THE ZDA STRATEGIC PLAN, 2009-2011
Following the formation of the Zambia Development Agency and its subsequent operationalisation, the Agency has developed its first strategic plan. This first strategic plan serves as a guide in its programmes and activities for a three year period commencing from January 2009 to December 2011. The plan is intended to assist the fulfillment of the Agency’s mandate to foster economic growth and development.
The strategic plan aims to focus the Agency on programmes and activities that will contribute to the country’s vision of becoming a prosperous middle income nation by the year 2030. In addition, the plan takes into account of both the broad policy aims and strategies as outlined in the Fifth National Development Plan (FNDP) as well as taking cognizance of the aspirations and objectives as highlighted in the strategic plan for the Ministry of Commerce, Trade and Industry.
The strategic plan articulates the ZDA vision, mission, goals, values and objectives as well as including the strategies that will be used to achieve them. It also highlights performance indicators in order to measure the effectiveness of the Agency with regard to its set targets in the development agenda of the country.
The strategic plan aims to guide the Zambia Development Agency in its quest to become a fully integrated world class institution that effectively and efficiently promotes and facilitates economic development. It is intended that once implemented, the strategic plan will lead to a focused organisation designed to ensure stakeholders’ satisfaction. However, the successful implementation of the strategic plan will depend on the support and cooperation of government, cooperating partners, staff and all stakeholders particularly the private sector, who are the intended beneficiaries of the Agency’s planned activities.
Plan coverage
The ZDA’s strategic plan covers some key issues to its success. These issues include environmental analysis; vision of the organisation; mission statement; goals; its values; objectives, strategies and performance indicators; pre-conditions; general assumptions; linking the strategic plan to the budgeting process; monitoring and evaluation implementation of the strategic plan; and structural implications.
The environmental analysis is an analysis of the environment in which the Agency will operate during the set period of the strategic plan. The analysis takes into account major political, economic, social, technological, environmental and legal developments that will have an impact, positive or negative, on the operations of the Agency. Politically, the analysis is ascertains the country’s political environmental and the effect such an environment has on attainment of planned development of the country. It also analyses the support of the current government to the business sector and the kind of reforms it puts in place in order to improve the investment and business environment in the country. Such an analysis is vital in determining the success of ZDA’s strategic plan because the level of political commitment in the country has serious effects towards the completion of development reform process and the degree of integration of ZDA in these initiatives.
The analysis of the economic environment looks at economic parameters such interest rates, exchanges rates and inflation and how they affect the economy, consequently development. An analysis of the economic environment helps the Agency plan and set its investment promotion in various sectors of the economy, among other things. Socially, the analysis ascertains the availability of human resource in the country and the kind of skills its posses and how trainable the available labour force is in various skills. Its also recognises the HIV and AIDS pandemic and the extent to which the pandemic has affected the country’s labour (among trained and experienced workforce) and thus development. Based on findings to that effect, the Agency devises mechanisms of encouraging investors to put in place measures to mitigate against the effects of the pandemic on their businesses and the whole economy.
Environmental matters are some of the aspects that the ZDA strategic plan takes into account. The Environmental Protection and Pollution Act provide guidelines on the protection of the environment which investors need to be aware of. Further, as can be seen from increase in the number of projects rejected by the Environmental Council of Zambia of the communities proposed to host planned projects, based on their environmental impact, Zambians have become increasingly aware of the need to protect the environment. The Agency will thus ensure that investors are made aware of the need to comply with the environmental protection and pollution control laws.
The legal environment analysis looks at laws that govern investments in Zambia. The operations of the Zambia Development Agency are governed by the Zambia Development Agency Act No. 11 of 2006, which is the principal law governing investment in the country.
However, there are many other laws that affect investors, exporters and SMEs which either hinder or assist ZDA in achieving its strategic objectives. The ZDA will ensure harmonisation of all laws relating to promotion and facilitation of trade and investment. These include, among others Income Tax Act. Value Added Tax Act, Customs and Exercise Act, Immigration and Deportation Act, Citizen Economic Empowerment Act, Competition Act and other legislation. Consequently, the harmonisation process will lead to the amendment of the ZDA Act.
Opportunities
This strategic plan draws strength from several opportunities that the Agency can capitalise on in order to achieve its strategic objectives. Some of these opportunities are the favourable macroeconomic conditions in the country. The macroeconomic environment in the country has improved with the local currency, inflation and interest rates reasonably remaining stable thereby making planning for business easier. Of added advantage towards promoting investment and exports, the economy has consistently continued to grow, while becoming more diversified.
However, the Agency takes cognizant of the recent global economic crisis which will negatively impact on the positive economic environment which government has created. The global financial crisis has so far resulted in an increase in inflation, interest and exchange rates. However, given the stimulus packages that the international community has put forward and specifically taking into consideration of the diversification approach and measures contained in the Zambian Budget for 2009, it is expected that the macroeconomic indicators will improve and stabilise in the second half of the year. In this regard, the Agency shall continuously monitor these developments and revise strategies in line with the local and global economic environment.
The other opportunity to take advantage of on by the ZDA is the stable political environment and political will to enhance development in the country. Zambia has had no political strife since her independence in 1964. Her democracy has been growing and maturing, providing a peaceful and stable political environment. The suitable political environment coupled with the political will exhibited by Government, at the highest levels possible, provides an environment in which business can thrive.
The Agency should utilise the stable political environment as a cornerstone feature, towards promoting Zambia as a favourable investment destination.
In addition, there is an increasing investor and donor confidence in the Zambian economy. This is mainly due to the good economic policies and government’s prudent economic management. The transparent and prudent utilisation of public resources has also greatly contributed to general improvements in public perception of the country.
The other opportunity is that there is government and donor goodwill to the development agenda of Zambia. The Zambian government and the donor community in Zambia have shown a lot of goodwill to the Agency since it was established. This has resulted in financial and technical support to the institution. There is need for the Agency to ensure that this goodwill is maintained by using the resources provided by Government and Donors, prudently and efficiently.
Access to regional and international market is the other aspect the ZDA can capitalise on in its strategic plan. Being that Zambia is centrally located, surrounded by eight (8) neighbouring countries, it is provided with great opportunity to access the various regional and international markets. The country belongs to the Common Market for Eastern and Southern Africa (COMESA) and Southern Africa Development community (SADC). Consequently and as a result of the various bilateral, regional and multilateral trade agreements that the country is party to provide a huge regional market.
Zambia also has duty-free and quota free market access to the following international markets:
EU market, through the Cotonou Agreement and Everything But Arms Initiative (EBA);
American market, through the African Growth and Opportunity Act (AGOA);
Canadian market, through the Canadian Market Access Initiative;
Market access of agro-based products to China through the Chinese Initiative; and
Japanese market, through the Japanese Market Initiative.
The possible access to these export markets provides the Agency with enormous opportunity to facilitate and promote export of Zambian products.
Following the formation of the Zambia Development Agency and its subsequent operationalisation, the Agency has developed its first strategic plan. This first strategic plan serves as a guide in its programmes and activities for a three year period commencing from January 2009 to December 2011. The plan is intended to assist the fulfillment of the Agency’s mandate to foster economic growth and development.
The strategic plan aims to focus the Agency on programmes and activities that will contribute to the country’s vision of becoming a prosperous middle income nation by the year 2030. In addition, the plan takes into account of both the broad policy aims and strategies as outlined in the Fifth National Development Plan (FNDP) as well as taking cognizance of the aspirations and objectives as highlighted in the strategic plan for the Ministry of Commerce, Trade and Industry.
The strategic plan articulates the ZDA vision, mission, goals, values and objectives as well as including the strategies that will be used to achieve them. It also highlights performance indicators in order to measure the effectiveness of the Agency with regard to its set targets in the development agenda of the country.
The strategic plan aims to guide the Zambia Development Agency in its quest to become a fully integrated world class institution that effectively and efficiently promotes and facilitates economic development. It is intended that once implemented, the strategic plan will lead to a focused organisation designed to ensure stakeholders’ satisfaction. However, the successful implementation of the strategic plan will depend on the support and cooperation of government, cooperating partners, staff and all stakeholders particularly the private sector, who are the intended beneficiaries of the Agency’s planned activities.
Plan coverage
The ZDA’s strategic plan covers some key issues to its success. These issues include environmental analysis; vision of the organisation; mission statement; goals; its values; objectives, strategies and performance indicators; pre-conditions; general assumptions; linking the strategic plan to the budgeting process; monitoring and evaluation implementation of the strategic plan; and structural implications.
The environmental analysis is an analysis of the environment in which the Agency will operate during the set period of the strategic plan. The analysis takes into account major political, economic, social, technological, environmental and legal developments that will have an impact, positive or negative, on the operations of the Agency. Politically, the analysis is ascertains the country’s political environmental and the effect such an environment has on attainment of planned development of the country. It also analyses the support of the current government to the business sector and the kind of reforms it puts in place in order to improve the investment and business environment in the country. Such an analysis is vital in determining the success of ZDA’s strategic plan because the level of political commitment in the country has serious effects towards the completion of development reform process and the degree of integration of ZDA in these initiatives.
The analysis of the economic environment looks at economic parameters such interest rates, exchanges rates and inflation and how they affect the economy, consequently development. An analysis of the economic environment helps the Agency plan and set its investment promotion in various sectors of the economy, among other things. Socially, the analysis ascertains the availability of human resource in the country and the kind of skills its posses and how trainable the available labour force is in various skills. Its also recognises the HIV and AIDS pandemic and the extent to which the pandemic has affected the country’s labour (among trained and experienced workforce) and thus development. Based on findings to that effect, the Agency devises mechanisms of encouraging investors to put in place measures to mitigate against the effects of the pandemic on their businesses and the whole economy.
Environmental matters are some of the aspects that the ZDA strategic plan takes into account. The Environmental Protection and Pollution Act provide guidelines on the protection of the environment which investors need to be aware of. Further, as can be seen from increase in the number of projects rejected by the Environmental Council of Zambia of the communities proposed to host planned projects, based on their environmental impact, Zambians have become increasingly aware of the need to protect the environment. The Agency will thus ensure that investors are made aware of the need to comply with the environmental protection and pollution control laws.
The legal environment analysis looks at laws that govern investments in Zambia. The operations of the Zambia Development Agency are governed by the Zambia Development Agency Act No. 11 of 2006, which is the principal law governing investment in the country.
However, there are many other laws that affect investors, exporters and SMEs which either hinder or assist ZDA in achieving its strategic objectives. The ZDA will ensure harmonisation of all laws relating to promotion and facilitation of trade and investment. These include, among others Income Tax Act. Value Added Tax Act, Customs and Exercise Act, Immigration and Deportation Act, Citizen Economic Empowerment Act, Competition Act and other legislation. Consequently, the harmonisation process will lead to the amendment of the ZDA Act.
Opportunities
This strategic plan draws strength from several opportunities that the Agency can capitalise on in order to achieve its strategic objectives. Some of these opportunities are the favourable macroeconomic conditions in the country. The macroeconomic environment in the country has improved with the local currency, inflation and interest rates reasonably remaining stable thereby making planning for business easier. Of added advantage towards promoting investment and exports, the economy has consistently continued to grow, while becoming more diversified.
However, the Agency takes cognizant of the recent global economic crisis which will negatively impact on the positive economic environment which government has created. The global financial crisis has so far resulted in an increase in inflation, interest and exchange rates. However, given the stimulus packages that the international community has put forward and specifically taking into consideration of the diversification approach and measures contained in the Zambian Budget for 2009, it is expected that the macroeconomic indicators will improve and stabilise in the second half of the year. In this regard, the Agency shall continuously monitor these developments and revise strategies in line with the local and global economic environment.
The other opportunity to take advantage of on by the ZDA is the stable political environment and political will to enhance development in the country. Zambia has had no political strife since her independence in 1964. Her democracy has been growing and maturing, providing a peaceful and stable political environment. The suitable political environment coupled with the political will exhibited by Government, at the highest levels possible, provides an environment in which business can thrive.
The Agency should utilise the stable political environment as a cornerstone feature, towards promoting Zambia as a favourable investment destination.
In addition, there is an increasing investor and donor confidence in the Zambian economy. This is mainly due to the good economic policies and government’s prudent economic management. The transparent and prudent utilisation of public resources has also greatly contributed to general improvements in public perception of the country.
The other opportunity is that there is government and donor goodwill to the development agenda of Zambia. The Zambian government and the donor community in Zambia have shown a lot of goodwill to the Agency since it was established. This has resulted in financial and technical support to the institution. There is need for the Agency to ensure that this goodwill is maintained by using the resources provided by Government and Donors, prudently and efficiently.
Access to regional and international market is the other aspect the ZDA can capitalise on in its strategic plan. Being that Zambia is centrally located, surrounded by eight (8) neighbouring countries, it is provided with great opportunity to access the various regional and international markets. The country belongs to the Common Market for Eastern and Southern Africa (COMESA) and Southern Africa Development community (SADC). Consequently and as a result of the various bilateral, regional and multilateral trade agreements that the country is party to provide a huge regional market.
Zambia also has duty-free and quota free market access to the following international markets:
EU market, through the Cotonou Agreement and Everything But Arms Initiative (EBA);
American market, through the African Growth and Opportunity Act (AGOA);
Canadian market, through the Canadian Market Access Initiative;
Market access of agro-based products to China through the Chinese Initiative; and
Japanese market, through the Japanese Market Initiative.
The possible access to these export markets provides the Agency with enormous opportunity to facilitate and promote export of Zambian products.