EMPOWERMENT NEWS A monthly publication of the Citizens’ Economic Empowerment Commission SEPTEMBER 2009
The COVE Model, Partners Working Together to Bring About Change in Kapchorwa, Uganda—SEE STORY ON PAGES 13-15 rural communities particularly if communities are able to play a participatory role, receive necessary skills and are linked to other players on the market.
Inside this issue: Empowering Zambian 2 Businesses through Preferential Procurement. Provincial News
4
Zambia Weights and Measures Agency
10
The COVE Model
13
Events, Celebrations, 16 on Women Empowerment
To illustrate the notion of linkages, a case study on the Kapchorwa Farmers of Uganda is included in this issue. The success story of the farmers During Study tour, Kapchorwa, Uganda illustrates that ‘beyond subsistence to economic independence and ownership’ Colleagues and Partners, is indeed possible for any community. Welcome to the September Edition of the Citizens’ Economic Empowerment CommisThe purpose of this bulletin is to provide sion (CEEC) Empowerment News. information on CEEC’s activities and prodThis bulletin covers information on activities that took place between August and September 2009. Some of the articles included in this issue is information on the Preferential Procurement Programme.
‘ Not behind, not beside, but in front of every successful farmer is a woman’ - Motto for Kapchorwa Corporate Farmers Association, Uganda
September 2009 marked the Month of the Women Entrepreneur. Coincidentally, a number of activities took place during the months of August to September in support of women empowerment. Among those covered in this issues is the ‘Woman to Woman’ Dialogue Meeting held in September 2009. The many cases shared during the meeting gave proof that “Beyond Subsistence to Economic Independence and Ownership” is possible for
ucts, and to also create credibility and build awareness of issues on economic empowerment. Our wish is to have the bulletin published monthly so that it a consistent source of information. Contributions from CEEC staff and stakeholders are therefore very important. Please channel your submissions at least 5 days before the end of each month to: Patricia Lumba, Research and Documentation Manager, lumbap@ceec.org.zm We look forward to your submissions. Happy reading. CEEC Content Management Team
' A NATION OF ECONOMICALLY AND EQUITABLY EMPOWERED CITIZENS'
Empowerment News
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EMPOWERING ZAMBIAN BUSINESSES THROUGH PREFERENTIAL PROCUREMENT By Martin Mulomba, Procurement Manager, CEEC The majority of Zambian businesses have historically been disadvantaged in obtaining government business; this may be due to the unfavorable competition on the market that they face against foreign owned business. Preferential Procurement through preference and reservation schemes is one of the keys in empowering citizens influenced, empowered and owned companies. Preferential procurement may be defined as when
governments decide to purchase certain types of products or services from domestic suppliers in an effort to create an industry of “national champions”. It may also take the form of “market reservation”, a policy requiring government to buy certain products or services only from domestic firms, without designating one chosen supplier. The Citizens Economic Empowerment Act number 9 of 2006 introduces preferential procurement as a way
of Governments efforts to help citizens influenced, empowered and owned companies as part of the overall empowerment strategy. A Preferential Procurement Policy can thus serve as a valuable economic development tool for fostering SME business development. However, this has not been the case in Zambia because there has been lacking a policy on Preferential Procurement.
Martin Mulomba, Procurement Manager, CEEC
WHY PREFERENTIAL PROCUREMENT POLICY? “Preferential Procurement may be defined as when governments decide to purchase certain types of products or services from domestic suppliers in an effort to create an industry of “national champions”
This question may be answered in two parts: Firstly, from the above definition of preferential procurement, by preferential procurement, government would create ‘national champions’ in business; in this regard
the SMEs would grow into bigger business entities that would participate in business favorably on the local scene, because they would win more business from the government compared to their foreign counterparts.
Secondly, by ‘market reservation’ Zambian businesses would grow by protecting them against foreign business by way of reserving certain amount of purchases to Zambian companies only were foreign companies would not be allowed to participate.
Arising from the above, it can be argued that preferential procurement is a tool for generating SME growth and development through encouraging greater access to state contracts. It is also a remedy for the present effects of past discrimination and disadvantages by giving SMEs a greater opportunity to participate in government contracts. However, there are a number of reasons to why SMEs have not been able to successfully participate in Preferential Procurement Programmes. Continued on page 3 ►
“Preferential Procurement is a tool for generating SME growth and development through encouraging greater access to state contracts”
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[Continued from page 2►]
REASONS FOR LOW AND POOR PARTICIPATION IN GOVERNMENT PREFERENTIAL PROCUREMENT PROGRAMMES “Preference
schemes were usually reserved to the manufacturing industry in Zambia, which is almost nonexistent. These problems meant that there was a low participation by SMEs in government contracts”
There are a number of reasons as to why there has been low participation by SMEs in Government Procurement Programmes. Some of the reasons may be stated as follows: The current Preferential Procurement Programmes were designed in such a way that it was difficult to implement. The tender documents did not specify in which circumstances preference and reservation schemes were to be applied, therefore, Public Procurement practitioners applied this principal as when they felt they could do so. Preference schemes were usually reserved to the manufacturing industry in Zambia, which is almost nonexistent. These problems meant that there was a low participation by SMEs in government contracts. The payment system of SMEs after they are contracted by Government is not favorable. SMEs in most cases receive their payment months long after they had executed their contracts on behalf of the Government. Due to large sums of money owed to them, they in turn would not participate in future tenders due to lack of finances.
Most SMEs do not have skills on preparation of responsive bids. By responsive bid what is meant is a bid that would pass all the stages of evaluation of bids by purchasers to reach the final stage of award. Most bids prepared by SMEs are poorly done therefore not standing any chance of winning due to lack of appropriate skills. The requirements of standard bidding documents tend to be restrictive to SMEs. One of the restrictive requirements that may be cited is the two percent (2%) Bid Security of the value of the quoted price to accompany the bid. The bid security must be guaranteed by a commercial bank or a reputable insurance company. This is restrictive in the since that as it tends to bar potential suppliers to submit bids due to lack of finances to secure bid securities.
“Most SMEs do not have skills on preparation of responsive bids”
PREFERENTIAL PROCUREMENT PROGRAMME
“The requirements of standard bidding documents tend to be restrictive to SMEs”
In order to empower citizens influenced, empowered and owned companies, the Citizens Economic Empowerment Commission and Zambia Public Procurement Authority have developed a preferential strategy policy document, which when adopted by the Government will be translated into a Preferential Procurement Policy for the Nation. The Preferential Procurement Policy will stipulate preference and reservation schemes for participation by citizens influenced, empowered and owned companies in government tenders. Preference schemes will give a margin of preference to the citizens influenced, empowered and owned companies over their foreign owned companies when participating in government tenders. Continued on page 4 ►
Empowerment News September 2009
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[Continued from page 3►] EMPOWERING ZAMBIAN BUSINESSES THROUGH PREFERENTIAL PROCUREMENT
While certain categories of procurements in terms of amounts will be reserved only for citizens influenced, empowered and owned companies. In order for these categories of company to participate in the two schemes, they will have to be registered by the CEEC and ZPPA. The other tool that will be used by these companies in participating in these schemes will be through score boards which will b developed by economic sectors.
The generic scorecards will measure procurement from citizen owned companies and specific targets will be set for procurement from qualifying SMEs. Thus it is imperative that participating sectors develop their sector codes to fully benefit from Government Preferential procurement programmes. To promote preferential programmes, the CEEC will also embark on ca-
“the Public Procurement Act No. 12 of 2008 and Economic Empowerment Act No. 9 of 2006 shall revolutionize the preferential procurement in Zambia by empowering Zambian business participate effectively in government business”
pacity building programmes of SMEs in procurement. The programmes ear marked is training of SMEs in responsive bid preparation, outsourcing and supplier networks relationships. It is hoped that these programs shall give an impetus to the participating citizens influenced, empowered and owned to get government business.
“It is imperative that participating sectors develop their sector codes to fully benefit from Government Preferential Procurement Programmes”
To support SMEs in obtaining government business, the CEEC will also assist the SMEs by providing working capital assistance through trade finance. Another way through which the CEEC will assist SMEs especially in contracting jobs, will be through lobbying the government to down size large government contracts into manageable lots which would allow SMEs to handle and finance from their own resources. In conclusion, the introduction of the Public Procurement Act No. 12 of 2008 and Economic Empowerment Act No. 9 of 2006 shall revolutionize the preferential procurement in Zambia by empowering Zambian business participate effectively in government business.
UPCOMING WORKSHOPS 1. Training of SMEs in responsive bid preparation. 2. Outsourcing and supplier networks relationships. Contact Mr. Martin Mulomba, Procurement Manager, CEEC, for more details. Mulombam@ceec.org.zm
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PROVINCIAL NEWS—CENTRAL PROVINCE MINISTER VISITS CEEC FUNDED PROJECTS IN KABWE By Martha Mbewe, Provincial Empowerment Coordinator, Central Province During the month of August 2009, the Honorable Minister of Commerce, Trade and Industry, Mr. Felix Mutati toured two of CEEC’s funded projects in Kabwe. Among the projects toured were Kechas General Dealers and Gonde Lodge Limited. Kechas General Dealers
The Managing Director Mr. K Chaande showing the Hon. Minister the fork lifter
Kechas General Dealers was incorporated as a Private Company Limited by shares on 19th November 2008. The promoters have been conducting general business dealings predominantly in hardware supplies, construction and general trading. The Company promoters are Mr. Kemmy Chaande and Mr. Kennedy Chaande who hold 50% shares each in the company and both of whom have high entrepreneurial traits and competencies, having been in business for a long time.
The company decided to diversify from general trading to setting up a roofing sheet manufacturing plant and supplying quality but affordable corrugated iron and IT4 roofing sheets. The establishment of a roofing sheet manufacturing plant will have the following economic benefits to the area: • Employment creation for 25 people and the number is expected to increase as the project grows. •
The proposed plant and machinery will contribute to the transfer of new technology to Kabwe. Production staff in the manufacturing plant will undergo various orientation and technical skills training to efficiently and effectively run the production process. The orientation and skills training will impart will new knowledge and skills to the employees.
The company expects to create employment for 25 people
•
The funds will enable the company set up the plant and purchase the machinery for manufacturing corrugated iron and IT4 roofing sheets •
The establishment of the manufacturing plant will inculcate a culture of entrepreneurship and empowerment of the citizens. Community members will be able to purchase iron sheets and other building materials within Kabwe cutting down on transport costs. At the time of the tour, the machinery for making corrugated iron and IT4 roofing sheets had not yet arrived and was expected to arrive in the country in October 2009. Only the fork lifter and 12 coils (raw materials) had been delivered to the company. The Minister commended the company for coming up with the venture and hoped more people would be able to access funds from CEEC.
Group Photo, [Ms. Martha Mbewe, Provincial Empowerment Coordinator, Central Province, in orange Tshirt, next to Martha, right is Hon. Mutati, Minister of Commerce, Trade and Industry.
Continued on page 6 ►
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[Continued from page 5 â–ş] MINISTER VISITS CEEC FUNDED PROJECTS IN
KABWE Gonde Lodge Limited The company is wholly owned by two Zambians namely Mr. Cledwin Mulambo with 90% and Ms. Mutinta Mulambo with 10% shares. The promoters established their first lodge in Chelstone, Lusaka from their own resources in February 2007. The lodge was opened with 6 rooms and this increased to 14 rooms by December 2007 and eventually to the current 31 rooms. The lodge has 31 self contained air conditioned rooms, two conference halls, bar, kitchen, dining, swimming pool and attractive gardens. The company has expanded their operations by constructing another lodge in Kabwe. The lodge is located four kilometers from Kabwe business centre at Plot number 8850 along Ndola road four. The promoters constructed 24 rooms using their own resources. Additional funding was received from the CEEC to complete construction, plumbing, roofing and electrification of 24 rooms, conference, kitchen and reception of the new lodge in Kabwe. The lodge will provide the following accommodation, Wedding and conference The Manager explaining to the Minister on facilities, telephone and internet facilities. the construction of the lodge The Company has employed about 15 people during construction of the lodge and is geared to recruit 32 permanent employees when the lodge starts operating. The lodge will also provide recreation, business and conference facilities to the community. The Hon Minister was impressed with the progress of the construction of the lodge and commended CEEC for funding the project and empowering citizens. Director Empowerment, Mr. R.C. Lupenga, giving the project brief to the press
APPROVED PROJECTS FOR FUNDING BY CATEGORY AS AT 13 SEPTEMBER 2009 CATEGORY NUMBER OF PROJECTS HIV/AIDS
4
DISABLED
3
YOUTH
34
WOMEN
49
OTHERS
148
Empowerment News September 2009
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PROVINCIAL NEWS—NORTH-WESTERN PROVINCE By Mildred Mukala, Provincial Empowerment Coordinator, North-Western Province SITUATION ANALYSIS OF NORTH WESTERN PROVINCE The North Western Province lies 175 km west of Chingola. The Province has a lot of mineral, agriculture, and tourism potential. Solwezi is the Provincial administrative centre for the North western province. The District has a road network linking it to Mwinilunga District and another road which goes up to Chavuma and has been tarred up to Mufumbwe District. The significance of the province in terms of its mining potential has increased tremendously in the last seven (7) years with the resuscitation of Kansanshi mine and the opening of Lumwana mine which is the biggest in Africa. The positive spill-over effects of the mining activities has been felt on other sectors such as tourism, agriculture, construction, trading and other services. The opening of the two mines has attracted a lot of immigrants and the population of Solwezi has grown tremendously. The Province also has agricultural potential due to its surplus rainfall and is well known for crops such as maize, groundnuts, pineapples and sweet potatoes also known as “chingovwa”and the famous Solwezi beans. FUNDED PROJECTS AND THE NATURE OF BUSINESS In Northwestern region, there are eight projects that have received the CEEF. In this section are brief profiles of three of the businesses that have received funding from CEEC: 1. MUTANDA PLEASURE RESORT 2.2.0 MUTANDA PLEASURE RESORT
Mutanda Pleasure Resort is situated 31 km away from Solwezi town. It is on junction that leads to Lumwana and also to chavuma. The infrastructure that has been used was once used as a Guest House by the Solwezi Municipal Council. Once it became dilapidated, the council leased it out to Grace Muneng’u for the period of five years. The former Mutanda Council Guest House had nine rooms but did not have a proper kitchen and dining room. The infrastructure was desolate and run down. The Promoter is also one the shareholders of Mwaaka Lodge. Mutanda Pleasure Resort after being funded by CEEC Mutanda Pleasure resort has been expanded, with a kitchen and dining room constructed. It has nine, tiled self contained rooms which have new Linen and very accommodating. Five traditional insakas have been constructed; these are for resting when one is viewing the Mutanda falls. The bigger Insaka will be used as a Bar. It is complete where construction is involved but the furniture, fixtures and fittings are yet to be put in place. The Lodge has eight permanent workers of which 3 are female and 5 are male. ZESCO has connected the long awaited power and now it has been opened to the public. Business is still very low; there is need for more advertisements of the Pleasure Resort. The constraint that has been existing is that the National Heritage Commission are now charging the clients for viewing the falls and that has commenced after Mutanda Pleasure resort has been rehabilitated.
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[Continued from page 7 ►] PROVINCIAL NEWS—NORTH-WESTERN PROVINCE 2. LUWAKA ENTERPRISES LIMITED
Luwaka Enterprise limited was incorporated in 1996. The shareholders of the company are Crispin and Josephine Makondo , both contributed 50% each. Due to the magnitude of the project, Ms Regina Mwale was also included and 25% of the shares were sold to her. Luwaka Enterprise was active in Lumwana Mine area working with local women entrepreneurial groups especially in basketry, floral products, and arts and crafts. It approached Lumwana Mining Company (LMC) to set up a floriculture project in the area. Lumwana mine signed a memorandum of understanding (MOU) with Luwaka. The purpose of the project was as follows:
• •
To produce protea flowers, this would act as baseline to an expanded floral industry in Lumwana. To embark on out grower schemes with the local community and provide a market linkage to the same. This would be done on pilots of 50 x 50m of protea, grown or intercropped with vegetables. Luwaka would work with the Sustainability Department of LMC to identify local groups and assist them by providing technical advice and linking them to markets. • The project would also supply niche vegetables for local consumption to Lumwana employees which would include cabbage, tomatoes, onions, eggplants, sweet corn and swisschard. • To promote awareness and knowledge transfer to women groups on arts and crafts, poultry and piggery. The pilot project was done for four(4) to six (6) months ,starting from mid 2008 to the end of the year on two hectare demonstration plot. The project is located in Lumwana mine near the sewerage treatment plant and Lumwana water storage facility. The purpose of the loan was to acquire the following; A staff bus, 3 tone truck, vannette and a refrigerated truck. Protea seedling, chemicals and fertilizers, Irrigation and harvesting equipment and vegetable seeds. Luwaka after being funded by CEEC The project which started on a two hectare piece of land had increased to six hectares. All the required vehicles, irrigation and harvesting equipment, seedlings and fertilizers were procured and the project is on course. The following has been major achievements of the project: • • •
•
4000 protea cuttings have been planted. The general performance is satisfactory and the routine root diagnosis shows that most of the roots have acclimatized to the soil. When it is full grown the protea will be exported to Netherlands. Six hectares of various vegetables have been planted and the performance is excellent after the soil was limed. The main markets for the vegetables are ATS- a company responsible of all the catering services in LMC, Manyama, Solwezi main market and Congo DRC. The local community groups such as Kawuchi, Masulwila, Shiinda and Mutoma multi-purpose cooperatives have signed MOUs with Luwaka Enterprise, so that it provides technical advice were skills are concerned. The Local groups were advised by CEEC to acquire loans that would sustain their activities. At the moment two groups have so far submitted their applications and one is still awaiting approval from the credit committee. Luwaka is providing market for the vegetables produced by the groups. Luwaka has employed 56 employees as compared to the 44 that were employed before being funded. Continued on page 9 ►
Empowerment News September 2009
[Continued on page 8]
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► PROVINCIAL NEWS—NORTH-WESTERN PROVINCE
3. KAUBA FARMS LIMITED
Kauba Farms were established in 2004 and are sole owned by Mr Hephias Mweemba Hamakanda. The farm was registered with the Registrar of Business names on 8th August 2005. The farm covers 36 hectares of land and only 4 hectares is currently used for growing irrigated crops. Kauba Farms is located at farm No. 258 at Kainamfumu Resettlement Scheme along Mushindamo road 45km from solwezi town. Before it was funded by CEEC, Kauba farms were already supplying fresh vegetables to different markets. The farm supplied tomatoes, cabbages, okra, water melons and maize. The farm was however using simple irrigation and could not produce more vegetables to satisfy the demand. The farm was later empowered by CEEC whereby the following was procured:
• • •
Modern Irrigation equipment-water pump with 23 hose power and irrigation drippers A light truck of 3 tones A small tractor -25 hose power Tomato seedlings and soluble fertilizers. Activities after funding The farm has been able to plant the following vegetables: CABBAGE TOMATO Star 3317 - 9000 plants Star 9030 - 7000 Riana - 7000 plants Contodoror- 2000 Tropicana – 3000 plants This will be the first sale after the loan facility. The project was funded in April at the beginning of winter which made the crop’s growth extremely slow, but despite the cold weather the crops have managed to survive. Number of Employees After being funded the number of employees has increased from five (5) to twelve (12). 10 male workers; 1 female administrator and 1 farm manager. APPROVED PROJECTS FOR FUNDING BY SECTOR AS AT 13 SEPTEMBER 2009 SECTOR
NUMBER OF PROJECTS
SECTOR
NUMBER OF PROJECTS
AGRICULTURE
35
INFORMATION COMMUNICATION TECHNOLOGY
7
ARTS & CULTURE
1
MANUFACTURING
48
CONSTRUCTION
5
MINING
2
EDUCATION
7
SERVICES
24
ENGINEERING
7
TOURISM
28
FORESTRY
4
TRADING
44
HEALTH
2
TRANSPORT
7
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STAKEHOLDER CORNER
ZW&MA Zambia Weights and Measures Agency “For economic stability through verification for accuracy of trade measures” From August to September 2009, The Zambia Weights and Measures Agency (ZWMA) set out to revise its strategic plan. A number of stakeholders including the CEEC were involved in the revision. The first review took place at Protea Safari Lodge, Chisamba from 28-30 August 2009. The strategic review ensured that the organization refocused its energies to ensure that staff of the organization are working toward the same goals, and to assess and adjust the organization’s direction in response to the changing environment regarding weights and measures. ZWMA found it imperative to focus on the future with changing trends in metrological development and implementation of activities that are in line with the upcoming National Quality Infrastructure Policy. CEEC’s Research Manager, Mrs. Patricia Lumba, spoke to ZWMA’s Acting Director, Mr. Kapembwa to get to know more about this not so well known, but important organization. Q. What is ZWMA’s mandate? A. The Zambia Weights and Measures Agency’s, [ ZWMA in short] mandate is to enforce the Weights and Measures Act Cap 403 of the Laws of Zambia. This is done through the verification of weighing and measuring instruments for accuracy and the checking of net contents of prepackaged commodities for correctness both of which entail consumer protection. Q. Please elaborate some economic areas which measurements/metrology can
contribute to the wellbeing of the country. A. Measurements/ metrology can contribute to the well being of the country through:
•
Consumer protection • Effective stocks control • Control of fraud • Full national benefit for commodity export • Support for global trade in measuring instruments and support for global regulatory agreements through international recommendations e.g. from IOML or World Trade Organization (WTO) • Increased compliance • Sound evidential basis for measurements, and • Support of civil society etc. Continued on page 11 ►
DID YOU KNOW THAT…. Once an instrument has been verified, a mark is put on that instrument indicating the date, month and year when the verification was carried out. The duration of the verification is normally limited. The date of the next verification or the expiry date of the current one is also indicated
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Continued from page 10 ► The Zambia Weights and Measures Agency Q. A number of countries often refer to practicing ‘Trade Metrology’ rather than ‘Legal Metrology’. What is involved in Trade Metrology? A. Trade metrology is very similar to legal metrology. Whereas other countries refer to it as trade metrology, such as in South Africa, others will call it legal metrology but the distinction is very small. Q. What then is involved in Legal Metrology? A. Legal metrology is considered as that aspect of metrology which controls the interaction between regulations and measurements and its advantage over trade metrology is that it is supposed to be expanded from dealing with only trade, to include other metrological regulatory areas such as speed traps, breathalyzers and instruments for DID YOU KNOW measurements dealing with health, safety THAT…. and environment.
Q. How has ZWMA ensured the enforcement of Legal Metrology? A. ZWMA has ensured the enforcement of legal metrology by making it mandatory for any person who has a weighing or measuring instrument used or intended to be used for trade whether directly or indirectly to have it verified otherwise that person commits an offence under section 27(1) C of the Weights and Measures Act Cap 403 of the Laws of Zambia. Q. What have been some of ZWMAs achievements during the past year? A. ZWMA’s achievements during the last year included the approval of the review in the fees regulations in which verification fees were adjusted upwards resulting in ZWMA collecting relatively more revenue compared to what was collected in 2007. During the last year and now, ZWMA has had its international recognition enhanced going by the number of courses attended through the sponsorship of the SADCMEL/ EU Project.
It is mandatory for traders to have their weighing or measuring equipment/ instruments certified. Section 27 (1) of the Weights and Measures Act Cap 403 makes it an offence for any person to use or indeed to have in possession for use in trade, any instrument which is not stamped with the prescribed stamp or seal of ZWMA.
Q. What have been some of the challenges ZWMA is facing? A. The organization is facing some challenges in attaining its mandate due to operational problems such as inadequate funding, inadequate field work instruments for metrologists, transport and inadequate staff especially those doing metrology. Lack of finances has affected sensitization programmes to the general public and thus there is little knowledge from the public on the role of ZWMA. Continued on page 12 ►
Empowerment News September 2009
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[Continued from page 11 ► ]
The Zambia Weights and Measures Agency Q. The National Quality Infrastructure Policy is currently being drafted. How will the introduction of this policy expand the scope of Legal Metrology? A. The formulation of the National Quality Infrastructure Policy will enable ZWMA to expand its scope of Legal Metrology much more quickly because this will target at the review of the enabling Acts and as the enabling Act on legal metrology gets reviewed or amended, provision will be made to include other areas of legal metrology regulation ( other than the concept used in trade or for trade use).
Q. What is the difference between Zambia Bureau of Standards (ZABS) and ZWMA? A. ZABS is responsible for verifying quality. ZWMA on the other hand verifies the quantity of products offered for sale. Q. How can the Citizens Economic Empowerment Commission –CEEC, and ZWMA work together to enhance economic empowerment – through verification of accuracy of trade measures? A. The Citizens Economic Empowerment Commission –CEEC and ZWMA can work together to enhance economic empowerment through verification of accuDID YOU KNOW THAT…. racy of trade measures in the sense that the CEEC is trying to empower the Zambian citizens in many ways according to the viability of their project or The harmonization of adminempowerment needs, some of which might be in business or manufacturing. istrative regulations covering measurements and measuring Either way, it is important to make Zambia entrepreneurs and the general instruments is important not public alike aware of the importance of measurements because for examonly to allow for the free cirple, if they will be pre-packaging their products, they need to know about culation of measuring instrulabeling requirements especially if such products are intended for export. ments among countries, but Stocks control and control of fraud would be some of the benefits of knowlalso to permit the uniform edge about metrology as a credible measurement system instills confidence measurement of goods and in transactions and is therefore vital for the overall well being of society. services trade in world commerce and the exchange of * Thank you for your responses * uniform measurement data For further details on ZWMA’s operations, contact ZWMA at: Lusaka (ZWMA) between nations in the field Office of environmental protection, P.O. Box 30989, Longolongo Road, Lusaka. Tel/fax: 260 211 22294; Email: public health, safety, etc. zwema@zamnet.zm zwema@microlink.zm
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CASE STUDY— The
COVE Model, Partners Working Together to Bring About Change in Kapchorwa, Uganda by Patricia Lumba, Research Manager Mr. and Mrs. Wilson Chemusto are happy owners of a modern brick house and have managed to send their two children to university. One can’t help sharing their joy because this is a major achievement for a small-scale farmer living in a village in Kapchorwa, Uganda. Their journey to achievement has not been easy sailing. For many years, Mr. and Mrs. Wilson Chemusto, along with many other villagers in Kapchorwa, Uganda faced the challenges experienced by an everyday small-scale farmer. Among the many challenges experienced included:
•
KAPCHORWA, UGANDA
Inadequate farmer organization to guarantee bulking efficiencies; • Poor business aptitude in farming operations – too subsistence in nature • Price volatility and lack of a planning price • Inability to appreciate and stick to contractual obligations; • Lack of documented long-term visions and Strategic and Business Plans
In 1999, determination and purpose led Mr. and Mrs. Wilson Chemusto along with 26 other farmers to organize themselves. The 27 started an association to change their methods and increase crop production. They created the Kapchorwa Farming Association. With the introduction of fertilizers and new farming techniques, the farmers yields multiplied, and they were able to acquire markets. Their lives began to change. A number of stakeholders, including the Government of Uganda and Donor Agencies, such as the UNDP have been instrumental to the development and success of the Kapchorwa Farmers Association. Some of the other key stakeholders that have been instrumental to the success of the Kapchowa farmers are:
With the introduction of fertilizers and new farming techniques, the farmers yields multiplied, and they were able to acquire markets
•
Enterprise Uganda has provided Business Development Services. A number of tools and products are used to assist the farmers: these are Entrepreneurship training in ‘Expand Your Business’, Business Counseling, Business Plan Development, Management Skills Development and Credit Facilitation & ‘attitude reconfiguration’ programmes that aim to transform the mind. • The World Food Programme (WFP) has provided an assured market and ensured the production of quality maize through their ‘Purchase for Progress’ Programme (P4P). P4P enables farmers to sell their maize to WFP, and ensures that it creates an incentive for farmers to develop their crop management skills so that they produce quality foods. The P4P Programme also creates a market for the surplus crops of smallholder and low-income farmers in Kapchorwa and promotes the local processing of foods.
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Empowerment News September 2009
[Continued from page 13 ► ] The COVE Model, Partners Working Together to Bring About Change in Kapchorwa, Uganda •
Uganda Breweries has also has provided an assured market and ensures the production of quality barley. The linkage with Uganda Breweries has enabled farmers to acquire modernized agriculture methods and farmers have been given technical support in areas of barley growing. • IICD (International Institute for Communication and Development), I Network, and SNV has helped the farmers manage a Rural Information System (RIS) at each depot in Kapchorwa. Each RIS enables subsistence farmers to adapt a more commercial trading approach through the use of Information Communication Technology. The RIS centre also supports the following services: (i) The services of a warehouse system enabling farmers to store their commodities, to transport their commodities to the market of their choice and to sell their commodities whenever they want. (Iii) The services of a crop marketing bureau enables farmers to send and receive timely, accurate and adequate market information on markets for their produce thus enabling them to market their products at good prices. The stakeholders are supporting the Kapchorwa farmers through a Linkage Programme implemented by Enterprise Uganda. The Linkage Programme, uses the RIS at a depot in Kapchorwa COVE Model (The Corporate Village Enterprise model) which when introduced sought to upgrade the loosely organized farming community into a corporate entity with a clear direction and functional management system. The COVE was therefore developed to improve the incomes of the rural farming community. It is different from the traditional cooperative model because in the COVE model, Small holder farmers play a participatory process and are key in the agribusiness sector value chain. Unlike the traditional cooperative model, the COVE model has overcome most of the challenges connected to: market access; limited entrepreneurship skills; limited technical skills; poor infrastructure; storage facilities and price fluctuations. Mr. Chemusto at main depot, of The COVE model works under the assumption that if farmers are equipped with Kapchorwa Farmers Association entrepreneurial skills, they should be able to make optimal decisions in identifying a business opportunity, calculate and hedge against risk, identify markets and mobilize financial and human resource. Over the years, the COVE has worked effectively because the farmers association’s capacity has been strengthened through training in Business Opportunity Identification, Farming as a Business, Corporate Governance, and Financial Management. The Kapchorwa Farmers have seen the benefits of the COVE in many ways. The COVE model has helped families like the Chemusto’s to be able to: • acquire expanded farm acreage and increased production volumes; • have improved access to wider markets; • have increased incomes from sale of product at competitive prices; • have long-term business relationship with an assured market; • have Premium prices resulting from higher efficiency and higher standards; • attract other services, such as banks drawn by the resulting reputation of efficiency, and development of institutional capacity to meet requirements of other buyers.
Empowerrment News September 2009
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[Continued from page 13 ► ] The COVE Model, Partners Working Together to Bring About Change in Kapchorwa, Uganda Because of the benefits accrued from the COVE , what started out as a 27 member association in 1999 is to date a 3015 member association with a commercial focus, known as Kapchorwa Corporate Farmers Association (KAPCOFA). The membership is growing because people see the evidence of wealth creation. Membership to KAPCOFA automatically spills out to spouses, so women are included. The training benefits also roll over to the youth. KAPCOFA is a testimony that broad based economic empowerment is possible through individual determination, skills development and teamwork among stakeholders. Third from right, Mr. Ocicia, Enterprise Uganda, Executive Director and Daniel Joloba, Enterprise Uganda’s Senior Business Linkage Officer, left with CEEC staff.
______________________________________________________________________ CEEC Staff (Mrs. M. Mung’omba, Mr. Alinani Simukonda, Mr. Ricardo C. Lupenga, & Mrs. P. Lumba) and CEEC Commissioner Dr. Steven Moyo, undertook a study tour to Uganda to learn lessons on the COVE model. The Team was hosted by Enterprise Uganda.
The Chemutso’s story in pictures…..a 7 year journey
2nd House 3rd House, lower structure
(1st plastered house)
Current House, occupied in 2009
From left to right; Dr. S. Moyo, CEEC Commissioner; Mrs. M. Mung’omba, Director General, CEEC, with Mr. & Mrs. Chemutso.
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Empowerment News September 2009
EVENTS, CELEBRATIONS, COMMEMORATIONS….
MONTH OF THE WOMAN ENTREPRENEUR (MOWE) The month of September is the month that Zambia has set aside to commemorate the Month of the Women Entrepreneur (MOWE). This event initially started in Ethiopia in 2004 and ILO, Zambia introduced MOWE in 2005 in Zambia. From 2006, the activities for MOWE have been coordinated by ZFAWIB. Among the objectives of MOWE is to: - Promote the role of women's entrepreneurship development in national development by recognizing the achievements and potential of women entrepreneurs, including those with disabilities. - Promote more and better markets opportunities, as well as more and better employment opportunities by Zambia’s WOMEN ENTREPRENEURS. September 2009 marks the fifth consecutive year which Zambia celebrated the ‘Month of the Woman Entrepreneur.’ During the month of September 2009, there were a series of events around the country in line with the Month of the Women Entrepreneur celebrations, culminating in a Woman Entrepreneur of the Year Awards Ceremony held in Lusaka on Saturday, 26 September 2009. This years award went to Victoria Kalima, the proprietor of Plant Agri-Chem. Agri-Chem deals in agricultural chemicals and fumigans and has five branches around the country. Other MOWE activities that took place included an Awareness March, Exhibitions, Sensitization workshops to Women in ‘Entrepreneurship for Small Scale Business’, and Open Street Markets. A few organizations like CAMFED took the opportunity to give out Business Loans to its members. ZFAWIB members also got involved in community service through activities such as hospital cleaning and donations, and prison visits. On September 30, the ILO for the first time opened up its grounds for a ‘Zambian Women Entrepreneurs Market Place.
Above pictures, Market Place at ILO
The theme for this years MOWE celebrations was: Women Entrepreneurs: Creating Employment Amid the Global Economic Crisis.
ZAMBIA WOMEN FIRST - EMPOWERING WOMEN FOR THE TRASNPORT SECTOR The Zambia School of Driving has introduced a course called ‘Zambia Women First’. The course is targeted at women. The aim of the course is to increase job opportunities for women in the transport sector. The necessity to increase the number of women in the transport sector is visible by the majority of bus/taxi drivers being male. The course caters for the needs of women. For example, if a woman has a child a co-inspector is present to mind the baby while she is under instruction. Flexi hours have also been included, as rigid hours for driving sessions is what often affects the woman from not attending courses. The course has also introduced simulation modules, for better confidence and faster learning and a safety package which talks about safety aspects of the road. The course was launched by the Zambia School of Driving, where the first lady, Mrs. Tandiwe Banda, was the guest of honour. During the launch, presentations were made by the Road Safety and Transport Agency (RATSA) on ‘safety statistics in Zambia’, and a presentation from a Gender Specialist –on the Role of Women in Development. About 70 people attended the launch on 25th August 2009. Among the many people present included Chief Executives of Women NGOs, Media, and Inspector General, Chairperson of RATSA.
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SHARING EXPERIENCES - WOMAN TO WOMAN A dialogue regarding Economic and Social Empowerment for Zambia’s rural women was held on Monday 21 September 2009 at the Ridgeway Southern Sun Hotel, Lusaka, under the Theme: “Beyond Subsistence to Economic Independence and Ownership”. The meeting was organized by Her Royal Highness Chieftainess Chiyaba, Gloria Steinem and the Lower Zambezi Conservation Trust. The meeting was attended by over 40 high level women executives, business owners of initiatives/ organizations promoting women empowerment activities based within Zambia, United States of Amer- Gloria Steinem, giving her talk on ‘A Global ica, Asia and South Africa. Among the many invited guests present View: Essential Tools for Women’s Empowerat the dialogue is world renowned feminist activist, organizer, writer ment and self Determination. and lecturer, Gloria Steinem. Gloria gave a talk on “A Global View: Essential Tools for Women’s Empowerment and Self Determination”. Singer Rankin, Founder of World Woman Work, USA, also gave a presentation on ‘Creating the Bridge Woman to Woman, Connecting Small Scale Enterprises to the World Market” The full packed day provided an opportunity for sharing experiences and some good case studies from across the globe and within Zambia. Other issues discussed with particular emphasis to Zambia’s case included economic independence, sourcing start up funds for entrepreneurs, food security, contribution to rural women through tourism, health and HIV, gender-related abuse and sex trade. The Chiawa women from the Chimsambo-Mugurameno Cooperative, working in partnership with the Lower Zambezi Conservation Trust and UNDP were presented as a ‘successful’ case study on sustainable farming. The Chimsambo-Mugurameno Cooperative gave proof that empowerment is possible through skills development and teamwork. Their success has opened the door for many similar Trust projects and the Chiawa Chiefdom is well on its way to independent food security and a better life-style for its community. The meeting felt that the Chaiwa model should be replicated in other areas around Zambia. At the end of the meeting, the women present were highly motivated and women committed themselves/ or their organizations to offer a range of services to upcoming initiatives promoting women social and economic empowerment to current and upcoming initiatives, replicating the Chiawa model. Support was offered in terms of fundraising, sensitization/awareness on HIV/Aids, information sharing on research studies and projects undertaken, Microfinance and advice on business strategies, awareness and sensitization in human rights, advice on how products should reach international market standards. A number of women present at the meeting are successful business women and offered themselves to be mentors to other women trying to manage businesses. A Steering Committee was established at the end of the meeting to ensure continuous networking in support of empowerment for rural women in Zambia was established. CEEC was chosen to be a member of the Woman to Woman Steering Committee.
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Motorola Foundation Partners with IICD to Bring ICT to 5,000 Zambian Youths The Motorola Foundation and Dutch non-profit organization (International Institute for Communication and Development (IICD) in September 2009 joined hands to bring ICT to 11 high schools and youth vocational training centres in Zambia. The programme will help improve teaching skills, develop study materials and improve school management and administration. The collaboration will expand the reach of the successful IICD project launched in 2006 in Lusaka. Through this project information and communication technology (ICT) has been integrated into teaching materials and practices. It also helps young people find and develop business opportunities. This programme and the related hardware will now be implemented in other schools and training centers. In 2006 IICD started a small project with the youth vocational centre in Chawama, a township in the heart of Lusaka, to set up an ICT training centre to develop young people’s skills. Within two years more than 300 people were trained. ICT components were also used to: improve lesson content , produce handouts quickly, store and re-use lesson plans. Young people also learned how to use the Internet to find business and training opportunities, write proposals and business plans to set up their own company and market their products. One group even utilized their media skills to record their own music. The Motorola Foundation is investing US$ 100,000 to make this programme accessible to schools as well as vocational training centres. Over one year, teachers and administrative staff at six high schools and five youth vocational training centres will receive training to improve their programs. The schools and centres focus on business, tailoring, building construction and music recording in seven rural and urban regions in Zambia. Motorola Ltd. UK will also subsidise and donate hardware to connect the schools and training centres. This includes two WiMAX base stations, outdoor WiMAX Modems, Wireless Broadband Routers and other communications equipment. Using this equipment AfriConnect, the local internet service provider, will be able to connect more IICD rural and urban partners.
Call for Papers - ICT4D 2010 12-14 Oct 2010 | Cape Town, South Africa
International Conference on Information and Communication Technology for Development ICT4D is an international conference focusing on Information and Communication Technologies (ICT) innovation and impact for developing countries. It provides a unique forum where academic and economic actors of the developing world can meet and exchange. The conference is organized by the SAP/Meraka UTD in Pretoria South Africa in collaboration with CREATE-NET (Italy).
The scope of the papers should be around the following topics: Communication and Hardware, Business, Education, and Environment/Health. For further information, visit http://www.itc4d.org
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EVENTS, CELEBRATIONS, COMMEMORATIONS‌. Credit Guarantee Facility Launched By Nelson Chisenga, Zambia Development Agency The Credit Guarantee Facility for Micro, Small and Medium Enterprises (MSMEs) in Zambia was launched on 20 August 2009. The official launch was done by the Honourable. Minister of Commerce, Trade and Industry, Mr. Felix Mutati. The 2.1m USD facility is part of the PSD II programme and it is expected t grow to capitalisation levels of USD 10m. Nelson Chisenga, from the Zambia Development Agency, had the privilege to attend the official launch of the scheme and gives highlights of the event: 1. The event was well attended by key stakeholders from government , Central Bank of Zambia, various Commercial banks, development institutions, business associations, NGOs, representatives of SMEs and other international organisations. 2. 2. The facility will be warehoused by the Development Bank of Zambia (DBZ), with application and disbursement done through commercial banks. DBZ will enter into contracts with the participating commercial banks on the scheme.
3. The facility is meant to assist business start-ups (new enterprises) only. It will guarantee up to 60% of the risk, with the participating covering the 40%. The fund will be applied to finance capital expenses or principal costs for the business venture start up. The minimum amount will be K 20m and upper limit was set as K 300m, with some eligibility criteria. 4. The Minister impressively addressed the gathering highlighting the role and importance of MSMEs in the country as contributing at least 70% of both employment as well as GDP. He highlighted some of the government's support towards MSMEs on three levels – policy level, programme level and facilitation level, which interesting touched on areas of interest for BBW & JC as follows;
5. At policy, he spoke of the now approved MSME policy, which he said will be launched in the next month, efforts to maintain macro-economic stability through prudent fiscal and monetary policies and implementation of an investment policy that focuses on economic diversification. 6. At programme level, he spoke about 3 projects designed to support MSMEs as follows (a) the BDS Voucher programme by ZDA, (b) the Business Linkages programme (with specific references made on TATA, Zambia Breweries and Zambia Sugar linkages), (c) The National Business Incubator Programme which is being finalised, and whereupon he thanked the Finnish Government for support and (d) The Citizens Economic Empowerment Commission's work which has far seen more than 220 enterprises receiving support amounting to a total of more than 36 billion kwacha. This was very interesting and gratifying as the references to the programmes, in addition to the MSME policy, touches on our main areas of work. 7. At facilitation level, he spoke of the on-going work on the business licensing front, which he said should result in the total number of licences going down to over 500 to around 180. He also spoke of the soon launching of the Chirundu one-stop boarder on 25 September, all of which should reduce the cost and difficulty of doing business of MSMEs. 8. The reference to these programmes / projects to me showed high government regard and expectations for delivery, which should up the stakes for BBW & JC programme, cooperating partners as well as local implementing partners. x
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FAMILY NEWS ! THE FOLLOWING PEOPLE JOINED THE CEEC DURING THE PAST 3 MONTHS. CEEC currently has a staff establishment of 50.
NAME John Siakachoma: Worked for FINCA as Credit Supervisor. John is Programme Officer, in the Empowerment Department
Angela Mkandawire: worked for Professional Insurance as receptionist. Angela is working as Receptionist, in the Department of Corporate Services.
Milika Muzumwa: worked for United Nations High Commission for Refugees/Young Mens Christian Association Project as Personal Assistant to the Director. Milika is working as Secretary to the Corporate Services Director. Mundia Lutangu: Worked for Zambia National Response to HIV/Aids (ZANARA) as Head Driver. Mundia is working as a driver in the Department of Corporate Services. Jackson Zulu: Worked for Commonwealth Youth Programme as Programme Driver. Jackson is the Chauffeur in the Director General’s Office.
UPCOMING ACTIVITIES/ EVENTS OCTOBER 2009 14-15 October 2009: Business Linkages Programme Strategic Planning Workshop: ILO Stakeholders Meeting.
14 October 2009: Zambia Bureau of Standards: World Standards Day Celebrations. Theme: Tackling Climate Change through Standards.
16 October 2009. Security Awareness Workshop for CEEC staff.
19-23 October 2009. Project Appraisal TOT for Provincial Empowerment Coordinators/ CEEC Management staff.
24 October 2009: Independence Day
VISIT OUR NEW LOOK WEBSITE ! www.ceec.org.zm Submit comments to Mwansa Lombe, CEEC’s Information Technology Officer:
lombem@ceec.org.zm
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Empowerment News September 2009
WELCOME !
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LABOUR DAY AWARDS ! In an effort to recognize the efforts of staff that went an extra mile in doing their work, three members of staff (one from each department) received Labour Day Awards. The awards were officially handed over to staff at a ceremony held on 17 August 2009.
CEEC welcomes our newest staff member, Mr. Daniel Miyoba Sichombo Daniel filled the position of Corporate Services Director on 1st October 2009. His main roles will be overseeing the Human Resource, Legal, Administration, Public Relations, and Procurement functions of the Commission. Daniel will also provide secretarial services to the Board. Daniel is a Lawyer by profession and his last job was with Lusaka Water and Sewerage Company as Director of Administration and Legal Services, where he worked for 12 years. Daniel holds law degrees and an International MBA. He is a member of several professional bodies such as the Chartered Institute of Arbitrators and a member of the Institute of Human Resources. He is married with two kids.
The Director General commended all staff for their hard work and called them to continue with the same spirit. She reminded staff that the jobs at the Commission are tough, but it is important that staff remained focused, and stayed within the limits of the commissions authority. The three staff that received awards are: 1. Mrs. Audrey Bwalya, Accounts Clerk, under Finance Department 2. Mr. Callistus Mweele, Provincial Empowerment Coordinator, Eastern Province, under the Empowerment Department 3. Mr. Dendricks Kambilo, Office Assistant, under Corporate Services Department. See pictures below [left to right] of: Dendricks, Audrey, and Callistus, receiving their awards. Congratulations once again!
Welcome to the CEEC Team!
VISIT / CONTACT THE CEEC HEAD OFFICE AT: Empowerment House, Plot # 6457, Los Angeles Boulevard, P.O. Box 35068, Long Acres, Lusaka. Tel /Fax: +260 211 252 150, 254214 Email: customercare@ceec.org.zm (general enquiries) Email: lumbap@ceec.org.zm (newsletter submissions)