4 individual percent departments or 1, 714,
881 of the registered voters budget by sacrificing some cap- ital projects;
The government can ap- proach some local pension houses for a loan to finance this; or The government can approach some international cooperating partners for a grant or a soft loan specifically to sort out this problem.
Several years ago, Tanzania owed its workers in public insti- tutions colossal sums of money. The Tanzanian government of President Josiah Kikwete bor- rowed US$100 million from the World Bank and paid off all its workers in public learning in- stitutions. Zambia can do the same. There are several benefits that Zambia can accrue from clearing retirees on the public service payroll:
It will save resources – from paying two people for one job to paying only one person for that job;
The freed resources can be used to employ fresh graduates from colleges and universities without injecting fresh funds into the payroll; thus reducing the current high unemployment among Zambian youths cur- rently roaming the streets;
Thousands of jobs will also be created as many retirees will in- vest their retirement benefits in start-ups, some will boost their existing businesses while others
The are youth between 18 and ample, are mostly daunted for sustainable livelihoods; 24 years old while voters by inadequate scholarship real change in their daily forolder than 24 years and up opportunities and job busitunes, real employment and to 34 years old account for ness startup prospects upon self-employment chances. 29.6 percent or 2, 080, 098 completion. They want to vote for emvoters. Their counterparts in powerment that teaches
Voters older than 34 self-employment may be them how to catch fish, how years and up to 50 years old plagued by lack of investto buy bread for themselves hold 28.9 percent or 2, 031, ment resources to startup or and their families for the rest By 806 FRANCIS of the voters ZIBA roll, and expand their small or mediof their lives. No human bethose above 50 years are um enterprises. ing prides in begging or living 17.1 percent or 1, 196, 714 Yet, those in employment on handouts; humans want Why organisations need to integrate enterprise risk
voters. could be having challenges to shape their own destinies.
What these figures tell us with low wages, in some casThe other voters, older is that 54 percent (majories even below the minimum than 34 years and up to 50 management into their strategic planning process?
ty) of those who will vote in wage. They also face proyears are also still in their the August 2021 elections hibitive bank interest rates prime working age. They also are youth between 18 and on loans which they could wish to see real economic 34 years old. Adding those otherwise use to better their stability for themselves and or above business 34 and units up usually to 50 years deal with lives. for their posterity.
old their (28.9 own percent) risks, ERM gives needs you everyone There are also youth who They want a predictable
a staggering to be 82.9 involved percent from frontline staff to Board level, to have been trained but not economy in which they can
of all registered voters as make it truly effective. Risk man- yet in formal or self-employplan and execute their plans
being in the working age agement is ostensibly undertak- ment. There are also youth without major economic en groups. with the objective of prevent-
with disability some of whom shocks in daily price fluctuing The loss remaining while ERM 17.1 has other, permore cent far-reaching can generally reasons, be said like lowering to be the retirees, organisation’s self-emrisk and ployed, increasing not sustainability employed, a as this few has still the effect in employment of gaining sav- ings and and others increasing doing value other for the firm things. in the long run
Although Therefore, ERM, while all generally these speaking age groups may still will be play an ongo- criting ical process roles in in most the private August in- stitutions elections, and eyes more should recently be in the trained public on sector, the youth it has moved vote; out of a reactive or panic-driven
it accounts for the largest mode to become more predic-
share of the voting poputive and proactive. Siloed ap- proaches lation. are being abandoned in favor A random of more disaggregation collaborative, holistic of the 54 and percent integrated youth frame- vote works. may pan out with youths
who The are risk at management all levels of func- our tion education now assumes system, a more youths strate- gic in role formal in organisations. and self-employIt is in- creasingly ment and being the rest recognized of the inas a guidance formal sector provider in on both the rural path ahead, and urban mitigating Zambia. critical risks and These allowing are companies youth to with grow sustainably different in needs the long and term. aspirations. Strategy Those formulation in educaon the tional institutions, for ex
face daily discrimination their search for livelihood. in
All these youths will be voting in the coming elections based on what they wish to see better beyond August. They are yearning to take account of risk impli- cations on their objectives or a lack of that process could result in failure.
To integrate ERM into the strategic planning process, or- ganisations need to ensure that the risk information is current, complete and reliable. For this purpose, robust procedures of risk assessments, treatment and will invest in stocks on the Lusa- ka Stock Exchange (LuSE). This will increase the buying power, expand the national tax base and boost national economic performance.
Inevitably, these benefits will translate into a feel-good factor and a win-win situation for the whole nation.
As Indian author, activist, mo- tivational speaker and founder of Country First Foundation, Shiv Khera, writes: “Winners see the gain; losers see the pain” and “winners don’t do different things, they do things different- ly,” we can derive good mileage out of an otherwise hopeless situation!
ations. These also want to in the vote end for improves economic operational stability, and financial performance. growth and resilience. To add value to the creation
They want tangible deof the business strategy and to
liverable jobs, self-employset the tone of the organisation’s strategic ment objectives, and empowerment it is not enough business to just conduct opportunities a stra- tegic that risk the assessment see happening or even in having the various a risk discussion investment at the arstrategy eas that setting have meeting, been created there is much so far. more that organisations need The to do. 17.1 Most percent organization votwho ers follow above that 50 way years of old doing are things a mixed find it grill difficult population. to relate if the Many objectives are retirees have not eagerly been defined awaiting or well their documented pensions, or measured. gratuities Strategic and other planning forms that of is terminal risk-based benefits. helps to define They the wish value to proposition see a government that the business that prioritises brings to payment the market, of and their the benefits way in which so that organi- they, sations intend to distinguish
like other investors, can themselves from other compet-
also have their own niches itors. in the vast burgeoning ecoFor most organisations, this may nomic not be prospects obvious from throughthe outset, out the but country. as the processes of ERM They gains also traction want to and invest its frameworks in their existing and systems and startfall into up place, businesses, organisations cooperawill see its risks tives, being government holistically bonds man- aged. and What other happens investment also is that oporganisations portunities. see They the develop- would ment like of to an be appropriate considered risk as cul- key ture investors throughout capable its value of chains. adding
Ultimately, numerous what job opportuniERM does is support ties and the better organisation livelihoods in its beyond efforts to their “get ahead immediate of the curve” frontiers. and take advantage of opportunities. Therefore, Properly as we applied apERM proach becomes August a decision-mak- 12, those ing campaigning tool that has the for ability election to become embedded in the cul-
should exert their energies ture of the organisation, in-
on how best to appeal to tegrate with its strategies and
the various interest groups objectives, and leverage on its resources on the to voter’s improve register perfor- in mance, Zambia’s spur growth, 116 give districts, it a competitive 156 constituencies, edge, and maintain 1, 858 its sustainability. wards, as 7, 023, 499 Zam
bians troop to the 8, 999 For polling comments stations and feedback to vote. Of contact: these, fziba@irmza.org the youth vote is crucial; do not take your eyes off the youth vote!
A random disaggregation of the 54 percent youth vote may pan out with youths who are at all levels of our education system, youths in formal and self-employment and the rest of the informal sector in both rural and urban Zambia.