Friday, 28^th October, 2022

The House met at 0900 hours

[MR SECOND DEPUTY SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

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BUSINESS OF THE HOUSE

The Minister of Defence and Acting Leader of Government Business (Mr Lufuma): Mr Speaker, let me acquaint the House with –

Mr Second Deputy Speaker: Order!

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ANNOUNCEMENT BY MR SECOND DEPUTY SPEAKER

ACTING LEADER OF GOVERNMENT BUSINESS IN THE HOUSE

Mr Second Deputy Speaker: Hon. Members, I have received communication to the effect that in the absence of Her Honour the Vice-President, who is attending to other Government business, the hon. Minister of Defence, Mr Ambrose Lufuma, will act as Leader of Government Business in the House, from Friday, 28^th October, 2022, until further notice.

Hon. Government Members: Hear, hear!

Mr Second Deputy Speaker: Order!

Hon. Members, there was an anomaly. I think the Clerk delayed to avail me with the announcement. I am therefore, sorry.

I thank you.

May the Acting Leader of Government Business continue.

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Mr Lufuma: Mr Speaker, let me acquaint the House with some idea of the business it will consider next week.

Mr Speaker, on Tuesday, 1^st November, 2022, the Business of the House will begin with Questions for Oral Answer. This will be followed by presentation of Government Bills, if there will be any.

Interruptions 

Mr Second Deputy Speaker: Hon. Kampyongo, if you have things to talk about, maybe, you can go outside because you are disturbing the Business of the House with your friends there.

Mr Kampyongo rose.

Mr Kampyongo: We need to get things right here.

Interruptions

Mr Second Deputy Speaker: Hon. Kampyongo, resume to your seat. I will not allow that. This House has to be orderly. If there is intent to undermine my presiding, I will not tolerate it. Let us just be orderly so that Business is conducted in a formal manner. May the Acting Leader of Government Business continue. 

Mr Lufuma: Mr Speaker, then the House will consider the Committee Stage of the Investment Trade and Business Development Bill, N.A.B. No. 20 of 2022. Thereafter, the House will resolve into Committee of Supply to consider the following Heads:

Head 03 – National Assembly;

Head 05 – Electoral Commission of Zambia; and

Head 06 – Civil Service Commission, Office of the President.

Mr Speaker, on Wednesday, 2^nd November, 2022, the Business of the House will start with Questions for Oral Answer. This will be followed by presentation of Government Bills, if there will be any. Then the House will resolve into Committee of Supply to consider the following Heads:

Head 28 – Emoluments Commission;

Head 07 – Office of the Auditor-General; and

Head 08 – Cabinet Office – Office of the President.

Mr Speaker, on Thursday, 3^rd November, 2022, the Business of the House will commence with Questions for Oral Answer. Thereafter, the House will consider presentation of Government Bills, if there will be any. Then, the House will resolve into Committee of Supply to consider the following Heads:

Head 10 – Zambia Police Service Commission; and

Head 36 – Zambia Correctional Service Commission.

Mr Speaker, on Friday, 4^th November, 2022, the Business of the House will start with Her Honour the Vice President's Question Time. Thereafter, the House will deal with Questions for Oral Answer. The House will then consider presentation of Government Bills, if there will be any. After that, the House will resolve into Committee of Supply to consider the following Heads:

Head 11 – Zambia Police Service – Ministry of Home Affairs and Internal Security;

Head 30 – Zambia Correctional Service; and

Head 23 – National Immigration Services.

I thank you, Mr Speaker. 

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MATTERS OF URGENT PUBLIC IMPORTANCE

MR J. E. BANDA, HON. MEMBER FOR PETAUKE CENTRAL, ON THE HON. MINISTER OF TRANSPORT AND LOGISTICS, MR TAYALI, ON HON. MEMBERS TRAVELLING TO LIVINGSTONE BY BUS

Mr J. E. Banda (Petauke Central): On a matter of urgent public importance, Mr Speaker.

Mr Speaker: A matter of urgent public importance is raised.

Mr J. E. Banda: Mr Speaker, thank you for giving the good people of Petauke this opportunity to raise a matter of urgent public importance.

Mr Speaker, this matter is directed at the hon. Minister of Transport and Logistics. Hon. Members will be travelling to Livingstone using a bus. Now, looking at the –

Interruptions

Mr J. E. Banda: Mr Speaker, anyway, since the hon. Members want to debate on behalf of me, I leave it to them to debate.

Laughter

MR MUTALE, HON. MEMBER FOR CHITAMBO, ON HER HONOUR THE VICE-PRESIDENT, MRS NALUMANGO, ON THE INCREASE OF MOSQUITOES IN ZAMBIA

Mr Mutale: On a matter of urgent public importance, Mr Speaker.

Mr Speaker: A matter of urgent public importance is raised.

Mr Mutale (Chitambo): Mr Speaker, this matter to do with the increase in mosquitoes in Zambia is directed at Her Honour the Vice-President.

Mr Speaker, we have seen an increase in mosquitoes in the Central Business District (CBD) of Lusaka, and many other areas or districts in Zambia.

Mr Speaker, I visited some districts in Zambia recently and I discovered that there is an increase in mosquitoes. I am aware that if these mosquitoes are not controlled, they will breed malaria, which is a killer disease. If attention is not paid to this issue, we might lose lives in this country.

Mr Speaker, I am raising this matter today because I also brought it up in the past but nothing happened. When I complained about mosquitoes in this House, the issue was trivialised.

Mr Speaker, now that mosquitoes are increasing than we thought, what is Her Honour the Vice-President’s view on this matter, considering that in the past, there used to be annual spraying of some kind to try and curb mosquitoes?

Mr Speaker, kindly consider this matter as urgent.

I thank you, Mr Speaker.

REV. KATUTA, HON. MEMBER FOR CHIENGE, ON THE HON. MINISTER OF TECHNOLOGY AND SCIENCE, MR MUTATI, ON MOBILE NETWORK SERVICES

Rev. Katuta (Chienge): On a matter of urgent public importance, Mr Speaker.

Mr Second Deputy Speaker: A matter of urgent public importance is raised.

Rev. Katuta: Mr Speaker, thank you for allowing the voice of Chienge to raise this very urgent matter of public importance.

Mr Speaker, in the previous Session, we debated on how some mobile network providers have been duping the people of Zambia. I am raising this very important matter and it is directed at the hon. Minister of - Is it science and technology? The title is long.

Interruptions

Rev. Katuta: Mr Speaker, the people of Zambia are crying due to the services rendered by Airtel Zambia Plc. The airtime bundles are depleting so fast and are very costly. The majority of our people in Zambia, or the largest population, are youths, who are always on social media and even use mobile phones to do their research for school, or other work that they need to do. Even as business men and women, we are all using bundles from Airtel Zambia Plc in order to do business. When we are at home and need to connect through Zoom, as hon. Members of Parliament, we use the Airtel Zambia Plc network.

Mr Speaker, it has now become a norm for this network provider to drop calls and charge people for those calls. The network connectivity is bad and people in Chienge are suffering. You cannot communicate properly even within Lusaka. To make matters worse, the internet service is getting worse.

Mr Speaker, in other countries like South Africa, when a mobile network provider drops a call, the user is supposed to be refunded unlike what is happening in our country. We are losing money which is making these institutions richer and richer. We have Airtel Zambia Plc whose bundles just deplete like thin air.

Mr Speaker, I seek your serious indulgence on this matter because most Zambians are being duped. They are not getting the service they are supposed to get from Airtel Zambia Plc.

I thank you, Mr Speaker.

Mr Second Deputy Speaker: The issue raised by the hon. Member for Chitambo, yes, is an urgent matter. However, you said that you already raised it before and the Government is already aware of it. You directed the matter at Her Honour the Vice-President, but I think the hon. Minister of Health will be directed to come and issue a ministerial statement on Wednesday next week as regards to this issue.

The issue of mobile data is a national matter as well. Therefore, we will direct the hon. Minister responsible for communication to also come to the House on the same day, on Wednesday next week, to issue a comprehensive statement as well.

I thank you.

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QUESTIONS FOR ORAL ANSWER

PLANS TO ELECTRIFY ALL SECONDARY SCHOOLS IN MFUWE

81. Ms Mabonga (Mfuwe) asked the Minister of Energy:

1. whether the Government has any plans to electrify all secondary schools in Mfuwe Parliamentary Constituency;
2. if so, when the plans will commence; and
3. what the total cost of the project is.

The Minister of Energy (Mr Kapala): Mr Speaker, yes, the Government has plans to electrify secondary schools in Mfuwe Constituency. In 2019, the Government through the line ministry responsible for education applied for electrification of three secondary schools under Mfuwe Constituency, namely Lukulu Secondary School, Salamo Day Secondary School and Mununga Day Secondary School.

Mr Speaker, the electrification works for Lukulu Secondary School have since been completed and the school will be connected to the grid by mid November, 2022, which is next month. All connections that are done by ZESCO Limited are application driven. So, the schools have to apply through ZESCO Limited.

Sir, it should be noted that only three secondary schools applied for connection in Mfuwe Constituency and quotations for Salamo Day Secondary School and Mununga Day Secondary School were not paid for and have since expired. New quotations have since been issued for the two schools and the current cost of electrifying the two remaining schools is as follows:

1. K2,421,000 for Salamo Day Secondary School; and
2. K305,000 for Mununga Day Secondary School.

Mr Speaker, lastly, I urge the hon. Member of Parliament for Mfuwe to utilise the Constituency Development Fund (CDF) to quickly electrify the remaining schools.

I thank you, Sir.

Mr Mung’andu (Chama South): Mr Speaker, the hon. Minister has indicated the cost in the new quotations. There is K2.4 million for one school and another one is above K300,000. Can the hon. Minister clarify for the people of Mfuwe Constituency and the entire country if the Government has increased connection fees because we have been complaining about it? For high density areas, quotations are not even being issued. For low density areas, where people were paying K2,000, it is now around K20,000. In some instances, it is even up to K80,000.

Mr Second Deputy Speaker: Hon. Member, this question is specific. You are now going off the boundary. You are supposed to focus on the specific question from the hon. Member for Mfuwe.

Mr Mung’andu: Yes.

Mr Second Deputy Speaker: So, your questions should just be on that.

Mr Mung’andu: Now, coming to Mfuwe, is this K2 million realistic for the people of Mfuwe? This is a Government institution. ZESCO Limited is trying to make Zambians pay for services. We should be concerned here because ZESCO Limited is charging the people for conductors which do not belong to the people. That becomes ZESCO property.

Mr Second Deputy Speaker: Hon. Member, what is your question?

Mr Mung’andu: Mr Speaker, is the hon. Minister going to reconsider those high connection fees, so that our people in rural areas, especially public institutions, can have access to electricity?

Mr Second Deputy Speaker: Let me give a word of caution to all hon. Members. These questions are constituency-based and the questions that we should ask should be related to that particular constituency. We should not find an opportunity to ask questions that we feel we need answers to. Rather, we should ask questions that are constituency-based; the way the question appears on the Order Paper. If you have an urgent question, you can put in an urgent question under Standing Order No. 76, and the hon. Minister responsible will still answer you. So, let us just ask questions that are relevant to that particular constituency.

May the hon. Minister of Energy respond.

Mr Kapala: Mr Speaker, I invite the hon. Member of Parliament for Chama South to come with me to Salamo Day Secondary School in Mfuwe, so that I can carry with me the breakdown of the quotation for him to appreciate how this amount was arrived at.

I thank you, Mr Speaker.

Rev. Katuta (Chienge): Mr Speaker, I thank the hon. Minister for the answers. I heard him speak about Mununga Day Secondary School and another secondary school and the cost for electrifying these schools. We are talking about a rural constituency here, and if the Government cannot move in quickly, we will be depriving the future leaders of an opportunity to go to school. Is it possible for the ministry to ask for money from that account they call – I have just forgotten what that account is called. I will mention it when I recall. The hon. Minister knows the account I am talking about.

Mr Kapala indicated dissent.

Hon. PF Members: Control 99?

Rev. Katuta: Not Control 99. There is another account where they can get funds to connect those schools where children are being deprived. If the cost is too much, why can the ministry not use the solar power, so that our children can be part and parcel of the progress or development that is taking place in our country?

Mr Kapala: Mr Speaker, I have noted the proposal and we will look into it.

I thank you, Sir.

Mr Mutale (Chitambo): Mr Speaker, the question before us was asked by the hon. Member of Parliament for Chama South. I know that we ask these questions for the people out there to get answers and not for a discussion between the hon. Minister and I. So, this question will go to the hon. Minister, so that he can answer it. Could the hon. Minister kindly give us a breakdown of what those figures he mentioned on the Floor of the House are comprised of, so that the people out there and the hon. Member can appreciate, and not feel that those connection fees are too high? 

Mr Kampyongo: On a point of procedure, Sir.

Mr Second Deputy Speaker: I want to bring it to the attention of the House that the ministry responsible for mobile data is not the hon. Ministry of Transport and Communication as earlier stated, but the hon. Minister of Technology and Science

You know, in Zambia we keep changing ministries. Each Government makes changes. In the Movement for Multi-party Democracy (MMD) Government, the ministry that was responsible for mobile data was the then Ministry of Transport and Communications, which is now called the Ministry of Technology and Science. The hon. Minister is the one who will come with a ministerial statement next week, on Wednesday.

May the hon. Member for Shiwang’andu raise his procedural point of order.

Mr Kampyongo: Mr Speaker, I am raising this procedural point of order pursuant to Standing Order No.74, on Questions for Oral Answer. The procedure is that hon. Members submit questions for oral answer to various ministries. When the question is processed, the hon. Minister coming to respond to the question comes with a written response. That is why it takes a bit of time. I know that we have to embrace technology, and so, after the response, these questions and responses are collected by the Clerk’s desk. Like I said, we have to embrace technology, but procedures must not be broken. Is the hon. Minister of Energy in order to come here and respond to questions using his phone, which he is not going to submit to your desk because these matters go on the record of Parliament? Immediately after questions are dealt with, the responses are deposited by the Clerk’s desk. Is he in order to trivialise and break the procedure in the manner he is doing by using his gadget to respond to these questions?

I seek your very serious guidance, Mr Speaker.

Hon. PF Members: Hear, hear!

Mr Second Deputy Speaker: Order!

Hon. Ministers are at all times advised to respond with a written script, but there are some hon. Ministers who are well vested in what they do and they understand what they do.

Mr Kampyongo: Question!

Mr Second Deputy Speaker: Maybe, he has a written script already. He understands what he is doing.

Hon. PF Members: Question!

Mr Second Deputy Speaker: He is not an hon. Minister who is talking from abstract, no. He understands what he is doing. We may not know that where he is there, maybe, he has got a written script.

Interruptions

Mr Second Deputy Speaker: Order!

If an hon. Minister is alive to the issues he is dealing with, he may speak without referring to the script. It is possible.

Mr Kapala waved a document.

Mr Second Deputy Speaker: He has a written script. Have you seen there?

Interruptions

Mr Second Deputy Speaker: Let us proceed.

The hon. Minister of Energy may respond to the question by the hon. Member for Chitambo.

Mr Kapala: Mr Speaker, I do not have a breakdown of the quoted figures. However, if I am given an opportunity to bring the figures to this august House, I will be obliged to do so.

I thank you, Mr Speaker.

Ms Mabonga (Mfuwe): Mr Speaker, I am grateful that Lukulu will be connected by mid-November. May I also find out when the Government planned to connect the other two remaining schools, Salamu and Mununga, away from the Constituency Development Fund (CDF)?

Mr Kapala: Mr Speaker, as I indicated in my response, new quotations have been issued. We hope that the Ministry of Education will settle this account as soon as possible so that the connections can be effected.

I thank you, Mr Speaker.

INCENTIVES FOR SMALL AND MEDIUM ENTERPRISES

82. Mr Munsanje (Mbabala) asked the Minister of Small and Medium Enterprise Development:

1. what incentives are being offered to Small and Medium Enterprises, especially those managed by the youth;
2. what measures are being taken to sensitise the youth about the incentives; and
3. what incentives are available for those who are above the age of thirty-five years.

The Minister of Small and Medium Enterprise Development (Mr Mubanga): Mr Speaker, the following are the key incentives that the ministry, through the Citizens Economic Empowerment Commission (CEEC), has deliberately created for the youth entrepreneurs:

Access to finance

Mr Speaker, it is worth noting that 40 per cent of the empowerment fund has been allocated to female or male youth entrepreneurs between the age of eighteen and thirty-five. This implies that of the set aside total empowerment fund, which is K365 million for 2022 Budget allocation, K146 million, which is 40 per cent, has been reserved for youth entrepreneurs based both in rural and urban areas. Further, the commission has developed eight innovative empowerment products that are focussing on the participation of youth entrepreneurs in the local economy.

By way of illustrating, Mr Speaker, one of the innovations, an empowerment product, which has been introduced by the commission, is the Marketeer Booster Loan (MBL). I have been talking about it, and many hon. Members of Parliament have been given this product. This product attracts zero interest and targets the female youth, especially those who are in the markets.

Mr Speaker, the information communication technology (ICT) innovation and creative arts is another empowerment product that has high youth entrepreneur interest. The product encourages the youth specialised and interested in the development of software and hardware applications in key development sectors such as agriculture, health, trading, climate change, water and sanitation, education, energy and digital financial services. Creative arts are focusing on youth entrepreneurs in audio-visual, music, fashion, design and cultural tourism.

In addition, as a way of encouraging youth entrepreneurs to participate in the agenda of economic transformation and job creation in the country, agro-processing, agricultural mechanisation and light manufacturing empowerment products are being promoted.

Sir, the other key empowerment product is the Presidential Micro Small and Medium Enterprises (PMSMEs) annual ward which seeks to identify, appreciate and support small and medium enterprises (SMEs) and co-operatives, including youth-oriented enterprises that have demonstrated high geared performance in terms of business growth innovations within the business and job creation.

Provision of Platform to Prefer Zambian Citizens (Preferential Treatment)

Mr Speaker, pursuant to Section 19 of the Citizens Economic Empowerment Act, 2006, the commission has formulated guidelines to ensure that targeted citizens and companies specified under the guidelines are given preference in accessing and being awarded tenders for procurement of services and goods for any State institution. The commission believes this has provided a vehicle for youth-oriented enterprises or businesses to register for Preferential Procurement Certificates (PPC) which gives them added advantage to participate in public tenders.

Sector Education and Training

Mr Speaker, pursuant to the commission’s mandate under the Act, and in order to ensure business success among youth-oriented businesses, the commission provides entrepreneurship and business skills trainings. This includes SMEs handholding training before and after disbursement.  In other words, we are helping the youth. Before they have access to finance, they must be trained. They must have some skills.

Mr Speaker, the following are the instruments that are being used to sensitise the youth about the incentives;

1. radio and television (TV) sensitisation programmes are being implemented across the country;
2. town hall and physical community meetings in places such as markets, schools and other public institutions across the country;
3.  the commission’s website and social media are other platforms that are being used to sensitise the youth;
4.  print media through interviews and success stories; and
5. places of worship such as churches.

Mr Speaker, the ministry through the CEEC provides sustainable and inclusive financing that covers all targeted citizens above the age of thirty-five to ensure that equitable financing is achieved as required under the Act. The commission has allocated the following percentages to the empowerment products advertised above:

women                                    40 per cent

persons with disability            5 per cent

men                                        15 per cent

I thank you, Mr Speaker.

Mr Tayengwa (Kabwata): Mr Speaker, I thank you for giving the good people of Kabwata a chance to ask a question.

Mr Speaker, what criteria has been used, or is going to be used, to empower the youths? The issue of collateral is what is worrying most of the youth in my constituency. Most of them are having challenges in accessing empowerment funds because of the lack of collateral. So, what criteria is the hon. Minister going use to choose the youth that can apply for empowerment funds without providing collateral?

Mr Mubanga: Mr Speaker, the ministry has taken some time because it has not given any empowerment funds up to now. What we wanted was to try and let our people know about this empowerment fund. In some cases, we are studying the business proposals. Some business proposals may not need the surety or collateral that the hon. Member is talking about. For example, there are those who want to apply for agricultural mechanisation loans. If they are applying for a tractor, it will be the surety.

Sir, we know that it is very difficult for our youth to provide the surety and that is why we ask them to write applications and then attach the business proposals. Those business proposals will act as surety for them. The officers will visit them and if they have got land and the project is very good, we will base everything on that project because we know that most Zambian youth cannot have access to this financing or empowerment.

I thank you, Mr Speaker.

Mr C. M. Mpundu (Chembe): Mr Speaker, we still have a challenge in rural districts where we do not have institutions like the Patents and Companies Registration Agency (PACRA) and the Zambia Public Procurement Authority (ZPPA). It is becoming a challenge for the youths to register their enterprises. What measures has the hon. Minister put in place to make sure that this institution can trickle down to district levels?

Mr Mubanga: Mr Speaker, the ministry has developed online registration for those who want to register co-operatives. Just on the Government Website, you will be able to get to co-operatives and then, you will be able to follow the channels.

Sir, the youths in rural areas can use anyone’s Smartphone and they can be able to register online. For those who want to register a business with the PACRA, each province has a registration centre and I would like to encourage them to do that.

Mr Speaker, we are also trying to see if we can get into the districts when we chat with the Ministry of Commerce, Trade and Industry because they are the ones who are registering the companies.

I thank you, Sir.

Mr Miyutu (Kalabo Central): Mr Speaker, the hon. Minister’s responses are meant for the youth in Zambia including those in Kalabo, and not elsewhere, where the issue of smartphones –

Sir, this is October and we are in the last quarter of 2022. I was worried by the hon. Minister’s response when he said that he has not yet disbursed any funds. This is October and we are just a few days away from November. According to the hon. Minister, this money for 2022 has not been disbursed to the youths, including those in Kalabo.

Mr Kapyanga: Hammer!

Mr Miyutu: Sir, when will the 2022 Budget be implemented so that those in the rural areas where there is no network or internet which he is talking about, where this Website is not known, can access these funds before it is too late?

Mr Mubanga: Mr Speaker, if the hon. Member listened to news yesterday, he could have learnt that there are marketeers in Mungwi whose papers had not yet been submitted to the ministry through the Citizens Economic Empowerment Commission (CEEC). We have deliberately made sure that every corner of this country and every district is captured …

Hon. Government Members: Hear, hear!

Mr Mubanga: … otherwise, only the people in towns like Lusaka and the Copperbelt will be able to access this empowerment fund.

Sir, I am just coming from Shiwang’andu, Mpika, part of Chinsali and deep rural areas of Mansa trying to sensitise our people. I came with some of the forms in a bag because there are so many and this is in the villages.

Hon. Government Members: Hear, hear!

Mr Mubanga: I am saying this because we want to make sure that every Zambian, especially those in the rural areas, benefit. I will be flagging off the empowerment fund in the next three weeks and every Zambian and every district must be captured.

Hon. Government Members: Hear, hear!

Mr Mubanga: Mr Speaker, I reached out and gave these products to the hon. Members, especially the Marketeer Booster Loan. We had to stop the application process for this at one point but I had to speak to the director general because some of our people – The hon. Member might have heard what the people in Mungwi were saying yesterday. We do not want to leave those people in the markets. We want everyone to be captured.

Mr Speaker, the hon. Member talked about me mentioning the use of smartphones. I said that there is the option to go online for those with smartphones, but those without smartphones can use our old way of registration. Zambian youths are encouraged to continue with the same old way of registering companies and co-operatives.

I thank you, Mr Speaker.

Mr Second Deputy Speaker: Hon. Members, you have heard what the hon. Minister has said. Let us take advantage of this opportunity. It is countrywide empowerment. So, those of you who are in the countryside, ensure that you tell your people in your constituencies that they should also access these funds that are available.

Mr Kapyanga (Mpika): Mr Speaker, the hon. Minister has stated here that he has given forms to hon. Members of Parliament.

On the other hand, he mentioned that he, as the hon. Minister, he was in Mpika and Shiwang’andu distributing application forms. Would it be in order to conclude that this whole process is a one man’s show? I say so because he has not engaged us, as hon. Members of Parliament, both on the right and left. We do not even know where these forms are. He was in Mpika, which is my constituency, and he did not even have the courtesy to leave the forms at my office. People in Mpika and Shiwang’andu are not aware about the Marketeer Booster Loans. The hon. Minister was in Mpika for campaigns. Would it be right to conclude that he has not engaged hon. Members of Parliament?

Mr Mubanga: Mr Speaker, I think the hon. Member did not hear what I said. I said I was in Mansa and Chinsali to engage the public. In Chinsali, Shiwang’andu, and in some areas in Mansa, where I went, we do not have by-elections. 

Mr Speaker, in Mpika, I spoke to the District Commissioner (DC) and I left instructions. Those I met and spoke to in Mpika know that I went there with the forms. I just said that I came with them in a sack. Is that not what I said? That is what I said. So, the hon. Member should listen. Yesterday, I met the hon. Member and I told him I was in his constituency. I even told him and the hon. Member for Kanchibiya to access the empowerment funds so that the people in Kanchibiya and Mpika can benefit. So, it is not true that I have not engaged the hon. Member of Parliament on this matter.

I thank you, Sir.

Mr Munsanje (Mbabala): Mr Speaker, we are facing challenges on the ground with our communities. Therefore, is the Ministry of Small and Medium Enterprise Development considering working with community development officers from the Ministry of Community Development and Social Services and our local government structures in terms of the Ward Development Committees (WDCs), to get the youths in rural areas on board and support them in the application process?

Mr Mubanga: Mr Speaker, this Government is not working in silos; it works as a team. When I was in Chinsali, I spoke to the hon. Minister of Community Development and Social Services and she gave me instructions on how I should work with her. My ministry and her ministry work as a team. I also spoke to the hon. Minister of Agriculture and the hon. Minister of Green Economy and Environment when I was in Mpika in order for them to address some of the issues that were raised. So, we are working as a team.

Mr Speaker, I thank you.

Rev. Katuta (Chienge): Mr Speaker, I think the hon. Minister is aware that the majority of us here represent constituencies in rural areas. I represent a rural area. I rose on a matter of urgent public importance on mobile network. The hon. Minister said that those who have smartphones can use the online system to apply for the funds. I think he is being unfair to the people of Chienge.

Secondly, let me talk about the traditional way of applying. The people of Chienge have been deprived of that. The information on the application forms needs to be in the simplest form so that people can understand it. If the Government wants to have something from Chienge, let it put the information on the forms in vernacular so that everybody can understand them because we do not only want people who are educated to access the loans but also, the uneducated. We have people who have no education who need loans. Why can the ministry not come up with another formula for the forms in order for my people in Chienge to access the funds? There are businessmen who lack education.

Mr Mubanga: Mr Speaker, I think the hon. Member did not hear what I said. I talked about two parallel things. I said there is the digital way of applying for the funds using smartphones and the traditional way because we do not want to leave anyone behind. In Chienge, we have mobile network and there are people with smartphones.

Rev. Katuta: Question!

Mr Mubanga: We do have. There is no constituency where people do not have phones, even small phones. The Ministry of Technology and Science, I think, is in a hurry to make sure that some areas where we may not have mobile network are connected.

I thank you, Sir.

Mr Katakwe (Solwezi East): Mr Speaker, the hon. Minister –

Rev. Katuta: On a point of order, Mr Speaker.

Mr Second Deputy Speaker: A point of order is raised.

Rev. Katuta: Mr Speaker, thank you so much. I really appreciate.

Mr Speaker, I rise on a very important point of order and it is on the hon. Minister who has just responded to my question. Standing Order No. 65 says that we should be factual. When I stood here, I stood here as an hon. Member of Parliament who understands the dynamics or the problems or the challenges of Chienge. I said that most people in Chienge are lagging in education, I needed to use that word, but they still want to be part and parcel of these funds. Is there a way this ministry can use vernacular in those application forms to make it simple for the people of Chienge to access the funds? That was my question but the hon. Minister has not answered me.

I really need your indulgence, Mr Speaker.

Mr Second Deputy Speaker: You cited Standing Order No. 65 but you did not indicate what was breached.

Rev. Katuta: Mr Speaker, the hon. Minister said that people in Chienge have smartphones and the mobile network is good in Chienge. However, I stood here few minutes ago complaining about the mobile network in Chienge. Secondly, people in Chienge do not have smartphones. I am the hon. Member of Parliament there. Maybe, civil servants have smartphones. When people want to communicate with their area hon. Member of Parliament, they go to teachers because there is something that they need to say. The hon. Minister stood and said that the people in Chienge have smartphones. They are watching me right now. I think the hon. Minister did not give the truth and he is not being factual. On behalf of the people of Chienge, we do not have smartphones and we cannot afford them. 

Mr Second Deputy Speaker: The hon. Minister was not out of order. The hon. Minister was in order because whatever he said was factual. He said that there are some people with smartphones in Chienge. He did not say that everyone has a smartphone. For those without smartphones, the traditional way of registration still continues. That is what he said. So, let us make progress.

Hon. Government Members: Hear, hear!

Mr Katakwe: Mr Speaker, thank you for giving me this opportunity again.

Sir, this is the problem we have when people just stand and begin to disturb others. The flow of thought is disturbed.

Mr Speaker, the hon. Minister mentioned that he just came with a sack of the forms and I take leaf from that because in Mushindamo District and Solwezi East Constituency, that I represent, the District Commissioner (DC) has stacks and stacks of forms. Should I take it that facilitation can be done for the application forms to come to Lusaka or there is another point where the forms can be taken? I just want to be clear on that aspect.

Mr Mubanga: Mr Speaker, we do not want to leave anyone behind. If those forms are with the District Commissioner (DC), and I know that in his district or constituency, we do have one who is representing my ministry, they can be brought to the ministry, so that they are processed.

I thank you, Mr Speaker.

Mr Katotobwe (Luapula): Mr Speaker, on assumption that the hon. Minister’s empowerment programmes are successful, has he considered the migration of the successful medium businesses to large-scale businesses in their domiciled areas, taking into consideration that Zambia has an average annual growth rate of about 3 per cent, which means that the youths of today may not necessarily be youths in a couple of years to come?

 

Mr Mubanga: Mr Speaker, this is what we are doing and we are working hand in hand with the Ministry of Commerce, Trade and Industry. My ministry will look at the starter-ups, incubate and help those who are struggling in businesses. When they go into small businesses, they will move, graduate, and we will give them the attention that they require to get into medium businesses. From medium, we still have to work and give them the mentorship they need to graduate to corporate businesses. The hon. Minister of Commerce, Trade and Industry is here to take over.

Mr Speaker, I thank you.

Mr Sialubalo (Sinazongwe): Mr Speaker, I thank you for the opportunity to ask a question.

Sir, I believe the hon. Minister is aware that the youths in this country are looking up to his ministry for their economic easing. My question is based on the Constituency Development Fund (CDF) that we have received, which we are using to award contracts to youths and women throughout the country. Now, the major challenge that the youths are facing is acquiring loans to carry out works and projects that are time-driven. Is the hon. Minister thinking of coming up with a desk that will specifically act on projects that are funded through the CDF? Our youths need loans and getting loans is quite a tedious process. Does the ministry have a drive or a desk that will really look at these requests so that within the shortest possible time, our youths can have loans to carry out these projects that are time-driven?

Mr Mubanga: Mr Speaker, we have a product in our empowerment programme, and this is called Trading Financing. If our youths have been given a contract through the CDF, they are free to come to the ministry through my institution, the Citizen Economic Empowerment Commission (CEEC) and apply. They should come with that order or the contract that has been given to them, and then, we will be able to finance that contract.

I thank you, Mr Speaker.

Mr Allen Banda (Chimwemwe): Mr Speaker, it is true that you have already told us about the Citizens Economic Empowerment Commission (CEEC) funding. We also know that there is a credit guarantee scheme which is already funded. So, in short, the capital is there for our youths. However, the biggest problem which we have is with regards to the new entrants, especially where the Constituency Development Fund (CDF) is concerned, when it comes to construction works. The new entrants whose companies are run by the youths, who are young engineers and bricklayers, cannot be given contracts because experience is required. What plans does the hon. Minister have to make sure that he irons out these bottlenecks, so that these youths can also benefit from the construction of schools, clinics and wall fences in our communities?

Mr Mubanga: Mr Speaker, this Government does not work in silos. We work together. We are closely working with the Ministry of Technology and Science and the Ministry of Youth, Sport and Arts. The Ministry of Technology and Science is giving development skills to our people. The Ministry of Community Development and Social Service is equally doing the same.

Sir, maybe, I did not get his question right, but if I did, the hon. Member is trying to talk about capacity building for our people to get engaged in these contracts. If that is not what the hon. Member sought to know, then I ask that the question be repeated because they were making noise here, Mr Speaker.

Mr Second Deputy Speaker: Order!

Hon. Member for Chimwemwe, what was your question?

Mr Allen Banda: Mr Speaker, he did not get my question correctly.

Sir, my question, was on companies that are run by the youths. These are new companies that were recently created and do not have the required experience. Their personnel do not have the required experience. As a result, councils cannot give them contracts to construct anything. What is the hon. Minister going to do about that because we have jobs in our communities through the CDF, but these people cannot access them simply because they do not have the required experience?

Mr Mubanga: Mr Speaker, I think partially, I get the question right. We need to build capacity in the new companies. Obviously, for the old companies to have experience, there was a starting point. So, my ministry, the Ministry of Technology and Science, the Ministry of Community Development and Social Services, and the Ministry of Youth, Sport and Arts, work hand in hand. Once they are given some in-house training to help them understand how to carry out these contracts, then are given certificates and those certificates will be used.

Mr Speaker, I have to say something and I think this must be corrected. What I have seen going round the country, wherever I have been is that the CDF contracts are only being given to those who have been building schools for ten or fifteen years. Even now, the contracts are being given to those companies. For sure, that is a very good question. The newly created or registered companies are being told that they do not have experience. We are here –

As hon. Minister of Small and Medium Enterprise Development, I am working very closely with the hon. Minister of Local Government and Rural Development in identifying potential youths. We will be recommending for contracts to be given to newly registered companies. It is our mandate to make sure that the youths are also considered, especially the ones who have just registered their companies. Experience will come in when they start getting contracts.

I thank you, Mr Speaker.

Mr Katambo (Masaiti): Mr Speaker, I do appreciate that small and medium enterprises (SMEs) do help people afford decent livelihoods. The hon. Minister indicated, if I heard correctly, that he has a product called the ‘marketeer booster’ targeting the majority of our female youth. How much is the hon. Minister offering through this product to our female youth? If the hon. Minister could indicate the figure or figures, he will lure many youths to apply.

Mr Mubanga: Mr Speaker, I will start with the example given in the question, which is the Marketeer Booster Loan. Yes, we do have the amounts against products. For example, the Marketeer Booster Loan is targeting micro-businesses, those selling chikanda, fitumbuwa, rape and kapenta. This is specifically for the smallest businesses in the country. We do not want to leave anyone behind. Things like tute which is cassava, and so on and so forth, are all in the Marketeer Booster Loan.

Mr Speaker, let me just say something so that hon. Members understand. What is happening in the markets for those of our people who carry fruits on their heads is that they go and borrow K200 from shylocks and are told that at the end of the day, they should add an interest of 10, 15 or 20 per cent of the amount borrowed. We see these women moving up and down selling fruits which we buy. That is a very important sector.

Mr Speaker, at the end of the day, they have to raise a K200 and add a K20 on top to pay back to the shylock. Now, the Government has come up with this product to target this group of marketeers. The Marketeer Booster Loan start from K500 to K5,000. People will apply for this money and use it for six months without paying interest. We want this sector to grow.

I thank you, Mr Speaker.

Mr Nkulukusa (Katuba): Mr Speaker, surely, this is going to be a game changer for job creation and youth empowerment in this country. We believe that, if well-managed, many of the problems on job creation will be resolved. However, business like anything else, is a mindset issue. It requires a lot of discipline. It is something that, really, the youth have to learn as an art.

Mr Speaker, are we working with the private sector? This is the area where I believe another Public-Private Partnership (PPP) with non-governmental organisations (NGO) and other organisations that are working on enterprise development can score very successful results, especially in handholding the youths and training them, like the hon. Minister said, in capacity and many other facets. How much is the ministry engaging the NGOs and other organisations that are working on enterprise development, to ensure that this is sustainable as this is good for the country to create more jobs and build wealth?

I thank you, Mr Speaker.

_______

MOTION

BUDGET 2023

(Debate Resumed)

The Minister of Agriculture (Mr Mtolo): Mr Speaker, before I progress to discuss the Budget, let me react to some hon. Members’ concerns, those who did mention specific areas in the agricultural sector. For example, the hon. Member for Kantanshi discussed the matter of the Farmer Input Support Programme (FISP). He said that we should try to work on it so that it becomes more beneficial. He also said that the Food Reserve Agency (FRA) must be made to be more self-sustaining. We take note of that and I thank him.

Mr Speaker, the hon. Member for Chikankata also talked about the Comprehensive Agricultural Support Programme (CASP), and was grateful for it. She indicated that it is providing more finance to farmers. There were also discussions on the need for extension services. I am happy to note that the Budget actually answers this concern.

Mr Speaker, the hon. Member for Bweengwa indicated happiness on the issue of dams. This issue of dams was also echoed by the Member of Parliament for Mulobezi, Hon. Mabenga, who also went ahead and talked about extension services and the need for making extension officers a little bit more efficient. He also talked about helping officers with mobility.

Mr Speaker, there was also a discussion by the hon. Member for Chimwemwe, Mr Allen Banda, who also talked positively about the entire Budget via vis-à-vis agriculture.

Mr Speaker, as I said, I would like to concentrate on what the hon. Member for Lufwanyama talked about because he brought out the issue of farm blocks. The reason I am going to concentrate on this is that it forms the policy direction for the ministry.

Mr Speaker, it is important for the hon. Members of the House to know that the policy of the Ministry of Agriculture is to go and invest in farm block and concentrate on them. That is the way we are going.

Mr Speaker, if you saw the Budget, it is concentrating more of its resources on the farm block sector. Even the resources that we are getting from co-operating partners are also moving towards farm block development.

Sir, the House might wish to note that in every province, we have identified 100,000 hectares of land, which gives us a million hectares when we multiple by ten, the number of provinces we have.

Mr Speaker, some of the land is virgin. There is nothing there. It is actually bushy, but in certain areas, it is cleared.

Mr Speaker, the reason I thought of bringing this out is because hon. Members of this House should be encouraged to participate in investing in these farm blocks. Hon. Members of this House should not only take personal interest, but also inform members of their constituencies to participate. Let us go out there and inform our constituents that we have this farm block development programme. This is a free land programme in which Zambians should partake.

Mr Speaker, if we do not do what I am encouraging hon. Members to do, this land will be taken by foreigners and in the next few years, we will be complaining that we gave land to foreigners. I wish to put it on record that we are encouraging Zambians to participate in these farm blocks.

Mr Speaker, this is Government land and it is being given almost free of charge. There will just be a small token fee for registration. Otherwise, this is Government land and we do not sell land to try and make money out of it. What we want is the investment in the farm blocks. So, I urge Hon. Katambo to invest in these farm blocks.

Mr Katambo indicated assent.

Mr Mtolo: Hon. Remember Mutale has gone out of the House, but wherever he is, he should invest in the farms blocks. The hon. Member for Chienge should also invest in the farm blocks. The hon. Members on your right are definitely also encouraged to invest in these farm blocks.

Sir, the farm blocks are as follows. Here in Lusaka, the land is in Rufunsa in Shikabeta area. In the Eastern Province, the land is in the Musuzi area in Chikumbiro near Lundazi. In Muchinga, it is in Shiwang’andu. In the Northern Province, the area is in Mporokoso in Lunte. In the Central Province, the area is in Nansanga. On the Copperbelt, it is in Lufwanyama, hence the interest that the area hon. Member showed in Luswishi. In the North-Western Province, it is in Solwezi. In the Western Province, it is in Kaoma, in a place called Kalumwange. In the Southern Province, no one of us can forget it because it is in a placed called Musokotwane out there in Kazungula.

Hon. Members: Hear, hear!

Mr Mtolo: These are the areas which we are offering as the Ministry of Agriculture for people to invest in. With that said, I will now move to my response.

Mr Speaker, allow me to commend the hon. Minister of Finance and National Planning for presenting a very well-articulated, progressive and people-centred Budget for 2023. The hon. Minister of Finance and National Planning gave us the right way of doing things. If you are a patient and you go to the hospital, the first thing the doctors will do is to check your vitals. You check the temperature, blood pressure (BP) and all other necessary vitals.

Mr Speaker, it is the same with the economy and that is why the hon. Minister of Finance and National Planning did, first of all, start talking about how the country has corrected the interest rates, economic growth rates, exchange rates, corruption issues, attitude issues and inflation. These are the vitals of an economy. It is the same as checking your temperature. If you do not concentrate on these things, the patient will die, just like Zambia was dying. It was in the Intensive Care Unit (ICU) and on its way out to death. Therefore, we thank the hon. Minister for correcting these things first.

Hon. Government Members: Hear, hear!

Mr Mtolo: Mr Speaker, the Budget was befittingly presented under the theme: “Stimulating Economic Growth for Improved Livelihoods”. With the success of the Executive’s efforts to restructure debt, the New Dawn Government is now set to transform the economy, create more jobs and improve people’s lives. How are we doing this? One channel is the issue I was talking about. The issue of the farm blocks is an instrument to uplift our lives, so that we can make money and also contribute to the growth of the economy and make us a happy people. So, we thank the hon. Minister and the speech was absolutely spot-on.

Mr Speaker, in his Budget, the hon. Minister of Finance and National Planning increased spending to key social sectors like health, education, social security and so on and so forth. The hon. Minister further announced more incentives to stimulate private sector development in line with our party manifesto, Eighth National Development Plan (8NDP) and Medium Term Expenditure Framework (MTEF). The hon. Minister’s Budget is balanced and it has carefully accommodated the needs and aspirations of the vulnerable, middle class, high income as well as local and foreign investors, including the young ones. Look at how well the Government is now employing. The process is very transparent. People are even wondering where these jobs were. The army is employing. The police are employing. The prisons are employing. The education sector is employing. The health sector is employing. So, where were these jobs?

Mr Mulenga: Imagine!

Dr Chilufya entered the Assembly Chamber.

Mr Mtolo: It is good that the former hon. Minister of Health has come. Where were the jobs in the health sector, Hon. Chitalu?

Laughter

Mr Mtolo: Where were the jobs?

Rev. Katuta: Question!

Mr Mtolo: Mr Speaker, time is of essence. The Budget is simply another building block to achieving economic transformation and job creation. I am satisfied that the Budget has addressed issues of value addition in key sectors like mining, agriculture and manufacturing. The Budget has also made provisions to promote entrepreneurship, like we just heard the hon. Minister of Small and Medium Enterprise Development explaining to us exactly how his ministry is going to contribute to economic growth. That is the type of thing we need. We need answers and not just creating problems. When you create a problem, you see how you solve the problem.

Mr Speaker, we thank the hon. Minister for what he did this morning to educate us on all these micro finance procedures which he has put in place. That is what this country needed. I do not know where people like him were to give this money to the marketeers who have been there suffering and asking for money from hon. Members of Parliament. Now the Government is offering money to the people. So, we thank him for that.

Mr Speaker, I notice time is not with me, I thank you. Are you allowing me to continue, Sir? Yes, you are.

Mr Second Deputy Speaker: No. Order!

Mr Mtolo: All in all, this is a progressive and development-oriented Budget which deserves the support of all hon. Members ...

Mr Second Deputy Speaker: Order! Order!

Mr Mtolo: ... in the House, including Hon. Katambo.

Sir, I thank you.

Hon. Government Members: Hear, hear!

Interruptions

Mr Second Deputy Speaker: Order!

The Minister of Information and Media (Ms Kasanda): Mr Speaker, I would like to begin by congratulating my hon. Colleagues, Hon. Bernard Kanengo for Kabushi and Hon. Charles Abel Mulenga for Kwacha for winning us these seats.

Hon. Government Members: Hear, hear!

Rev. Katuta: Question!

Mr Kasanda: Whether you question or not, they are in this House.

Rev. Katuta: Question!

Interruptions

Ms Kasanda: You will remain with a question, hon. Member for Chienge.

Laughter

Mr Kasanda: Mr Speaker, I thank you for giving me this opportunity to contribute to the speech by Hon. Situmbeko Musokotwane, MP, the hon. Minister of Finance and National Planning, which was presented on the Floor of this House on Friday, 30^th September, 2022, regarding the 2023 Budget.

Mr Speaker, let me thank the hon. Minister of Finance and National Planning for such an elaborate and inspiring Budget Speech. The measures that he outlined lay a strong foundation for the development of this country. This is because the hon. Minister proposed progressive measures for all the critical sectors such as the following. He increased the Constituency Development Fund (CDF) from K25.7 million to K28.3 million, as opposed to the K1.6 million during the previous regime. There will be additional recruitments of 4,500 teachers, 5,000 officers in the defence and security wings and 3,000 health workers.

Mr Speaker, I must say that I heard one of my hon. Colleagues on the left in this august downplay the recruitment of staff in the health and education sectors, by saying that, it is the duty of the Government to employ. Yes, I agree that is the duty of the Government to employ, but it was also gross negligence on the part of those who failed to recruitment in the manner in which the New Dawn Government is recruiting personnel.

Hon. Government Members: Hear, hear!

Ms Kasanda: There is an increase in Social Cash Transfer (SCT) funds from K3.1 billion to K3.7 billion. Mr Speaker, previously, SCT was just in the news.

Hon. Government embers: Hear, hear!

Ms Kasanda: We could only hear about it on the news segment on Zambia National Broadcasting Corporation (ZNBC) but for the wrong reasons. It was being misapplied.

Hon. Government Members: Hear, hear!

Ms Kasanda: Today, we have the SCT in the news because it has increased both in terms of the amount given to beneficiaries and number of beneficiaries.

Hon. Government Members: Hear, hear!

Ms Kasanda: Mr Speaker, reinstatement of student meal allowances to a tune of K23.2 billion which was abolished by the Patriotic Front (PF) regime. Those people seated on your left.

Hon. Government Members: Hear, hear!

Ms Kasanda:  Mr Speaker, we further appreciate the proposal that has provided for relief on customs duty on selected information and communications technology (ICT) and telecommunications related equipment for a period of three years. This has also provided relief to us, as players in the media industry, and have for a long time been requesting for this from the Government. As the New Dawn Administration, we have, through this measure, swiftly responded to this concern.

Hon. Government Members: Hear, hear!

Mr Mposha: Mulekutika?

Ms Kasanda: Maybe, they did not hear. Hon. Member for Chienge, we have, through this measure, swiftly responded to this concern as the New Dawn Government.

Hon. Government Members: Hear, hear!

Ms Kasanda: Therefore, we are very confident that this measure will contribute to the growth of the media industry.

Mr Speaker, from the time debate on the hon. Minister of Finance and National Planning's Budget Speech started on the Floor of the House, I have been following closely to pick issues that would be raised regarding my ministry. Suffice to mention that the only issue I picked was that which was raised by one hon. Member of Parliament to the effect that the Ministry was not performing to expectation because it lacked equipment and transport.

Mr Speaker, I concur with that hon. Member of Parliament but let me quickly point out that through the 2022 Budget, the ministry has procured digital still cameras as well as a set of public address (PA) systems for each of the ten provinces.

Mr Speaker, in the 2023 Budget, the ministry has also provided for procurement of digital and still cameras, as well as a PA system for the Zambia News and Information Services (ZANIS) district offices. Therefore, this is true testimony that we are also concerned with the challenges ZANIS, is facing, which is the mouth-piece of the Government. In the same vein, the ministry has, in 2023 Budget, provided for the procurement of some vehicles for ZANIS. May I take this opportunity to inform hon. Members of this august House that if it was not for the budgetary constraint, my ministry would have liked to buy vehicles for all the constituencies across the country. To that effect, I implore hon. Members of this august House to stand with my ministry as we continue to lobby the Treasury to increase the budgetary allocation to my ministry.

Mr Speaker, we those few words, I sincerely thank you.

Hon. Government Members: Hear, hear!

The Minister of Small and Medium Enterprise Development (Mr Mubanga): Mr Speaker I thank you for according me time to add my voice to the debate on the 2023 Budget Speech which was delivered by the hon. Minister of Finance and National Planning on the Floor of this august House on 30^th September, 2022, under the theme ‘Stimulating Economic Growth for Improved Livelihoods.’

Mr Speaker, let me start by congratulating the hon. Minister of Finance and National Planning for a well-thought-out Budget that continues to restore the confidence among our citizens that, indeed, our economy will bounce back to its desired position.

Mr Speaker, allow m e to make a few observations on the Budget with regards to the micro, small and medium enterprises (MSMEs) sector. The 2023 Budget clearly shows a further enhanced commitment by the Government towards the development of MSME sector.

Mr Speaker, we all recognise that MSMEs play a huge role in Zambia’s economy as they employ the majority of the country's workforce. In order for the impact of the MSMEs to be enhanced, there is need to address the various constraints that they are facing. Some of these constraints or challenges include the lack of access to affordable financing, limited and or irregular supply of energy, poor access to skilled human resource and new technologies, limited access to business and market information as well as high cost of doing business.

Mr Speaker, I am glad to indicate that the 2023 National Budget shows serious commitments that attempt to address some of these challenges. Some of the notable ones include provisions that will enhance access to finance by SMEs. These provisions include:

Empowerment Funds under the CEEC

Mr Speaker, a total of K377.3 million has been allocated towards Citizens Economic Empowerment Commission (CEEC). These funds will ensure that targeted SMEs across different sectors are empowered with financial capital. Further, the funds will enable the ministry as well as CEEC to facilitate and carry out the business development services among MSMEs

Financing under the Zambia Credit Guarantee Scheme

Mr Speaker, in order to continue addressing the problem of access to affordable finance, the Budget has provided for K150 million to Zambia Credit Guarantee Scheme to support MSME businesses in the country.

Financing for Artisanal and Small-Scale Miners

Mr Speaker, the Budget also has provision of K50 million towards the support artisanal and small-scale miners will enable them access the necessary equipment and training this will increase the participation of SMEs in the mining sector.

Empowerment Funds under CDF

Mr Speaker, the SME sector will also continue benefiting from the Constituency Development Fund (CDF), which equally has been increased from K25.7 million to K28.3 million. The widened scope of the CDF will also provide business opportunities for SMEs as well as co-operatives.

Mr Speaker, the other thing worth noting is the improved microeconomic environment as observed by the stability of the exchange rate, low inflation as well as the stability of other economic fundamentals. This will further help to improve the confidence of stakeholders to provide appropriate support for the SME sector.

Madam Speaker, as I conclude, let me emphasise the fact that the SME sector continues to make a significant contribution to production, employment and generation for the majority of our people, SMEs represent 90 per cent of all businesses in the country.

Mr Second Deputy Speaker: Order!

Business was suspended from 1040 hours until 1100 hours.

[MR SECOND DEPUTY SPEAKER in the Chair]

Mr Mubanga: Mr Speaker, before business was suspended, I was just about to conclude. Let me emphasise the fact is that SMEs continue to make a significant contribution to production, employment and income generation for the majority of our people. SMEs represent over 90 per cent of all businesses in the country and are the largest employer. Therefore, with the support by the hon. Minister of Finance and National Planning in this Budget coupled with the contributions from cooperating partners and stakeholders, the full potential of the SME sector will be attained.

I thank you, Mr Speaker.

The Minister of Community Development and Social Services (Ms D. Mwamba): Mr Speaker, I thank you for according me this rare opportunity to contribute to debate on the Budget Speech delivered to this august House on Friday, 30^th September, 2022, by the hon. Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, for the period 1^st January, 2023 to 31^st December, 2023.

Mr Speaker, allow me to congratulate the hon. Minister of Finance and National Planning for delivering an inspirational and forward-looking Budget under the theme: “Stimulating Economic Growth for Improved Livelihoods".

Sir, it is very clear from this Budget that the New Dawn Administration, under the able leadership of His Excellency, Mr. Hakainde Hichilema, President of the Republic of Zambia, has a vision for this country.

The 2023 Budget lays a strong foundation for a prosperous and middle-income nation and is well aligned to the aspirations of the United Party for National Development (UPND).

Mr Speaker, the Zambian economy has begun to record meaningful growth partly due to the goodwill of the development partners as well as, strong measures for restoring debt sustainability put in place by the Government under the leadership of His Excellency, Mr Hakainde Hichilema. This situation is steadily bringing hope to the social and economic well-being of the general citizenry, especially the most vulnerable and poor.

I am, therefore, pleased to note that the Budget has provided solutions to some of the challenges facing the country, with focus on rebuilding the economy, creating jobs and improving the livelihoods of our people.

Further, the Budget has taken into account the policy pronouncements made by His Excellency the President, during the Official Opening of Parliament for this Session.

Mr Speaker, allow me, at this point, to comment on some of the key issues that have been addressed in the 2023 Budget in relation to social protection. The good intention by the Government to scale up social protection programmes will certainly ensure sustained and continued protection for the poor and vulnerable in society.

Mr Speaker, my ministry is mandated to facilitate the provision of basic social protection services to the poor and vulnerable. I am, therefore, elated that the Government has committed to continue scaling-up and enhancing social protection programmes with improved targeting and selection mechanisms to uplift the wellbeing of the vulnerable. For example, the Social Cash Transfer (SCT) programme will be scaled-up to benefit 1,000,373 households in 2023 compared to 1,021,000, in 2022.

In addition, the Government has committed to continue providing education grants for girls to SCT beneficiary households under the Keeping Girls in School (KGS) initiative. The Government has also committed to continue with the Food Security Pack (FSP) programme and the Public Welfare Assistance Scheme (PWAS). The continued commitment towards social protection is highly commendable, as it will contribute to improved livelihoods and welfare of the poor and vulnerable for sustainable human development.

Mr Speaker, I wish to emphasise the Government’s resolve to ensure that intended beneficiaries without any form of discrimination access social protection programmes. Therefore, my ministry will put in place appropriate measures that will ensure transparency, equitable and inclusive administration of social protection programmes. The measures will include strengthening, retargeting as well as enhancing oversight systems for the programme. These interventions are critical to poverty and vulnerability reduction without leaving anyone behind.

Mr Speaker, my ministry also has the mandate of providing skills training to the poor and vulnerable in our communities. Therefore, the Government’s resolve to continue investing in skills development is invaluable as it will stimulate growth and improve livelihoods as well as reduce inter-generational poverty and inequality. It will also increase productivity and set a foundation for sustainable growth.

Mr Speaker, the New Dawn Government believes that the surest way of delivering development closer to the people is through decentralisation. This remains one of the priority areas of the Government. To demonstrate this commitment, the Government has further increased the Constituency Development Fund (CDF) in 2023. This development is welcome and the Government will ensure that development is delivered in the communities where we all serve our people. This will result into the implementation of more empowerment programmes in our communities, especially for women, youth and persons with disabilities.

Mr Speaker, as I conclude, I wish to support the proposed Estimates of Revenue and Expenditure for the period 1^st January, 2023 to 31^st December, 2023, presented to the National Assembly. I recommend favourable consideration of the Motion to the hon. Members of this august House.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

The Minister of Commerce, Trade and Industry (Mr Mulenga): Mr Speaker, I am very grateful to be accorded a chance to make a submission on the Budget that was presented by the hon. Minister of Finance and National Planning.

Sir, first and foremost, allow me to congratulate the two new hon. Members of Parliament that we have in this House as an addition to the increasing number of the hon. Members of Parliament for the United Party for National Development (UPND).

Hon. Government Members: Hear, hear!

Mr Mulenga: Mr Speaker, from the outset, I am pleased to indicate that the 2023 National Budget is progressive and will contribute to the transformation of Zambia. Therefore, the good people of Chingola Constituency, and the Ministry of Commerce, Trade and Industry, support the Budget.

Mr Speaker, pardon my voice. It is not at its best because we have been celebrating the victory of our two hon. Members of Parliament.

Hon. Government Members: Hear, hear!

Mr Mulenga: It is yet to heal and come to terms with the situation.

Sir, it is very gratifying to note that the UPND Government has clocked one year in power with a lot of notable achievements scored so far. Indeed, this Government is fixing the economy, like it promised it would fix it, which was on the verge of collapse, as we promised. This Government is rebuilding the economy and creating jobs for our people.

Mr Speaker, hon. Members may recall that this Government promised that it would employ over 30,000 teachers and 11,200 health workers. This has been achieved and more is yet to come. This goal has been achieved without choosing people based on their political affiliation, creed, origin or the colour of their skin, but just being Zambian.

Sir, His Excellency, the President of the Republic of Zambia, Mr Hakainde Hichilema, has begun transforming the economy of this country and needs the support of all Zambians, irrespective of political affiliation or which side they sit in this House of Parliament. I call upon our hon. Colleagues to support the UPND Government in its quest to transform the Zambian economy so that together, we can achieve our national vision, of becoming a prosperous middle-income country by 2030.

Mr Speaker, as hon. Minister in charge of industry and job creation, I am truly delighted over the great work done so far. I would like to invite all Zambians to join us in bringing change to the lives of our people.

Sir, the deal with the International Monetary Fund (IMF) is a great milestone attained by the UPND Government …

Hon. Government Members: Hear, hear!

Mr Mulenga: … as it will assist the country to have some breathing space so that we channel our resources to the needy sectors of the economy. The programme with the IMF has enabled the Government to make progress in resolving the debt crisis. I congratulate the hon. Minister of Finance and National Planning for brokering this deal.

Hon. Government Members: Hear, hear!

Mr Mulenga: Mr Speaker, this deal has helped the Government to retain its national assets which were on the verge of being possessed by the debtor/lenders whom we owed money. However, by the leadership provided by His Excellency the President and the hon. Minister of Finance and National Planning, our national assets are safe.

Hon. Government Members: Hear, hear!

Mr Mulenga: Sir, I was also delighted to listen to the fiscal direction in the National Budget

Speech delivered to this august House by the hon. Minister of Finance and National Planning with the theme: “Stimulating Economic Growth for Improved Livelihoods”. Our goal is to ensure that the lives of Zambians are improved. Our people deserve good standards of living and access to basic necessities of life. This is in line with the United Nations Sustainable Development Goals, which Zambia is a part of.

Mr Speaker, the theme of the Budget resonates well with my ministry’s mandate of job creation, industrialisation, promotion of trade and contributing to economic growth and development of this country.

My ministry is a critical player in achieving economic growth for improved livelihoods for our people. This year's Budget is historic and will, indeed, make a difference in the lives of our people and transform the economy of this great country of ours called Zambia.

Sir, His Excellency the President’s objective is to see an industrialised Zambia. My ministry will, therefore, move in line with the President’s call of transforming this country into an industrialised country. Allow me to quote an excerpt from his speech to this august House on Friday, 9^th September, 2022 which reads:

“Our focus has been and remains that of transforming our country into an industrialised nation with the participation of citizens and in partnership with the private sector, to systematically unlock various economic opportunities to deliver inclusive development, jobs and improved livelihoods for our people”.

Indeed, this National Budget is in line with the President’s vision and the resources provided in it will make a big difference in transforming the economy of this country.

Mr Speaker, allow me to make a mention or, indeed, comment on other salient issues contained in the Budget which relate to the mandate of the Ministry of Commerce, Trade and Industry.

Dismantling of Domestic Arrears

Sir, as a ministry, we commend the Government for increasing the amount to K6.8 billion from K3.1 billion as this will contribute to the expansion of local businesses. This is good for the sector as there will be increased trade domestically and, liquidity will be circulating in the economy, thereby, empowering local businessmen and women.

Farm Block Development

Mr Speaker, the Government’s decision to allocate K426.6 million for the establishment of farm blocks is a welcome move as it will create jobs for people and nearby farmers will be empowered as out-growers to supply their products to the companies that will process agro-products through value addition.

Trade Facilitation

Mr Speaker, allocation of K150 million for improvement of border infrastructure in various parts of the country is a welcome move as this will aid the flow of trade across borders. The ministry is currently implementing the programme of establishing a one-stop border post to facilitate trade between Zambia and her neighbouring countries.

Manufacturing Through Promotion of Multi-Facility Economic Zones or Industrial Parks

Mr Speaker, if Zambia is to attain the Vision 2030, there is need to promote growth and development of the manufacturing sector. Therefore, the Government’s move to continue promoting the Multi-Facility Economic Zones (MFEZs) as a means of broadening the country’s industrial and manufacturing base is commendable. The Lusaka South MFEZ has so far done a commendable job. It is from this case study where we want all other MFEZs that are already in the country and not doing their best to take a leaf.

Rural Industrialisation Programme

Mr Speaker, I have to quickly rush to other points because time is not on our side. The ministry welcomes the allocation of K743.6 million to the Rural Electrification Fund as it will contribute towards rural industrialisation. Power in the rural areas will assist the establishment of industries, therefore, contributing towards industrialisation programmes. The ministry, through its national industrial policy, has put the rural industrialisation programme on the priority agenda that will contribute to industrialisation of Zambia and contribute to reducing developmental inequalities and create jobs for our people.

Direct Taxes

Mr Speaker, the introduction of a threshold on turnover tax and rental income tax at K12,000 per annum to be taxed at zero per cent and the balance at the applicable turnover tax rate will help businesses free up resources.

Value Added Tax

Mr Speaker, the proposal to suspend excise duty on locally produced clear beer from cassava and malt for three years to 5 per cent from 10 per cent and 20 per cent will apply to production levels over and above a specified threshold. This intervention will encourage mass production in order to enjoy economies of scale.

Customs and Excise Duty

Reduction of customs duty on electric vehicles is something that we always talked about with His Excellency.

Non-Tax Measures

Mr Speaker, the ministry is of the view that the Government maintains the fees for selected services that are offered by the Patents and Companies Registration Agency (PACRA) as a means of maintaining its non-tax revenue collection which contributes towards its operations.

Mr Speaker, this is an amazing Budget and I should have continued to share with the House, but because of time, I feel I should rest my case.

I thank you, Sir.

Hon. Government Members: Hear, hear!

The Minister of Energy (Mr Kapala): Mr Speaker, I would like to thank you for according me this opportunity to add my voice to this important debate. Further, I wish to thank Dr Situmbeko Musokotwane, the hon. Minister of Finance and National Planning, for delivering a concise National Budget for the people of Zambia.

Mr Speaker, the theme for the 2023 Budget is “Stimulating Growth for Improved Livelihoods.” The United Party for National Development (UPND) Government is committed to restoring the Zambian economy. This can be evidenced by the number of achievements during the first term. In the 2023 Budget, the rural electrification funds have been increased by over 100 per cent to the tune of K743 million, which will ensure that more households in rural areas are electrified with high potential of improving the economic welfare of the people in the rural areas.

Mr Speaker, Dr Situmbeko Musokotwane gave a global trend analysis of prices for various commodities, in particular, the petroleum products. The prices of petroleum products are vulnerable to volatility and as such, there is need to mitigate these volatilities. In this regard, the Government has put appropriate policy reforms to address this situation. One of the policy reforms is to let the petroleum sub-sector be private sector-driven. This has proved effective as evidenced by the smooth supply and stabilised prices of petroleum products in the country.

Mr Speaker, the 2023 National Budget Speech puts the total public external debt at US$13.25 billion. We have inherited debt both in the electricity and petroleum sub-sectors mainly, due to Government guarantees and unpaid fuel areas to suppliers of petroleum products. The New Dawn Government will ensure the energy sector reforms are implemented as a stopgap measure to restore debt accumulation.

Further, the sector is aware of the need to create a good governance environment characterised by transparency and accountability. We will prioritise the fight against corruption so as to strengthen the rule of law and ensure that more resources are allocated closer to the people.

Mr Speaker, the hon. Minister of Finance and National Planning stated that he would like to see standard rate of selected energy saving appliances and equipment to rationalise the zero-rated supplies for Value Added Tax (VAT) purposes. Through this Budget, the energy sector will increase its electricity generation capacity so as to enhance promotion of local manufacturing of energy saving appliances and equipment by the private sector in the county.

Mr Speaker, the health sector has plans to construct a specialised hospital in Lusaka for women and children, thirty-six district hospitals, sixteen mini-hospitals and eighty-three health posts across the country. Furthermore, the education sector has plans to complete the construction of fifty-six early childhood education centres and construction of 120 new secondary schools. The energy sector will support the education and health sectors through increased electrification of infrastructure in order to support service delivery and staff retention especially in our rural areas. This is another commitment of taking development closer to our people.

Mr Speaker, this is a very progressive Budget which is taking development closer to the people, a Budget that every well-meaning Zambian should support.

Mr Speaker, with these few words, I support the Budget.

I thank you, Sir.

Hon. Government Members: Hear, hear!

The Minister of Technology and Science (Mr Mutati): Mr Speaker, the task of repairing the economy is not an easy one, and it is not done quickly.

The hon. Minister, Mr Speaker, has demonstrated pragmatism, prudence and purpose in the management of the economy. Indeed, his DNA in the management of the economy is based on the three Ps.

Hon. Government Members: Hear, hear!

Mr Mutati: Mr Speaker, the theme of the 2023 Budget is “Stimulating Growth for Improved Livelihoods.” The Budget has cleared the road ahead. Challenges remain but we remain confident that the hon. Minister of Finance and National Planning is equal to the task, and he is equal to the task for a number of reasons. One, the hon. Minister has already laid a solid foundation for the restoration of debt sustainability. Indeed, he has completely divorced himself from commercial borrowing and moved to concessional borrowing. Number two, the exchange rate has been stabilised very convincingly.

Mr Speaker, in actual fact, the Kwacha is one of the best performing currencies. At the moment, our competition is only with the British Pound for reasons of recent events in the United Kingdom (UK). Otherwise, we remain the best performing currency globally.

Hon. Government Members: Hear, hear!

Mr Mutati: Mr Speaker, the third point is that the hon. Minister of Finance and National Planning has restored budget credibility, which is important. Indeed, he is moving on the mantra that you can never spend money that you do not have and neither can you borrow beyond the capacity to be able to repay. That is important.

Mr Speaker, the hon. Minister has lowered the risk perception from creditors, international investors and indeed, local investors. That is the reason this week alone, he was able to receive US$275 million from the World Bank because the flood gate has been opened.

Mr Speaker, the journey that the hon. Minister of Finance and National Planning is pursuing, particularly in the 2023 Budget, is awakening a number of giants in the economy, for example, the mining sector. Zambia has lagged due to the boom in the production of copper. What the Budget has done is to remove the padlock to increase production in copper.

Hon. Government Members: Hear, hear!

Mr Mutati: Mr Speaker, what the Budget had done with the removal of the padlock is that activities in the mining sector are now like popcorns. They are popping up everywhere.

Hon. Government Members: Hear, hear!

Mr Mutati: Mr Speaker, so, in order to create order, the hon. Minister of Mines and Minerals Development has said that he will carry on policy review, including structural reforms and review the necessary legislation so that a Zambian is no longer a spectator in the mining sector, but remains a co-participant in the sector.

Hon. Government Members: Hear, hear!

Mr Mutati: Mr Speaker, I commend the hon. Minister of Mines and Minerals Development for doing that. Never again shall we be spectators of a critical resource in the mining sector.

Mr Speaker, another giant that has been awoken is the transformation in the tourism sector. With the US$100 million that has been offered to tourism, the Kasaba Bay and the Liuwa Plain National Park will never be the same again. 

Hon. Government Members: Hear, hear!

Mr Mutati: Mr Speaker, that is why the hon. Minister of Tourism is now confident that with the number of arrivals this year, which are going to exist round 400,000, by the end of 2024, he is going to deliver at least 3 million tourists in this country.

Mrs Mwamba: Hear, hear!

Mr Mutati: That giant has been awoken.

Mr Speaker, in agriculture, hon. Minister of Agriculture articulated that he has received US$300 million to support farm block production value addition so that his hon. Colleague, the hon. Minister of Commerce, Trade and Industry, can exploit the Democratic Republic of the Congo (DRC) and, indeed, other neighbours.

Mr Speaker, equally important is the Public-Private Partnership (PPP). The hon. Minister has offered incentives and concessions and the reason for doing that is to be able to meet the infrastructure deficit that we have because we do not have sufficient space in the Budget. Therefore, the hon. Minister is saying the private sector will then harvest from the investment they are placing under infrastructure such as the Chingola/Kasumbalesa Road and the Lusaka/Ndola Road. These two roads will be done by the private sector.

Hon. Government Members: Hear, hear!

Mr Mutati: Mr Speaker, the hon. Minister of Finance and National Planning has also indicated that to support the PPPs, he is also going to relook the Public-Private Partnership Act in order to remove the irritations that are contained therein and to ensure that we do not slow down investment via PPP to go across the economy and all the sectors.

Mr Mutati: Mr Speaker, on technology and science, the incentives and concessions offered for this sector are game changing. The zero-rating of certain information and communications technology (ICT) and telecommunication equipment is going to induce the necessary competitiveness required in the sector. However, most importantly, we need to answer to the quest of more and more towers. That is what is going to happen. However, beyond that, we are putting in place the National Digital Transformation Strategy whose output is to have a cash light and paperless economy. We are also looking at the ICT policy to review it properly, including the ICT law. We are also looking at the postal law to be done properly.

Mr Speaker, indeed, there are many things that we are doing in the ICT sector, but also, attention has been paid on Technical Education, Vocational and Entrepreneurship Training Authority (TEVETA) by putting in state of the art equipment.

Mr Speaker, as I speak now, we have over 750 innovators who have congregated in Zambia. 400 innovation hubs from fifty-three countries across Africa are here in Zambia looking for opportunities. Yesterday, when I talked to them, they simply said that “Zambia is wow” because of the Budget that has been presented and the things that we are doing. So, Zambia is going to remain ‘wow’ not only in the ICT sector, but across all the sectors including mining, tourism, and agriculture. Indeed, Zambia is truly ‘wow’.

Mr Speaker, I salute the hon. Minister of Finance and National Planning because he has delivered hope for the people of Zambia that things can change. That we can deliver. We just ask the people of Zambia for a bit of patience because things are going to change.  We are their servants.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Mrs Mwamba: Ema smart speakers aya. Experience too much.

Mr Speaker: Order!

I know the hon. Ministers are very happy today.

The Minister of Green Economy and Environment (Eng. Nzovu): Mr Speaker, it is an honour and privilege to be given an opportunity to deliver the 2023 Budget Policy Statement for the Ministry of Green Economy and Environment in this august House.

Mr Speaker, let me first thank the hon. Minister of Finance and National Planning for the well-articulated Budget Speech delivered on 30^th September, 2022, to the National Assembly whose theme is: “Stimulating Economic Growth for Improved Livelihoods.”

Mr Speaker, I would have loved the front bench of the opposition party to listen to my speech but, unfortunately, they all want to presidents.

Laughter

Eng. Nzovu: Mr Speaker, the Budget Speech presented to this House was spot on. As the Ministry of Green Economy and Environment, how do we come in? The ministry will ensure that we have low carbon economy. 

We will ensure that there will be resource efficiency.

Mr C. Chibuye: On a point of order, Sir.

Mr Second Deputy Speaker: A point of order is raised.

Mr C. Chibuye: Mr Speaker, thank you very much for according me the opportunity to raise this point of order. I am rising pursuant to the Standing Order on the formation of the quorum of the House.

Laughter

Mr C. Chibuye: Mr Speaker, is your House in order to continue sitting when the quorum of the House has collapsed? I need your serious ruling. Maybe, there are other people that are actually attending via Zoom.

 

Mr Second Deputy Speaker: Order!

Hon. Member, the quorum has not collapsed. As you are aware, there are some hon. Members that were given permission to attend constituency development meetings and those are logged in virtually. In fact, we have surpassed the quorum by over 10 per cent.

Hon. Members: Hear, hear!

Mr C. Chibuye: If you say so.

Mr Second Deputy Speaker: So, the House is in order to transact business, hon. Member.

Hon. Members: Hear, hear!

Mr Second Deputy Speaker: I will encourage that at times, when you see issues like this, you write a small note, other than disturbing the business. We can still respond and business can continue because Zambians out there are eager to hear what is there from their Government. So, let us try to discourage interruptions as much as we can. You can write to the Clerk at the Table and the response will still be given.

So, the hon. Minister may continue.

Eng. Nzovu: Mr Speaker, the speech called for participation and inclusivity of citizens and the private sector in industrialisation. This process will systematically unlock various economic opportunities to deliver development, jobs and improved livelihoods for our people. The speech alluded to incentives as key drivers to stimulate economic growth, which have been the missing link in the quest to holistically grow our economy and recover from the heavy debt burden that has negatively stifled economic growth and job creation for our country.

Mr Speaker, as a methodical Government, we now have in place measures to completely revamp the ailing economy ruined by unfocused and misplaced priorities in the last nine years. We have now started allocating more resources where it matters most. We have four strategic pillars of the Eighth National Development Plan (8NDP) with clear and intended objectives fixed on the Vision 2030 of becoming a prosperous middle-income country and the United Party for National Development (UPND) manifesto.

Mr Speaker, my ministry superintends over programmes that promote the effective and sustainable use of the environment, while facilitating supporting adaptation tools and mitigation of the negative effects of climate change.

Mr Speaker, some of my ministry’s achievements in 2022 include, among others, successfully processing 190 applications for the issuance of concession licences for small and medium scale enterprises across the country. This process is ongoing as other applications are being considered. This is the first of its kind and the local people themselves, the poor of the poorest, have been afforded a chance to participate in this industry.

Sir, the ministry also developed an automated online environmental management information system called e-ZEMA as a way to improve service delivery for environmental licences, assessment and complaints and emergence management. Indeed, we have seen that issues to do with environmental impact assessments are being managed much better and faster.

Mr Speaker, we have also installed 120 meteorological observation weather stations and 300 rainfall stations in 220 agricultural camps to improve weather forecasting and information dissemination. We are, indeed, working very closely with the Ministry of Agriculture to ensure that we promote climate smart agriculture.

Sir, we have also launched the communication and advocacy strategy on climate change whose key messages have been translated into seven local languages. Again, we believe that carrying the people of Zambia along in issues of climate change is key if we have to succeed if we want to have a liveable climate for future generations.

Mr Speaker, we have also commenced the development of the 2022/2026 Strategic Plan and the green growth strategy. The green growth strategy will enhance green growth and sustainable development. Again, this is to ensure that the key ministries, some of them responsible for negative effects of climate change such as the Ministry of Energy, are engaged. Therefore, how do we transition to low carbon energy? How do we ensure that agriculture speaks to ensuring that there is environmental sustainability? How do we ensure that the water resources we have or the head waters are protected? How do we ensure that the forestry sector is protected? These are issues which the Ministry of Finance and National Planning has ably catered for in financing.

Mr Speaker, notwithstanding some of these achievements, the ministry would also like to employ more staff, particularly in the forestry sector to ensure that there is better forest management. Obviously, we would want a bit more transport. We would also want more allocation for improving technical capacity. These are some of the few challenges the ministry has.

Mr Speaker, in the 2023 budget, the ministry has allocated about K4 billion to support the green economy and climate change implementation. To protect green growth and sustainable development, my ministry will implement a green growth strategy and will ensure that the necessary legislation, including the Environmental Management Act and Forestry Act, is reinforced to ensure that we speak to the challenges faced in the environment.

Mr Speaker, another area we are looking at is ensuring that we participate fully in the environment space. To this end, we are leading the African group of negotiators to the Conference of Parties (COP) 27. This is the stage where Zambia will showcase its improvements and desire to green this economy and we can only call upon all hon. Members of Parliament to support us.

Mr Speaker, further, the ministry will recognise community forest management groups with an aim of protecting more than 2 million ha of land in the next three years. This is to ensure that one of the major drivers of CO² from Zambia is supported. Sufficient to indicate that the meteorological and weather stations, which are also cardinal to ensuring that we disseminate the correct meteorological information, are enhanced.

Mr Speaker, to allay fears being peddled in the country that the New Dawn Government is paying lip service to sustainable environment management, I wish to indicate to the nation through this House that the Government has proposed to spend a total of K1.2 billion, representing 1 per cent of the National Budget on environmental protection through interventions that will be implemented by various ministries. These interventions include the green economy and environment, land and natural resources, tourism, energy, agriculture, fisheries and livestock, disaster management and mitigation as well as in all provincial areas. All these investments and others that will be delivered as components of various programmes in line ministries and projects relate to green economy and sustainable environmental management.

Mr Speaker, as I conclude, I wish to echo my earlier statement that my ministry in collaboration with other line ministries remains resolute in supporting the efforts towards the promotion of sustainable development by expanding and exploiting opportunities that transform the livelihood of our people through best practices of utilising natural resources in the country.

Sir, I, therefore, request hon. Members of this august House to support the 2023 estimates of expenditure for the Ministry of Green Economy and Environment.

Mr Speaker, I thank you.

Hon. Government Members: Hear, hear!

Mr Chaatila (Moomba): Madam Speaker, in accordance with its terms of reference as provided for in Standing Order 157(4) of the National Assembly Standing Orders, 2021, the Expanded Planning and Budgeting Committee was tasked to scrutinise the Estimates of Revenue and Expenditure for the Financial Year, 1^st January to 31^st December, 2023.

Mr Speaker, from the outset, I wish to remind this august House that last year, the Expanded Planning and Budgeting Committee recommended that sector committees should undertake sector Budget analysis to strengthen Parliamentary oversight on the scrutiny of the Budget. This is because the method of the budget scrutiny carried out by the Expanded Planning and Budgeting Committee is very limited in scope and, consequently, is not very effective due to the brevity of time.

Mr Speaker, I wish to submit that your Committee is elated that for the first time in the history of the Zambian Parliament, two sector committees undertook sector budget analysis on a pilot basis. These are your Committee on Energy, Water Development and Tourism and your Committee on Agriculture, Lands and Natural Resources.

Mr Speaker, in scrutinising the estimates of revenue and expenditure, the Expanded Planning and Budgeting Committee and the two sector committees interacted with stakeholders from various sectors of society including the academia, research institutions, civil society organisations, selected ministries and the hon. Minister of Finance and National Planning.

Mr Speaker, I am confident that hon. Members have had occasion to peruse the report of your Committee. I will, therefore, only highlight very few salient issues.

Offer Tax Concessions Aimed at Value Addition

Mr Speaker, your Committee observes that while the copper output target of 3 million metric tonnes to be realised in ten years, effective 2022 is clear, the Government has not provided a clear roadmap on how it intends to meet the set production target. Your Committee further notes that most incentives are focused on production without much consideration for value addition.

Madam Speaker, in light of this, your Committee urges the Government to undertake a comprehensive review to evaluate the effectiveness of tax concessions offered in the mining sector so as to ascertain whether tax incentives, indeed, lead to increased investment in comparison to the revenue we are foregoing.

In order to increase returns from the sector, your Committee strongly recommends that the Government should strike a balance between concessions to stimulate production and mineral value addition.

Reform in the agricultural sector

Mr Speaker, while commending the Government’s resolve to reform the Farmer Input Support Programme (FISP) to the Comprehensive Agriculture Support Programme (CASP), your Committee finds a misalignment between the policy pronouncement to reform from FISP to CASP and the budget commitment. Despite the Government’s pronouncement, the FISP and the Food Reserve Agency (FRA) have taken up about 80 per cent of the sector budget the while extension services, irrigation and animal disease control, among others, share the remaining paltry proportion.

In the light of this, Mr Speaker, your Committee strongly recommends that the Government should ensure that policy aspirations are aligned to Budget allocations in the desired outcome is to be achieved. Your Committee further recommends that the Government should provide policy direction on the graduation of farmers on the FISP.

 

Development of farming blocks

Mr Speaker, your Committee applauds the Government’s intention to revive the development of farming blocks, whose main objective will be to promote diversification, sustainability and job creation in the agricultural food sector. However, your Committee observes with high concern that in as much as previous Governments have implemented the programme to develop farm blocks, there has been no significant contribution to the agricultural sector. In this regard, your Committee strongly recommends that to enhance efficiency, farm blocks should be run by a trust which should comprise the private sector and entrepreneurs, while the Government should focus on providing oversight.

Fast Track Development Using Constituency Development Fund (CDF)

Mr Speaker, while commending the Government for recognising the various needs in many communities and the accompanying Budget commitment as demonstrated by the increase in the CDF by K2.6 million translating into K28.3 million per constituency and K4.4 billion of the total budget, your Committee is of the view that increased Budget allocation without corresponding expenditure performance is a disservice to the Zambian citizenry.

Your Committee is dismayed that administrative bottlenecks have cost the Zambian people the much-needed development due to the low absorption of the CDF, albeit timely release of resources by the Government.

While appreciating that amendment of legislation is underway, as announced in the Budget Address by the hon. Minister, your Committee strongly urges the Government to expedite the process so as to have a seamless process in the utilisation of the CDF, to provide oversight on the implementation of project using the CDF and ensure that the implementation process is expedited while achieving value for money.

Amendment of the Zambia Medicines and Medical Supplies Agency Act of 2019

Mr Speaker, your Committee observes with concern that the shortage of drugs and other medical supplies is on the increase, despite the Ministry of Finance and National Planning consistently funding the health sector. Your Committee further observes that the Ministry of Health is limited in its quest to promptly resolve challenges as the responsibility of procuring drugs and medical supplies is a preserve of the Zambia Medicines and Medical Supplies Agency (ZAMMSA). Your Committee observes that the challenges in the supply chain are emanating from, among others, the lack of capacity by the agency, the lack of harmonisation between the Zambia Medicines and Medical Supplies Agency Act of 2019 and the Zambia Public Procurement Act No. 8 of 2020.

In light of the above, Mr Speaker, your Committee recommends that as a matter of urgency, the Zambia Medicines and Medical Supplies Agency Act of 2019 must be reviewed so as to resolve the prevailing bottlenecks in the supply chain and enhance harmonisation between the ministry and the agency.

Conversion of TAZAMA pipeline

Mr Speaker, your Committee supports the Government’s decision to convert TAZAMA pipeline from a petroleum feedstock carrier to a carrier of finished products. However, your Committee observes with concern that the transportation of a finished product as opposed to feedstock poses a security risk and the possibility of significant environmental damage from human initiated leakages. Your Committee also notes that the Budget does not expressly provide funding for the conversion process.

In light of this, Mr Speaker, your Committee urges the Government to undertake a feasibility study before implementing the measures. Your Committee further urges the Government to mobilise resources to cater for the conversion process.

In conclusion, Mr Speaker, I wish on behalf of your Committee to thank you and the Office of the Clerk for your guidance and support which you rendered throughout your Committee’s deliberations. I also wish to pay tribute to all the stakeholders who made both oral and written submissions at short notice to your Committee.

Mr Speaker, I thank you.

Hon. Members: Hear, hear!

The Minister of Finance and National Planning (Dr Musokotwane): Mr Speaker, thank you very much for this moment. Do I have five minutes or ten minutes?

Mr Second Deputy Speaker: You have ten minutes.

Dr Musokotwane: Okay.

Thank you so much for this opportunity to wind up debate on the Motion of Supply that we have been discussing for the past four weeks. I also want to thank hon. Members of Parliament who have debated and, of course, your Committee for making the comments that we have just heard available.

Mr Speaker, I also want to thank you and your team for the guidance you are rendering during this session. Listening to the Chairperson of your Committee, I note that there are a number of valuable points that have been raised. I have a comprehensive statement here, which unfortunately, is not possible for me to deliver within ten minutes because the time is short. So, I will basically, just summarise what is contained in this document.

Mr Speaker, let me repeat that in this Budget, we are focusing on a number of issues. The first issue is that of stabilising the economy. The second issue is that of providing incentives for production in the economy to go up, thereby, creating jobs. The third issue is that of investing money into the quality of lives of our people.

Mr Speaker, in terms of stabilising the economy, there is no doubt that with the measures that we announced this year and last year, we are making very significant progress.  So, I can say confidently that now, there is no doubt whatsoever, that we are going to get to debt relief, the measures are working. Now that the exchange rate, as Hon. Mutati said, has been convincingly stabilised, the inflation rate is falling, and the business environment is attracting the big boys in business, there is no other proof to demonstrate that the measures contained in the Budget are the correct ones because the proof is there.

Mr Speaker, regarding the issues of stimulating the economy, there is no doubt whatsoever, that we needed to see the economy beg inning to grow. The measures that we have put in place are beginning to work. The farm blocks that the Chairperson talked about is something that is going to uplift the level of production in this economy to a level never seen before in this country.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Mr Speaker, in the remaining minutes, let me address or respond to an issue that is critical to this economy. Our hon. Colleagues on the left have been accusing the Government of giving excessive concessions to the mining sector. They are doing that because it is so easy to do. It is one way of inciting the public especially those who do not understand these things to raise emotions.

Mr Muchima: Shame, Shame!

Dr Musokotwane: So, let me address that issue conclusively. First of all, when I hear them talk about issues of mining concessions, it reminds me of the situation, about seven or eight years ago, or should I say, ten years ago, when the Patriotic Front (PF) came into power. I remember them saying very clearly that do not worry about statistics, the gross domestic product (GDP), inflation and reserves are abstract things, they do not mean much to the public. That is what they were saying. As I listened, those days, I said to myself that the way they are talking –

Mr Mukosa: On point of order, Mr Speaker.

Mr Second Deputy Speaker: A point of order is raised.

Mr Mukosa: Mr Speaker, I thank you so much, and apologies to my parent who is debating for having interrupted his debate.

Mr Speaker, I rise on a point order pursuant to Standing Order No. 59, which talks about time limits for debate. Section (2)(c) says:

“Despite paragraph (1) – a member winding up debate on a motion may debate for not more than five minutes.”

Mr Speaker, in this case, the Motion of Supply was moved by the hon. Minister of Finance and National Planning, or an hon. Member who is the Minister of Finance and National Planning. However, we have accorded him ten minutes instead of five minutes, which is in line with the Standing Order because it does not give any exceptions as to which Member. It talks about hon. Members in this House.

So, is this House in order to accord the hon. Minister of Finance and National Planning ten minutes and not five minutes as stipulated in the Standing Orders?

Mr Second Deputy Speaker: Do you have the Standing Orders in your hand?

Mr Mukosa: Yes, yes!

Mr Second Deputy Speaker: What does Standing Order No. 59(2)(a) say?

Laughter

Mr Mukosa: It says, “Despite paragraph (1), a Member moving a motion shall not debate for more than ten minutes.”

Mr Speaker, that is at the point of moving the Motion. You guided the hon. Minister to wind up debate. Standing Order (2) (c) says:

 “A member winding up debate on a motion may debate for not more than five minutes”.

Mr Speaker, the hon. Minister is winding up debate.

Mr Second Deputy Speaker: It says moving and responding. Hon. Member, you are reading something else. Resume your seat.

Mr Mukosa resumed his seat.

Mr Second Deputy Speaker: The Standing Order says, “If the member is moving or responding.” I do not know where you are reading from.

Let us progress, hon. Minister of Finance and National Planning.

Dr Musokotwane: Mr Speaker, thank you very much. I was saying that listening to a statement made ten years ago that the Patriotic Front (PF) did not believe in statistics, gave me the impression that they were behaving like a medical doctor who is not bothered by the vital signs of a patient such as temperature, blood pressure …

Hon. Government Members: Sugar levels!

Dr Musokotwane: … and sugar levels. 

In the same manner, it is very important to worry about the vital statistics of the economy. One of the vital statics of the economy is the level of production that we are going into. So, in the last ten years, if copper production has been stagnating, more so that across in the Democratic Republic of Congo (DRC), it is going up, this seemed to be something that did not worry our Colleagues the PF. For them, production is not important. In displaying that, they were are like a medical doctor who says blood pressure is not important. For us, we are saying very clearly that production is very important.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Now, if they had been worried about vital signs such as production, they would have asked themselves a question: Why is it that in the DRC, copper production is going up, but in Zambia, it is stagnating? They would have asked themselves: Why is it that during the Movement for Multiparty Democracy (MMD) days, copper production was going up every year, but under us, it is stagnant. They would have asked themselves: Why under the MMD, new mines such as Kansanshi, Lumwana and Kalumbia mines were opening up, while in PF the mines were closing?

They would have asked themselves a question. Why is it that under Movement for Multi-Party Democracy (MMD), new mines were opened up? Kansanshi, Lumwana, and Kalumbila mines opened up while in the Patriotic Front (PF), mines closed? They should have asked themselves that question.

Hon. Government Members: Hear, hear! Chimbwi no plan!

Dr Musokotwane: Why is it that even on the old Copperbelt, these mines are closing? If they had asked themselves that question and honestly answered it, they would have realised that, in fact, the mining tax structure which they put in place and were changing every year was wrong. They would have seen the answer very clearly. Today, the mining industry is in trouble because of the PF and its taxation system.

Hon. Government Members: Hear, hear! No plan!

Dr Musokotwane: That is the only answer.

Mr Speaker, to demonstrate that this was the problem, let me give you the following points. The tax that the PF introduced was abnormal. If you went anywhere else in the world to look at the taxation regimes, no one was taxing like the PF. The reason why they were taxing like that was because they induced this debt crisis and in the middle of the debt crisis, they realised that the country was running out of money. So, the answer in their view was an irresponsible tax, provided it brings money. Not only that, they left behind about US$750 million of tax refunds that we have to pay back to the mines in taxation. So, they left the industry in tatters because of the taxation system which this Government now must correct.

Sir, to demonstrate that the direction that we have taken is correct, contrary to the previous times when the mines were closing, within a few months of realigning this tax, you have heard about the investment of US$1.3 billion from First Quantum Minerals (FQM), you have heard the story that the new nickel mine is being opened which will be the biggest in Africa within a few months.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Mr Speaker, just today, I was going through some news items. The news items we have received today say, “Barrick Gold in Luwamana – Lumwana Mine now has the potential to be extended up to 2060.” The mine that was threatening to close just a few years ago is now talking about extending to 2060.

Sir, again today, FQM has announced through its partners that new discoveries of mines have been made which will increase production significantly. So, the new tax that we have put in place is the correct one for the Zambian people and the Zambian nation.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Question put and agreed to.

ADJOURNMENT

The Chief Government Whip (Mr Mulusa): Speaker, I beg to move that the House do now adjourn.

Question put and agreed to.

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The House adjourned at 1215 hours until 1430 hours on Tuesday 1^st November, 2022.

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