Luapula: A haven of investment opportunities

By Clive M. Siachiyako
Luapula Province has abundant opportunities for tourism development, agriculture and mining.  The province has good arable land and rainfall patterns as well as abundant water resources. It is endowed with some of the unmatched natural wonders in Zambia. 

Across the entire province are a number of beautiful waterfalls and wetlands that host some of the rare species in the entire world like the black Lechwe and the shoebill stock. Luapula is also very rich in culture whose traditional ceremonies have become very popular tourist attractions.

The province has eight waterfalls, namely Lumangwe, Kabwelume, Chilongo, Finkula, Kundabwika, Ntumacushi, Mumbuluma and Mumbotuta. Lumangwe is the second largest waterfalls in Zambia after Victoria Falls. The province also has abundant wildlife and bird species that are only found in Luapula the world over, sandy beaches on the two lakes, traditional sites, hot springs, and Iron Age smelters.

Thirty percent of Zambia’s water resources are in Luapula. The province is the water haven, with high aqua concentration. Rainfall levels are high throughout the province with the Northern plateau and the Bangweulu swamps receiving the highest. The rainfall levels are ideal for agriculture activities.

The four major physical features of the province include the valley that run parallel to the Luapula River, Lake Mweru and Bangweulu. Lake Bangweulu has swampy areas to the east and south as well as beautiful and clean sand of Samfya beach on Lake Bangweulu, making the beach one of the best in the world, and a prime area for any type of resort facilities.

The province is a preserve for tourism. Its keys features for tourist attraction are the Samfya Beach, Bangweulu swamps, the eight waterfall, Lusenga Plains National Park, and traditional ceremonies like the Mutomboko. These tourist attractions are a very important resource for the development of the province.

The vast water resources of Luapula provide potential for various economic activities associated with sustainable water usage, such as hydro power generation, agriculture and irrigation systems.

According to provincial minister Dr. Boniface Kawimbe, Luapula sitting on 950 megawatts of hydropower potential that its rivers and numerous waterfalls offer for utilisation. Mining is the other resource of the province. The mining activities in the province have been largely for manganese which commenced as far back as 1953, on small scale. Iron ore occurrences are widespread in area which if exploited together with manganese would form a basis for large scale iron and steel industry in Luapula.

A wide range of known base metals, gemstones and industrial minerals are also found in Luapula. These minerals include ton copper, zinc, lead, feldspar, silica sand, talc, limestone, lithium, clays and gemstones (citrine, tourmaline, and garnet). Substantial deposits of limestone are found in Bukanda and Matanda.

The province has favourable climate and soil for palm oil trees.  Luapula has than 90,000 indigenous and 30,000 fully grown hybrid trees of palm trees. The hybrid trees are mainly grown by small holder farmers. These hybrid trees have the potential yield of 20 metric tonnes of fresh fruit per hectare, whose yield about 4.2 metric tonnes. The oil palm trees can grow up to 25 years with yield increasing as the tree grows older.

Regardless of all these investment opportunities in the province, most of them have remained untapped, hence making the province of the least developed in the country. Dr. Kawimbe has attributed the dismal utilisation of Luapula’s resources to lack of strategic investment initiatives, uncoordinated mining activities and lack of information resource centre to provide quality investment.

 “To do business one needs a lot of information found in different offices. There is need for a one central place where all business related information could be housed,” said Dr. Kawimbe. Speaking during the Zambia Development Agency (ZDA) Trade and Investment Workshop in Luapula, the minister said Luapula needed a one stop information centre facility to reduce on time spent on seeking for information on buyers and suppliers of key materials or machinery for production.

The other hindrance to full exploitation of the province’s immense resources is the high cost of doing business. Most districts have no banking facilities, hence bank users have to travel to Mansa each time they want to deposit or withdraw money. Access to finance is a stumbling block to business growth as well. Being that unemployment is high in the province, most businesses cannot access bank loans as banks preferred lending money to employees (salary based loans).

These challenges have been compounded by lack of management skills by most business owners, inability to write bankable business ideas to access funding from the Citizens Economic Empowerment Commission, poor saving and loan repayment culture and limited investment avenues. Other impediments the business community in the province faces is lack of information on the kind of financial products financial institutions offer for both micro, small and medium enterprises and large scale investors.

To address some of the barriers that retarded business in the province, ZDA in collaboration with the Chamber of Commerce and Trade in Luapula have organised a regional office to provide key information to the business community in the province. Through the office, a data bank linkage will be created and connected to the ZDA information resource centre for the business community to access key information on affordable finance offers, market surveys, specialised trade agencies and suppliers and buyers of various goods and services that are utmost importance to their businesses.

As the pioneer of investment promotion in the economy, ZDA designated about 300 hectares of land for the establishment of a multi-facility economic zone in Chembe. The economic zone will accommodate various businesses involved in lighting engineering, construction and hardware industries, food industries, agriculture and agro-processing as well as chemical industries like biofuels.

These industries will stimulate a number of economic activities in auxiliary sectors such as agriculture, textiles industry, mining industry, food and beverage industries. Suppliers and buyers of end products from the economic zone will have abundant market for various products. Many support sectors to these industries that could be currently dormant will be boosted through developments in the economic zone.

With the involvement of the local people in the province in promoting investment and utilising the MSME strategies the Zambia Development Agency has initiated, it is hoped that Luapula will unleash its real economic value to national development, job and wealth creation to improve their livelihood. As the provincial minister put it “since we have got people interested in investing in Luapula, both our own local and foreign…then once we cement all these relationships, we can turn all these potentials into reality.”

SMEs: India's Economic Heroes, Lessons for Zambia Businesses

By Clive M. Siachiyako

For all its current economic strength, India remains a beacon of small and medium entrepreneurialism. Indian entrepreneurs are making waves across the world. Its micro, small and medium business firms are making acquisitions abroad and spreading their tentacles in various corners of the globe. They have flourished under globalisation and have proved all doomsday prophecies wrong.

Thus, India’s economy has been one of the stars of global economics in recent years mainly due to its robust SME sector. With its growth being supported by market reforms, rising foreign exchange reserves, both an information telecommunications (IT) and real estate boom, and a flourishing domestic direct investment (DDI) and capital market, India offers rewarding economic lessons to Zambia’s micro, small and medium enterprises (MSMEs) sector.

According to the 2009 Economist Report on entrepreneurship, India is the ninth in the Global Entrepreneurship Monitor survey of entrepreneurial countries. It is the highest among 28 countries in Necessity Based Entrepreneurship, while second among all nations in Total Entrepreneurship Activity. The country has been registering about US$3.6 billion annually from the ICT sector alone from SMEs prior to the economic crisis. The mobbed SME heroes of India were transforming small start-ups into global giants every year. They created business minded societies in several Indian cities by engaging in a frenzy of networking through partnerships and joint ventures.

India improved the growth of the SME sector after liberalising the economy in the 1990s by linking education and the industry. The country’s universities/colleges became its economic engines with proliferating science parks, technology offices, business incubators and venture funds. This helped to create a business minded class of graduates. The tradition entrepreneurship dates-back to basic and high schools in India. The trend has significantly boosted India’s DDI profile.

The country’s higher education system has also been designed to discover and develop first-class entrepreneurial skills. The system does not only inspire graduates to strike it rich, but to play their part in forging a new India with a double-digit economic and GDP growth and low levels of poverty. And through linking the education system to the industry, India began to reverse the brain drain. The country’s prodigal children were summoned home by economic offers of the native soil.  For instance, from 2003-2005, some 5,000 industrious Indians returned home from America. They trekked home to kick-start the country’s entrepreneurial economy and increase the DDI flow. 

These Indian transplants from the Diaspora promoted SME growth through mentoring, networking and education. Today their network has 12, 000 members and operates in 53 cities in 12 countries. The transplants helped to fill some of the skills gaps created by India’s recent boom. They also reinforced the country’s existing links with high-tech countries in the West like America and in Europe.  

The Indian SME sector growth model offers various fundamental lessons for Zambia’s MSME sector. The linking of the education system to the industry is essential to the ZDA, TEVETA and ministry of education strategies meant to strengthen entrepreneurship levels in the country. By collaborating with human resource training institutions, citizens will obtain an entrepreneurship spirit and learn the art of sustaining business at the appropriate age. They will thus grow up with an entrepreneurial mindset. Such a phenomenon can result into a knowledge-based economy, where the use of knowledge is the main driver of growth, wealth creation and employment across all sectors without much dependency on foreign investors.

Picking it from the Indian model, several skills training institutions under TEVETA, government run colleges and universities and those in the private hands can be a haven of entrepreneurial savvy and breeding grounds for businesses. The public-private partnership initiative can be a hallmark of linking the education system to the industry beyond public educational institutions. Business incubator programmes can be rooted into these institutions to blend business mindsets in students at the right time. The trend can descend further to basic schools and high schools in order to overhaul the Zambian mindset towards business. The strategy is paramount in enhancing government’s numerous programmes meant to meet long term developmental goals of attaining middle income status by 2030 among others.

Information telecommunications (ICT) is another significant parametre Zambia can tap from the India SME growth model to improve MSMEs’ business prowess. India’s enterprising heroes like Azim Premji transformed Wipro from a vegetable-oil company into a software giant. After liberalising the ICT sector, many Indian SMEs ventured into the sector. The cost of doing business equally reduced drastically. Internet use, calling rates and other related expenses fall. The sector became a lucrative business web.

With the ICT policy in place and other initiatives aimed at improving infrastructure, MSMEs can achieve and contribute greatly to the economy. Strategies such as multi-facility economic zones (MFEZ) meant to have necessary infrastructure in place for improved productivity can help transform dormant small enterprises into economic giants. Grounding MSMEs with competencies on how to utilise ICT to improve business efficiency is key in developing and discovering first-class MSMEs that can creating a strong buffer zone for the local economy. The current business reforms government is implementing fits well in promoting the MSME sector and the local economy as a whole.

The MFEZ initiative can help create a pool of MSMEs in various businesses. Various networks can sprout from these zones and help to uproot start-ups by providing them with key information on market offers and other business etiquettes. The start-ups can be both supplies and part of the global supply chains. With business linkage and joint venture initiatives already in place under the ZDA, Zambia can easily propel its DDI flow to supplement FDI. The net effect of such a combination will be increased economic growth, job and wealth creation as well as poverty reduction.

With well watched pace and coordinated policy strategies, Zambia can realise many new entrepreneurs onto the business sphere. The entrepreneurial spirit will begin to breathe new life into Zambia’s public and private sector and greatly revolve the economy. Zambians in the Diaspora will see the need to invest back home and translate Western ideas into local ideologies, combining them with acquired technological advances to drive economic growth. With such an economic atmosphere, Zambia, like India will be hopeful of having a brighter economic future.

 

Hunt for Successor 22: The Faceless Graduate

By Field Ruwe In writing about “The Faceless Graduate,” I am compelled to begin by citing S.E. Kiser on poetry: I have hoped, I have planned, I have striven; To the will I have added the deed; The best that was in me I’ve given; I have prayed, but the gods would not heed. I have dared and reached only disaster; I have battled and broken my lance; I am bruised by a pitiless master. That the weak and the timid call Chance; I am bent, I am cheated. Of all that Youth urged me to win.But name me not with the defeated. Tomorrow again, I begin.

Auguste Rodin’s famous sculpture “The Thinker” is as important to many students on university campuses around the world as “The (Faceless) Graduate” is to students at the University of Zambia. Both are concierges that connote rational and logical thinking.

But unlike “The Thinker” nobody on the campus of the University of Zambia pays much attention to “The Graduate’s” intellectual symbolism, if they do they don’t comment publicly.

Simple in design, the Faceless Graduate created by Henry Nkole Tayali encompasses abstract and figurative art meant to conjure up images of intellectualism. 

Unveiled by KK in 1979, it is regarded as “the graduate who leads Zambian students to a higher and better understanding of the world and to nation building.” The sculpture symbolizes intellectual undertaking, discovery, and determination. 

After the histrionic closure of the university in 1971 and 1976, KK, whose relationship with the students was flustered, was hoping that “The Faceless Graduate” would restore the reverence of the university and again make it the most congenial oasis for Zambian intellectuals.

Yes, it was on 15th July, 1971, that KK, for the first time, ordered the closure of the University of Zambia following demonstrations by students at the French Embassy in Lusaka. It was not their first protest. Since 1966, the year the university opened, students had been voicing their concerns outside the British High Commission against the British government in support of KK’s stand on Rhodesia’s UDI and South Africa’s apartheid. 

But in 1971 they moved to the French Embassy following the French government’s sale to South Africa of a licence to manufacture Mirage jets against the UN ban. KK, enjoying cordial diplomatic relations with France, tried to quell the protest. Students turned on him and accused him of “commiserating with the enemy.” 

On July 7, 1971, students and the police fought running battles in what was dubbed the “Battle of Lusaka.” KK tried to intervene by urging them to calm down and to leave everything to him, but they were relentless.

The UNZASU executive comprising Ronald Penza as Secretary General, John Chileshe, Jonathan Momba, Ernest Kasula, Gerry Chabwera, and Cosmas Chola sent an open letter to KK entitled “Where are we going?” in which they attacked the president for leaving intellectuals out and trying to be Zambian’s superman on matters of foreign affairs.

“You are not omnipotent,” they told him. 

KK went ballistic, expelled them, closed the university, and sent the military, para-military, and riot police to evict 1500 students at gunpoint. It is here, ladies and gentlemen, that Zambian politics and Zambian intellectualism crossed swords for the first time—and the die was cast. 

Formerly a teacher, pupil headmaster, and welfare officer KK was enthusiastic about the creation of a Pluto “Republic” run by intellectuals who “combined comprehensive theoretical knowledge with the practical capacity for applying it to concrete problems.” When he became president he envisioned a Zambia teeming with doctors, lawyers, engineers, researchers, scientists, economists as well as inventors and innovators.

“Let us produce our own,” he often said. 

He was hoping we would be driving our own cars designed by the school of engineering; manufacture water filters, kilns, and irrigation pumps for our farmers and rural dwellers; create laboratories to combat and wipe out the mosquito; take over the mines and control the sale of our minerals on the London Metal Exchange; and ensure that all Zambians had an egg per day, if not two.

On October 24, 1964 he told us in his maiden speech that “the new country was born in order to take the rightful place among the nations of the world…Now we must work to prove our greatness.”

He immediately got down to work. With only 109 university graduates and less than 0.5% literates at independence, he instituted a free education policy. All Zambian children, irrespective of their status, were given a chance to have a primary education.

He concomitantly spearheaded the creation of the country’s first university. Zambians rallied behind him when he appealed for donations. Villagers donated goats, chickens, and pigs just to see a university built on Zambian soil. In 1966, Zambia’s “University of Bologna” with its own Constitutio Habita stood in a reclusive place off Lusaka’s Great East Road in the name of the University of Zambia (UNZA).

In March of the same year the first 312 distinguished scholars stepped into their new classrooms to the admiration and envy of fellow Zambians. UNZA became the fountain of knowledge, what Professor Muna Ndulo describes as “a birth place of fresh sight, vision, and an arena where fundamental ideas are pronounced, challenged, clarified and disputed in the most dignified and collegial manner.” The buildings appeared serene, austere, and islanded.

“My son is at the university,” were words of a very proud parent. 

KK was hoping he could create a think tank out of such men—a Zambian intelligentsia par excellence that would be engaged in political strategy, economics, military, and technology issues.

But hardly a month had elapsed when students staged their first peaceful demonstration outside the British High Commission against the Smith’s regime’s shooting of African freedom fighters in Rhodesia. On that day they vowed to make their protest an annual event in support of KK until UDI and apartheid were eliminated. They kept their word until the clashes and closure of 1971.

When the university sputtered back to life, six weeks later, it had a new vice-chancellor, Professor Lameck Goma. The previous one, who also happened to be Zambia’s first chancellor Dr. Douglas Anglin, a Canadian, and lecturers American Andrew Horn and Zambian-born Briton Michael Etherton were fired and faced deportation. Etherton and Horn were implicated in the protest. As for the expelled students they were allowed back after apologizing to KK. 

Some students used the closure to join the United Progressive Party and campaign for its president Simon Kapwepwe. They did not want KK to impose leader-worship mentality on them. When he got wind of it he labeled the university a “hot bed for sedition and subversion.” It was clear that the man who had dedicated his efforts to the creation of an educated stratum of professionalized intellectuals was now feeling threatened. 

He no longer saw UNZA students as doctors, engineers, lawyers, and economists in the making, but as radicals with a “reckless passion” to undermine his power, authority, and intelligence. They were telling him “you have no college degree. You must therefore listen to us.” 

He lost interest. He didn’t need them as his think tank. The funds for the maintenance of building infrastructure dwindled, input resources declined and salaries of lecturers remained meager. The foundation on which the citadel of Zambian intellectualism had stood was shaken and the official degeneration of both the campus building and its occupants began in 1971. 

When, in January 1976, UNZA activists and staff again staged a protest to try and force KK to support MPLA and not UNITA in the war in Angola, Kaunda quickly declared a state of emergency, closed the university indefinitely on February 9, 1976, fired and deported some foreign staff.

For almost three months, UNZA students remained at home and roamed the streets. KK was hoping they would learn a lesson. What he did not realize was that he was destroying the Zambian intelligentsia; that he was tampering with their concentration, absorption, and focus—with their ability to apply logic to theories and to find solutions. Many took to drinking in places like the Lusaka Theatre, Lusaka Central Sports Club—venues that would become their permanent rendezvous and the ruin for some.

When the university reopened, students had lost time. Motivation to do research was low. Most of the students were in a hurry to graduate because the university was becoming a dangerous place to learn. Academic standards and working conditions began to plummet—fast. Fearing another riot, lecturers began to seek jobs elsewhere. They abandoned their research projects and fled to countries like Botswana. The “brain drain” syndrome had begun. 

On July 14, 1979, KK appeared on the university campus to unveil The Graduate, a free-standing faceless sculpture depicting a graduating student in his flowing gown and mortar board hat. He holds in his left hand a book signifying progress through learning in the modern world, and the hoe in the right hand is the hard work and progress through agriculture. 

Critics say that Tayali should have given the graduate facial features. In denying the sculpture eyes, nose, mouth, and ears he removes the psychological association and dialogic interaction with its protégé—the student; it lacks the intensity of human understanding, and of deep personality; he makes it appear aloof, non-inspirational, static, introspective, unemotional, and therefore unhelpful. It is far from The Thinker whose facial expression depicts deep intellectual contemplation. 

Because he can’t see, the Faceless Graduate does not probe the future and ask the student about his objectives. In other words he does not allow his wisdom and intellectualism to seep through and manifest in the student. The student cannot speak to a faceless sculpture at the height of his trials and tribulations. He cannot express his troubles and worries or unconquerable problems. As a result he too loses face and resorts to protests. He did so again in 1982, 1986, 1990, and 2012. 

Who wins? The non-academic politician, of course. He seems to be the natural leader of the Zambian intellectual. He leads the Zambian intellectual elites through the economic and political intricacies that he barely understands. When university students protest he shuts down the damn thing. He doesn’t care whether the student takes forever to graduate or leaves with poor grades. 

In the real world he turns the intellectual into a sycophant, minion, flatterer, and apple-polisher. That’s what happened to the likes of Aka, Chitala, Katele, Chanda, Kawimbe, Nawakwi, and Sichinga. When an opportunity went begging they grew cold feet and blew it big time. Their dream of administering a nation through a merit based system was left to the disjunction devices of FTJ. He in turn made them facelessly polish his shoes. 

How about you the university student seated before the computer? You, the analyst, scientist, engineer, economist, educator, are you going to be faceless and join the list of cobblers or help to unleash the creative potential of the Zambian intellectual? Are you going to watch them maintain the status quo at a time when change is needed? Are you going develop legs for flight or help build a new government in 2016 or 2021 that will harness the full power of the technological revolution and make the average Zambian incomparably better off? Ask yourself why you went to university. 

Field Ruwe is a US-based Zambian media practitioner and author. He is a PhD candidate at George Fox University and serves as an adjunct professor (lecturer) in Boston. ©Ruwe2012

The Small Aggregation Initiative (SAI)

By Clive M. Siachiyako
Zambia mostly depends on micro, small and medium enterprises (SMEs) in driving its economy forward. However, most of these SMEs in the past received lukewarm support from government until now. Nevertheless, a few SMEs are thriving and greatly contribute to economic growth, employment creation and national development in combating poverty. In order to facilitate industrial development through unlocking the potential of its SME sector, Zambia is learning from Southern Asian countries (especially Malaysia). 

Malaysia and Zambia were at the same level of economic development in the 1960s and 70s in terms of per capita incomes, but Zambia has remained behind economically and its manufacturing sector has not faired well as if both countries did not have similar initial endowments. It therefore becomes imperative that Zambia learn from such countries on how they managed to take-off economically with a focus on SME development.

Training (education), research and development, market availability and technological advancement through establishment of industrial linkages as well as the formation of Small Aggregate Initiative (SAI) were some of the outstanding strategies Zambia identified that could be used as a “key” to unlock SMEs’ potential as the country strives to meet some national and United Nations targets such as Millennium Development Goals in particular halving its poverty levels by 2015 and releasing its vision of becoming a middle income by 2030.

The Small Aggregation Initiative (SAI) is a Malaysian initiative that was proposed to Zambia for implementation through the Triangle of Hope initiative to bolster economic growth through SMEs. SMEs wish to expand but they face numerous constraints such as lack of credit among others. However, even when they get funds, the new machinery and equipment they acquire sometimes are “too productive” for limited needs. That is, they may have a market for 100 pieces but the new machinery now produces 500 pieces. In such a situation the government or the private sector may come in to help. How do they do it? By selecting an industry group that has similar needs of machinery, but where the end products are different, for example cupboards kitchen furniture, office furniture and the like, the initial machinery will be similar - sawing, planning or shaping, only the end product/finishing section will be different.

Therefore, the government or other coordinators select within the industry group, manufacturers of non-competing products and bring them together to form a joint venture company for expansion or modernisation purposes. The rationale of SAI is that if three companies are brought together - each can take 30% equity and the 10% held by the coordinators (government or the private sector). By merging the SMEs together, they acquire the strength of the medium scale industrialist and enjoy larger scale production advantages –purchase modern machinery or equipment and can better negotiate for loans from banks, rent bigger space or design joint marketing. If foreign companies can form joint ventures with local investors for profit - why can’t locals do the same?

Funds for Small and Medium Industries (Loans)
The small aggregate initiative also looks at ways of providing loans to SMEs. The initiative thus promotes collaboration with the Citizen Economic Empowerment Commission (CEEC) and other SME funding agencies to facilitate the acquisition of loans by SMEs. This initiative is aimed at promoting SME activities in export and domestic oriented sectors and also to help stimulate growth of SMEs.

Because the world is currently characterised by immense market competition, SAI initiated the Enterprise 50 Award. The Enterprise 50 was borne of a need to recognise such locally established businesses especially that in the age of intense competition, local companies (SMEs inclusive) are faced with tremendous challenges to be competitive globally. The scheme is to enable SMEs position themselves confidently for the future, especially that the world market demands adjustment to the dynamic changes in the market place survive.

Zambia’s Lessons from the Southeast Asian Experience
In order to implement the initiatives that were undertaken in Southeast Asian countries, Zambia needed some basic preconditions for economic take-off as evidenced in the Southeast Asian countries prior to their economic miracle. Preconditions such as strong and effective institutions, physical/social infrastructure, and stable political and macroeconomic environment would create the right business environment for private sector to flourish be it large or small. Why most Asian countries succeeded in their economic development was because they had an educated work force necessary for adapting the modern technology. This entails that unless the entrepreneurs are trained or rather educated no matter how the technology may be brought into the country say by multi national corporations, it will hardly trickle down to the SMEs. Chisala 2006 argues that upgrading the vocational centres and signing training agreements between the SMEs and the vocational centres coupled with increased investments in research and development like was the case in Malaysia would go a long way in improving the skills and technological transfer to the Zambian SMEs.

Zambia’s national industrial policy goal is to develop a competitive, export-led manufacturing sector that contributes 20% of gross domestic product by 2015.  This is a step in the right direction, and thus Zambia is implementing the multi-facility economic zone (MFEZ) much more similar to the export processing zones (EPZs) that Malaysia and other Southeast Asian countries implemented during their industrialisation process. However, the EPZs in Malaysia were not sustainable due to the fact that the linkages between EPZs and the domestic firms were insignificant or rather weak and hence Malaysia embarked on Promotions and Investments Act (1986) that emphasised on inter-industry linkages through SMEs development. Likewise, Zambia may consider introducing deliberate policies that will ensure linkages between the MFEZ firms and the SMEs which currently is not in place. The ZDA Act thus need to include a clause that would compel the MFEZ firms to acquire a certain percentage of the raw materials and intermediate goods from the domestic market preferably the SMEs without violating the world trade organisation (WTO) rules on raw content requirements.

The underlying principle of SAI is that developing the SME sector through linkages to a great extent would sustain the success of the MFEZ in Zambia especially that Zambia’s foreign direct investment outlook seems to be very bright. For instance, for the first time, since the late 1980s, Zambia had a motor assembly industry launched by TATA Zambia in 2005. TATA Zambia spent US$3 million to revive the motor assembly plant, which is the only one in the country now that Rover Zambia in Ndola and Fiat in Livingstone ceased to assemble vehicles sometime back. In addition, TATA international through its subsidiary, TATA Zambia, recently bought Kabwe Tannery and signed a memorandum of understanding with the Zambia Development Agency meant to broker business linkages for small-scale farmers, abattoirs and slaughter-houses to supply hides to the TATA Tannery.

Similar linkages of local industries or rather the SMEs in other areas of the economy can be developed with other large companies in various industries to enhance and increase wealth and job creation in the country. In this way TATA (anchor firm) would transfer some skills and technology to SMEs and other local firms so that these firms produce components of acceptable international standards. For example, the garment manufacturing SMEs could be supplying materials to TATA car assembly for making seats whilst others in the metal fabrication could provide bolts and nuts, among others. Furthermore, a Malaysian cellular phone manufacturing firm M-Mobile in partnership with a local company Melcome established a mobile phone assembly plant in Lusaka at a total investment out lay of US$3 million. This operation will be the first of its kind in Zambia hence capacity will need to be built for SMEs if they are to become vendors to this mobile industry.

With such a mix of interventions that focus on specific sub-groups in the SME sector envisaged in SAI, Zambia’s long-term development objective, articulated in the National Vision 2030, of becoming a prosperous middle income country by the year 2030 would be fruitful. The SAI programme would thus contribute to this objective, in particular by stimulating investment, entrepreneurship and employment creation within the SME sector and through pro-poor business models.

References
http://africanpress.wordpress.com/2007/10/31/14-billion-in-fresh-foreign-direct-investment-fdi/
Bigsten, Arne and Soderbom, Mans (2005) What Have We Learned from a Decade of
Manufacturing Enterprise Surveys in Africa? World Bank Policy Research Working
Paper 3798
Buranathanung, Noppadol (1997) “Rationalization of Japan-based multinational enterprises' automobile components production in ASEAN” Chulalongkorn Journal of Economics, Vol. 9 (3) Pp 293-356
Chisala, Chibwe (2006) An Empirical Analysis of the Determinants of FDI flows to Zambia: A Stochastic Frontier Approach, GRIPS Advanced Development Research Paper.

Understanding the KAIZEN Model

By Clive M. Siachiyako
Private sector driven economies are increasingly relying on the private sector and strategic institutions’ innovativeness to stimulate desired economic growth and development. Globally, countries are faced with the challenge of narrowing the gap between ideal (desired) and actual economic development. Economic policy makers from Europe to America to Asia and Africa are facing difficulties in applying strategies that facilitate continuous improved productivity and quality control to realise lasting prosperity and improved livelihood of the citizenry.

Despite the above challenges, Japan has often found a way of floating-over those economic blizzards. The country has continued to innovate to improve the rate of its productivity, technological progression as well as economic growth and development. The strategic success of Japan is as a result of a number of factors that combined together created positive conditions for actualising desired economic development. These factors are mostly anchored on the KAIZEN concept.

Kaizen is a Japanese term derived from Kai which means “continuous” and zen meaning “improvement”. It also refers to “change” for the “good.” It simply means "continuous improvement". It was created in Japan during the country’s reconstruction period following World War II.  The philosophy is defined as making “continuous improvement”—slow, incremental but constant. It means doing it better, and making it better in all areas of life.

The concept involves every employee - from upper management to the cleaning crew. Everyone is encouraged to come up with small improvement suggestions on a regular basis. It is not a once a month or once a year activity. It is continuous. The philosophy is based on making little changes on a regular basis: always improving productivity, product quality, safety and effectiveness while reducing waste.

Suggestions are not limited to a specific area such as production or marketing because Kaizen is about making changes anywhere that improvements can be made. “The Kaizen philosophy is to "do it better, make it better, and improve it even if it is not broken, because if we do not, we cannot compete with those who do," says concept coach in Zambia Mr. Nobuyuki Ogiso. Mr. Ogiso said kaizen is about improvement that includes both home and business life. It involves setting standards and then continually improving those standards. It also involves providing training, materials and needed supervision for employees to achieve the higher standards and maintain employees’ ability to meet those standards on an on-going basis.

The concept has been adopted by many countries and has spread globally and recently reached Africa. In 2008, Zambia Association Manufacturers (ZAM) adopted the concept to stimulate efficiency, innovation, improved service delivery and good management skills among its members and auxiliary sectors in order to achieve the necessary economic growth and development in the country. The association has extended the opportunity to micro and small enterprises (MSEs) to enable them learn business efficiency and graduate into big businesses thus imparting greatly on the domestic economy. ZAM opened an MSE desk through which they (MSEs) could access the kaizen coaching-ups by the architects of the philosophy. 

Kaizen brings a lot of hope to Zambia as it creates platforms through which effective analysis of productivity of each business becomes a trademark of the whole workforce, said ZAM CEO Roseta Mwape. The concept approach is paramount to national development and business management especially that most companies become pre-occupied with increasing productivity and deriving good returns at the expense of key pre-requisites for business efficiency such as safety, customer care and cleanliness among others, she added. Manufacturers are adopting kaizen to change the economic players’ mindsets, particularly manufacturers and MSEs to ensure overhaul improved efficiency to stimulate substantial domestic economic growth and development as well as product and service competitiveness in the region.

“Kaizen encourages value addition and use of scientific methods in production, monitoring and evaluation of production capacities of every entity,” says ZAM chairperson Mr. Chance Kabaghe. “It is about the core of an entity’s existence.” It promotes the creation of effective analysis systems that facilitate planning ahead of business/production challenges. It promotes quality control and production efficiency through continuous cleaning up of any ‘garbage’ in the system. Quality control is critical for any economy, something Zambia Development Agency champions in its export promotion and marketing missions to ensure quality standards are met by all exporters. The concept is valuable to the Agency’s mandates on promoting quality.

Companies that have integrated kaizen into their systems have ripped utmost profits from its insight. Zamshu general manager Richard Franklin said through the kaizen concept, the company managed to reduce the levels of shoe damages from 0.8 percent to 0.025 per cent per month. Zamshu improved its quality controlling system, increased production and reduced on wastage levels after the blending of kaizen initiatives in its operations. The concept also strengthened the company’s team work spirit.

Several economic benefits are foreseen from kaizen. The benefits are presumed in all sectors of the economy especially that the philosophy enhances improved production capabilities as well as market evaluation and monitoring. Most Zambian companies are expected to learn timely monitoring skills of business risks and integrate production methods that benchmarks international demands and maintain affluent returns from their business. Other returns will include improved business attitudes, safety, customer care, and other assortments that can help Zambia meet the set global product standards and then continually improving on them.

Being that kaizen involves providing training, materials and needed supervision for employees to achieve the higher standards and maintain their ability to meet those standards on an on-going basis, Zambia Development Agency’s product quality challenges among its exporters may be narrowed. Producers will learn to do the right thing at the right time and take advantage of market offers prudently. Currently, ZAM is facilitating the trainings on kaizen with the help from the Japanese International Cooperation Agency (JICA). ZAM is however, spreading Kaizen to other sectors especially agriculture, which could be pillar of growth for the manufacturing sector and other sectors. With Kaizen, it is presumed Zambia will become a haven of knowledge-based business and a well-groomed economic development base.

Skills Training for Rural Development: The Case of TEVET Institutions Based in North-Western and Western Provinces

By Clive M. Siachiyako

Zambia’s population is very youthful. Statistically, about 65 percent of the 13.3 million Zambians are below 35 years of age. The country is thus driven by youth power in various sectors of the economy. But there is a part of the Zambian population that craves for skills and empowerment i.e. rural youths. It is this population that requires a lot of focus on education and vocational training. The rural youth invariably migrates to urban areas due to lack of education and employment opportunities. Since most of them are school drop outs, the pure academic qualification provides limited opportunities for them. Thus, they have been at the mess of poverty.

Rural areas need skills that spine crop productivity, speedy production in animal husbandry, preservation of agro-products and processing, etc. Skills that make rural residents’ convert opportunities around them into viable financial spinners are very important in wealth creation and improving standards of living, poverty reduction, rural development as well as empowerment of the rural poor. Quality skills improve livelihoods of households that attain them. They can lead to quality life. Quality rural life is key in addressing some of the challenges that has had paralysed rural development for years, thus making rural people destitute.

Imparting rural youths with skills has unique challenges which are not familiar for training providers based in urban areas. These challenges include: attitude towards skills training/education, lack of qualified trainers, lack of infrastructure and training equipment, lack of money to pay for training, extra house chores (especially for girls), pressure to do common community activities (e.g. fishing, marriage, agrarian activities, etc.), among others.

Albert Schweitzer once said “the greatest discovery of any generation is that human beings can alter their lives by changing their attitudes.” Faced with negative attitude and a myriad of pressures and discouragements by life itself in rural area, rural youths have lost out in terms of skills training. Some youths simply shuns training. According to Zambezi Youth Resource Centre Instructor, Hastings Mundendemi Manga, “youths in the area prefer going to do some piece work than training. Some of them ask how much the institution will pay them for attending the training. Once there’s no immediately monetary value involved, they will refuse to enroll with the institution.”

Mr. Manga added “there’s a culture of youths staying alone once they reach puberty. They have a belief that anyone in their fifteens should be independent and support the extended family. Most of them thus get married as early as 15 years. The general trend among youths in Zambezi is fishing, hunting, alcohol drinking and other surviving means. School is not a factor to most of them. The younger ones model after them and the chain goes on.”

This shows that an attitude of society builds or breaks the future. The case in Zambezi gives us a tip of the situation. The rural life is crippled by complex attitudes. Children have no role models who can inspire them treasure to skills training. Those around them are ‘inspiring’ them to marry, be content with the status quo of rural poverty and destitution. Education can change such a situation. Education can create a new breed of rural inhabitants who will aspire to work towards good life; a life characterised with food security, clean water, decent houses and sanitation facilities. Abandoning education is killing society.

A negative attitude kills. The youths in Zambezi are disadvantaging themselves by shunning skills training. For instance, Oxfam Zambia had partnered with Zambezi Youth Resource Centre to train youths in general construction. To this idea, Mr. Manga said targeted youths started demanding for sitting allowances and abandoned the programme when they were not paid the allowances. Oxfam intended to engage graduates from the programme in its WASH (Water, Sanitation and Hygiene) projects through which they would construct water points and sanitation supporting projects in rural area in the province.

The initiative would have provided youths with sustainable capital during the lifespan of project. It would have improved their lives, the livelihoods of their families and would have exposed them to another window of life. Their children would have been inspired to aim for better life. The action of the youths in Zambezi towards the Oxfam project shuts doors for a number of generations to come. This shows how a negative attitude towards things cripples one’s mind, leads them to make negative decisions that affect their lives in negative ways.

The negativity towards skills training is also rife in Lukulu. Lukulu Training Centre Instructor in Auto Mechanics, Silas Limwanya stated that the institution discontinued training in Carpentry and Joinery; Pottery and Ceramic; and Cutting, Tailoring and Designing programmes due to lack of students. “We dropped the three programmes because students stopped before completing the programmes whenever they felt they acquired the skill…once they knew how to make a table; cut a cloth, design and tailor a something etc. they don’t see the need to complete their study and get a certificate. Most of them are thus not certified,” Mr. Limwanya noted.

Rural based training institutions are also faced with under qualified trainers, lack of training equipment and lack of resources to pay for training. Deplorable conditions of life in rural areas rarely attract well qualified trainers. Lack of clean drinking water, electricity, basic facilities and poor infrastructure discourage trainers to work in such areas. This costs rural areas a lot in terms of quality skills and economic development in the short and long term. If nothing is done to address the situation, they will remain the poor and isolated from skills development benefits of the 21st century.

In the case of Kaoma Youth Resource Centre, limited staff and student accommodation, poor water supply and inadequate infrastructure for library and other teaching facilities are some of the challenges it was faced with. Centre Manager Reuben Kaumba said some students were renting small (cheap) huts in compounds due to lack of accommodation at the Centre to absorb all of them. Mr. Kaumba added that the Centre’s potential was not utilised due to a number of obstacles.

When it comes to Mufumbwe, Manyinga Youth Resource Centres and Senanga Trades, inadequate and low qualifications of trainers, lack of sustainable funding, lack of workshops and equipment were some of the challenges they face. Roger Mweemba, Mufumbwe Youth Resource Centre Manager said beside general problems of funding, under qualification of trainers, lack of training facilities and workshops; school was not a priority in the area. Mr. Mweemba further said the Centre tried to sensitise the public in the villages through churches, headmen, chiefs and house to house visitations; but it seemed that people do not value school.

Manyinga Youth Resource Centre Manager Mulayamba Bwalya resonated Mr. Mweemba observation that most households never valued school. “People’s attitude towards school is so negative. They feel the certificates given to graduates won’t take them anywhere. Lack of role models has worsened the situation. Further, being that education was free at one time in the country; some people don’t see paying for training as a government policy. They think it’s our way of siphoning money from them. Worse some female students are often pulled-out of school and taken into marriage. There’s simple apathy among youths towards school,” Mr. Bwalya noted.

He further said “youths are behind in education in the area. Enrollments are very low, e.g. 5 per intake. Such figures aren’t sustainable. As a result, youths who should be NATIONAL ASSETS are liabilities today (and for I don’t know how long). Our training centres are not attractive. We need to upgrade them to meet modern skills development requirements and labour market needs. We need retraining of trainers for them to be up-to-date with sectoral happenings because lack of retraining trickles down the burden of poorly trained human resource to graduates. Training students on ancient equipment/materials disadvantage them.”
 
Senanga Trades’ training blues are not different from other rural based institutions. With the death of the institution Principal Frank Kasabi (MHRIP) in February 2012, the institution has been almost grounded. Mr. Kasabi who was also a trainer in Power Electrical and Computer Studies left the institution on a stand-still due to lack of enough trainers. Senanga Trades Church Consistory, Imbunda Sefulo Kakoma said the inadequacy of trainers was very critical at the institution than it was thought.

“Currently we can’t train since our principal died. It shows how serious the problem of lack of lecturers is in rural areas. It’s unsustainable. Senanga is a growing town, its growth is stimulating growth in sectors such a construction. But there’s no skill to provide quality services in where they are needed,” Mr. Kakoma noted.

Sentiments from the above institutions are an ice berg of the huge problem TEVET skills development is faced with, especially in rural areas.

What can be done?

AttitudeAn attitude kills or builds a person’s aspirations. Parents, teachers in schools, churches and communities have a lot to do in changing the attitude of youths towards skills training in rural areas and the whole country. Parents, teachers, churches and society must learn to speak to youths in a different way compared to the olden says. They must instill in them values of work, hard work, ingenuity, self-reliance and enterprising. Youths should learn to identity their talent, pursue their passion realistically and learn the value of work and money while they are still teenagers. The moment children turn into teenagers, parents must provide them with opportunities to teach them about life realistically, to teach them hard work, and teach them to identify their talents, passion and possibly academic strength.

The country needs a crop of youths who do not only aspire for good life, but live and conduct themselves as goal getters. The 21st century requires an attitude that leaves myths, legends and ordinary reasoning behind. Attitude change is the beginning of achieving great things in life. We can all build a character of youths into the young men and women we want to see build our country in their different localities.

Financing
Financing vocational education and training is very costly not only for government, but also for training providers of such training. It requires multifaceted approach; with various stakeholders engineering skills development in their areas of specialty. Lack of skills in a given sector affects that sector’s productivity. It is thus necessary to broaden the funding base in order to generate more resources for such training. The guiding principles for financing should include participation in financing of training by all stakeholders (cost sharing) cost - recovery methods of training cost effectiveness in training combination of training with income generation. That is, production should be going on during the training. The Learnership Scheme fits well in this case.

Qualified staff can be certified as instructors by TEVETA, who will conduct assessments, administer examinations and then the learners are certified by TEVETA for their qualification to be nationally recognised. A syllabus is often provided by TEVETA for the instructors to follow. Investors in various sectors of the economy can utilise this window to help reduce financing gaps to skills training in the country.

Other stakeholders, such NGOs, churches and private entities can join hands in strategic training of rural youths. Some training initiatives can be rural initiative projects, business linkage training, rural outreach learning or community capacity building initiatives, project based learning, etc. Skills training involves the whole society. Each one of us can add their bit to have a fully-fledged skilled young generation that can be entrusted with managing the economy. We need youths that can run modern business, who can convert the country’s natural endowments into manufacturable products to earn sustainable income and create an environment for others to prosper.

Bad attitude among youths towards skills training, work and life had slowed most of the country’s plans to create an empowered society, a society that’s self-dependent and inspiring to new generations. This has been worsened by lack of sustainable financing to skills development, infrastructure development for skills development and bridging several skills gaps emerging in the current jet-age economy; which is shedding-off unskilled human capital that cannot fit anywhere in the labour market. The class of heaved-out youths out of the labour market due to lack of employable skills needs to tapped and re-engineered into the economy through TEVET Learning Pathways at different levels. TOGETHER WE CAN DO IT!!!!