REDUCE COST OF DOING BUSINESS, GOVT URGED Thursday March, 2021
March ThursdayMarch, 11, 2020 2021 12
IT is important to understand the structure and interconnectedness of key industries with the rest of the economy as the new government works to reduce costs.
Mr Shebo Nalishebo, Economic Statistician and Fiscal Analyst, stressed the need to deal with the underlying issues that would bring down the costs.
Mr Nalishebo stressed that this could be done by dealing with rent-seeking and corruption, burdensome taxes while understanding the interconnectedness of economic activity.
He said this is in his writeup on “Measuring, Managing the High Cost of Doing services.
By BUUMBA CHIMBULU
Business.” Mr Nalishebo however
A
“Upstream, a significant emphasised that a key metric
BOUT $250, 000 has been part of manufacturing input for invested gauging in setting rising up a costs was demands come from agriculinflation, laboratory that presently will establish at gold 24.6
content in ore which will be bought
ture and mining. Therefore, percent.
from artisanal and small scale gold agricultural and mining poliminers Zambia. That inflation figure, he
ZCCM-IH has set up the laboratory in
cies could be, and are, directly stated, related to changes in
partnership with Karma Mining Services related to the costs incurred and Rural the Development level of prices Limited in of goods in the manufacturing sector. Consolidated and services Gold Company. faced by the final
Chief Executive Officer, Mabvuto “Reduced costs will inChipata, consumer. explained that the purpose of crease investment, producthe joint “There venture was is to very develop little a gold consid
processing and trading operation in
tion, productivity and ecoeration for intermediate costs
Zambia. nomic growth, necessary for Mr incurred Chipata said by the investment businesses was who,
in line with one of ZCCM-IH’s strategic
improving the livelihoods of ultimately, pass on the costs to
objectives of value creation which was the citizens,” Mr Nalishebo to diversify the final its investments consumer. away from indicated. copper to “We other probably minerals such need as gold to start
and other precious metals.
Downstream, he stated, He computing said this during a the Producer laboratory Price besides exports of processed media Index, tour in Lusaka which yesterday. measures and
“This is also in line with Government’s
mineral products, a good tracks changes in the price of
classification of gold as a strategic part of the manufacturing resource goods for Zambia,” and services he said. before the
Consolidated Gold Company Chief
products were supplied doretail level. Remember that
Executive Officer, Faisal Keer, explained mestically to other industries that the old laboratory adage: would if you be cannot able to measuch as tourism and health process sure about it, you 30 samples cannot per manage day. it,”
Mr Keer said the laboratory was critical to determine the gold accurately in the he said.
Mr Nalishebo commended Mr Hichilema for acknowledging how small and medium businesses face a heavy cost burden. Mr Nalishebo stated that a big part of this cost burden was caused by the Government itself through taxes and tax expenditure decisions. “The numerous Value Added Tax (VAT) exemptions, for example, means that businesses are unable to claim VAT on their inputs, forcing the business to absorb those costs.
“And small businesses, who are often not registered for VAT, are the biggest culore that would be received from various miners, prits. who As would registered get a fair share suppliers, and value they for their would material. be able to claim
“As Karma Mining Services and Rural Development, VAT on our their expertise input is in costs,” gold Mr processing, Nalishebo but we said. are mostly working with artisanal and small scale gold miners.