First Newsletter TABLE OF CONTENTS. June 2016 June A. How It All Started
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1 A. How It All Started The EU-Zambia Business Club started at the initiative of the EU Delegation and the EU Member States present in Zambia, which highlighted the importance of the private sector and of EU investment in the country in achieving our developmental objectives. As such, contributing to an enabling business environment was one of the main prerequisites to increasing trade and investment between Zambia and the EU. The EU-Zambia Business Club was formed by putting together the different business contacts of the EU Member States represented in Zambia, and also with the help of the EU Honorary Consuls present in the country. The EUZBC was launched as an informal structure at the beginning of June It has then worked relentlessly through its Steering Committee made up of CEO volunteers to put in place a formal structure and the means for the Club to achieve its goals, namely to provide a networking platform for members to gain knowledge of the business environment and to keep abreast of the fast developing economic and business opportunities in Zambia and European Union. The EUZBC aims at contributing towards a sound environment for businesses and investments by becoming a privileged partner of the Zambian government in terms of dialogue and support to policy definition. TABLE OF CONTENTS A. How it All Started B. State of Play: I. EUZBC Formally Registered as an Association II. C. Events: EUZBC Logo and Website Are Now Live I. Launch Event II. III. IV. Conference on the Economic Priorities of the Government Conference on the Arts and Culture Sector Meeting with the EU Director for Sustainable Growth and Development V. Conference on Skills Development D. Future Plans Have a look at the Constitution guiding the functioning of the EUZBC. Despite its initial informality, the Club has also been active in organising events and engaging the Government on topics of interest to the Club members. B. State of Play I. EUZBC Formally Registered as an Association On the 23 rd of June 2017, the EUZBC was handed over the certificate of registration as an Association under the Societies Act Chapter 119 of the Laws of Zambia. 1
2 II. EUZBC Logo and Website Are Now Live C. Events: Amongst the means needed for achieving its objectives, communication tools such as a logo and a website were quickly identified as priorities. With the help of its members, the Club developed both tools in record time. The final logo is the following: And a draft website is now live and will continuously be improved so that it stays updated and relevant to the members and other stakeholders. Please have a look at the website at: I. Launch Event 8 June 2016 The launch event was opened by the Ambassador of the European Union to Zambia, H.E. Alessandro Mariani, who explained the purpose of the EUZBC, that of increasing business opportunities between the European and Zambian economies and at becoming a reference point for EU companies wanting to invest in Zambia. He highlighted the need for the Club, as 'together, we can do more and better to: (i) contribute towards further improving the business environment in Zambia; (ii) promote our business values, ethics and common interests; (iii) promote Zambia as an investment destination with a view to increase Foreign Direct Investment in the country; and ultimately (iv) do more business, which is in everybody's interest.' It was stated that the Club would work closely with the Government departments and the existing Zambian and European business organisations such as the Zambian Chamber of Commerce and Industry (ZACCI), the British Chamber of Commerce (BCC) and the Southern African- German Chamber of Commerce and Industry. Comments are welcome! The Club had already a database of EU companies operating in Zambia of over 200 companies from 15 Member States. 2
3 Club members, facilitating and conducting networking events amongst its Members (B2B events), facilitating the creation of strategic alliances between Zambian and EU companies and encouraging ethical business practices by all companies operating in Zambia. The event was honoured by the participation of the Minister for Commerce, Trade and Industry, Hon. Margaret Mwanakatwe, who welcomed the initiative and encouraged EU businesses to invest in Zambia. The event was attended by over 100 businesspersons. II. Conference on the Economic Priorities of the Government 27 October 2016 The event was an opportunity for the EUZBC members to have a fruitful exchange of views on the Government's economic priorities with the Minister of Finance, Hon Felix Mutati, Minister of Commerce, Trade and Industry, Hon. Margaret Mwanakatwe and Minister of National Development and Planning, Hon. Lucky Mulusa. The European Union reconfirmed that the private sector is the backbone of the economy and therefore welcomed the participation of the Ministers in the event, in close dialogue with private sector. It also reiterated the EUZBC's objectives and its current status: the EU-Zambia Business Club currently focuses on facilitating and conducting dialogue with the Zambian government on issues prioritised by the From left to right: Hon. Margaret Mwanakatwe (Minister of Commerce, Trade and Industry), H.E. Alessando Mariani (Ambassador of the European Union), Hon Felix Mutati (Minister of Finance), and Hon. Lucky Mulusa (Minister of National Development and Planning). On their part the three Ministers made comprehensive and elaborate presentations. Minister Mutati focused on the Zambian Economic Recovery Plan also known as Zambia Plus. He highlighted the importance of resolute implementation of reforms, focusing on the need to cut subsidies on fuel, electricity and agriculture (1 bn USD). He highlighted the principle that one cannot spend what one does not have because excessive borrowing leads to higher interest rates and ultimately to crowding out the private sector. He took the commitment to invest time and energies to improve the macro-economic framework. Minister Mwanakatwe highlighted the importance of creating jobs and the paramount role of the private sector which is the engine for growth. She highlighted the importance of enhanced trade and facilitation of investments as key to the development of Zambia, with emphasis on industrial investments where possible. Minister Mulusa updated the EUZBC on the preparatory work for the seventh National Development Plan which has just been released in June He advocated for long term 3
4 planning and an integrated multi sectoral approach so as to abandon the old habit to plan in "sectoral silos". All the three Ministers highlighted their intention to work in close consultation with the private sector, which they consider the engine for growth and sustainable development, and finally expressed the wish of future similar opportunities for meetings with the EUZBC. The interventions of the Ministers were welcomed and followed by an interesting question and answers session where members of the EUZBC had the opportunity to interact with the three Ministers. Some of the issues raised were related to the macro-economic framework, the payment of arrears to the private sector, the access to credit, development of workforce skills and irritants to internal trade such as the excessive number of police roadblocks. Ms. Mulenga Kapwepwe, the Chairperson of the National Arts Council of Zambia and "Zambia's patron of the arts" according to CNN, honoured the audience with her presence. She summarised the state of play of the sector, which suffers from severe underfunding and a skills gap, whilst also presenting opportunities for the private sector to get involved and appealing to the business people present to offer internship opportunities to the artists, so that they can further develop their work into viable businesses. III. Conference on the Arts and Culture Sector The purpose of the second (and end 2016) meeting of the EUZBC was twofold: the first part focussed on the arts and culture sector of the economy, whilst the second one took stock of the achievements of the Club and looked forward to the upcoming year. Interventions and questions from the EUZBC membership focused on the institutional setting of the sector and the way in which the members are already supporting the arts and culture sector. The second part of the meeting was internal and looked at the draft Constitution of the EUZBC and the steps needed to register the Club as an association under the Societies Act. Other ongoing projects at the time were: the building of the website and the logo, which were finalised in the first semester of 2017, whilst more medium term objectives referred to conducting a study on the impact of EU investment in Zambia and to increasing the network. IV. Meeting with the EU Director for Sustainable Growth and Development 9 February 2017 Ms. Mulenga Kapwepwe, the Chairperson of the National Arts Council of Zambia Taking advantage of the presence in Zambia of the EU Director for Sustainable Growth and Development at the Directorate General for International Cooperation and 4
5 Development (Brussels), Mr. Roberto Ridolfi, the Club organised a meeting with him. A frank exchange of views between the business representatives and the Director took place on issues related to the business environment in Zambia and how this fits into the development of the development programmes presented. V. Conference on Skills Development 7 June 2017 The Director presented the EU development policy and its engagement of the private sector over time. He also highlighted the new EU initiatives targeting the EU and Zambian private sector, such as: The second event of 2017 focused on the role of the private sector in skills development in Zambia. The gap between the private sector's demand of skills and the offer coming from young graduates was identified as a major impediment to doing business in Zambia by the EUZBC. The European External Investment Plan (EEIP), meant to boost EU investment in Africa and the EU Neighbourhood; The ELECTIFI and AGRIFI initiatives, meant to boost investments in the energy and agricultural sectors in particular. From left to right: Hon. Prof. Nkandu Luo (Minister of Higher Education) and H.E. Alessandro Mariani (Ambassador of the European Union) The Minister of Higher Education, Hon. Prof. Nkandu Luo, presented the Government's vision and plans, including the use of the newly introduced skills development levy and the setting of a skills development fund. The panel discussion shed light on the initiatives the private sector is undertaking in order to enhance the skills of their employees and the challenges they face. From left to right: H.E. Alessando Mariani (Ambassador of the European Union) and Mr. Roberto Ridolfi (EU Director for Sustainable Growth and Development, DG DEVCO) The European Union reconfirmed the importance of the public and private sector to work together in tackling the issue. It stressed the positive role of European companies' actions in terms of skills development and committed to 5
6 undertaking a mapping exercise of these initiatives for a better coordination, particularly regarding internships. D. Future Plans The EUZBC is currently run by and interim Board, consisting of a President, two Vice-Presidents a Treasurer and an Assistant Treasurer. The Secretariat of the Club is ensured by the EU Delegation. Following the formal registration, the EUZBC will hold a General Assembly to elect its Board for a two year mandate. Efforts will continue to be made to engage more EU and Zambian companies and develop the membership of the Club. Furthermore, the EU Delegation has launched a study on the impact of EU investment in Zambia. The results of the study will be used by the EU Delegation and the EUZBC to better map and engage the EU investors in Zambia and also will constitute a 'white paper' for the EUZBC and a presentation card in its interactions with the Government. 6
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