Document of The World Bank FOROFFICIAL USEONLY Report No. 40127-ZM ZAMBIA JOINT IDA-IMF STAFF ADVISORY NOTE ON THE POVERTY REDUCTION STRATEGY PAPER (FIFTH NATIONAL DEVELOPMENT PLAN-FNDP) July 9,2007 Department:AFTPl CountryManagementUnit: AFCS2 Region:Africa This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. Its contents may not otherwise be disclosed without World Bank authorization. INTERNATIONALDEVELOPMENT ASSOCIATION AND INTERNATIONALMONETARY FUND REPUBLIC OF ZAMBIA JointIDA-IMF StaffAdvisoryNoteon the PovertyReductionStrategy Paper (FifthNationalDevelopmentPlan-FNDP) Preparedby the staffs of the InternationalDevelopment Association andthe International Monetary Fund Approved by Obiageli K.Ezekwesili (IDA) and Saul Lizondo and Matthew Fisher (IMF) July 9,2007 Tableof Contents I. Overview ......................................................................................................................... 2 11.ParticipatoryProcess...................................................................................................... 2 111.Poverty Analysis ........................................................................................................... 2 IV.Achieving the Goals ofthe FNDP................................................................................ 3 A. Macroeconomic Policy Framework and FNDP FinancingScenarios ....................... 3 B.Policiesfor Growth andInvestment........................................................................... 5 C. Human Development and Service Delivery............................................................... 7 D.Governance ................................................................................................................ 8 V. Implementation, Monitoring, andEvaluation................................................................ 9 VI. Conclusions andIssues for Discussion......................................................................... 9 2 I.OVERVIEW 1. The Governmentof the Republicof Zambia has officiallylauncheditssecond PovertyReductionStrategyPaper,knownas the FifthNationalDevelopmentPlan (FNDP) for the period2006-2010.' The FNDP is guidedbythe National Vision 2030 (NV2030), which has as its goal to transform Zambia into "aprosperous middle income country by theyear 2030. It i s organized around the theme o f "broad-based wealth andj o b " creation through citizenry participation and technological advancement " and it focuses on "economic infrastructure and human resources development. " 2. The FNDPis a markedimprovementon the previousPRSP.The FNDP builds upon the achievements o f the first PRSP, e.g., strong improvements inmacroeconomic performance and progress inpublic expenditure management. It has strengthened its focus on the keyissues, emphasizes achievingtangible results, and includes appropriate monitoring and evaluation arrangements. The theme o fbroad-based growth i s analyzed from several angles and insufficient detail. Onpolicies, it appropriately places emphasis on the importance o f a stable macroeconomic framework, improveddomestic revenue collection, good governance, increasedproduction and productivity inagriculture, and strengthened humanresource development. One marked improvementis that itpresents an elaborate medium-term expenditure framework (MTEF)under which the external cooperating partners are requested to provide predictable assistance either through direct budget support or sector wide approaches (SWAP). This policy i s intended to achieve a gradual move away from the traditional individual project mode o fproviding assistance. 11. PARTICIPATORYPROCESS 3. Preparationofthe FNDPwas highlyparticipatory.All the major stakeholders- civil society, cooperating partners, the private sector, permanent secretaries, members o f parliament and the cabinet-were involved inthe preparation of the document. Priorities were arrived at through a series o f Sector Advisory Working Groups (SAG) meetings and the draft and its implications were discussed at a stakeholder meeting. The consultative process integrated the views o f 21 SAGSand includedthe preparation o f 72 district development plans that were approved by the respective Provincial and District Development Coordinating Committees. As a consequence, the FNDP has a highdegree o f ownership compared to the previous PRSP. 111. POVERTYANALYSIS 4. Staffscommendthe authoritiesfor the criticalreview of povertydynamics in Zambia,whichinformeditspovertyreductionstrategy.The FNDPacknowledges that despite the implementation of the PRSP and positive economic growth since 1999, national The first Zambia PRSP initially covered the period 2002-2004 and was later extended to include 2005. 3 poverty levels remain high.2Between 1998 and 2004, the national incidence o fpoverty fell from 73 percent to 68 percent and extreme poverty-the population living below US$1 per day-fell from 58 percent to 53 percent. The FNDP also acknowledges that the degree of poverty and its severity i s more pronouncedinthe rural areas; that the gender gap remains significant; and that Zambia's income distribution inequality still remains high-the Gini coefficient was 0.57 in2004, down from 0.66 in 1998. The FNDP also discusses, although less comprehensively, the non-income aspects o fpoverty. It recognizes that better quality and timely data on poverty i s needed to strengthen poverty analysis. Iv. ACHIEVING THE GOALS THE FNDP OF A. MacroeconomicPolicyFrameworkandFNDPFinancingScenarios 5. Notwithstandingthe strengtheninginmacroeconomic performancein recent years, the FNDPrightlyacknowledgesthat fiscal andmonetarypolicy at times fellshort of objectives.The FNDP reviews the significant improvement inmacroeconomic performance inrecent years and emphasizes that more prudentspendingpolicies have allowedthe gradual lowering o f domestic financing o f the budget.These together with the extensive external debt relief receivedthrough the HIPC Initiative and MDRIhave quickly reduced debt service payments, thus providing scope for additional poverty reducing spending.Achieving monetary control has, however, provedproblematic at times mainly owing to inadequate instruments to mop up excess liquidity and the Bank o f Zambia's limitedoperational autonomy. Also, lack of coordination of fiscal andmonetary policies has further hamperedliquiditymanagement. 6. The macroeconomic strategyof the FNDPis to buildon previousachievements by maintainingfiscal andfinancialstability and deepeningstructuralreforms.The overarching objective o f the FNDP i s to accelerate growth to an average o f at least 7 percent per year, which is broadly inline with the medium-termoutlook inZambia's PRGF.3A related goal i s to broaden the sources o f growth to enhance its povertyreducing impact. The FNDP recognizes that key to the attainment o f these objectives are continued macroeconomic stability, and improved competitiveness and diversification through the implementation o f the Private Sector Development (PSD) programthat draws, inter alia, on the findings ofthe 2005 Diagnostic Trade Integration Study, the Financial Sector Development Plan (FSDP), and the National Agriculture Policy, complemented by accelerated infrastructure investments. 7. TheFNDPacknowledgesthe needto strengthenfiscal and monetarypolicy implementationin order to maintainmacroeconomic stability. The latest available poverty data are for 2004 andthus do not reflect the impact on poverty o f the strong economic growth registered in2005 and 2006. More ambitious projections for growth and the medium term resource envelope are presented inan alternative scenario. 4 0 Regardingfiscal policy, the FNDP appropriately identifies the need to improve budget execution, strengthenfinancial accountability and expenditure monitoring, and enhance the revenue base. The strategy correctly identifies broadening o f the tax base andrationalization o f the structure o f tax rates as key principles that shouldunderlie tax reforms. However, the revenue measures announced inthe 2007 budget, particularly the granting o f wide-ranging tax incentives for investment, appear inconsistent with these keyprinciples and couldjeopardize FNDP targets for the mediumterm resource envelope a Regardingmonetary policy, the FNDP acknowledges that excessive monetary growth has been a major contributor to highinflation inZambia. The FNDP rightly points to the needto strengthen the coordinationbetweenthe Ministryo fFinance andthe Bank o f Zambia with regard to cash andtreasury management. It also states that the operational autonomy of the Bank o f Zambia will be reinforced, basedon the reform plan set out inthe Financial Sector Development Plan (FSDP). However, the FNDP could have been more specific on how to accomplish these objectives. The overall monetary policy objective rightly focus on achieving and maintaining single-digit inflation duringthe period o fthe plan. 8. Staffssupportthe authorities' plansto formulatea comprehensivedebt managementstrategy.A keycomponent o fthe macroeconomic strategy is to contain domestic debt andthe amount o f public resources spent on debt service. The FNDP also underlinesthat external borrowing will continue to beon highly concessional terms that are consistent with the country's repayment capacity. 9. Whilethe FNDPis cognizantof the vulnerabilitiesof the Zambianeconomy, the discussionof risks couldbe strengthened.The FNDP identifies the failure o f scaling up of aid as a particular risk to the Zambian economy, but i s less specific on other important potential risks, such as a sharp fall incopper prices and drought. The FNDP's emphasis on diversifyingthe productionbase is, however, appropriate to address the mainrisks the Zambian economy i s facing. 10. The FNDPshould explainingreater detailhow the existingfinancinggap is expected to be closed. The Government has sought to cost and identifyfinancing for the various elements o fthe FNDP. Inthe baseline scenario, which assumes continuation o f existing tax policies and donor financing according to existingcommitments, there i s a financing gap o f about 5 percent o f the FNDP's total cost or 1.4 percent o f GDP per year. The FNDP is sufficiently prioritizedto allow for flexible adjustment o f expenditure ifthe financing gap i s not closed. The resource gap under a growth scenario more inline with the attainment of the MDGs would be substantiallyhigher.While the Government recently has taken steps to increase domestic tax revenues by reformingthe fiscal regime o f the mining sector, the revenue impact over the FNDP implementation period remain uncertain. Staffs recommend that the Government seeks assurances from cooperating partners on their ability 5 to scale up aid andproceed expeditiously with the implementationo f the proposed changes to the fiscal regime for the miningsector. B. Policiesfor GrowthandInvestment 11. The linkagebetweengrowthandpovertyreductionhasbeenweak. Despite posting the longest spell o fpositive growth (since 1999) inZambia's post-independence period and a representative reduction inpoverty, the perception among Zambian citizens i s that poverty reduction can be accelerated. One reason for this view i s that mucho f the growth has been concentrated inthe largely urban-based and capital intensive sectors o f mining,wholesale andretailtrade, andconstruction. While the FNDP recognizes the importance o f continued contributions o f the mining, construction and energy sectors to overall growth, its major focus i s on the sectors with direct pro-poor growth impact through increased employment and income opportunities for the poor. These include rural development, agriculture, tourism, and the manufacturing sectors. 12. While pursuingpoliciesto enhancethe impact of growthon poverty,it is importantto assess the consequences for the environment.Eventhough the FNDP recognizes the causes leading to environmental andnatural resource degradation, the analysis on how to solve such problems could be strengthened. InStaffs' view, this requires an effort to mainstream sustainable development across line ministries and a concerted effort to collect information on natural resource management and environmental degradation to guide future decisions inthis area. 13. The FNDPguides to a large extentthe allocationanduse of resourcesusingthe MTEFprocess andthe annualbudget. For example, the FNDP aims to increase the share o f the budget devoted to agriculture from 5 percent in2006 to 9 percent in2010 as a means o f reducing the highincidence o fpoverty inthe rural sector. Staffs are concerned that the plannedincrease in spendingon the agricultural sector may not always allocate sufficient funds to those programs that are knownto contribute to improved agricultural productivity such as agricultural research, technological and irrigation development, and diversification in the production o fboth staple andcash crops to ensure food security. Therefore, a major challenge that needs urgent resolution concerns the subsidized fertilizer support program that absorbs significant resources but i s not well targeted as it reaches less than 10 percent o f intendedbeneficiaries (Le., small-scale farmers) and crowds out programs that could enhance the sector's productivity ina more sustainable manner. 14. Strengtheningeconomic infrastructureis one of the criticalelements ofthe FNDP. The FNDP acknowledges that poor physical infrastructure such as roads, electricity, irrigation, and water and sanitation has been one o f the major bottlenecks holding back private sector development inthe country. Staffs would advise the authorities to be mindful o f the needs to upgrade and expand rail and energy infrastructure as well as 6 telecommunications as all these play an important role inreducingthe cost o f doing business inZambia. 15. TheFNDPrecognizesthat the publicpursecannot undertakeall the investments neededandhasidentifiedpublicprivatepartnershipsas an importantmechanismto realize these investments.Inmany utility sectors, however, tariffs are not set such that they cover full costs or are set ina manner that they decrease competitiveness or favor a particular sector. Inaddition, arrears between government agencies andutilities continue to cause difficulty within the sector. Staffs urge the Government to pay its bills on time andrebalance tariffs inthe utility sector such that they reflect full cost, attract investors, and allow for increased access to electricity and water and sanitation services and improve Zambia's competitiveness. 16. The PrivateSector Development(PSD)initiative,includingZambia's Financial Sector DevelopmentProgram(FSDP), articulatesmanyof the key measuresneededto createa betterbusiness environmentandinvestmentclimateinZambia.The concern is, therefore, with implementation, as progress under both the PSD initiative and the FSDP has been slow. For example, ease o f trading across Zambia's borders continues to rank inthe bottom deciles o f countries inthe "Doing Business" indicators, the license fee for an international telecommunications gateway remains prohibitively high, while the resolution o f insolvent non-bank financial institutions has faced repeated delays and overall access to the financing system i s low, with fewer that 15 percent of Zambians holding a bank account. The staffs concur that improved implementation o fthe PSD andthe FSDP, as emphasized inthe 2007 budget speech, is essential ifthe growth objectives o f the FNDPare to be realized. 17. The miningsector has driveneconomic developmentinZambia for over 70 years. The FNDP discusses various constraints to the development o f large and small scale miningandthe needto improve its domestic backward andforward linkages. Fromthe dismal condition inwhich it found itself at the beginningo f this millennium, the mining sector has recovered because of large investments andfavorable global market conditions. Staffs commend the Government for taking steps to reform the fiscal regime o f the mining sector while preservingZambia as a competitive, credible, and attractive investment destination, but advocate the inclusion o f an additional revenue sharing mechanismthat would capture a higher share o f mineral rents for government duringperiod o f abnormally highinternationalprices for minerals. Such a device is currentlynot part ofthe proposed reforms. With the expected increase in fiscal gains from the boom incopper exports, the authorities are urgedto ensure transparent management o f these resources. Inthis regard, Zambia's intention to join the Extractive IndustryTransparency Initiative, which supports Inthe telecom sector, local fixed line rates are kept low and as such are cross subsidized by highinternational rates. Inthe electricity sector, tariffs for the miningsector are set below cost and hence are subsidized by households and other economic sectors, amounting to an estimated US$20 million for 2006. Inthe water sector, tariffs do not cover the cost o f new investments and therefore do not promote expansion o f the network of water pipes. 7 improved governance inresource-rich countries through the verification and full publication o f company payments andgovernment revenues from oil, gas, and mining, i s a welcome first step. C. HumanDevelopmentand Service Delivery 18. The FNDPcorrectlyacknowledgesthat spendingonhealthandeducationin additionto improvinghealthand social welfareis importantfor achievingsustainable growth.This is particularly the case ina country with a highincidence o fMalaria, high prevalence rates o f HIV/AIDS, and a shortage o f skilledmanpower. The FNDP discusses frankly the challenges inthe social sectors. 19. The FNDPacknowledgessome of the achievements inbasic educationsuch as increasedenrolmentand a better gender balancebut also notesthat the qualityof educationneedsfurther improvements.Inaddition, secondary andtertiary education have, hitherto, not been priority segments o f the educational system and inthe last 30 years, there has beenlittle investment insecondary andtertiary education. Zambia's educational system continues to be characterized by low transition rates betweenthe three different levels. Since the FNDPplaces a premiumon skills development, issues o f intra-education (i.e. at different levels o f the educational system) efficient resource allocationremain a major challenge. Staffs are concerned that the FNDP's strategy for the education sector could prove difficult to implement due to existingconstraints on resources. Incomparison, formulating sub-sector specific objectives, strategies and targets would allow for such alignment o f resources and provide comfort for a muchneededincrease inresource flows to the sector as to escapethe `low cost, low quality' systemcurrently inplace. 20. The FNDPadmits that progressinhealthindicatorshasbeenstagnantunderthe previousPRSP. The FNDPrightlyhighlightsthe current humanresources crisis inthe health sector, but the outlined strategy i s too focused on the number o f health workers and training. Although staffs concur that these issues are important, the results o fthe recent public expendituretracking survey shows that significant gains can be made by improving productivity of health workers and address tardiness and absenteeism. To improve the availability o f essential drugs and medical supplies a stronger collaboration between the MinistryofHealth(MoH) andthe MinistryofFinance andNationalPlanningonbudget planning andprocurement i s needed, as the actual availability o f funds are not timed well to guarantee the procurement o f essential drugs, resultinginstock outs. Furthermorethe lack o f consumption data and the fragmentation o f the supply chain management results inpoor forecasting and planning. A logistic management information system and capacity buildingat district level can address this problem. 21. Inaddition,there is a needto urgentlyaddress the deficienciesinthe health sector's capitalassets, i.e. healthinfrastructure,utilitiesand equipment.For example, less than half o f Regional Hospital Centers (RHCs) have an electric connection, highrates o f 8 nonfunctional utilities and transport equipment erode access to RHCs, andmany hospitals continue to lack appropriate medical equipment. 22. It is clear that Zambia is one of the countriesworst affectedby malaria and HIV/AIDS. Thereis no aspect oflife that is not directly or indirectly affectedbythese diseases. The malaria and HIV/AIDS programs are very strongly focused on increasing access to drugtreatment. The importance o f drugtreatment and their availability i s apparent. However, staffs recommendthat the Government continues its efforts to stop the further spread o f HIV/AIDSandmalaria through effective and widespread prevention efforts. The direct involvement o f communities inprevention, treatment and care activities has proven to be a highly effective strategy. 23. Mainstreamingof gender inZambia's developmentprogramshasbeen challengingand the importancefor the developmentprocess is not alwayswell understood.As a result, progress inimplementing the national gender policy, adopted in 2000 has been limited.For example, illiteracy levels remain significantly higher among women at 75 percent compared to menat 65 percent. To strengthenimplementationa strategic action plan (2005) was developed and the cabinet office has taken on the role o f coordinating, and monitoring and evaluatingthe activities identified.Furthermore, additional institutional structures have been put inplace in line ministries and at the district and provincial levels. Staffs agree that this bodes well for implementation o f the strategy and its action plan. However, due to the persistence o f deep gender inequalities and disparities, the FNDP could promote stronger accountability mechanisms for promotion o f gender equality and measuresto strengthen collection o f gender-specific economic data. D. Governance 24. The FNDP's governance priorityis to improveandinstitutionalizepolitical, administrative,financialandbudgetarytransparencyandaccountabilityin all priority sectors andprograms.The FNDP's governance goals include: improving accesstojustice; upholding human rights; improving the management o f free and fair elections; strengthening collaboration and cooperation among governance institutions; improving the National Assembly's oversight role over the Government; enhancing constitutionalism andrule o f law; and institutionalizinganti-corruption programs inall public institutions by 2010. Staffs commendthe authorities for its recent successes in its fight against corruption, as witnessed bythe positive conclusions ofthe Zamtrop andBulaya cases, andencourage the adoption of the National Anti Corruption Policy and Strategy and resolve the future o f the Task Force on Corruption as these are important actions that signal an unwavering commitment to fight corruption. 25. TheRepublicanConstitutionthat is currentlyundergoingreviewis expectedto befinalizedduringthe planperiod.There are certain proposed amendments-such as those that would put the public sector pension fund on sound financial footing and the 9 amendment to change the budget cycle to allow for parliamentary approval o fthe budget before the start o f its fiscal year-that seem uncontroversial. Given the importance o f these revisions, ifpossible, ways shouldbe found to de-link them from the wider constitutional reform process, which could take several years. 26. Most ofthe governancerelatedreforminitiativeshaveprogressedbeyond planningandare underimplementation,includingthe Public Expenditure andFinancial Management Reform Program PEMFA, Public Service Management (PSM), and Local Government Development Program (LGDP). The Government has finalized its decentralization policy and efforts are underway to design an inter-governmental fiscal architecture (IFA) that would help effect fiscal decentralization. Staffs encourage accelerated implementation o f the ongoing reform effort, as these reforms, inparticular those that strengtheninstitutionalcapacity, are critical to the successful implementationofthe FNDP. v. IMPLEMENTATION, MONITORING,EVALUATION AND 27. Theimportanceof institutionalframeworksfor implementation,monitoringand evaluationare acknowledgedandprioritizedby the FNDP. The newlycreatedPlanning Division (PEMD) o f the Ministryo f Finance will be the focal point for institutional linkages andto institutionalize five year development planningas the means to guide the budget preparation process. Staffs recommendthat the Government reviews the existingregulatory and legislative systems for planning and budgetinginorder to streamline this process. This should include the role o f Parliament inthe planning and budgetprocesses, as well as the coordinationbetween Cabinet Office and the Ministryo f Finance andNational Planning. 28. Althoughthe FNDPis a results-basedstrategy that focuses on agreed targets and results,itskey performanceindicators(KPI) tables are not clearly linkedto itspoverty impactindicators.Withthe formal creation ofthe Monitoring and EvaluationUnitunder PEMD duringthe implementation o fthe first PRSP, the Plan seeks to institutionalize a systemto monitor inputs, outputs, outcomes and impacts so that resources are strategically managed andprogress tracked. Inparticular, monitoring and evaluation process will provide essential data and insights for drawing lessons, priority setting and informed review o f the FNDPimplementation. The monitoring systemwill also includeprocess indicators that are related to the implementation o fthe FNDP at both the macro and sectoral levels. Such indicators will be closely linked to the performance assessmentframework (PAF) that i s currently usedinthe context o f direct budget support. Staffs concur with the importance o f such a system andurges Government to finalize it as a soon as possible. VI. CONCLUSIONS AND ISSUES FORDISCUSSION 29. Staffs consider that the FNDPbroadlyprovidesa comprehensiveframeworkfor growthandpovertyreductioninZambia.Without a scaling up o fdonor assistance, andor inability to raise domestic revenues there will be a significant shortfall o f resources to implementthe plan. The Government shouldcontinue to base its MTEFand subsequently its 10 annual budget on realistic financing assumptions. Areas that the Government should focus on to improve its ability to implement the FNDP include: (i) puttinginplace a more efficient, productive, and equitable tax system covering all sectors; (ii) consistentlyusingthe FNDP to guide expenditure allocations; (iii) improving its capacity to evaluate the effectiveness and efficiency o f expenditure programs as a means to be able to rank new and ongoing expenditure programs by their impact on growth andpoverty reduction; (iv) improving incentives to service delivery at all levels o f government; (v) speeding up the implementation o f the reforms inthe Private Sector Development initiative to improve Zambia's competitiveness; and (vi) rebalancing utility tariffs such that they cover all costs in conjunction with puttinginplace a framework for Public Private Partnership that could assist with the neededresource mobilization. 30. The main risks relate to lower than expected economic growth and shortfalls of external financing. Macro economic stability and growth could come underpressure from volatility inthe world market price for copper. Further,lack o f tangible progress in improving Zambia's investmentclimate could endanger diversification and reduce investments inproductivity enhancing activities. The FNDP's baseline financing scenario contains a significant financing gap that i s expected to be filled by a combination o f higher domestic tax revenues and larger external inflows. The maintenance o f sound macroeconomic policies and continued implementation o f economic reforms are key to attract larger inflows from donors. The Government and cooperating partners have embarked on a harmonization agenda and continued commitment by all partners to the agreed processes inthe Joint Assistance Strategy for Zambia (JASZ)' will be important as well to improve the coordination and effectiveness o f the aid. 31. D o Directors concur with the areas identified by staffs as key for: 0 sustaining growth and reducing poverty, particularly the need to implementPSD and agriculture relatedreforms, improve infrastructure, and address the human resource crisis inthe social sectors? 0 strengthening implementation o f the FNDP,particularly by increasingdomestic tax revenue, and improving the efficient use o fpublic resources, while strengtheningthe incentives for public service delivery, and managingthe difficulties posedby capacity weaknesses, governance, andnatural resource dependency? 'The JASZ has beenpreparedincollaboration with the Government andtwelve bilateral donors together with the African Development Bank, The World Bank, the EuropeanCommission andthe UnitedNations system are signatoriesto the JASZ. INTERNATIONALDEVELOPMENT ASSOCIATION AND INTERNATIONALMONETARY FUND REPUBLIC OF ZAMBIA Joint IDA-IMF Staff Advisory Note on the Poverty Reduction Strategy Paper (FifthNationalDevelopmentPlan-FNDP) Preparedbythe staffs of the International Development Association andthe International Monetary Fund Approvedby ObiageliK.Ezekwesili (DAY andSaul Lizondo andMatthewFisher (IMF); June [28], 2007 Table of Contents I. II.Overview ......................................................................................................................... 2 Participatory Process ....................................... 1.,...,.....................,.,,............................... 2 III. Analysis Poverty ................................... .........I...............................................................2 IV.Achievingthe Goals oftheFNDP................................................................................3 A. Macroeconomic Policy Framework andFNDP FinancingScenarios .................3 B.Policies for Growthand Investment .....................................................................5 C. HumanDevelopment and Service Delivery .......................................................................................................... .........................................................7 V. Implementation, Monitoring, andEvaluation................................................................ D.Governance 8 9 VI. Conclusions andIssues for Discussion ......................................................................... 9 DMSDR1S#3301205-~8-Zmbia2007 Joint IDA-IMFStaffAdvisoryNote onthe PRGFFifthFNDP.DOCJune 28,2007 (6:42 PM) - - Foreword 1 Inmy opening addressto the FirstSessionofthe NinthNational Assembly on 22ndJanuary 2002, ItaskedtheMinistryofFinanceandNationalPlanningtoprepareatransitionalnabonaldevelopment plan (TNDP) by June 2002, and from 2006 onwards, to produce five-year national development plans. It i s with great pleasure, therefore, that Ipresent the FifthNational Development Plan (FNDP) for the penod 2006 to 2010 2. From independence in 1964, three national development plans were implemented. The Fourth National Development Plan was launched in 1989 but later abandoned in 1991 in preference for an open market system that brought momentous changes to our country. One o f the important lessons learnt from the 1990s was the realization that even in a liberalized economy, development planning is necessary for guiding priority setting and resource allocation. The absence o f planning tends to force us to concentrate on short-term needs representing narrow sectional interests thus denying the country the opportunity to attainbroad based socio-economic development. 3. As a result o f the abolition o fnational planning, the following consequencesemerged: i.No medium-term planfor the country to follow to guide public investmentpriorities for implementationby Government; ii.Noplanningframeworktoserveasabasisforcooperationwithdonors; iii.Weakenedcapacityofthecountrytocoordinatenationaldevelopmentprogrammes,sincethere was no organ at national level to oversee, initiate and coordinate cross-cutting national programmes among ministries. iv. Absence of an organ to overseeplans, coordinate andmonitor at the provincial and district level and serve as a linkwith development priorities at the national level; and v. The inability o f the private sector to undertake some o f the market-related functions. This called for Government intervention, which could only be well articulated within a planning framework and the budgeting process. However, the budgeting process, which took centre stage, was done with no clear reference to medium-term goals, plans or long-term vision. 4. The re-introduction o f national planning in 2002 and the creation o f Sector Advisory Groups (SAGS) and the proposed strengthening o f the district and provincial planning units will guide the planning and implementationprocesses.To this end, .Mly functional provincial and district planning units will focus on socio-economic planning and assist the decision-making process at provincial and district levels. Development planning is essential in providing clear definitions and articulations o f national, provincial and district priorities for Government actions and allocation o f public resources. To be successful and transform the country into a prosperous nation, our brand o f development planning must make a break with the past and go beyond mere statements. More importantly, it must embrace principles o fplan implementation, monitoring and evaluation. 5. The FNDP has ensured that sectoral strategic plans are well coordinated and are inter-linked. Care has also been taken to arrive at a realistic estimation of the resource envelope over the FNDP horizon. This resource envelope is imbedded in a Medium Term Expenditure Framework (MTEF) within which national annual budgets, fi-amed as annual activity based budgets, will be drawn. The MTEF will help guide and inform political choices needed for resource allocation. The FNDP has been prepared based on the medium-term macroeconomic, fiscal and aid policy objectives. 6. The FNDP and associated MTEFs will be the link between the National Long Term Vision 2030 (NLTV) and the annual activity based national budgets The FNDP and the MTEFshave been developed based on a well-articulated and shared Vision 2030 that forms a rallying point for all development effort inthe next twenty-five years The National Vision is "to become aprosperous middle income country by theyear 2030 " 7. 71ie theme o f the FNDP is broad haTed wealth andjob creation through citizenry participation and technological advmcement. Within this overall theme, the FNDP stands on two sub-themes, namely, an economc sub-theme and a social sub-theme. FifrlzNatronul Development Plan 2006 -2010 i 8. The Plan focuses on agricultural development as the engine o f income expansion in the economy. My Government is convinced that agriculture offers the best opportunities for improving livelihoods. To this end, the sector has received a marginally higher allocation o f the resources. Among other economic sectors that complement this focus, either directly or through inter-linkages are infrastructure, tourism, manufacturing, mining and energy. The sources o f economc growth as identified by the above sectors constitute the economic sub-theme o f the FNDP. 9. The FNDP recognizes that this approach through growth stimulation should be complemented by distributive measures that have better overall positive impact on the poor. The FNDP goes beyond to re- enforce other existing measures, which include poverty reduction, focused safety nets, issues o f disability, social protection and good governance. These concerns constitute the social theme o f the FNDP. 10. In the past, a major weakness o f development planning in Zambia has been the poor implementation that stemmed largely from poor resource forecasts, weak institutional arrangements and weak monitoring mechanismshystems for the Plans. By providing for the MTEF and linking the Plan to the resource envelope, and introducing the public expenditure management and accountability systems, this Plan represents better prospects o f achieving its objectives for the socio-economic development o f the country. It is equally important to mention that the monitoring and evaluation o f this Plan has been designed to ensure successful implementation with the involvement o f all stakeholders. 11. The FNDP has been costed to be within the available resource envelope as projected in the MTEF over the Plan period, taking into account the favourable environment that has been created as a result o f the country's qualification to the highly indebted poor countries initiative (HIPC) completion point. In summary, the FNDP will require a total o f K62,623.22 billion over a period o f 5 years. These resources will be mobilized from Government and the cooperatingpartners. 12. Iwouldliketoappealtoallnationalstakeholderstoplaytheirpartinensuringthesuccessofthis Plan by establishing and strengthening the needed structures, capacities, and alliances for our common goal to reduce poverty inthe interest o f social welfare. It is also important to stress that ultimately, good policies and intentions cannot result in growth and development unless every one o f us from Government to the individual is prepared to work hard and diligently to realize our dreams. On my part, Ishall ensure that Government does everything possible to fulfil this noble mission. Iurge our people in every part of the country to rededicate their energies to the successful implementation o f the FNDP. Iwish to thank all Zambians for contributing effectively to the preparation process o f the FNDP. Government will continue to consult citizens inkey areas involving all planning and implementation processes so that their inputs are taken into account. 13. Lastly, Iwould like to thank all our cooperating partners who have over the years supported us in many fields o f our national economy. My appeal to them is that they should come forward to support us once again during this crucial period o fthe implementation o f the FNDP. Patrick Levy Mwanawasa, S.C. PRESIDENT OF THE REPUBLIC OF ZAMBIA December 2006 Fflh National Development Plan 2006 2010 .. -- 11 Table of Contents FOREWORD.............................................. ......................... ....................... .-..........- .........."..........."........ll.n....n.r..l...Y."."....i TABLESAND FIGURES ............................................................................................................................................. X ACRONYMS .......................................................................................... ...XI1 INTRODUCTION ................................................. .."..-.._.......................................... ........................... REVIEWOFECONOMICAND SOCIALDEVELOPMENTS ...__.............Y......._ ._.Y" ." --..... ..".........".........................,.....1 UY "......--.-4 REVIEW OF ECONOMIC DEVELOPMENTS ..................... .......... ................................."".._.......................... ..... "Y " 5 7 .1 OVERVIEW OF GLOBALECONOMIC DEVELOPMENTS ...................... 1.2THEIMPACT OF GLOBAL DEVELOPMENTSTHEZAMBIAN ECO ON 1.3DOMESTIC ECONOMIC GROWTH TRENDS .......................................................................................................... 6 1.4FISCAL POLICY DEVELOPMENTS ............................................................................ 7 1.5MONETARYAND FINANCIAL SEC ............................................................................ 8 1.6EXTERNAL SECTOR DEVELOPMENTS ........................................................................................................... I.~XTERNALDEBTAND ... ..................................................................................................................... AID REVIEW OF POVERTYTRENDS "" .... ............................................................. ........................................... " ..".I2 2.1INCOME POVERN.............................................................................................................................................. 12 2.2NON-INCOME POVERTY AND OTHER SOCIAL DEVELOPMENTS ......................................................................... 17 FNDP60111sAND STRATEBIES .......................... "-..................................................................... 19 THE FIFTH NATIONALDEVELOPMENTPLANTHEME AND STRATEGIC FOCUS .."............20 I 3.1 INTRODUCTION................................................................................................................................................... 20 3.2ACHIEVING BROAD BASED WEALTHAND JOB CREATION.............................................................................. 21 3.3 ECONOMIC INFRASTRUCTURE AND HUMANRESOURCES DEVELOPMENT ....................................................... 21 3.4 FNDP EXPENDITURE PRIORITIES .................................................................................................................... 22 FNDP MACROECONOMIC.SOCIALAND STRUCTURAL POLICIES ................................ " " .....,..26 4.1 INTRODUCTION................................................................................................................................................. 26 4.2 MACROECONOMIC OBJECTIVES. POLlClESAND STRATEGIES.................................................................... 4.3 SOCIAL OBJECTIVES. POLICIES AND STRATEGIES..................................................................................... 4.4 STRUCTURAL POLICIES .................................................................................................................................... 35 4.5 NATIONAL MONITORING AND EVALUATION FRAMEWORK ............................................................. 41 FNDPSECTORALPLANS .........___......._. AGRICULTURE ........".... .............................. .............................. ".".."........"...."..".-....""......"....""...........-......."......46 ........O1l...-...l...l._.. ...-................................... ".-.........l-..... -."..-..-.......44 " I 11" 5.1 INTRO ...... ............................................................................ 46 5.2 REVIE ................................................................................................................... 46 5.3 POLICIES AND KEYREFORMS ......................................................................................................................... 47 5.4 VISIONAND GOAL 5.5 PROGRAMMES. OBJECTIVESAND STRATEGIES.............................................................................................. 48 5.6 IMPLEMENTATION. LAND" .....-..................................... ...".............U....U...._U.l_...l.l_l.. ..................................................................... ....."........_56 I 6.1/NTRODUCTION................................................................................................................................................... 56 6.2 REVIEWOFPASTPERFORMANCE ......................................................................................................... 56 6.3POLICIES AND KEY REFORMS ......................................................................................................................... 57 6.4 VISIONAND GOAL........................................................................................................................................... 57 6.5 PROGRAMMES, OBJECTIVESAND STRATEGIES ............................................ .57 6.6 IMPLEMENTATION, MONITORING AND EVALUATION FRAMEWORK ................................................................... 58 MINING ._."............._.........._..."_..*.._ ........................................... -."........ .................... "".."..""....... ..._.m..U....._....Y_..62 ......_..=. 7.7 /NTRODUCTlON............................................................................................................................................ 62 7.2REVIEWOFPASTPERFORMANCE .............................................................................................................. 62 Fifth National Development Plun 2006 . 2010 1v 7.3POLICIES AND KEY REFORMS ........................................................................................................................... 65 6.4 VISIONAND GOALS .........66 6.5PROGRAMMES, OBJECTIVES STRATEGIES AND ................................................................................................ 66 6.6IMPLEMENTATION, MONITORING AND EVALUATION FRAMEWORK .................................................................... 67 COMMUNICATIONSAND METEOROLOGY .................................................. .................... ..................................... 70 8.I' /NTRODUCTION ................................................................................................................................................... 70 8.2 REVIEW OF PAST PERFORMANCE ............ 70 8.3POLICIES AND KEY REFORMS .......................................................................................................................... 71 8.4 VISIONAND GOAL.............................................................................................................................................. 72 8.5 PROGRAMMES, OBJECTIVESAND STRATEGIES........................... ................................................. 72 8.6 IMPLEMENTATION, MONITORING EVALUATION AND FRAMEWORK .................................................................... 74 INFRASTRUCTURE .......................... ................................................................................ ............................... -.......-.......................80 9.I INTRODUCTION ................................................................................................................................................... 80 9.2REVIEWOFPASTPERFORMANCE ..................................................................................................................... 81 9.3POLICIES AND KEYREFORMS ........................................................................................................................... 85 9.4 VISIONAND GOAL.............................................................................................................................................. 86 9.5PROGRAMMES, OBJECTIVESAND STRATEGIES.......... ...................................................... 86 9.6 IMPLEMENTATION, MONITORING EVALUATION AND FRAMEWORK .................................................................... 88 NATURAL RESOURCES ._........".............-..............w...-...........Y.................... ........................................................... ....--.......- 95 I O.I INTRODUCTION ................................................................................................................................................. 95 10.2REVIEW OF PAST PERFORMANCE ........................................................................ 95 10.3POLICIES AND KEYREFORMS ......................................................................................................................... 98 10.4VISIONAND GOAL............................................................................................................................................ 99 10.5PROGRAMMES, OBJECTIVESAND STRATEGIES............................................................................................. 99 _ 10.6IMPLEMENTATION, MONITORING EVALUATION FRAMEWORK AND ................................................................ 102 TOURlSM ............................................. ......-.- ..................-.... ....... .-....... ....................... .._.....-........, ............ 106 11.1INTRODUCTION ............................................................................................................................................... 106 11.2 REVIEW OF PAST PERFORMANCE ................................................................................................................ 106 11.3POLICIESAND KEYREFORMS .............. ...................... 107 71.5PROGRAMMES, OBJECTIVES AND s 11.4VISIONAND GOAL............................ 11.6IMPLEMENTATION, MONITORINGAND EVALUATION FRAMEWORK ................................................... 110 MANUFACTURING ...,......................... ................................................... I ................................. -...._....... "....,......M....m.. 114 12.1INTRODUCTION....................... ........................................................... 114 12.2REVIEWOF PAST PERFORMA ........................................................... 114 12.3POLICIES AND KEY REFORMS ......................................................... 115 12.4 VISIONAND GOAL......................................................................................................................................... 117 12.5 PROGRAMMES, OBJECTIVESANDSTRATEGIES............................................................................................ 117 12.6IMPLEMENTATION, MONITORINGAND EVALUATION FRAMEWORK ............................... 119 COMMERCE AND TRADE .............................. ............................... ............................................................... ......................123 13.I INTRODUCTION ....123 13.2REVIEW OF PAST PERFORMANCE ................................................................................................................. 123 13.3POLICIESAND KEYREFORMS....................................................................................................................... 125 13.4VISIONAND GOAL.......................................................................................................................................... 126 13.5PROGRAMMES, OBJECTIVEAND STRATEGIES .............................................................................................. 126 13.6/MPLEMENTATION, MONITORING AND EVALUATION FRAMEWORK ................................................................ 127 ENERGY .-..........................._..-....................................... .......-...-......-......................... ...-...................................-...............- ....131 14.1INTRODUCTION .............................................................................................................................................. 131 14.2REVIEW PAST PERFORMANCE OF ......... ................ 131 14.3POLICIESAND KEY ............................................................................. 133 14.4 v/SlONAND GOALS .. ........................................................... 134 14.5PROGRAMMES, OBJECTIVES STRATEGIES AND ............................................................................................ 135 14.6IMPLEMENTATION, MONITORING EVALUATION AND ..................................................................................... 136 Fifth National Development Plan 2006 2010 . V SCIENCE AND TECHNOLOGY........................................... ................................. ................................ ........................140 15.1 INTRODUCTION........................................................................................................................... 140 15.2 REVIEW tiF PASTPERFORMANCE .................................................................... 140 15.3POLiClES AND KEYREFORMS ..................................................................................................................... 141 15.4VISIONAND GOAL................................................................................................ .................... 141 15.5 PROGRAMMES, OBJECTIVES AND STRATEGIES ............................................................................. 141 15.6IMPLEMENTATION, MONITORING AND EVALUATION FRAMEWORK ................................................................ 142 FNDPSECTOML PLANS ........._.....".".......-........."............................................... ................. 144 EDUCATIONAND SKILLS DEVELOPMENT .......................................................... ........................................ ....146 16.1INTRODUCTION............................................................................................................................................... 146 16.2 REVIEW OF PAST PERFORMANCE............................................................................................. 146 16.3 POLICIES AND KEYREFORMS ...................................................................................... 149 16.4 VISION AND GOALS................. ...................................................................................... 150 16.5 PROGRAMMES, OBJECTIVES STRATEGIES AND ................................................................. 150 16.6 IMPLEMENTATION, MONITORING EVALUATION FRAMEWORK AND ................................................................ 156 HEALTH ...............".................................................................... .................................................................... ...."....-.......160 17.1/NTRODUCTION ............................................................................................................................ 160 17.2 REVIEW OF PA ........................................................... 17.3 POLICIES AND KEYREFORMS ................................................................... 165 17.4 VISIONANDGOAL.......................................................................................................................................... 167 17.5 PROGRAMMES, OBJECTIVESAND STRATEGIES ........................................................................... 17.6IMPLEMENTATION, MONITORING AND EVALUATIONFRAMEWORK ............................................... ARTS AND CULTURE ........................... -........................................................ .......".."................... ,..,176 18.1INTRODUCTION.... ........................................................................... 176 18.2REVIEW OFPAST PERFORMANCE ........................................................................................ 176 18.3 POLICIES AND KEYREFORMS ............................................................................................. 178 18.4 VISIONAND GOALS .......................................................................................... 178 18.5 PROGRAMMES, OB ........................................................................................... 178 18.6 IMPLEMENTATION, MONITORING AND EVALUATIONFRAMEWORK .................................................. 179 WATER AND SANITATION ...........".................................................................................. ....m................................. 183 19.1 INTRODUCTION.............................................................................................................................................. 183 19.2 REVIEWOF PASTPERFORMANCE ................................................... ..................183 19.3 POLICIES AND KEYREFORMS ..................................................... 19.4 VISIONAND GOAL................................................................................................................... 19.5PROGRAMMES, OBJECTIVESAND STRATEGIES....... ............................ 187 19.6IMPLEMENTATION, MONITORING AND EVALUATION FRAMEWORK............................................................... 190 HOUSING..U.....nU............................. ...................... ........................ .............................. ...."......".........UY-.....__.....-U..-......".." 197 20. 1INTRODUCTION............................................................................................................................................... 197 20.2 REVIEWOF PASTPERFORMANCE ..................................................................................................... 197 20.3POLICIES AND KEY REFORMS ............................................................... 198 20.4 VISIONAND GOAL................... ............................................................... 199 20.5 PROGRAMMES, OBJECTIVES AND STRATEGIES................................................................................... 20.6IMPLEMENTATION, MONITORING EVALUATIONFRAMEWORK AND ............................................................... 200 DISABILlTY AND DEVELOPMENT. ...."..."........... ........"............-....."................................. ..........-.....203 21. 1INTRODUCTION........................................................................................ 21.2REVIEWOF PASTPERFORMANCE .......................................................... 21.3 POLICIES AND KEY REFORMS ....................................................................................................................... ~ 0 4 21.4 VISIONAND GOAL............................................................................... ..................... 204 21.5 PROGRAMMES, OBJECTIVES AND STRATEGIES AND RESPONSIBLE lNSTlTUTI0NS ..................................... 204 21.6 IMPLEMENTATION, MONITORING EVALUATION FRAMEWORK AND ................................................................ 206 SOCIAL PROTECTION............................... ................................... ............................... ............................................210 22. I /NTRODllCTlON............................................................................................................................................ 210 Ffth National Development Plan 2005 - 2010 vi 22.2REVIEW OF PAST PERFORMANCE.................................................. ............................ 210 22.3POLICIES AND KEYREFORMS .................................................................................................................... 212 22.4 VISIONAND GOAL.......................................................................................................................................... 212 22.5 PROGRAMMES, OBJECTIVES AND STRATEGIE ....................................................................... 212 22.6 IMPLEMENTATION, MONITORING EVALUA AND EWORK ..................................... 214 YOUTH AND CHILD DEVELOPMENT "....,.......................................... ............................... ,.....................-........218 23. 1INTRODUCTION............................................................................................................................................... 218 23.2REVIEWOFPASTPERFORMANCE ................................................................................................................. 219 23.3 POLICIES AND KEY REFORMS ..................................... 23.4 VISIONAND GOAL.............................................................................................................. 23.5 PROGRAMMES, OBJECTIVES STRATEGIES AND ........................................................ 23.6 IMPLEMENTATION, MONITORINGAND EVALUATION FRAA~EWORK ................................................................ 223 EMPLOYMENTAND LAB0UR .................................... _I..._...,,....,,,.".,..,.....-................................ ......................... 227 24.1 INTRODUCTION.... ................................................................ 227 24.2 REVIEW OF PAST ................................................. ....................................... ,227 24.3 POLICIES AND KE ..................................................... 228 24.4 VISIONAND GOAL............................................................................................................... 229 24.5PROGRAMMES, OBJECTIVES STRATEGIES AND ............................................................................................ 229 24.6 IMPLEMENTATION, MONITORING AND EVALUATION FRAMEW~RK ................................................................ 231 6OVERNMENTADMINISTRATION ............................. ......................................................................................... ...............-.......233 CENTRALADMINISTRATION, .................................. .......................... .....................-...- .....,Y. ....235 25. 1 INTRODUCTION................................................................................................................... 235 25.2 REVIEW OF PAST PERFORMANCE................................................................................................................. 235 25.3 POLICIES AND KEY REFORMS ....................................... ........................................................................ 236 25.4 VISIONAND GOAL.............................................................................................................. 25.5 PROGRAMMES, OBJECTIVES AND STRATEGIES................................................................ 25.6 IMPLEMENTATION, MONITORING AND EVALUATION FRAMEWORK ............................................................... 238 LOCAL GOVERNMENTAND DECENTRALISATION ........."................................ .n...,..................l..................242 26.1 INTRODUCTION.............. ................................................................ 242 26.2 REVIEW OF PAST PERF ....................................................................................... 26.3 POLICIES AND KEYREFORMS ............................................................................................. 26.4 VISIONAND GOAL.......................................................................................................................................... 243 26.5 PROGRAMMES, OBJECTIVES AND STRATEGIES................................................................. .....243 26.6 IMPLEMENTATION, MONITORING EVALUATION FRAMEWORK AND ................................................................ 245 INFORMATIONSERVICES .......................................................... ............................................... ....L...- ............................-248 27.1 INTRODUCTION.... ............................................................................................................... 248 27.2 REVIEW OF PAST ............................................................................................... 248 27.3POLICIES AND KEYREFORMS .................. ............................................................................... 249 27.4 VISIONAND GOAL.......................................................................................................................................... 249 27.5PROGRAMMES, OBJECTIVESAND sTRAT&GIES................................................................. 27.6 IMPLEMENTATION, MONITORING AND EVALUATION FRAMEWORK ..................................... FOREIGN RELATIONS .......................................... ............................................................... ...........,.................D,..................,254 28.1INTRODUCTION............................................................ ............................................................................. 254 28.2 REVIEW OF PAST PERFORMANCE ............................................................................. ......254 28.3 POLICIES AND KEY REFORMS ............................................................................................... .......255 28.4 VISIONAND GOAL......................................... ................................................................ 256 28.5 PROGRAMMES, OBJECTIVES AND STRATEGI ............................................................... 256 28.6 IMPLEMENTATION, MONITORING AND EVALUATION FRAIMEWORK ......................................... ......257 PUBLICSAFETY ................................... ................................................................................... DEFENCE................................................................. .......................................................................... ................................ ............................,....... 259 s.......-m 261 29.1INTRODUCTION............................................................................... .......................... 261 29.2REVIEWOFPASTPERFORMANCE .......................................... ......................... 261 Fifth National DevelopmentPlan 2006-2010 vii 29.3 POLICIES AND KEY REFORMS ............. ..................................................... ........................... ........................ 261 29.4 VISIO~V AND GOAL.......... .._... .. ...,,.. ...______.__. ._...._...._....._._,., .....,. .... ,__... , .,._.,... ._._..._ ...._....._...__... ...262- ...., 29.5 PROGRAMMES, OBJECTlVES AND STRATEGIES............................. .. ..._....__ .. .__, ....__....._....,. ,262 ... 29.6IMPLEMENTATION, MONITORING EVALUATION AND FRAMEWORK _............. . .......... ._.. ..... .........262 PUBLICSAFETY AND ORDER........................................................................... .......................................... ..".................267 30.1 lNTRODUCTI0 .., ... , ............. __. ... .............__.._.___............._............................ 267 .. 30.2 REVIEW OF PA .....,.._..__........._._.._. ................................. .__.........._........ ......................... 267 30.3 POLICIES AND KEYREFORMS ._. __..._. 268 30.4 VISIONAND GOALS 30.5 PROGRAMMES, OBJECTIVES AND s _..._.___..___.__.._.._._. .... . __.__________.__._._ 269 ...............,.. ............. ...._ ................_. ._................................................ .............269 ._. ... 30.6 IMPLEMENTATION, MONITORING EVALUATION AND FRAMEWORK ....................................... .....,269 CROSS-CUTTIN6 ISSUES ......................................... .............. , ..................*................._..-.........................................."....".274 GOVERNANCE ........................................................... .......................................... ........................ ............................. ....276 31.1 INTRODUCTION..................................................................................................................... 31.2 REVIEWOF PASTPERFORMANCE ....................................................................................... 31.3 POLICIES AND KEYREFORMS ................................................................................................................. "..280 31.4 VISIONAND GOALS ................................................... 281 31.5 PROGRAMMES, OBJECTIVES AND STRATEGIES............................................................................................ 281 31.6 IMPLEMENTATION, MONITORING EVALUATION AND FRAMEWORK .................. .................... 285 HIVAND AIDS........................................................ .............................................................................................................. ,296 32. I /NTRODUCTION................................................................................................................... _..___ . _ _296 32.2 REVIEW OF PAST PERFORMANCE ................................................................................................................. 297 32.3 POLICIESAND KEYREFORMS ............... ...................... 297 32.4 VISIONAND GOAL.................................... .__.___,___..._....... 299 32.5 PROGRAMMES, OBJECTIVESAND STRA ........................................................................ .................... 299 32.6 /MPLEMENTATION, MONITORING EVALUATION FRAMEWORK........................................ AND ............. ........301 ENVIRONMENT....................... .............................. ................................................... mm .................._................._.......................... 304 33.1INTRODUCTION...........................,...............,,.....................,.........,.,............................... ............................... 304 33.2 REVIEWOF PASTPERFORMANCE ......................................................... 33.3 POLICIES AND KEYREFORMS _.._____._..._._....... , 305 33.4 VISIONAND GOAL_..._____.__. . .... 33.5 PROGRAMMES, OBJECTIVES STRATEGIES AND ........................................................ 33.6 IMPLEMENTATION, MONITORING EVALUATION AND FRAMEWORK ........... ........308 GENDERAND DEVELOPMENT ............................................................... ................................................................ 313 34.1 lNTR0DUCTION .....,,..... 313 34.2 REVIEW OF PAST PERFORMANCE ................................................. ............................................................... 3 1 ~ 34.3 POLICIES AND KEYREFORMS ................................................................................................. .........314 34.4 VISIONAND GOAL.................................................... ........ ...........314 34.5 PROGRAMMES, OBJECTIVES AND STRATEGIES............................................................................................ 315 34.6 /MPLEMENTATION, MONITORING EVALUATION FRAMEWORK ..__.._......_....__.._. AND ..... ........... 316 FOODAND NUTRITION ................................... ..........................=........ ........................Y... .............................................320 35.1 INTRODUCTION........................... .. ........................... ......................... ............... 35.2 REVIEWOF PASTPERFORMANCE .................................................................................................. 35.3 POLICIES AND KEYREFORMS _._._._._....___._........ ............................................................................................ 321 35.4 VISIONAND GOALS ......................... ............................................... . ....... ............................................ 35.5PROGRAMMES, OBJECTIVES STRATEGIES AND ................_...._....._...................................... .... 35 6 IMPLEMENTATION, MONITORING EVALUATION FRAMEWORK AND ................... .................................. REGIONALDEVELOPMENT ......_..........._.._..._...l...f.._I .. ................,.....-........_..I.......................................................... _..L*.E.._.I ........ _..,........--.*.. ......................... L...l ...."-.........125322 ..-.... REGIONAL DEVELOPMENT.........l............s..Y.l...... E e ........327 36. 1 /NTRODUCTION . ........................................ .. _..__._..._.._... ~__.,......... ........................ .......... 327 36.2 CENTRALPROVINCE ..........._..._._ .._._._...__.._._._.___.._ ..__....._._..__ _._.._. 36.3 COPPERBELTPROVINCE .... .. _ _ ._._._ . .__._._ _____.__ _.._.___...__ , .._....._...._.._ _._..._.._.__._.._ _._._...._.__. ..__.._.______...______._________. .... ............. ,330 Fifth Nutional Development Plan 2006 - 2010 ... V l l l 36.4 EASTERNPROVINCE ................... ............................................................................................ 332 36.5 LUAPULAPRO~/NC ................................................................................................................................... 335 36.6 LUSAKAPROVINCE .............................. ......................................................................................... 337 36.7 NORTHERNPROW ......................................... ...................................... 339 36.8 NORTH-WESTERN E .................................................................. .................................... 341 36.9 SOUTHERNPROVINCE .............................. ................................................................................... 343 36.10 WESTERNPROVINCE ....................................................................................................... 36.11 /MPLEMENTAT/O FRAMEWORK.. ........................... FIHANGIHG,IMPLEMENTRTIOH,MONITORINGANDEUZILIJATIQNFIRWMEWOBK ...-..............~"""..._.."...~......-.....- 349 FINANCINGOF THE FNDP..................................................................... ......................... --...351 37.1 /NTRODUCT/ON............................................................................................... ..................351 37.2 F~NANC~NGOF THE fNDP ... .................................................................. 37.3 THEDEVELOPMENTPLAN ............................................................................. INSTITUTIONALFRAMEWORK FOR FNDP IMPLEMENTATION,MONITORINGAND EVALUATI0NU.._..U.....*..................................... ".,..",.,........"..."....................................... ..................D..l...U.........._......la...m._ - 365 38.1/NTRODUCT/ON.............................. ...................................................................................... 365 38.2 IMPLEMENTATlONFRAMEWORK ........................................................................................................ 365 38.3 MONITORING, EVALUAT/ON AND REPORTING FRAMEWORK ................................................... 370 Fif?'hNational Development Pian 2006 2010 - ix Tables and Figures Tables 1.1: Summary of World Output Trends: 1998-2005 .................................................................. 5 1.2: Annual Percentage Changein World Trade 1998- 2005 ....................................................... 6 1.3: Annual GDP Growth Ratesby Sector, 1998-2005 ................................................. 7 1.4: Annual GDP Growth Ratesby Expenditure Type, ................................................... 9 1.5: Monetary Growth and Inflation Targets and Outcomes, 2002-2005 ................................... 1.6: SelectedFinancial Indicators 2002-2005 ......................................................................... 11 1.7: SelectedExternal Sector Indicators: 2002-2005 ................................................................ 11 1.8: External Aid Inflows, 2002-2005 ........................................ 13 2.1: Changes inPoverty, 1998-2004 .. ........................................ 26 4.1: Growth Scenarios, 2005 - 2010 ................................................................................ 4.2: PopulationEstimates ............................................................................................ 4.3: Proportions of Projected Populationby Age Groups ............................................................ 82 9.1: Contribution of Transport and ConstructionSub-sectors to GDP, 1999-2005 .............................. 83 9.2: Disbursementsfor Roads2000-2005 .............................................................................. 83 9.3: Fuel Levy Collections and Remittances, 2000-2005 9.4: Aircraft Movements (Domestic and International), 2 ................................................ 116 12.1 Sector Growth Rates at Constant 1994 Prices, 1994 12.2 Manufacturing Value Added by Sub-sector .......... 12.3 Objectives ofthe Private Sector Development Reform Programme ........................................... 125 13.1 Export Trends, 2000- 20 ................................................................................... 162 17.1 Summary of Health Key ance Indicators ................................................................ 162 17.2 SelectedHealth Care Delivery and Impact Indicators ................................. 163 17.3 National Health Priorities ............................................................................................ 186 19.1 Plavers inthe Water Sector and their Roles ....................................................................... 191 19.2: Current functions of the Ministry of Energy and Water Development and its Institutions .................191 19.3: Institutional functions after the Water Resources ManagementAct is passed ............................... 197 19.4: Water Supply and Sanitation: Responsibility Allocation ......................................................... 198 20.1:National Housing Stock ............................................................................................... 317 20.2: HousingProjects Development 2002-2004 ....................................................................... 324 35.1: Nutritional Status of Children Aged 0-59 months, 1991-2003 36.1: 2000 Census Populationby Province and Sex ................... 36.2: Projected Populationby Region and Sex, Medium Variant 2005 and 2010 ................................... 349 37.1: Baseline Broad FiscalTargets: Percentage of GDP ............................................................... 349 37.2: Baseline Broad Fiscal Targets and Parameters ..................................................................... 352 37.3: Key Fifth National Development PlanFiscal Targets andAssumptions, 2006-2010 ........................ 353 37.4: Core Fifth National Development Plan Costs ..................................................................... 355 37.5: Summary Expenditureand Financing ................................................................. 37.6: Broad Fifth National Development Plan SectoralAllocations (percentage) ................................. 37.7: Broad Fifth National Development Plan Sectoral Allocations (Kwacha Billions) ........................... 369 38.1: Institutional Roles and Responsibilities for Fifth National Development Plan Monitormg ........................................................................................................... 364 . . Implementation i 38.2: Key performance indicators for the Fifth National Development Plan .............................. 38.3: Levels of Reporting for the FifthNational Development Plan Monitoring and Evaluation Syste 38.4: Users and Uses of Data at Various levels of the FNDP Monitoring System ................................. 378 38.5: Work Plan and Activities for Monitoringthe FifthNational Development Plan .... . 379 38.6: Timeframe and Activities for the Monitoringand Evaluation of FNDP ..................................... 380 Fifth National Development Plan -3006 2010 . X Figures 2.1: Growth and PovertyTrends. 1931-2004 .............................................................. 12 2.2: Incidence of poverty by province in 200 ....................................................................... 14 2.3: Provincial contribution to national poverty: 2004 .................................................................... 14 2.4: Povertyby Sex and Age of household Head, 2002/2003 ............................ 15 2.5: Povertyby Household Size, 2002/2003 .............................................................................. 16 2.6: Poverty by Education Level, 200212003 ........................................................................... 16 4.1: Private Sector Development Reform Areas and Objectives ....................................................... 35 4.2: Private Sector Development Reform Programme Framework .................................................... 40 14.1:Energy Consumption Trends, 1986-2002 ........................................... 133 37.1: External Aid Projections: 2006-2010 .............................................................................. 354 38.1: Institutional Arrangement and Information Flow ................................................................. 365 Ffth Nutionul Development Plan 2006 2010 .. xi Acronyms ABB Activity BasedBudgeting ACC Anti-Corruption Commission ADB African DevelopmentBank ADC Area DevelopmentCommittee AGOA Africa Growthand OpportunityAct AIDS Acquired Immuno-DeficiencySyndrome ART Anti-Retroviral Therapy ARV Anti-Retroviral ASIP Agricultural Sector InvestmentProgramme AU African Union BoZ Bank of Zambia CBO Community BasedOrganization CBoH CentralBoardof Health CEDAW Conventionon Elimination of Discrimination Against Women COMESA CommonMarket for Easternand SouthernAfrica CPI ConsumerPriceIndex cso CentralStatistical Office DAFT District AIDS Task Force DBZ DevelopmentBank of Zambia DDCC District DevelopmentCoordinatingCommittee DEB District EducationBoards DEC DrugEnforcementCommission DIP DecentralisationImplementationPlaii DMMU Disaster Management and Mitigation Unit DWA Department ofWater Affairs D-WASHE District Water,Sanitation,HeaIth and Education EBZ Export Boardof Zambia ECCDE Early ChildhoodCare, Developmentand Education ECZ EnvironmentalCouncil of Zambia EPA Economic PartnershipAgreement EU EuropeanUnion FBO Faith-BasedOrganisations FDI ForeignDirect Investment FNDP Fifth National DevelopmentPlan GDP Gross DomesticProduct GIDD GenderinDevelopmentDivision GIS Geographical Information Systems GMO GeneticallyModifiedOrganism GRZ Government ofthe Republic of the Zambia GSP GeneralizedSystemof Preference HIPC Heavily IndebtedPoor Country HIV HumanImmuno-Deficiency Virus ICT Information andCommunicationTechnology IFAD InternationalFundfor Agricultural Development IFMIS IntegratedFinancialManagementInformation System ISP InfrastructureService Provision LCMS LivingConditions Monitoring Survey LDC Least DevelopedCountries LuSE Lusaka Stock Exchange M&E Monitoring andEvaluation MAC0 Ministry ofAgriculture and Cooperatives MCDSS Ministry of CommunityDevelopmentand Social Services MDGs Millennium DevelopmentGoals MEWD Ministry of Energyand Water Development MFN Most FavouredNation MLGH Ministry of Local Government and Housing MOD Ministry of Defence MoE Ministry of Education Fifth National Development Plun 2006 - 2010 xii MoFNP Ministry of Finance and liational Planning MoH Ministry of Health MISS Ministry of Labour and Social Security MSMEs Medium. Small and Micro Enterpnses MSTVT Ministry of Science, Technology and VocationalTraining MTEF Medium-TermExpenditure Framework MTENR Ministry of Tourism, EnvironmentandNatural Resources NCPPS National CorruptionPreventionPolicy and Strategy NCSR NationalCouncil for Scientific Research NCZ Nitrogen Chemicals of Zambia NDCC National DevelopmentCoordinatingCommittees NDP National DevelopmentPlan NDP-SC h'ational DrugPolicy SteeringCommittee NEAP NationalEnvironmentalAction Plan NEPAD New Partnership for Afnca's Development NFNC National FoodandNutrition Commission NGO Non-GovernmentalOrganisation NHCC National HeritageConservationCommission NISIR National Institutefor Scientific and Industrial Research NMB National MuseumsBoard NMCC National Malaria Control Centre NPE National Policy on Environment NRDC Natural ResourcesDevelopmentCollege NRFA National RoadFundAgency NSCB National Savings and Credit Bank NSTC National Science and TechnologyCouncil OAG Office ofthe Auditor General OAU Organizationof Afncan llnity ovc Orphansand Vulnerable Children PACRO Patentsand Companies RegistrationOffice PAF PerformanceAssessment Framework PATF Provincial AIDS Task Force PDCC Provincial DevelopmentCoordinatingCommittee PEMC Provincial EducationManagement Comnnttee PEMD Planningand Economic ManagementDepartment PEMFA Public ExpenditureManagement andFinancialAccountability PER Public ExpenditureReviews PPP Pnvate-Public-Partnership PRP ParliamentaryReform Project PRSP Poverty ReductionStrategy Paper PSC Public Service Commission PSCAP Public Service Capacity BuildingProgramme PSD PrivateSector Development PSM Public Service Management PSMD Public Service Management Division PSPF Public ServicePensionFund SACU SouthernAfrican Customs Union SADC SouthernAfrican DevelopmcntCommunity SAG Sector Advisory Group SEDB Small Enterprises DevelopmentBoard STI SexuallyTransmitted Infection SWAp Sector-WideApproach TAZARA Tanzania-ZambiaRailways Authority SYSMIN Systeme de Stabillsation de Recettes de Explortutlon de Product5 Miners TEVET TechnicalEducation,Vocational and EntiepreneurshipTraining TEVETA Technical Education,Vocational and EntrepreneurshipTraining Authority TNDP 'IransitionalNationalDevelopmentPlan L;N UnitedNations UNCCD UnitedNationsConventionto Combat Desertificahon UNCRC UnitedNationsConventionon the Rights of the Child UNICEF UnitedYations Children's Fund UNZA University of Zambia ... Fiftli Naiional Development Plan 2006-2010 XI11 VCT Voluntary Counsellingand resting WASHE Water, SanitationHealthand Education WFP World FoodProgramme WI-IO VJorld HealthOrganisation WTO Wcrld Trade Organisation ZABS Zambia Bureauof Standards ZAM ZambiaAssociation of Manufacturers ZAMTEL ZambiaTelecommunicationsCompany Limited ZAPD ZambiaAgency for Persons with Disabilities ZAWA Zambia Wildlife Authority zcc ZambiaCompetitionCommission ZCF Zambia CooperativeFederation ZCSMBA Zambia Chamber of Small andMedium BusinessAssociations ZDA Zambia DevelopmentAgency ZDHS ZambiaDemographicHealth Survey ZESCO Zambia Electricity SupplyCorporation ZIC ZambiaInvestmentCentre ZNBC ZambiaNational BroadcastingCorporation ZNBS ZambiaNational BuildingSociety ZNS ZambiaNational Service ZP Zambia Police ZPA Zambia PrivatisationAgency F$h National Development Plan 2006-2010 xiv The resurgence o f planning to tackle the challenges o f wealth creation and poverty reduction is both timely and imperative. The re-emergence o f planning following nearly two decades o f the pre- occupation with stabilisation and adjustment signals the realisation o f several realities that the Government shares with bilateral and multilateral bodies as well as with civil society. Principal among these is the recognition that in spite o f the reasonable level o f growth during the years o f structural reforms, poverty remains pervasive. What is even more disconcerting is the realisation that the depth of poverty and its severity have been fast worsening as the majority of Zambians continue to subsist on the equivalent o f less than $1 a day. National statistics show that the poverty level in the country in 2004 averaged 68 percent while the rural regions' average is much higher.Under such conditions, poverty is slowly compromising the sustainability o f all that the country has achieved since independence. Adverse humanwelfare indices such as reduced access to a nutritionally adequate food basket, child and adult malnutrition, insufficient access to education and health facilities, and the resultant reduction in life expectancy all point to the urgency o f effectively addressing the national developmental challenge. Zambia is currently in the lowest category o f human development as defined by the United Nations Development Programme (UNDP). Inthis regard, the challenge o f reducingpoverty is perceivedby the Government not as an option but as an imperative for under such highpoverty conditions, the social and political stability that is so pivotal for the revival o f the country's growth and prosperity becomes vulnerable to real and potential societal tensions. One o f the important lessons learnt from the 1990s was the realization that even in a liberalized economy, development planning is necessary for guiding priority setting and resource allocation. The absence o f planning tends to force us to concentrate on short- term needs representing narrow sectional interests thus denying the country the opportunity to attain abroad based socio-economic development. The national long-term planning instrument entitled Vision 2030, prepared in consultation with line ministries, provinces, districts, the donor community and civil society, sets Zambia's the long-term vision. The Vision 2030 reflects the collective understanding, aspirations and determination o f the Zambian people to be a `prosperous middle-income country'. The Vision sets the horizon for developing the medium-tern plans andprovides the `gravitational pull' to achieve long-term objectives. I t outlines in broad terms, plausible courses o f action to be taken towards the achievement o f the country's long-term objectives and targets. I t broadly reflects what Zambians aspire to be by 2030 and the options they feel will realistically get them there. The Vision will be operationalised through five- year medium term planning instruments, which are to contain specific policies, programmes and projects, predominantly targeted towards wealth creation and poverty reduction. The first o f these plans is the Fifth National Development Plan (FNDP), which will be implemented from 2006 to 2010. The planning process o f the FNDP integrated views from the Provincial and District Development Plans approved by the respective provincial and district level organs. The FNDP's goals are multi-pronged: Firstly, the Government recognises that wealth creation through sustained economic growth constitutes the most important element in poverty reduction and, consequently, a very high premium is being placed on growth-stimulating interventions; Secondly, the Government recognises that redistributive policies do matter for reducing poverty and that growth and equity are not necessarily in conflict. The Government maintains that there is no intrinsic trade-off between long run aggregate efficiency and overall equity, hence its resolve to approach poverty reduction through the `broad-based growth' approach. It is in this context that the Government, together with civil society, has placed priority attention on those sectors that both maximise growth stimulation as well as on those, such as agriculture, education and health, that best address the plight o f the poor; Thirdly,the Government maintains that the needed linkages between g r o th and poverty reduction can ~ be developed in a sustainable way, but only through an approach that allows everyone to share the benefits o f growth. Although, under the nght circumstances, sustained growth does often result in FiftlzNationa1,Development Plan 2006-2010 1 poverty reduction, rising inequality adversely affects this and it is in this regard that the role o f social protection is considered an important FXDP component. Notwithstanding this, empowering the poor to earn a decent livingincome is perceived to be a muchmore effective approach inaddressing their plight than the often unsustainable subsidy programmes that tend to destroy the very financial and human resource bases that are expected to facilitate positive growth through productive investment; and, Fourthly, long periods o f neglect in infrastructure maintenance due, in part, to the curtailment o f development budgets in the interest o f fiscal balance, have resulted in the country's characteristic deterioration of its transport networks. It is in this regard that, as one o f its priorities in this Plan, the major transport arteries that connect the countryside to the market are focused upon to ensure basic minimum connectivity for moving poor people's income-yielding commodities over long distances. Under the banner o f Broad-Based Wealth and Job Creation through Citizenry Participation and Technological Advancement as its theme, the Plan aims to target in the next five years both wealth creation andpoverty reduction. Inputting together this Plan, the Government enlisted the involvement of all the major stakeholders, includingcivil society, cooperating partners, and the private sector. District and provincial plans were developed through a consultative process that was facilitated by the Ministry o f Finance and National Planning. The consultation process has integrated views o f 21 Sector Advisory Groups (SAGs) and included the preparation o f 72 district development plans that were approved by the respective district level organs. Indeed, the summary o f the Government's strateges and programmes at provincial level are drawn from the provincial and district development plans and are presented in Chapter 36 on Regional Development. The comparative advantage o f each province and linkages within the sectors are clearly stated inthe strategc focus o f each province with the key programmes that will be undertaken during the FNDP. The activities o f the provincialldistrict programmes are not presented in this Plan as they belong to the nine provincial development plans and the 72 districts development plans that would be publishedseparately. The 72 district development plans set a base for fiscal decentralization and the development process for the districts. The bottom-up and top-down consultation approach during the preparation o f the FNDP and subsequent national development plans will be fully established and strengthened through programmes such as fiscal decentralization which is part of the overall decentralization policy process. The objective o f the fiscal decentralization programme is to come up with a fiscal framework that will spell out how resources will be shared and distributed to the district levels. After a thorough process o f refinements, these lower-level plans were considered and approved by the Provincial and District Development Coordinating Committees. A t the central level, Sector Advisory Groups (SAGs), chaired by the respective Permanent Secretaries, were given revised Terms o f Reference to enable them play a strategic role in the development o f the FNDP. Members o f SAGS include Government officials, representatives o f cooperating partners, and representatives o f civil society organisations. Consultants were also hired to support the work o f the SAGs. A series o f meetings were held to identify the FNDP priorities and the Ministryo f Finance and National Planning, through its Planning and Economic Management Department (PEMD), assumed the lead role as facilitator o f the process that has resulted in the production o f this Plan. PEMD was also assisted by a team o f consultants in finalising this Plan. A Steering Committee o f Permanent Secretaries, chaired by the Secretary to the Cabinet, superintended the entire FNDPplanning process. After the draft Planwas released, a national stakeholders' workshop was held which discussed the Plan and its implications. Based on the draft and the input from the stakeholders' conference, this Plan was then approved by the Cabinet and published. The Plan is dividedinto 9 parts. Part 1presents a review of economic and social developments, globally as well as nationally. The country's poverty profile is also presented to set the stage for the country's developmental interventions. Part 2 gives the goals and objectives o f the FNDP, and outlines the Government's strategic focus during the 2006 to 2010 Plan period. The macroeconomic, social and structural policies that the Government shall pursue during the Planperiod are presented in this part. Fi`h National Development Plan 2006 -2010 2 Parts 3 and 4 present the Government's envisaged plans for the ecoiiomic and social sectors, respectively, while Part 5 covers Government Administration. focusing on the envisaged programmes and strategies for central administration, local government, information services, and foreign relations. Part 6 covers Public Safety, focusing on defence and public safety and order. Cross-cutting issues are covered in Part 7, which addresses issues related to governance, HIV and AIDS, the environment, gender, and food and nutntion. Part 8, which is dedicated to Regional Development, presents the Government's strategies and programmes at the provincial and district levels. Lastly, Part 9 on the Financing, Implementation, and Monitoring and Evaluation Framework presents the assumptions and strategies for financing FNDP, highlighting the priority expenditures over the 2006-2010 Planperiod. It also defines the institutional framework within which FNDP shall be implemented and its performance monitored and evaluated. F$th NutionalDevelopment Plan 2006-2010 3 Review of Economic Developments 1.7 Overviewof Global Economic Developments The perforniance o f the global economy during the period o f the Poverty Reduction Strategy Paper (PRSP) 2002 to 2004 and the Transitional National Development Plan (TNDP) 2002 to 2005 implementation was generally favourable with commodity prices rising to record levels especially for base metals and crude oil. However, the volatile and high oil prices caused macroeconomic instability inmanynon-oil developing countries. Global real GDP growth averaged4.3 percent duringthe 2002 to 2005 period compared to 3.4 percent in the period 1998 to 2001 (see Table 1.1). The expansion in growth was led by developing Asia and the United States, which sustained its growth path especially in 2004 and 2005. Developing Asia, notably China and India, witnessed the highest expansion in economic growth, with an annual real GDP growth for the region standing at 8.0 percent, compared to 5.7 percent inthe preceding four years. Other regions o f the world that experienced a rise in economic growth were the Middle East and Africa, with the latter's performance notably improving, with an annual real GDP growth rising to 4.7 percent, from 3.4 percent inthe period 1998 to 2001. A number o f African countries, including Zambia, also benefited from debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative o f the World Bank and the International Monetary Fund. World Trade Volume (goods and services) 5 7 3.4 5.4 10.3-70 6 5 Terms of Trade (0.4) 0.8 1 1 (02) (1.7) 0.2 Developing countries (0.2) 1.2 0.9 2.9 6.2 2.8 Ff?h National Development Plan 2006 2010 - 5 1998 to 2001 when metal prices collapsed, declining by an average o f 4 percent per annum. The price of copper, which is Zambia's main export commodity, increased to a record higho f U S $1.61 perpound in 2005, from US $0.71 in 2002, an increase of over 100 percent (see Table 1.2). The prices of agricultural raw materials, which had collapsed during the 1998 to 2001 period, were also registering positive growth trends, risingby annual average o f 2.8 percent. ,ource: World Economic Outlook, InternationalMonetaryFund, September 2004 & 2005 1.2 TheImpact of GlobalDevelopments on the Zambian Economy The expansion inthe global economy translated into higher demand for primary commodities resulting in higher prices. The increase in metal prices impacted positively on Zambia's mining industry and the macroeconomic environment in general. The miningindustry which faced difficulties duringthe 1998 to 2001 period received a major boost as a consequence o f the rise in prices since 2003. Higher prices, coupled with the privatisation o f the major mines, allowed for enhanced investments inthe existing mines on the Copperbelt as well as in the new mining ventures in the North-Westem province. As a result of higher pnces and increased output, metal export receipts shot up by over 170 percent. Similarly, the increase m prices o f agricultural products also positively impacted on export receipts o f non-traditional exports. Metal and agricultural commodity prices increased leading to increased terms o f trade. However, oil prices also shot up. The impact o f higher world oil prices on the Zambian economy was a rise in the import bill and an increase in energy prices, which were also volatile especially in2004 and 2005. Higher oil prices led to rising production costs and were also a factor in Zambia failing to reach single digit inflation target that had been envisaged during the PRSP/TNDP period. However, due to the significant increase inmineralproduction, the deficit inthe merchandise trade balance reduced during this period. 1.3Domestic Economic Growth Trends The performance of the Zambian economy considerably improved during the period o f the implementation o f the PRSP and TNDP from 2002 to 2005. Real GDP growth averaged 4.8 percent per year, up from an annual average o f 2.2 percent in the preceding four years. Growth actually exceeded the 4 percent target identified in the PRSP/TNDP. The improvements in performance represented a marked reversal o f the economic stagnation experienced duringthe 1990s. Per capita income grew at 2.3 percent annually. These positive growth trends are due largely to several factors including favourable global economic conditions and the overall impact o f the economic reforms that started in the early 1990s. The rapid expansion o f mining and construction were the key drivers o f growth during the period. The renewed expansion o f the mining sector was as a result o f recapitalisation and new investments following the privatisation of state-owned mines and the buoyant world commodity markets. The construction sector recorded rapid growth as a result o f private construction activities, especially inresidential housing inthe main urban centres and in facilitating mining sector investments. Manufacturing and tourism also recorded strong growth, averaging 5.2 and 7.4 percent, respectively. The growth in manufacturing was driven by the food and beverages sub-sector while growth inthe tourism was largely on account o fprivate sector investment in the sector. Growth in the agricultural sector averaged only 2.6 percent, with variations inweather patterns as well as inadequate infrastructure and generally poor market access. Table 1.3 shows the annual GDP growth in recent years. Table 1.4, summarises the annual GDP growth rates by expenditure type over the 2002 to 2004 period. F@hNational Development Plan 2006-2010 6 Table 1.3: Annual GDP Growth Rates by Sector, 1998-2005 ---_ (Constant 1994prices) __-____ _- -. 1998-2001 1 2002- 2003 2004 I 2005 Average I_ _ _ _ _ _ _ _ ~ - Average I Actual Actual I ~ Actual , Actual 2002-2005 Primary sector _- 2 3 7 5 1 Agriculture, forestry, and fishing Manufacturing___ 3 5 ' 5 7 r-- Electriciwas, and water +-- Construction ~ _- 1 9 3 4 ~ Tertiary sector Wholesale and retailtrade 4 0 6 2 Financial intermediation and insurance 0 5 t_ Real estate and business services I , i Cpmunity,social, and personal services , 2 3___ -- J 3 8 l Other I 7-- - Source Central Statistical WjceandMinoto of Financeand National Planning Table 1.4:Annual GDP Growth Rates by Expenditure Type, 2002-2004 Ik-GDP(marketpnces) 2002 2003 1 2004 j 3 3ij 4 2 3 2 Governmentconsumption ~ j ' Privateconsumption investment ,cimparts Exports - - - - (22)1 L- Source NationnlAccounrs (CSO,2005) 1.4 Fiscal Policy Developments Fiscal performance generally fell short o f meeting the PRSP objectives. The overall deficit, including grants, averaged 6.7 percent o f GDP over the PRSP period, far beyond the target o f 3 percent. More significantly, domestic borrowing to finance the deficit was much higher, averaging 3.6 percent o f GDP over the period. I t reached 5.1 percent o f GDP in 2003, which caused a rise in interest rates, domestic debt and interest payments. As a percent o f GDP, domestic debt rose from 7.7 percent in 2001 to over 20 percent in the period 2002 to 2003. Similarly, domestic interest payments rose to an average o f 2.8 percent o f GDP from 1.4 percent in the period 1998 to 2001, which caused the primary balance to deteriorate from a surplus to a deficit. The increase in government borrowing from the banking sector also contributed to an excessive rate o fmonetary growth. The increase in the deficit and recourse to domestic financing were because o f expenditure overruns related to wages and salaries and recurrent expenditures especially in 2003. This was compounded by shortfalls in donor assistance. The wage bill exceeded budget allocations and rose from 5.3 percent of GDP in 2000 to 8.5 percent in 2003, well above Sub-Saharan Africa's average o f around 7.5 percent. The Government in 2004 took corrective measures to control domestic borrowing and, thus, preserve macroeconomic stability. This resulted indomestic borrowing falling to 1.9 percent o f GDP in2004 and further down to 1.8 percent in2005. With regard to re-orienting spending towards PRSP priorities, budgetary releases towards the priority poverty reduction programmes was only 50 percent o f budget allocation in2003. It, however, improved to 100 percent in 2004 and 2005. Budgetary releases to the education sector as a share o f the discretionary budget increased to 22.6 percent in 2005 from 19.7 percent in 2003 while those to the health sector declined to 10.2 percent in 2005 from 12 percent in 2003. Similarly spending on key econotnic services such as agriculture remained unsatisfactory. Despite agricultural development being FifthAiutioncll Development Plan 2006-2010 7 accorded priority inthe PRSP, budgetary outlays to the sector were only 3 percent o f national budget in 2004 before rising to 5.8 percent in 2005. However, most o f the outlays were mostly directed towards personnel related expenses and supporting maize production through the Fertiliser Support Programme, at the expense o fbroader agricultural development. Domestic revenues remained steady at around 18.3 percent o f GDP, compared to the PRSP target o f 20 percent by 2004. Tax collections for the period averaged 17.5 percent and generally stagnated. `This mainly reflected the difficulty of bringing more segments o f the economy into the tax net especially the agricultural sector and the informal sector. A poor record o fnon-tax collections as well as the low yields inVAT further worsened the situation. In the period 2002 to 2005, improvements have been recorded in the budgeting process, expenditure management and fmancial accountability. In the area o f budgeting, the Medium-Term Expenditure Framework (MTEF), which employs a longer-term perspective inbudgeting and links budgeting and planning, was introduced in 2003. This, to some extent, has opened up the budget systems to public scrutiny. The budget was also re-classified to an Activity Based Budgeting (ABB) system in 2004, thereby enhancing transparency. However, in spite o f MTEF and ABB, budget execution is still characterized by large supplementary expenditures leading to significant mismatches between initial planned budgets and actual expenditures for many spending heads. This is primarily explained by inadequacies inthe following: ceiling setting process by MoFNP; poor budget estimation on the part o f some institutions; and fiscal indiscipline such as spending before approval is made and non-adherence to the approval process for supplementary expenditures. The Government launched the Public Expenditure Management and Financial Accountability (PEMFA) reforms in 2005 which aim at improving and strengthening expenditure management to efficiently utilize the scarcepublic resources. 1.5 Monetary and FinancialSector Developments Overall, inflation and interest rates during the period 2002 to 2005 assumed a declining trend. The exchange rate o f the Kwacha against the United States Dollar was relatively stable. The Kwacha began to appreciate in 2005. Credit provision to the private sector in real terms also increased. Inflation. measured by the Consumer Price Index (CPI) fell from 26.7 percent at the end o f 2002 to 15.9 percent at the end o f 2005. Nonetheless, the inflation outcome remained short o f the PRSP target o f reaching single digit inflation by 2004. The inability to rapidly bringdown inflation was largely due to excessive growth in money supply particularly in 2002 and 2004 when money supply growth was above 30 percent (see Table 1S). The failure to control growth inmoney supply was, inpart, a result o f excessive government borrowing ftom the banking system, which was caused by shortfalls in donor budgetary support and expenditure overruns especially in 2002 and 2003. In addition to excessive government borrowing, effective implementation o f monetary policy was constrained by the limited scope o f effective fmancial instruments, undeveloped secondary markets, and the lack o f market makers and a well-articulated code o f conduct inthe securities market. Ffth National Development Plan 2006 2010 - 8 I Since 2004, interest rates exhibited a downward trend because o f the reduction in government borrowing as well as the lowering o f the statutory reserve ratio from 17.5 percent to 14 percent in October 2003. The weighted average treasury bill rate fell from 31.7 percent in2002 to 16.5 percent in2005. Consistent with developments on yield rates on government securities, commercial bank nominal lending rates also declined, though at a slower rate. The weighted average lending base rate fell from 42.5 percent in 2002 to 27.6 percent in2005, which was still prohibitively high. However, average savings rates remained very low and were only 6.1 percent in 2005. The gap between the average lending and deposit interest rates was also too wide and remains a major challenge inthe financial system. Nonetheless, commercial bank lending to the productive sectors o f the economy recorded an increase over the 2002 to 2005 period. Credit to the private sector in real tenns doubled from K50 billion in 2002 to K102 billion in 2004. As a ratio o f GDP, it rose from 6.2 percent in 2002 to 7.9 percent in 2004. This was, nevertheless, still one o f the lowest in Sub-Saharan Africa, largely reflecting the low intermediation in the economy. Table 1.6 gives important financial indicators over the 2002 to 2005 period. 182day Treasury bill 32 9 198I 18 3 273day Treasury bill ! 1 332 21 1 19 4 -170 , ~ Weighted Average Treasury Bill Rate 31 7 19J7___, 17 8 165 29 8 Inrecognition o fthe manyweaknessesandconstraints inthe financial system and onthe needto make the financial sector play a much more effective role in national development, the Government in 2004 formulated and started implementing the first Financial Sector Development Plan (FSDP) for Zambia. The FSDP is a systematic and coherent action plan whose implementation is expected to achieve a well functioning financial sector in the country. It will be one o f the major reform agendas during the FNDP period. 1.6External Sector Developments During the 2002 to 2005, Zambia's external position strengthened. The current account deficit (including foreign grants) narrowed to 4.6 percent o f GDP in 2005 from 6.5 percent in 2002. These improvements were largely as a result o f a lower rate o fthe widening of the deficit inthe cuuent account. The trade balance improved from a deficit o f U S $504 million (or 13.3 percent of GDP) in 2002 to a surplus o f U S $59 million in 2005. The favourable developments in the trade account were on account of a larger increase in exports receipts, which outstripped that o f imports. Merchandise export receipts shot upby 129percent to IJS $2,095 million in2005 from US $916 million in2002. Bothmetal andnon-metal FifthNational Development Plan 2006-2010 9 exports recorded an increase. Metal exports receipts more than doubled, rising from U S $560 million in 2002 to US $1,577 million in2005. Merchandise imports also recorded a substantial increase from U S $1,204 million in 2002 to U S $2,068 million in2005. The increase in iniports was due to the new capital investments in the mining sector and highpetroleum bills due to the increase inworld oil prices and fertilizer imports. Although the current account strengthened, the level o f gross international reserves remained quite low. Expressed in months o f import coverage, reserves fell from an equivalent o f 2.1 months o f imports in 2002 to 1.4 months in 2005, inpart as a result o f a sharp rise inimports duringthe last two years. Interms of export diversification, non-traditional exports (mostly primary agricultural products such as cotton lint, cotton yam, flowers, vegetables, gemstones and tobacco, and such secondary products as sugar, copper wire and electric cables) also performed well. Receipts grew by an annual average o f 18 percent and went up by 50.7 percent to US $538 million from U S $357 million in 2002. Although the share o f non-traditional exports (NTEs) intotal export earnings declined from 39.0 percent in2002 to 25.7 percent in 2005, they are increasingly becoming an important source o f Zambia's foreign exchange, employment and incomes for manyrural households who grow export crops. The effects o f the sharp rise inmetalprices to historical highs largely explained the decline inthe shareofNTEs. However, the rise in NTEs has mostly been in the primary agricultural products with very little o f processed commodities. This reflects the low manufacturing activity in the economy, which requires to be addressed by creating stronger inter-sectoral linkages. Table 1.7 shows selected external sector indicators. The export diversification drive i s still being stifled by high production costs; inadequate access to affordable credit for investment; problems with transport to fiial markets; bad weather conditions; and lack o fmarket access. Additionally, even though Zambia's trade regime remained open and supportive o f export development and the diversification o f the economy, export facilitation has continued to face real challenges. These include restrictive customs procedures; sanitary and phyto-sanitary standards requirements; and the slow processing o f duty draw back and import VAT. In2005 and through the first half o f 2006, the sharp appreciation of the Kwacha against the United States Dollar was a source o f concem for exporters. 1.7External Debt and Aid A major development during 2005 was Zambia's reaching the Completion Point under the Heavily Indebted Poor Countries (HIPC) Initiative resulting in debt forgivenessicancellation. In addition to this, Zambia in2005 also became eligible for debt reliefunder the G8 initiative which proposed to cancel 100 percent o f all concessional debts owed to the international Monetary Fund, the African Development Bankandthe World Bank.Followingthe debt reliefprovidedas aresult ofthe Enhanced HIPC Initiative, Zambia's foreign debt came down to US $4 billion in2005 from US $7.1 billion at end 2004. When the G8 commitments are effected through the Multilateral Debt Relief Initiative (MDRI),it is expected that Zambia's debt would come down to around US $700 million. Fifth National Development Plan 2006 - 2010 ,~ Table 1.8: ExternalAid Inflows (in US millions),2002-2005 ~ 2002 2003 -20041 2005 ~ - s~ Budget Support 311-J 588 648 j 1537 ~ l Grants 1 , 819 389 8 441 1297 1 Loans 2291 1 I 9 9 7 240 ProjectSupport 443 1 1 3476 j 7 4983 j Total Inflows 754.1 1 406.4 519.8 652.0 ~ Source: Ministry of Finance and National Planning Despite external aid inflows beingin excess o f the PRSP targets, aid management was still weak, thereby adversely affecting its effectiveness. Key weaknesses identified were the unclear procedures regarding how best to mobilise, receive, planbudget and manage external resources; inappropriate systems o f monitoring programmeiproject implementation; and, consequently, inability to determine the level o f impact and weak coordination within the Government system in the area o f aid management. This has resulted in many line ministries being margnalized in the process. I t is noteworthy that serious efforts were initiated to make aid more effective: The aid policy and strategy was developed under the Wider Harmonisation in Practice (WHIP) initiative. The Government and its cooperating partners initiated a process to reduce transaction costs in aid receipt and management. The operationalization process o f the Joint Assistance Strategy for Zambia (JASZ) would be finalised during the Plan period. The Government also started a process o f strengthening its capacity for debt management. FifihAicxtiorral Development Plari 2006-2010 11 Review of Poverty Trends 2.1 Income Poverty According to the Living Conditions Monitoring Survey (LCMS) IV o f 2004, as much as 68 percent o f the population fell below the national poverty line, earning less than K111,747. This i s in spite o f the implementation o f the PRSP and the positive growth trends during the last few years. Figure 2.1 shows that poverty levels slightly fell in2004 compared to 1998 when poverty stood at 73 percent. The depth' and severity o fpoverty also remain highdespite the slight decline since 1998. At the national level, the depth o fpoverty dropped to 36 percent from 40 percent in 1998, while the severity o f poverty declined to 23 percent from 26 percent in 1998. Extremepoverty (covering people earning less than K78,223 per month) fell from 58 percent in 1998 to 53 percent in2004.2 The declining depth and severity o f poverty was driven primarily by rising per capita consumption amongst the poorest non-farm households. This represents a deviation from the experiences o f 1991-1998, during which time non-farm poverty rose rapidly. GDP per ca 1 1991 92 93 94 95 96 97 98 99 2000 01 02 03 04 Source: Central Statistical Office Note: These official poverty estimates are based on the Priority Surveys (1991, 1993) and LivingConditions Monitoring Surveys (1996, 1998,and 2004). GDPper capita is basedon NationalAccounts. Changes inpoverty during 1998 to 2004 were evenly distributed across rural and urban areas. Table 2.1 shows that poverty in rural and urban areas declined by 5 percent and 3 percent, respectively. The incidence o fpoverty inthe rural areas fell from 83 percent in 1998 to 78 percent in2004, while poverty in urbanareas declined to 53 percent from 56 percent in 1998. Rural incidence o f extreme poverty fell from 71 percent in 1998 to 65 percent in 2004. Inurban areas, the incidence o f extreme poverty declined by 2 percent from 36 percent to 34 percent. Although almost all provinces recorded some decline in poverty incidence, important gains were made incertainprovinces like the Copperbelt and Eastern provinces. The incidence o f poverty declined the most in Eastern province, where it fell by 11 percentage points to 70 percent in 2004 from 81 percent in 1998. This was followed by the Copperbelt, which recorded a 9 percentage points decline inpoverty incidence to 56 percent in2004 from 65 percent in 1998. ' The 'incidence' o fpoverty (or headcount) measuresthe number o fpeople falling below the poverty line irrespective o fhow far from the poverty line they are So people lying far below the poverty line and thosejust beneathit are counted equally In order to adjust for the fact that some people lie far below the poverty h e , it is necessdryto calculate the 'poverty gap' or what is alternatively referredto as the 'depth' o fpoverty This measure gwes a greater weight to the poorest of the poor Along similar lines, the 'seventy' o fpoverty (or the 'squared poverty gap') attaches even geater weight to the poorest o f the poor 'Extreme poverty is measured by taking a lower poverty line that reflects the minimumrequirements o f food spending and excludes some o f the items included inthe national 'basic' poLerty Fifth National Development Plan 2006 2010 - 12 Interms of the incidence of poverty amongvarious strata, Table 2.1 shows that the rural small-scale farmers had the highest incidence o f poverty at 79 percent with 66 percent being extremely poor. This was followed by rural medium-scale farmers where poverty incidence was 73 percent. In the urban areas, the highest incidence was among the low cost households at 58 percent. In terms of the current status o f poverty, high levels o f poverty continue to be associated with more remote provinces such as Western province (83 percent), Luapula (79 percent) and North-Western province (76 percent). The incidence o f poverty was lowest in more urbanized regions like Lusaka (48 percent) and the Copperbelt provinces (56 percent). While the proportion o f the population living in poverty did not vary much among the provinces, there were quite significant variations interms o f the proportion o f the population living in extreme poverty across the provinces. The rate o f extreme poverty varied from 29 percent in Lusaka province to 64 percent inLuapula province. Incidence o f extreme poverty was also high inrural areas where two thirds o f the population was extremely poor compared to only one third in the urban areas. Figure 2.2 shows the incidence o fpoverty byprovince in2004. The analysis of each province's contribution to the national incidence o fpoverty o f 68 percent depicted in Figure 2.3 shows that Northern province contributed the most (16 percent), followed by Copperbelt and Eastern provinces (both 14 percent). The severity o f poverty is more acute among rural than urban households. Inthe rural areas, it was estimated at 17percent, while inurban areas it was estimated at 9 percent. The preceding analysis indicates that poverty remains more severe in rural areas. The majority o f rural households in Zambia depend on consumption of own produce. Therefore, the high poverty levels in rural areas could be as a result o f not having adequate food by the majority o f households there. The rural areas have poor infrastructure and marketing systems while labour productivity among the small- scale farmers is quite low. FifihNational Development Plan 2006-2010 13 Figure 2.2: Incidence of poverty by province in 2004(percent) Northern Eastern Central Southern Lusaka Source:Living Conditions Survey Report 2004, CSO r Figure2.3: Provincialcontributions to National Poverty, 2004 7 iI - Lusaka,10 Luapula,9 __ I Source: Living Conditions Report 2004, CSO The persistently high income poverty observed in 2004, is in sharp contrast to the rapid acceleration in economic growth experienced since 1999. This implies that the country's improved economic performance over recent years has not translated into significant declines in poverty. There are several important factors that may explain the persistence o f high poverty levels. They include the changing structure o f growth, which during the period 1998 to 2004 was largely driven by the improved performance of the miningand construction sectors. Agriculture, upon which the majority o fpoor people depend, did not perfomparticularly well over the recent years, with wide fluctuations inproduction and a relatively low average growth rate. This reflected considerable variation in weather patterns as well as inadequate infrastructure and generally poor market access. Much of the growth that has taken place has been driven by cash crops such as cotton and tobacco, which are concentrated in specific areas o f the country. This may explain why poverty incidence is still highest among the rural small-scale farmers. The changing structure of growth has also influenced the provincial distribution o f poverty. The collapse of the mining sector during the late 1990s may explain why the population of the Copperbelt has declined dramatically. This could be explained by out migration to other provinces with better economic prospects. This, together with subsequent mining growth, may account for the sharp decline in poverty experienced inthe Copperbelt province, andthe rapid increase inthe population ofthe North-Western province, where new mining growth has been taking place. The decline in poverty in the Eastern province may be the result of strong growth o f such agricultural commodities as cotton and tobacco that are grown in the region. Fijih National Development Plan 2006 - 2010 14 Figure 2.4 shows the proportion o f the population living inmoderate and extreme poverty by sex and age o fthe householdhead. The incidence o fpoverty was highest among female (69 percent) than male-lreaded households (66 percent). The LCMS surveys have shown that the majority o f the female heads o f the household attained household headship by way o f loss o f their spouses who in most cases were the breadwinners. These results clearly indicate how difficult it is for female-headed households to acquire adequate food that meets their minimum nutrition requirements. The issue o f property grabbing may contribute to the highlevels o fpoverty among female-headed households. I Fig2.4: Povertyby Sex and Age of householdHead,2002/2003 II Male Female `12 -24 `25-34 `35 -44 `45-54 `55t Source CSO, Living ConditionsMonitoring Survey (2002/2003) Analysis o fpoverty by age o f householdhead reveals high levels o fpoverty among households headed by elders. For instance, poverty rates ranged between 51 percent in the age group 12 to 24 to 75 percent in the age group 55 years and above. Head count poverty was equally high among persons headed by those aged 45 to 54 years. The high level o f poverty among persons who are supposed to be living off their benefits is a clear indication o f the poor social security system prevailing in the country. The delays in paying off terminal benefits have compounded the poverty situation inthe country. The incidence o f poverty by household size and education level completed by the household head are shown in Figures 2.5 and 2.6, respectively. High levels of poverty were observed in households with seven or more members, at 76 percent compared with 35 percent in households with one to three members, and 65 percent inhouseholds with four to six members.These results expose the fact that larger families are more likely to be poor than smaller ones. However, with the advent o f HIV and AIDS and its attendant increase inthe numbero f orphans, large family sizes are unavoidable. Analysis o f incidence o f poverty by highest level o f education completed by the household head reveals an inverse relationship between headcount poverty and education status o f the household head. The proportions o f the poor ranged from 80 percent in households headed by persons with no education to 24 percent inthose headed by persons with tertiary education. Surprisingly, primary education does not seem to have an absolute impact on the wellbeing o f the people since the headcount ratio is not statistically different from that obtaining from the "no education" category. This finding points to the need to revisit the basic education curriculum with the view o f makingit more relevant to overall economic activities or labour formation in the country. The present curriculum at primary level is tailored to school-based subjects as opposed to practical or skill-oriented subjects. I t is, therefore, desirable to provide primary education that imparts both effective knowledge and skills, which can be applied by an individual to earn a living. Fifth Nutionul Development Plan 2006 2010 - 15 Fig 2.5: Poverty by HouseholdSize,2002/2003 P 100 80 s =: 60 8 p" 40 20 0 '1- 3 '4 6- '7 - 9 'IO+ HouseholdSize Source: Central Statistical Office Fig 2.6: Poverty by EducationLevel,2002/2003 Tertiary Secondary Level of Education Primary No Education , , 0 20 40 60 80 100 c 8 Q, 2 n 0) I Source:Central Statistical Office An analysis o f income deciles reveals that income in Zambia is very unevenly distributed. According to the LCMS I11survey report, the bottom 50 percent o f the Zambian population claim a meagre 15 percent o f total income, while the top 10percent claims 48 percent of the total income, which is more than three times the income share for the bottom 50 percent. The corresponding figures for NovembedJanuary 1998 were bottom 50 percent with 10percent andtop 10percent with 57 percent. Withinrural areas, the bottom 50 percent o f the rural population claims 22 percent o f the total income, while the top 10 percent claims 33 percent, or 1.5 times the income share for the bottom 50 percent. For urban areas, the bottom 50 percent o f urbanpopulation received only 12.0 percent o f total income, with the top 10percent receiving total income o f 51percent. Interms of the Gini coefficient, which defies the level of income inequalities, Zambia had a coefficient of 0.57 in 2003. This contrasts with the ratio o f 0.61 for 1996 and 0.66 for 1998. Coefficients o f this magnitude manifest high poverty levels in society. They are indicative o f uneven income distribution in Zambia. Income inequalities are inore pronounced in the urban areas with a Gini coefficient o f 0.61 than inruralareas with a coefficient o f0.42. Comparing the Gini coefficient from the household income distribution o f 1993 (0.66), with that o f 2003 (0.57), it can be observed that there is a slight improvement in the distribution o f incomes inthe Zambian society. However, using the per capita income distribution for 2003, it can be observed that 20 percent o f the total income is shared by 70 percent o fthe population. Fifth National Development Plan 2006 2010 - 16 2.2 Non-Income Poverty and other Social Developments The analysis so far has focused on income-based poverty. However, there are a number o f non-income or social dimensions o fpoverty that are also important for household welfare. According to the 2005 Human Development Report, Zambia ranked 166th (out o f 177 countries) on the basis o f its HumanDevelopment Index (HDI).This composite index reflects life expectancy at birth, adult literacy rate, school enrolment and GDP per capita. Life expectancy at birth for Zambians was at 52.4 years in 2003 (50.4 rural, 50.2 urban). The achievement of MDGs by 2015 remains a big challenge for Government. According to the MDGs Status Report for Zambia, 2005, some o f the MDGs are not likely to be met. These include reducing child and maternal mortality, integrating the principles of sustainable development into the country's policies and programmes and reversing the loss o f environmental resources and halving by 2015, the proportion without sustainable access to safe drinking water and sanitation (for details refer to the MillenniumDevelopment Goals Zambia Status Report, 2005). Education indicators have improved over recent years, with increases in primary school enrolment and decline in drop-out rates. For instance, gross enrolment ratios (GER) for Grades 1-9 rose from 75.1 in 2000 to 104.6 in 2005 while net enrolment ratios (NER) rose to 92.3 percent from 68.1 in 2000. Significant improvements have also been made in school completion rates. In 2000, the completion rate was 63.6 percent and increased to 72 percent in2004. These improvements partly reflect the introduction o f free primary schooling in2002. Despite the improvements noted above, there are still a number o f outstanding challenges that must be addressed. Adult literacy stands at only 55.3 percent and has remained unchanged since 1990. Furthermore, the provision o f education services is unevenly distributed in favour o f urban households. Less than half o f the rural adult populations are literate, while primary and secondary school enrolment rates are lowest in the more remote Eastern, Luapula and Western Provinces. Additionally, the quality o f educationhas not matched the levels achieved interms o f access. Health indicators have also shown some improvement since the early 1990s. Both rural and urban infant mortality fell considerably between 1990 and 2000 and is projected to decline further. Furthermore, according to recent estimates, the adult prevalence o f HIV and AIDS has fallen from 20 percent in 1998 to 16 percent in2002. However, adult HIV and AIDS prevalence remains twice as high in urban areas as in rural areas, andwomen are 40 percent more likely to be infected than men. Maternal mortality also worsened during 1996-2002. Maternal mortality has remained relatively high in Zambia. There were 649 maternal deaths per 100,000 live births in 1996. This figure increased to 729 maternal deaths per 100,000 live births in the period 2001/2002. These indicators confirm that recent changes in household welfare have indeed been ambiguous and that poverty is particularly severe, especially once non-income dimensions are taken into account. Although still relatively high, childhood mortality indicators have shown signs o f decline. Infant mortality was 123 deaths per 1,000 live births in 1990 and it declined to 110 deaths per 1,000 live births in2000. Under-five mortality was 197 deaths per 1,000 live births in 1996 but fell to 168 deaths per 1,000 live births in 2001 and 2002. As in other indicators, childhood indicators are better inurban compared to rural areas. The nutritional status o f a child can be a direct indicator o fthe well-being o f the household. It also reflects on the community's nutritional status and the future o f national development potential. The percent of children, who were found to be stunted, wasted or underweight, has increased between 1992 and 2002/2003. Furthermore, although some progress is being made, a high proportion o f the Zambian population, estimated at 47 percent, has no access to safe drinking water, especially in the rural areas. The proportion o f households with access to safe water has been fluctuating in Zambia from 48.3 percent in 1992 to 46.8 percent in 1996. The figure increased to 52 percent in 200212003. The majority of the rural population access their water from lakeshivers and unprotected wells, which are not safe, Several deaths each year are causedby unsafe water, poor sanitation and hyBene. Environmental degradation has also reached alarming proportions. The country's forests are under tremendous pressure, with wood harvesting for fuel and timber and the clearance for agriculture and human settlement being some o f the primary causes. In the last decade, environmental degradation, FiphNational Development Plan 2006-2010 17 especially deforestation and wildlife and fish depletion, has become particularly severe and threatens sustainable economic growth. This could be attributed to poverty pressure which leads to stressful coping strateges, uncoordinated mining activities or lack o f appreciation o f the interrelationship between human existence andthe environment. On the global level, Zambia has been monitoring it progress towards the achievement o f the Millennium Development Goals (MDGs). According to the 2005 MDG report, five targets are perceived as likely to be achieved by 2015. These are: halving the propofion o f people living in extreme poverty and those suffering from hunger; ensuring that children everywhere, boys and girls alike, will complete a full course o f primary schooling; eliminating gender disparities in all levels o f education; and having halted and began reversing the spread o f HIV and AIDS. Similarly, three targets were perceived to be potentially achieved by 2015 although with lesser optimism, and these are reducing under-five mortality by two thirds, halting and reversing the incidence o f malaria and other major diseases and halving the proportion without sustainable access to safe drinkingwater and sanitation. On the other hand, two targets, reducing the maternal mortality ratio by three-quarters and reversing the loss o f environmental resources are unlikely to be achieved by 2015. The Government's commitment to prudent macroeconomic management and poverty reduction has resulted in its accession to HIPC completion point and qualification under the Multilateral Debt Relief Initiative (MDRI).This positive trend has created the fiscal space, increased prospects and renewed optimism towards the attainment o f the Millennium Development Goals. The FifthNational Development Plan therefore, is the vehicle that Zambia is usingto progress towards the MillenniumDevelopment Goals. F i j h National Development Plan 2006 -2010 18 I / The Fifth National Development Plan Theme and Strategic Focus 3.7 introduction Zambia has articulated its long-term development objectives in the National Vision 2030. The National Vision is "to become a prosperous middle income country by the year 2030." The Vision 2030 identifies a number o f development goals, which include: (a) reaching middle-income status; (b) significantly reducing hunger and poverty; and (c) fostering a competitive and outward-oriented economy. Together, these goals call for policies that accelerate and sustain economic growth, and which enable the poor to participate in, and benefit from, the growth process. The FNDP is an important step towards the realisation o f the 2030 Vision. The Theme o f the FNDP is, therefore: "Broad Based Wealthand Job Creation through Citizenry Participation and Technological Advancement",while the strategic focus is "Economic Infrastructure and human resources development". This chapter broadly explains both the Theme andthe Strategic focus o f the FNDP. The Government recognises the strategic role that `good governance' would play in the realisation o f the ideals o f the FNDP. Laws, rules and regulations that govern the interaction o f various actors inthe political arena significantly influence the nature o f the relationships that emerge and whether those relationships adhere to the people's defined acceptable norms o f good governance. The Government maintains that, for it to facilitate a hospitable environment where good governance obtains, what is required is, inter-alia, political will, integrity and honesty. The principle o f good governance in the legal context is where there is separation o f powers o f the three organs o f state, namely, the Legislature, the Judiciary and the Executive. The process o f reviewing the Republican Constitution for Zambia, which began in 2005, and which addresses a number o f issues, some o f which border on good governance, will continue during the FNDP period. Good Governance also includes accountability and transparency in the management o f national affairs and the discharge o f the responsibilities o f public office. As the Government implements the FNDP, it shall continue to uphold the view that public office is a trust held for the benefit o f the general public, the governed, and is not for private profit or gain. Transparency, another tenet that the Government shall continue to uphold, enables the general public to know or discover the truth so as to avoid speculation. Therefore, it is the Government's position that men and women who holdpublic office should be preparedto submit to public scrutiny and questioning as part o f the process o f rendering an account for the discharge o f their public responsibilities. During the implementation of the FNDP, the Government shall focus on all three levels of accountability, namely, a) Political accountability that applies to politicians who shall be held accountable by the electorate for the success or failure to initiate the planned FNDPprogrammes; b) Administrative accozintability that refers to administrative structures o fthe Government (mainly the civil service) that should have clear rules, roles and responsibilities and provide checks and balances for administrative performance; and, lastly, c) Financial and budgetary accountability that entails the ability to account for the allocation, use and control of public funds, public assets and properties. This shall be determined by the degree to which the FNDP implementation system shall remain in good stead to honour the laid down financial accounting systems, rules, regulations and procedures. Against the above background, the Government endeavours to reflect tenets o f good governance in all chapters o fthis Plan, in addition to Chapter 31on Governance. F$h National Development Plan 2006 2010 - 20 3.2 Achieving Broad Based Wealthand Job Creation The improved economic performance since 1999hasnot significantly reduced poverty. One explanation for the weak growthlpoverty relationship is that recent growth has been concentrated in mining, wholesale and retail trade and construction, which are mostly urbanbased and capital intensive. Most of these sectors have not generated sufficient employment due to weak linkages with the rest o f the economy. If the country continues on such a growth path, it is projected that headcount poverty will only marginally decline to 62.3 percent by 2010 Erom 68.0 percent in 2004. This will not significantly advance the development objectives identified in the Vision 2030 as well as progress towards meeting the MillenniumDevelopment Goals (MDGs) objective o f halving the 1990 levels ofpoverty by 2015. While mining, construction and energy sectors are expected to continue contributing to overall economic growth, the focus o f the FNDP is on pro-poor growth-oriented sectors that create employment and income opportunities o f the poor. These include rural development, agriculture and manufacturing, which provide a greater opportunity for creating wealth andjobs, thereby rapidly reducing poverty. The FNDP also emphasisesthe creation o f strong linkages between the capital intensive sectors and the rest o f the economy so as to enhance broad-based growth. About 60 percent o f the total population and 70 percent o f the poor live in rural areas. Further, the majority o f rural and urban households rely on incomes fi-om agriculture and agriculture-related industries or consume domestically produced food. Agriculture and related industries, such as manufacturing, tend to be more labour-intensive and also have strong linkages with the rest o f the economy. Growth in these sectors is, therefore, expected to generate jobs and create employment opportunities for households. For these reasons, fostering agricultural growth and rural development is important for rapidly reducing poverty in Zambia. Promoting large-scale commercial farming and fostering increased small-holder participation is vital as both have a strong rural bias. Increasing rural household incomes creates a market for domestic non-agricultural production, thereby providing an important platform for structural transformation. Rural and agricultural development are, therefore, important for accelerating pro-poor growth and for laying the foundation for achieving the country's long-term growth and development objectives. Zambia has an abundant resource base comprising land, water and labour, and therefore, efforts will be made during the Plan period to utilize them in order to achieve the set objectives. The use o f modem technologies will be especially promoted in agriculture. Rural and agricultural development, however, involve more than improving production technology in agriculture. An appropriate development strategy requires a range o f interventions, including the development o f rural markets, the provision o f agricultural and financial services, the establishment of marketing chains and the provision o f infrastructure. Creating these conditions will enable Zambians to effectively participate inthe economy andto utilise the abundant natural resources to earn incomes. This, intum, wouldresult inthe improvement ofthe standard o flivingfor thepoor anddisadvantaged. 3.3 Economic Infrastructureand Human Resources Development At the core o f an enabling environment is the need to have a strong and sustainable economic infrastructure, especially roads, bridges, dams andvarious means of communications. The emphasis will be on maintaining the existing infrastructure. It should be noted that rural and agricultural development alone cannot achieve the objectives identified in this Plan. Structural transformation and urban growth are also important for the long-term development process, not least for providing markets for agricultural products. However, such growth largely depends on the private sector and, therefore, requires a supportive environment. Consequently, one of the key targets o f the FNDP is to create the enabling environment supportive o f private sector growth and ensure that the country has good infrastructure, a supportive macroeconomic environment and skilled humanresource. The development o f human resources will entail the implementation o f a range o f actions and reforms to develop and make available to the economy appropriate skills. Thus, apart from economic infrastructure, this Plan focuses on social investments inhealth and education. Inthe context ofthe above, the realisation ofthe FNDP goals requires the following interventions: Fcfih Nctional Development Plan 2006 - 2010 21 Macroeconomicpolicies a) Inflation and interest rate reduction; b) Transparent debt contraction and management; c) Effectivepublic expenditure andrevenue management; d) Soundeconomic governance andtransparency; e) A stable and competitive exchange rate; and f ) Financial sector policies, includingmicrofinance. Socialpolicies a) Poverty reduction; b) Public investment ineffective HIVandAIDS interventions; c) Housingand water and sanitation improvement; d) Public investment ineducation andhealth; e) Social safety nets; and f ) Pro-employment economic growth and sound labour administration. Rural sectorpolicies a) Irrigation development; b) Attainment of food security; c) Provision o f microfinance; d) Development and/or rehabilitation o finfrastructure, especially feeder and all weather roads; and e) Livestock development. Urbansectorpolicies a) Housing improvement including revamping urbanplanning such as upgrading o funplanned settlements; b) Safe water andsanitation; c) Waste management; d) Improved landmanagement; and e) Manufacturing and services sectors growth. Structural Policies a) Private Sector Development, especially relatingto improving the business and investment climate; and, b) Strengthening the financial sector. Cross-cutting issues a) Mainstreaming HIV and AIDS; b) Gender mainstreaming; c) Ensuringenvironmental sustainability; d) Improved landmanagement; and e) Promoting good governance. 3.4 FNDP Expenditure Priorities Given Zambia's developmental challenges, especially the highpoverty levels estimated at 68 percent o f the population, and the fact that provision to the basic services o f education, health, water and sanitation is still poor quality and access is also not widespread, there is a real need for stepping up o f efforts aimed at strengthening and broadening the growthprocess and fostering humandevelopment. The Plan has therefore, identified two critical areas where public spending should be focused if growth is to be accelerated and broadened. These are: (a) strengthening the relevant economic and social infrastructure, especially roads, schools and hospitals; and (b) enhancing agriculture and rural development. These will be complemented by the implementation o f specific structural reforms across various sectors inorder to improve the business and investment climate. Fi$h National Development Plan 2006 -2010 22 To foster human development, the public spending priorities shall focus on enhancing the quality of education provision, skills development and employment, better health service delivery, addressing the problem o f frontline personnel and the lack o f requisite working implements in the two critical sectors o f education and health. It is also planned to expand the proportion o f the Zambian population with access to safe drinking water, especially inthe rural areas and inperi urban areas. The Plan also seeks to significantly improve the working and operating conditions in the public order and safety sector, in particular, those related to housing for law enforcement officers. Attention will also be given to the sustainable management o fnatural resources and the environment. Inmanyrespects, these priorities also matchthe eight MillenniumDevelopment Goals. Insummary, the expenditure focus of the FNDP is on infrastructure (particularly road mfrastructure), agricultural development, education, health, water and sanitation and public order and safety. 3.4.1 Rationalefor Targeted Priority Expenditure 3.4.I.I Agriculture Agriculture remains the key priority in the growth and poverty reduction programme o f Zambia. Over 60 percent o f the population derives its livelihood from agriculture and reside in rural areas. However, in the last decade, including in the PRSP period, agriculture development did not receive resources commensurate with its status. Government spending on agriculture has been less than 5 percent o f the Government budget and about 1.0 percent o f GDP. This low spending on agriculture-related developments resulted in, among others, agricultural support infrastructure being run down, extension service delivery operating at only 40 percent capacity, and high recurring livestock disease incidences. The result has been low agricultural productivity and highpoverty incidences, especially inrural areas. The FNDP seeks to reverse this situation by appropriately financing agriculture investments and development so as to accelerate growth and poverty reduction. The FWDP targets to increase resource allocations (both Government and donor) to the sector from the current levels o f about 1.6 percent o f GDP to at least 2.3 percent o f GDPby 2010. The Government plans to increase its allocations from 0.9 percent to 1.6 percent by 2010. As a percentage o f the GRZ budget, allocations to the agricultural sector are plannedto be increased to about 9.0 percent by 2010 from 5 percent in2006. This will bring Zambia closer to the SADC and Maputo Declaration to raise agricultural budgets to not less than 10 percent. The key interventions in agriculture will be the improvement o f agpcultural productivity, especially for small-scale farmers by, among others, re\ ivirig and strengthening agricultpral extension senices Other pro,qamnes will include the enhancement o f minial health and livestock production and ewtenmn. ayicultural research. and technological development Tbe encouragement o f diversification in the production o f both staple and cash crops to ensure food security and the development o f irrigation aid support services 1x11e also been accoided prtoriiy. Other key interventions shall be the continuation of the on-going land development programme o f opening up iiea faiming blocks for commercial de\ elopment. 3.4.1.2 Infrastructure Strengthening economic infrastructure is one o f the critical vehicles for the realization o f the Plan's objectives. Poor physical infrastructure such as roads, electricity, irrigation and dams has been one o f the major bottlenecks holding back private sector development and Zambia's economic progress in general. During the FNDP period, it is planned that roads in maintainable condition should improve from 51 percent in 2005 to 90 percent by 2010. Spending on rural feeder roads, in particular, will be enhanced to widen market access on a large scale. The Government also targets to raise spending on road infrastructure from both Government and donors to at least 2.8 percent o f GDP by 2010 from 2.5 percent in2006. Government spending is programmed to be raised to 1.8 percent o f GDPby 2010 from 1.1percent in 2006, to allow for road infrastructure development and maintenance. As a proportion o f the Government budget, spending on roads is planned to be raised to 5.3 percent by 2009 and maintained at that level. Ffth NationalDevelopment Plan 2006 - 2010 23 Apart from roads, the development o f rail transportation infrastructure has also been accorded priority. However, the rail projects will be funded mostly through private financing. Other key infrastructure programmes Gre the enhancement o f energy supply, including water development for economic purposes such as irrigation. There are also projects o f a large commercial nature namely the development o f hydro power stations and the power rehabilitation programme. These will be mainly developed through public private partnerships or private arrangements where possible. These large projects are o f vital importance because the Southern African region faces a looming power shortfall by 2008 and Zambia is one o f the few countries where new projects could be quickly developed if resources are available. The power rehabilitation programme is essential to guarantee power supply and significantly reduce on power outages frequently experienced by business enterprises and households. The rural electrification programme will also be scaled up duringthe Planperiod. 3.4.1.3 Health Sector Total expenditure on health as percent o f GDP has fallen from 6.0 percent in 1997 to 5.7 percent in 2001 and to 1.5 percent in2005. Similarly, total expenditure on health has fallen from U S $24 million in 1997to US $18 million inthe period2001 to 2005. Consequently, the provision of quality health care has declined. During the FNDP, the vision is "to provide Zambians with equity of access to cost- effective, quality health care as close to thefamily as possible. To achieve this vision, Zambia will require at least U S $255 million per year to offer basic health services. Inaddition, there are emerging factors that call for increased expenditure inthe sector. They include the following: Human resources: A key constraint to effective and rapid scaling-up o fhealth services inZambia is the worsening humanresource situation. Over the past few years, there has been a massive exodus o f health workers, especially nurses going abroad due, primarily, to the low level o f wages and benefits in the civil service and also the general poor working environment. A recent assessment o f the health workforce in Zambia reported that current workforce levels are only 50 percent o f the required levels. Significant levels o f resources will be needed in order to fill vacant posts and to improve the working environment. Drugs and supplies: Zambia requires approximately U S $38.5 million for procurement o f essential drugs but less than half o f this is available annually from both Government and cooperating partners. With the policy o f free Anti-Retroviral (ARVs), Zambia requires about U S $25 million per annum to sustain the 39,000 patients on ARVs. If Anti-Retroviral Therapy is scaled up to cater for 100,000 eligible patients, approximately U S $60 million will be required for procurement o f anti retroviral drugs. Zambia also requires approximately U S $10 million for the procurement o fthe coartem drugfor malaria treatment and U S $8 million for vaccines and injection supplies. Infrastructure and equipment: Access to basic services shows a wide spatial variation with provinces closer to the `line o f rail' havingbetter access to services. Inurbanareas, 99 percent o f households are within 5km o f a health facility while it is only 50 percent o f households who are within 5km o f a health facility in rural areas. In the FNDP, the priority is to make available at least one first level hospital in each district, which would operate as a referral hospital to a satellite o f health centres. Onthe basis o fthe above, the Government plans to scale-up total health spending to 3.6 percent o f GDP from both Government and donors by 2010, from 2.9 percent in 2006. The Government plans to raise its health budget to at least 11.5 percent o f budget by 2010 from 7.0 percent in 2006. Total health budget (both GRZ and donors) will require to be increased to around 14.1 percent by 2010 from 10.6 percent in2006. 3.4.1.4Education and Skills Development The focus in this Plan is to significantly shift towards interventions aimed at increasing the quality o f education and enhancing skill development, which is in critical short supply. This i s mainly due to the huge increases in enrolment that the system has sustained over the last five years with annual increases at all levels reaching nearly 95 percent o f the target population for basic education. The FNDP is targeting three priority areas: recruitment o f teachers, procurement o f educational materials; and the construction o f classrooms and teachers' houses. It is estimated that the government will need to recruit Fifth National Development Plan 2006 -2010 24 5,000 additional teachers per year to reduce the high pupil-teacher ratios and eliminate the system o f double and triple shifts. In addition, the declaration of Free Basic Education has placed greater financial constraints on the education sector. Government fundinglevels to education in2005 was 3.4 percent o f GDP while that in the sub-region ranged from 5 to 6 percent. Total Education expenditure as a percent o f GDP was 4.2 percent in2005, while the regional average was 5.5 to 6.0 percent o f GDP. The external hnding levels over the period 2003 to 2005 have fluctuated between U S $87 million and U S $96 million per annum, which represented roughly 1.5 percent o f the GDP. Expanding education in a manner that improves the overall skill level and productivity o f the labour force i s also important. Inliglit of the above, the FNDP's target is to scale-up Government funding to the sector to around4.4 percent o f GDP by 2010 while total expenditure (Government and donor) is planned to reach at least 5.3 percent o f GDP by that year. As a proportion o f the national budget, the education and skills development budget is planned to be raised to at least 22.4 percent by 2010 fiom 16.3 percent in2006. For education (basic, high school and tertiary), the FNDP proposes to increase spending to about 22.0 percent o f the GRZ budget by 2010 from about 16 percent in 2006. With regard to the TEVET sub- sector, the FNDPplans to scale up spending to at least 0.6 percent o f the GRZ budget by 2010 fiom 0.3 percent in 2006. This rise is essential to expand facilities and learning requisites in the skills development components o f TEVET to absorb the large numbers o f students coming from the basic and highschools sub-sectors. 3.4.1.5 Waterand Sanitation The proportion o f the Zambian population, without access to safe drinking water remains high, estimated at 47 percent, with rural dwellers being the worst affected. Several deaths each year are attributed to unsafe water, poor sanitation and hygene. Public spending on water and sanitation as a percent o f GDP will be maintained around 0.5 percent while the proportion o f the Government budget would be raised to at least 0.6 percent from a low o f 0.2 percent in 2006. Most o f the priority interventions duringthe FNDPinthis area will be on rural water supply. 3.4.1.6Public Order and Safety The working environment and hctionality o f the law enforcement agencies, especially the police services, has continued to deteriorate. The agencies lack basic operational requisites while the housing situation for the officers has worsened. This has, consequently, compromised the integrity of the law enforcement officers and has resulted in the low morale o f officers. This situation requires to be reversed by increasing budgetary allocations to the law enforcement services and a deliberate programme to rehabilitate and build new infrastructure, especially houses. In this regard, the FNDP targets to raise spending on public order and safety to at least 1.2 percent o f GDP by 2010 from 0.9 percent in 2006. As a share o f the Government budget, spending on public order and safety will be scaled up to at least 5.9 percent by 2010 from 4.7 percent in 2006. The major allocations will be for infrastructure development and rehabilitation, especially construction o f new houses in police camps. Crime prevention will also be accorded highpriority during this period. 3.4.2 Other Expenditures To realise the expenditure objectives in the FNDP core sectors outlined above, spending on general government services, especially o f an administrative nature, will have to be scaled-down significantly. However, allocations to key areas o f governance such as Judiciary, Parliament and the Office o f the Auditor-General, which are critical to economic and social governance and general operations o f government, would require to be safeguarded. In addition, although some sectors have not been explicitly highlighted for public expenditure priority, such as tourism, manufacturing and mining, these remain important sectors in driving economic growth and poverty reduction. Much o f the attention in these sectors will be on enhancing the regulatory, business and investment climate to increase private sector involvement. Further, the increase in public expenditure for roads and energy is meant to enhance the private sector-driven operations o f these important sectors. Fifth National Development Plan 2006 2010 - 25 t- acroeconomic. Social and Structural Policies 4.I Introduction During the period 2002 to 2005, macroeconomic performance generally improved. Notwithstanding these improvements, Zambia has yet to attain full macroeconomic stability and still faces a number o f challenges to its macroeconomic position. Fiscal stability is overshadowed by a high domestic debt estimated at 20 percent o f GDP while budgetary interest payments take up about 16percent o frevenues. The public pension scheme is also insolvent andposes a serious threat to fiscal sustainability. The level o f nominal and real interest rates remains high, thereby constraining rapid investment and growth. While real GDP growth has accelerated, poverty remains very high with 68 percent o f the population falling below the poverty line in 2004. Therefore, despite recent successes, there remain many macroeconomic challenges that must be overcome if the country is going to achieve its development objectives. The FNDP aims to address these challenges. 4.2 Macroeconomic Objectives,Policies and Strategies Duringthe FNDP, macroeconomic policies will builduponthe successes made duringthe PRSP/TNDP period by sustaining and securing fiscal and financial stability, and deepening structural reforms to achieve economic growth. The broad macroeconomic objectives for the Planperiod are as follows: a) To accelerate pro-poor economic growth; b) To achieve and sustain single digit inflation; c) To achieve financial and exchange rate stability; d) To sustain a viable current account position; and, e) To reduce the domestic dibt to sustainable levels. i"d, 4 Average 9 Averag? i) Average CONSTANT1994PRICES PRSPnNDP g) Baseline j) Core FNDP ! d)e) 2002-2005 h) 2006-2010 k) 2006-2010 1I) ' Primarysector m) 4.6 n) 6.8 0) 8.5 P) Agriculture,forestry, and fishing 9) 2.6 r) 4.1 S) 7.2 1) Miningand quarrying 10.4 10.7 W) 10.6 ~ U) V) X) Secondary sector Y) 9.3 2) 7.8 aa) 8.3 bb) Manufacturing cc) 5.2 dd) 6.9 ee) 7.5 ~ f9 Electricity gas,nd water 99) (0.3) ____ hh) 10.2 ii) 88/ 10.2 I ~ 11) Construction kk) 20.2 I 11) 8.0 mm) nn) Tertiary sector 00) 3.5 PPI 5.0 ~ 49) 57/ rr) Wholesale and retailtrade ss) 4.6 a) 5.4 uu) 5.7 ~ Restaurantsan&haels. (tourism ww) 7.4 xx) 6.2 w) 11.5 ' -rage, and commu;ications aaa) 6.0 bbb) 9.0 L CCC) 9.11 ddd) Financialintermediationand insurance eee) 3.4 m) 4.5 I ggg) 4.5, ~ Real estate and businessservices 1ihhh) b i i 4 1 Ili)' 4 0 kkk) 6.0 Ill) Community,social, and personalservices ' mmm) 3.8 nnn) 3.0 ~ ~ Fij%National Development Plan 2006 -2010 26 ' Economic growth is an important factor that influences poverty trends. However, growth alone is not sufficient to reduce poverty, as experienced in the past. The rate o f growth and its structure matter most for poverty reduction. The Plan, therefore, targets an annual growth average o f at least 7 percent over the period 2006 to 2010 compared to 4.8 percent achieved during the Poverty Reduction Strategy PaperRransitional National Development Plan (PRSP/TNDP) period. The growth prospects are particularly bolstered by the recent boom in the mining sector. New mines have opened up and others are expected to be opened during the Planperiod. A growth strategy based on mining alone i s ,however, not appropriate for sustained growth andpoverty reduction. A mining sector growth strategy will most likely be a continuation o f the same structure o f growth experienced duringthe PRSP period. With such a strategy, even if the economy grew rapidly at over six percent, the impact o fthis growth on poverty will still remain limited. Thus, while encouraging existing sources o f growth like mining, construction, wholesale and retail trade, this Plan focuses on expanding the structure o f growth by finding new growth opportunities that can significantly create employment, reduce poverty and sustain the growth process in the medium to long term. The key FNDP growth strategies shall therefore be supporting rural development, especially agriculture; encouraging stronger linkages between the resource based sectors o fmining and agriculture with manufacturing, especially through upstream linkages to ago-related processing; stimulating stronger and beneficial tourism growth; and supporting the expansion o f a strong and diversified export base. Although the FNDP will pursue a balanced growth strategy, a high premium is placed on agricultural growth. This is because 60.8 percent o f the national population resides in rural areas while high concentrations o f poor households are also in the rural areas and derive their livelihood mostly from agricultural activities. Inthe light o f highincome inequality in Zambia, social investments inhealth and education will also be emphasised. Thus, in line with the focus on strengthening rural development to achieve broad-based wealth andjob creation with greater citizenry participation, the higher economic growth is also envisaged to be driven from a stronger performance o f agriculture and ago-related manufacturing. Tourism is similarly expected to register stronger growth, reflecting large recent private investments. Although the FNDP does not focus on achieving pro-poor growth through mining, this sector will continue to be important for maintaining high overall growth in the country and in terms o f foreign exchange earnings. The reinvestments and capitalisation that has occurred in the last three years have positively transformed the sector. Large private sector investments in new and existing mines are already ongoing. This, coupled with an expected continuation o f buoyant world metal prices in the short to medium term, has bolstered mining sector performance and overall economic growth prospects. Apart from tourism and mining, more investments in the energy sector are required to add capacity to the existing energy sources, especially inthe light of a looming power shortfall inthe Southern Africa region by 2008. Raising and sustaining overall growth to at least 7 percent per annum over the Plan period, especially in agriculture and manufacturing, will however, be the major challenge under this Plan period. Such growth rates usually depend on the private sector and require an appropriate enabling environment that supports robust private sector development. Thus, creating a growth conducive for private sector environment will remain critical. Thus, a stable and conducive macroeconomic environment charecterised by low and non-accelerating inflation, low interest rates and a stable and competitive exchange rate will therefore be essential. During the Plan period, it is envisaged to reduce inflation to single-digit levels. This is important because highrates o f inflation have inthe past contributed to high interest rates, which have stifled investment, especially inagriculture and manufacturing. Apart from macroeconomic stabilisation, more attention will be devoted to improving the competitiveness o f the economy, strengthening the investment climate to accelerate investment and improving economic infrastructure. The investment and business climate shall be enhanced through the implementation o f the Private Sector Development (PSD) Programme and the Financial Sector Development Plan (FSDP). Other priority policy measures will include supporting trade logistics and Fijih National Development Plan 2006 - 2010 27 facilitation, strengthening transport infrastructure, and hrther reforming policies that create anti-export bias, includingthe fight against corruption. Another key FNDP macroeconomic target is the reduction o f domestic debt to sustainable levels. There i s need to reduce the public debt to below 10 percent o f GDP. This i s important to reduce on the resources currently being channelled towards servicing domestic debt. This will be achieved by reducing Government's domestic borrowing, curtailing the accumulation o f new debts on supplies, clearing o f existing arrears and maintaining low levels o f externalborrowing. The achievement o f the above broad objectives will require implementation of prudent fiscal, monetary, financial, external and structural policies as outlined inthe sections that follow. 4.2.1 Fiscal Policies 4.2.1.1 Maintenance of Macroeconomic Stability: In the light o f a large domestic debt and high nominal lending interest rates, fiscal policy shall continue to focus on avoiding excessive fiscal deficits and debt. The medium-term objective is to contain the overall deficit (including grants) to within 2 percent o f GDP and domestic government borrowing to less than 1.0 percent o f GDP from 2008 onwards. The reduction in government borrowing will be consistent with the objective to reduce domestic securities debt. It will also allow for an expansion o f credit to the private sector to stimulate the much needed growth. Additionally, the fall in domestic borrowing shall contribute to a decline in interest rates and, therefore, budgetary payments to service the debt. This, in addition to reduced external debt servicing payments following relief provided through the HIPC Initiative and the G8 declaration, should provide additional fiscal space for increased spending on priority programmes in a non- inflationary manner. However, in the absence o f scaling up o f aid, two things are likely to happen: (i) domestic borrowing will increase above the targeted levels o f within 2 percent o f GDPand (ii) scaling down o f expenditures especially inthe non-priority sectors and further reprioritisation within the priority sectors. 4.2.1.2 Improving Budget Execution: Budget execution has been improving inrecent years. However, persistently large and unbalanced supplementary budgets and also untimely and inadequate hnding to some spending agencies, suggests that greater efforts are needed inthis area. Supplementary budgets are inpart due to inadequate prioritisation or rationalisation duringbudget preparationprocess, such that too many items appear in the budget and are under-budgeted as a result. During this Plan period, it is expected that this will be addressed and therefore reduce the need for supplementary budgets, except in circumstances such as natural disasters. This would be consolidated by ensuring that any such supplementary budgets shall only be granted after alternative financing sources or offsetting expenditures have been identified. Fundingto spending agencies will, however, require to be improved so that it is predicatable, timely and in line with approved Another aspect o f budget execution relates to weak Treasury management inthe Ministry o f Finance, which has inpart affected smooth execution o f the budget. To addressthis, treasury management functions within the ministry will be enhanced. 4.2.1.3 StrengtheningJinancial accountability and expenditure monitoring systems to ensure that public spending is delivering the desired results is vital. The overall financial accountability system will be enhanced through the implementation o f the Public Expenditure Management and Financial Accountability (PEMFA) Programme. The monitoring o f public expenditures shall be further improved through routine tracking studies and periodic and detailed Public Expenditure Reviews (PER). In this regard, Public Expenditure Tracking Surveys (PETS) will be developed and implemented. Public expenditure review meetings for various sectors will be held annually to feed into the policy and decision-making processes. 4.2.1.4 Strengthening the RevenueBase: Sustaining government revenues is a prerequisite for financing predictable development programmes while also achieving the targeted budget deficit. The overall long- term vision for the tax policy i s to achieve a robust and broad-based tax system that raises revenue in a fair and efficient manner. To achieve this goal, certain aspects o f the current tax system shall be reviewed and reformed, focusing on the following: FifthNational DevelopmentPlan 2006 2010 - 28 Theprogressiveness ofthe tax system; The low V A T collection; Redtape intax administration, especially within the VAT system; The narrow personal income tax base; and The extent and scope o f ad hoclspecial tax incentives, especially in the mining sector. A comprehensive tax review and reformexercise willbe undertaken to tackle these andother tax policy issues. The recommendations o f this review shall be implemented starting with the 2007 budget. The tax review and reform effort is expected to contribute to the broadening o f the tax base and rationalise the rate structures of taxes, incentives and targeted relief. The Plan targets to achieve a tax revenue-to- GDP ratio o f about 18 percent by 2010 from 16 percent in 2006. Other expected milestones will be strengthened anti-tax avoidance measures and simplified tax system, particularlyfor small and medmm- sized businesses. As part o f the tax reform effort, close attention will also be paid to improving the general performance o f the Zambia Revenue Authority (ZRA) by setting both performance- and revenue-related targets. This is necessary because since its creation in 1995, ZRA's performance has typically been measured in terms o f meeting government revenue targets while issues o f satisfactory administration have received less attention. With regard to non-tax revenues, there will be a comprehensive audit and strengthening o f all revenue points to enhance collections. Non-tax revenue collections have been low because most cash points across the country are inadequately equipped and managed. These weak systems have created potential avenues for fraud through the non-banking o f receipts. Strengthening the current system will therefore, involve putting inplace effective collection mechanisms, including (a) providing adequate logistics for non-tax revenue collecting agencies; (b) reviewing current legislation; (c) adjusting fees and fines to cost-effective and appropriate levels, and (d) strengthening watch-dog systems in institutions that collect revenue to curb corruption and pilfering .The collection o f non-tax revenues is also expected to be enhanced as a result o f the introduction of the Integrated Financial Management Information System (IFMIS) under the PEMFA reforms. The IFMIS will among other things, allow for easier and automated tracking o f revenue collections by government agencies. 4.2.2 Monetaryand Financial Policies Monetary policy will focus on achieving and maintaining single-digit inflation during the FNDPperiod. The attainment o f low and stable inflation is a pre-requisite for reducing currently high interest rates, which have contributed to poor access to financial services within the economy. Excessive growth inthe money supply during the PRSPiTNDP period has been a major contributing factor to high inflation rates and should, therefore, be avoided during the FNDPperiod. However, highinflation inZambia cannot be explained only by excessive growth in the money supply. There is also need to address supply-side factors such as: (a) poor infrastructure and marketing systems; (b) the vulnerability o f the agricultural sector to weather fluctuations; and (c) weak policy implementation across various sectors. Monetary policy management shall also be enhanced by reinforcing the operational autonomy o f the Bank of Zambia (BoZ) to formulate and implement monetary and supervisory policies. A further area to be strengthened is the coordination between BoZ and the MoFNP with regard to cash and Treasury management. This is necessary for the Central Bank to better manage liquidity and conduct monetary policy. The Zambian fmancial sector is characterised by high cost o f borrowing, thin capital markets and absence o f financial services in most o f the rural and peri-urban areas. Consequently, the financial system has not played a meaningful role in national development. Moreover, the weaknesses o f local insurance markets means that private agents are often unable to effectively mitigate risks, for example, inthe agricultural sector which results inlow levels of investmentbeingundertaken. The medium-term objective is to reverse this situation and expand financial intemiediation and access to fiancial services both in urban and rural areas so as to contribute to the achievement o f rapid pro-poor growth. T h i s goal will be achieved through the implementation o f the FSDP. Fif'th National Development Plan 2006 2010 - 29 The FSDP i s a detailed master plan for the development o f the fiancial sector and its main focus is on developing the capital markets, enhancing the role o f micro-financing in the economy, development o f rural financing, and the strengthening o f bankingand non-banking financial institutions. I t also seeks to enhance the role o f pensions and insurance in the financial sector. Annual work programmes and milestones on which implementation progress shall be measured will be developed. The cost o f implementingthe FSDP is estimated at U S $15 million. Some o f the key regulatory reforms to be achieved under the FSDP are the amending o f the Pensions Scheme Regulation Act o f 1996. This will result in the harmonization o f legislation affecting pensions, including investment guidelines. The amendment will also compel the pension funds and other Institutional Investors to channel a portion o f their hnds to the capital market. This would enhance the demand for instruments on the market and enhance liquiditytoo. Other important milestones shall be the facilitation by GRZ o f the creation, by the private sector, o f a Credit Reference Bureau (CRB), which will, among other things, aim to strengthen the credit culture in the country. Similarly, the Bank o f Zambia and other financial sector regulators willbe strengthened so that they are able to play their roles more independently and effectively. Through the FSDP, the reform of the publicly owned non-bank institutions, namely, the Zambia National BuildingSociety (ZNBS), Development Bank o f Zambia (DBZ), and the National Savings and Credit Bank (NSCB) will be completed. The reforms which started in 2005 are intended to turn these institutions into viable entities, broadening the range o f fiancial services that they provide, enhancing their role in the provision o f medium to long-term credit, and providing financial services to rural and peri-urban areas. The initial focus is the harmonisation o f the Banking and Financial Services Act (BFSA) with the DBZ Act, the BuildingSocieties Act and the NSCB Act, which are inconflict with the BFSA Act. This process is expected to be completed duringthe FNDPperiod. The three institutions will also be incorporated as limited liability companies under the Companies Act in 2006. The repeal o f the DBZAct will also open upthe market for development financing to other players. The harmonization of legislation, in particular, the inclusion o f the state-owned non-banking financial institutions (NBFIs) under the Companies Act is also expected to strengthen the regulatory and supervisory powers o f the Banko fZambia over these institutions. Alongside amending the Pensions Scheme Regulation Act o f 1996, pension reforms to address the structural problems facing the pension system inZambia shall also be carried out within the framework o f the FSDP. The pension system is currently based on three pillars. The first pillar, the NAPSA, is the largest fund in the country while the second pillar pension scheme consists o f two public sector schemes, namely, the Local Annuities Superannuation Fund (LASF) and the Public Service Pension Fund(PSPF). The thirdpillar consists o foccupational pension schemes. The financial status o f NAPSA and the two public sector schemes i s mixed. The two public sector schemes, PSPF and LASF, are insolvent, although both hold some assets and are owed considerable amounts in contribution arrears. For instance, the actuarial deficit o f the PSPF amounted to EO00 billion as at end December 2005. The financial insolvency o f the public pension schemes poses a serious risk to fiscal sustainability and macroeconomic stability and is also o f serious public concern. The financial distress o f the PSPF has impacted negatively on its operations resultingin poor service delivery. As a result, reforms to addressthe situation have commenced, including a plan by Government to liquidate its indebtedness to PSPF. The major reasons for the poor performance o f the public pensions include the following: (a) lack o f harmony inlegslation relating to pensions; (b) inadequacies inthe Pension Scheme Regulations Act o f 1996;(c) deficits inthe statutory pension funds as a result o fnon-remittance o fpension contributions by the State; (d) lack o f a supervisory agent; and (e) absence o fqualified local actuaries. The key legal reforms shall be the amendment o f Article 124 o f the Constitution. This should allow for changes to be made in the Pension Scheme Regulation Act No. 35 o f 1996 for the sustenance o f pensioners' and members' benefits. The proposed amendment to this act shall address the following: a) Protection o f only accrued pensionbenefits; Fifth National Development Plan 2006 -2010 30 b) Allowing-for changes to be made to the benefits formula variables to suit the changing circumstances; and c) Promoting transparency, accountability, and incorporating good corporate governance in the management o f the PSPF. Another important reform in the pensions scheme shall be the enhancement o f the supervisory authority o f the Pensions and Insurance Authority (PIA). The PIA was established as a statutory board to enhance pensions and insurance regulation inthe country. With respect to rural and micro financing, there has been a gap in the provision o f financial services in the rural areas. This followed the collapse o f most o f the subsidized and publicly funded rural finance institutions in the mid-1990s. This situation has been further aggravated by the closure o f many commercial bank branches inperi-urban and rural areas due to the stagnation inthe rural economy and the poor infrastructure. Consequently, the lack o f financial services in the rural areas has remained one o f the constraints to rural development. Inthe lighto fthe focus on rural-leddevelopment inthis Plan, developing a well functioning micro and rural fiancing system is one o f the priorities o f the FSDP. The first step shall be the preparation o f a comprehensive rural financing policy and strategy, which has been absent. The policy and strategy will provide a framework for the provision o f rural financing. Efforts towards the preparation o f the rural financing policy and strategy commenced in 2005 and it is expected that the policy and strategy will be completed and implemented during the Planperiod. Apart from developing and implementing a rural financing policy and strategy, the National Savings and Credit Bank (NSCB) will be jointly re-capitalized by the Government o f the Republic o f Zambia and the InternationalFundfor Agricultural Development (IFAD) and its rural branch network expanded further. This will be after the Bankhas beenreformed into a viable institutionwithin the context o f the FSDP. 4.2.3 External Sector Policies The objectives for the external sector are to: (a) sustain a viable current account balance; (b) improve the external competitiveness o f the economy; and (c) maintain a sustainable external debt position. To sustain a viable current account balance, the main strategy remains that o f promoting export growth and maintaining a competitive exchange rate. Export development shall, thus, be one o f the important drivers o f overall economic growth during the Planperiod. Although the miningsector will continue to play an important role in Zambia's external sector position, the country's export development strategy will continue to focus on diversification away from copper. Trade policies will maintain a liberal trading position while also encouraging a competitive, expanded and diversified export production base. Zambia is a member o f a number o f trading bodies at both the regional and international levels. To derive meaningful benefits from these arrangements, Zambia will continue to insist on improved market access while addressing supply-side constraints and improving the competitiveness o f domestic industries. While trade policy has largely been supportive o f export development, the non-traditional export sector still needs support particularly with respect to: (a) the establishment o f an accessible and affordable export financing facility; (b) strengthening and decentralizing the administration o f testing and certification o f sanitary and phyto-sanitary standards; (c) strengthening export-oriented investment promotion and export promotion functions; (d) streamlining operatingprocedures for the duty drawback scheme; and (e) improving the management o f bonded warehouses and Removal in Bond. Additional measures are also required to stimulate the private sector to improve the quality of their products and packaging to secure the international competitiveness o fZambian exports. The competitiveness o f the economy needs to be quickly improved. In this regard, particular attention shall be paid to addressing the high cost o f doing business and improving the general business climate. This is already being addressed in part through the implementation o f the PSD programme. Other important measures would be the maintenance o f a competitive exchange rate. This is important FifthNationalDevelopment Plan 2006 20111 - 31 especially for overall export development and growth in export led agriculture. Monetary and exchange rate policies will thus have to be cognisant o f the broader growth and development goals. Measures focused on improving productivity levels in key sectors, such as agriculture and downstream manufacturing, will be critical to increasing the competitiveness o f Zambian products in both regional andinternationalmarkets. With regard to external debt and aid and following the easing o f Zambia's debt burden through the Enhanced HIPC and G8 initiatives, the prime goal inthe medium to long term is to avoid a return to the indebtedness o f the last three decades by keeping debt to manageable and sustainable levels. As a general principle, any new borrowing will be aligned to the country's capacity to repay the debt and on terms that would not unduly expose the country to preventable risks o f defaulting. As in the PRSP period, the Government shall continue to target concessional borrowing and grants. Since 2004, the Government has been implementing a debt reform and capacity buildingprogramme, which will among other things, result inthe development o f a debt policy and strategy by 2006. The debt reforms will also revise the laws governing public borrowing and ensure strict observance o f the provisions o f the Loans and Guarantees Act. However, the guidingprinciple for the acquisition o f new loans is that such new loans should contribute to the realization o f the country's development goals as outlined inthis Plan. Foreign aid is an important source of financing for the country's development programmes. Zambia has received quite substantial development aid inthe past but its impact on development hasbeen somewhat limited. Consequently, greater attention will be devoted to maximising the impact o f aid on growth and poverty reduction. However, this can only be achieved if aid is provided ina systematic and predictable manner and is aligned to the country's development priorities. Such coherence has been lacking in the past due to the absence o f an Aid Policy and Management Strategy. In 2005, the development o f Aid Policy and Strategy commenced and the policy is expected to be approved during 2006. Aid policy should pay attention to in-kind contributions, food aid, medicare and equipment. The Aid Policy and Strategy defines the process o f procuring and managing external assistance. Within the aid policy and strategy framework, preference shall be given to grants and highly concessional long-term loans. In addition, preference shall be accorded to flexible budget fmancing, e.g. general budget support rather than aid which is provided for specific donor-driven projects and which by-pass government's own planningandbudget management systems. The Government has also invested time andresources inthe aidharmonisationprocessesandprocedures that, ultimately, would improve coherence and alignment o f external support and, consequently, result in the reduction o f transaction costs associated with the multiplicity o f aid modalities and disbursement procedures. The capture and tracking o f external aid flows will also be enhanced through the development o f a robust aid database inthe Ministry o fFinance andNationalPlanning. 4.3 Social Objectives,Policies and Strategies 4.3.1 Poverty Reduction The re-orientation o f expenditures towards pro-poor programmes shall constitute the most important approach towards the realisation o f the FNDP theme. While maintaining fiscal sustainability is important in attaining macroeconomic stability, the Government recognises that wealth creation, while important, cannot be an end initself. Wealth creation shall be seen as a means towards the realisation o f the strategic social objective o f poverty reduction through job creation and the application o f technology-cum-knowledge towards the realisation o f social welfare improvement. This overall goal is considered by the Government to be at the centre o f the FNDP inthe light o f the highpoverty levels the country is facing. The overall goal is also in line with the MDGs that focus on strategic social targets that can only be met if there is a conscious effort to channel the benefits from the generated wealth to pro-poor social spending. Inthe light of the above, the fiscal policy direction during the FNDP shall give greater attention to ensuring that the composition o f public spending is not only growth-oriented but alsopro-poor. Inthis context and in line with consultations undertaken during the preparation o f this Plan, including the district planningprocess, and also adhering to the commitment to meet the eight MDGstargets by 2015, the FNDPpublic spending priorities shall be as follows: a) Social sector spending, particularly on education and health; Fifth National Development Plan 2006 - 2010 32 Adequately financing agricultural (including livestock) development; Carefully identified and well-targeted poverty reducing and poverty alleviation interventions, particularly employment creation through, inter alia, facilitation o f opportunities for small- and medium-scale enterprises; Provision of well maintained strategic economic and social infrastructure, particularly feeder roads, irrigationand communications infkastructure, targeting primarily rural areas; Fightingthe HIV andAIDS pandemic; Tackling health concerns such as malaria and tuberculosis, which are the major causes o f mortality and morbidity inZambia; and, Bridging the gender gap. Expenditures on education and health services during the FNDP shall receive about 22 percent and 12 percent, respectively, o f the budget during the Plan period. To accelerate pro-poor growth, public spending on economic services, especially rural and agricultural development, shall be increased considerably and appropriately allocated. Agriculture spending is envisaged to rise to about 8 percent o f the FNDP budget. The scope to effectively realign the Government's budget with identified public priorities is constrained by the many expenditure demands on limited revenue resources. The Medium Term Expenditure Framework (MTEF) process (supplemented by sectoral Public Expenditure Reviews) shall be used to review and overhaul the expenditure allocation system in Zambia to bring it in line with national priorities and resource availability. The expenditure review process shall address both the sectoral distribution of expenditures and the balancing o f personnel, operating and investment/maintenance expenditures. The expenditure review is expected to commence in 2006 and the implementation o f its recommendations should start in2007. 4.3.2 Population Policiesand Strategies Population factors are an integral part o f any country's development processes. The population characteristics of a nation, its size, composition, structure, distribution, growth rates, as well as the basic demographic processes of. fertility, mortality and migration affect and are in turn affected by development. Table 4.2 gves the population estimates during the FNDP period. Source CSO,2000 Census of PopulationandHousing The size and growth rate o f a population are primarilya function o f the interplay o f three demographic processes, namely, fertility, mortality and migration. Many factors are responsible for the high fertility level inZambia and other developing countries. These include cultural and institutional factors such as low age at first marriage; low education levels particularly among females; high levels o f infant and child mortality; the perceived economic rationale o f large family size since many children may provide some economic benefits to parents such as insurance inold age and intimes o f need; and the low socio- economic status o f women. The high levels o f fertility and mortality in Zambia have resulted in the extreme youthfulness o f the Zambian population (Table 4.3). I I I Fifth National Development Plan 2006 2010 - 33 1 I I Percent15-49 47 0 471 - 47 1 , 47 1 ~ ~ I I I 1 , Dependencyratio I 0 9 0 9 0 9 1 0 9 0 9 0 9 ~ I I 1Medianage 170 17 0 170 , 170 170 170 jI Zambia is sparsely populated. The population density increased from 5.4 to 7.5 per square kilometre for the 1969 to 1980period and from 10.3 to 13.1 personsper squarekilometre for 1990 to 2000. There are also substantial provincial variations inthe density o f settlement. Densities range from 63.5 persons per square kilometre inLusaka province to 4.6 persons per square kilometre inNorth-Western Province. The labour force is the population aged 15 to 64 years. Results from the 2000 Census o f Population and Housing put the labour force in the year 2000 at 5.08 million. In 2005, it increased to 6.1 million, a change o f20 percent. In2010, it is projectedto increase to 7 million, indicating a rise o f 15 percent over five years. By 2025, the labour force will be about 11 million. Increase in the labour force leads to a corresponding increase in demand for jobs and other social amenities. Generally, formal sector employment has been steadily diminishing as the main source o f employment inZambia. In2004, total formal employment in Zambia was estimated at 416,228 representing a moderate decrease from 416,804 in 2003. With the decline in formal sector employment, the informal sector has become the principal source o f employment and livelihood for most Zambians. In May 1989, the Government adopted a National Population Policy that affirmed its commitment to adopting and implementing appropriate strategies to manage population resources in a manner consistent with Zambia's ultimate objective o f accelerating the rate o f economic growth. The Policy was revised inJune 2005. Among the main challenges facing the Government is the liberalization o f the labour market to make it more efficient and responsive to the challenges o f the day. After liberalization, the Government's main role is to create a conducive environment in the labour market and articulate how it will continue to provide policy direction. The Government also recognizes the fact that information plays a vital role inthe operation of the labour market. In the light o f the above, the Government Vision in the area of population and development is: Improved quality of life through the achievement of population trends that are commensurate with Zambia's socio-economic development. In the context o f this Vision, the main objectives are to reduce the high levels o f fertility, particularly adolescent fertility; expand and maintain the nation's population database; promote the achievement o f an even spatial distribution, especially between urban and rural areas; and improve the sexual and reproductive health status o fthe population. The strategies for achieving the above objectives are multi-sectoral and are as follows: a) Establishing and developing mechanisms for coordination, collection, processing, analysis, dissemination and utilisation o f demographic andrelated information; b) Long-term and short-term training, re-training andretention o fhumanresources so as to ensure effective implementation o fpopulation and development programmes; c) Promoting research on the inter-relationship between population, reproductive health, gender, HIVandAIDS andvarious aspects o fdevelopment; d) Providing long and short-term population and research related training in population and development. To achieve the above objectives, the following programmes will be implemented: a) Establishmento fpopulation and development sub-committees at provincial and district levels; b) Procurement o fequipment; c) Production o f tourism, migration andpopulation registers, and education and vital statistics reports; F i j h Nationd Development Plan 2006 - 2010 34 d) Censuspreparatory activities; e) Census undertaking; and f, Establishmentofaconxnunity database. 4.4 Structural Policies The structural reform agenda during the FNDP will focus on (a) private sector development by improving the business and investment climate; and b) enhancement o f efficient public service delivery system; 4.4.1. Private Sector Development 4.4.I.I Improving theBusiness and Investment Climate In order to achieve and sustain annual economic growth rates o f at least 7 percent envisaged in this Plan, the growth environment requires to be substantially improved, especially with regard to the business and investment climate. The quality o f the business and investment climate is a major contributory factor to sustained growth, employment and, therefore, poverty reduction. The main instrument for improving the business and investment climate inZambia duringthe FNDP period shall primarilyremain the Private Sector Development (PSD) Programme that is currently ongoing. The PSD has six reform pillars which are: (a) to improve the policy environment and institutions that serve the private sector; (b) regulations and laws, (c) infrastructure development, (d) business facilitation and economic diversification, (e) trade expansion, and (0citizens economic local empowerment (see Figure 4.1). The key milestones and interventions to be carried out under the six pillars are outlined below. ~- Figure4.1: PSD ReformAreas and Objectives .. - THE SIX KEFOR I I 1 Createtheenablingmacroeconomic~ v J r o n ~ eskngthw public n t ~ I 1 Policyenvironment& tnstituhons agenciesthatsupportPSDandenhance p ~ b l ~ ~dialogue~ ~ a t e 2. Regulations& laws 2 Improver ~ u l aand~investment~ ~ codetofaster PSD ~ ~ ~ $ 3, Infrastructure 3 Enhancethe infrastructuralplalfonfor PSDby encouraging Pnvate PublicInvestment{PPI) in infrastructure 4 Removeadfflint~tivebarners to bustnessenby andoperabon and 4 Busmessf a c i I i ~ B~economtc dntersikatm 6 facilitated e v e l ~ ~offhigh-growtfisecfors l ~ 5 Trade expansion 5 Creategreateropportunitesfor accessto reglonalandi n ~ e ~ ~ o n a ~ marketsbyZambian businesses 6 Unlockthe growth potentialof the Medium,Small and Micro Enterpnses I 6 Citizenseconomic empowerment (MSMEs) sectoithrough businessdevelopmentsupportandempoweimeiit inibahves ." .. Fifth National Development Plan 2006 - 2010 35 4.4.1.2Policy Environment &Institutions The creation o f a stable and conducive policy environment is one o f the major prerequisites for sustaining private sector investment and general economic performance. Consolidating and further strengthening macroeconomic stability achieved in the recent past remains vital. In this regard, the FNDP will continue to focus on policies that contribute to and enhance macroeconomic stability. The private sector has often cited lack o f credit as one o f the major impediments to their expansion. The PSD places a highpremium on strengthening the financial system in order to expand intermediation in the economy. The ongoing Financial Sector Development Plan (FSDP) is the framework for the development o f Zambia's financial sector. The PSD also seeks to enhance the efficiency o f the institutions that serve the private sector. In this regard, a programme o f action to improve delivery o f service in three pilot institutions is expected to commence in late 2006. These are the Ministry o f Lands, Immigration Department o f the Ministry o f Home Affairs, and the Zambia Revenue Authority. For all the three institutions, the aim is to accomplish the objectives o f (a) implementinginstitutionally tailored regulatory reforms to simplifyprocesses and reduce red tape; and (b) creating opportunities for eradicating corruption in the three pilot institutions. With regard to the Ministry o f Lands, the focus will be to streamline and shorten technical procedures inlandadministration, including the recording o f deeds and titles, in order to quicken service delivery and also provide a tool to minimize corruption opportunities. The programme would make information about land acquisition processes more transparent and accessible to the public. At the same time, the Government shall review the organizational structure of the Ministry o f Lands with a view to restructuring and strengthening its capacity to manage land more transparently and professionally to secure fair and equitable access to, and control of, landfor sustainable socio-economic development. For the Department o f Immigration in the Ministry o f Home Affairs, the objective will be to simplify, clarify and make transparent the procedures for permits in order to reduce discretionary authority, thus reducing opportunities for corruption. A t the Zambia Revenue Authority, the objective of this activity is to make tax and customs procedures more efficient and responsive to the needs o f the public. It is expected that successful implementation ofthis programme should result infaster access to service, quicker and less onerous customs procedures, and greater customer satisfaction with the targeted institutions. Once this has been successfully implemented inthe three pilot institutions, the programme could then bereplicated to other similar service institutions. 4.4.1.3 Regulations and Laws Zambia's trail o f legal and regulatory requirements demand quite some effort and time. According to the 2005 Foreign Advisory Services (FIAS) Report o f the World Bank, it takes an average o f 35 days and long and tedious procedures to enforce a contract. The PSD seeks to address these and many other constraints by rationalising and simplifyingthe regulatory and licensing framework inkey sectors o f the economy. The PSD seeks, for instance, to cut by two-thirds the number o f steps and the amount o f time needed to open abusiness inZambia. Further improvements to the regulatory frameworks and the investment code will be undertaken in the period 2007 to 2008 with the focus on tackling administrative barriers as well as amending the Investment Act and related legislation. The Zambia Development Agency (ZDA) is coming on board to implement the Investment Act. On-going initiatives to review the Investment Act will continue to be executed and it is expected that, by 2007, a new Investment Act will be in place. The new Act will substantially improve the investment climate inthe country. The PSD will also seek to address the restrictive labour market issues related to retirement and termination. Other key focus areas will be the improvement o f the regulatory framework in the key area o f telecommunications. Despite Zambia having initially made faster progress intelecommunications in the early 1990s than other countries in the region, the momentum has declined and the country toddy lags behind regional standards in terms o f access to telecommunication services by both citizens and businesses. While entry into the provision o f international services has been open since 2001, the Fifth NationalDevelopmentPlan 2006 2010 - 36 license fee o f operating an international gateway is prohibitively high. There will also be need to improve the regulatory framework to enhance competition inthe sector. The PSD seeks to address these imbalances inthe telecommunications sector. The key reforms will therefore, include the revision o f the Telecom Act together with the licensing framework inthe sector. 4.4.1.4 Infrastructure Development The FNDP recognizes that high transport costs due to road conditions, excessive telecommunication costs and an unreliable power supply have serious implications for the economy, particularly tourism, agriculture and non-traditional mining, the pillars of economic diversification. As a result, the Plan has placed a highpremium on infrastructure development. In view o f the limited public resources, one of the PSD objectives is to encourage Private Public Investment (PPI) in infrastructure. In this regard, a comprehensive PPI road map that provides a favourable policy environment and legal framework will be developed by 2007. The PSD has also prioritized investing in new electricity generation and distribution to reduce load sheding. The PSD also seeks to create the conditions for the deployment o f national telecommunications backbone infrastructure. One o f the causes o f poor quality and high cost of service in Zambia is the lack o f a reliable and affordable backbone infrastructure. Such infrastructure facilitates cost-effective interconnections nationally, regionally and internationally. The creation o f the backbone for Zambia linked to neighbouring countries would create multiple interconnection points to several international andregionalbackbones. 4.4.1.5Business Facilitation and Economic Diversification Zambia has made some notable advances over the last few years to improve the business environment. Nevertheless, business entry and foreign direct investment formation have been difficult because of, among others, numerous processes and regulations undertaken by different statutory bodies. This is compounded by numerous license processes that the business community has to undergo. Inthis regard, the PSD will work towards the removal o f administrative barriers to business entry and operation, focusing on, inter alia, simpliging, streamlining, and rationalising the various licenses and inspections that businessesare frequently subjected to. The key milestone towards reducing bureaucratic procedures shall be the establishment o f a "one stop shop," the Zambian Development Agency (ZDA). The Agency will bring together the operations and procedures o f five statutory bodies, namely, the Zambia Investment Centre (ZIC), the Zambia Export Processing Zones Authority (ZEPZA), the Export Board o f Zambia (EBZ), the Zambia Privatisation Agency (ZPA) and the Small Enterprise Development Board (SEDB). The creation o f the ZDA received Cabinet approval in2005 and is expected to be operational by 2007. I t is envisaged that a fully operationalZDA should transform the business environment inZambia. Apart from the ZDA, the operating framework for business facilitation will be enhanced by the establishment o f Patents and Companies Registration Office (PACRO) provincial offices to remove administrative barriers to business and investment entry and operation outside Lusaka. The programme will start with pilot provinces, the Copperbelt, Southern and Eastern provinces. This is in response to the large number o f complaints from private industry and citizens to facilitate greater business and investment creation outside o fthe capital city o f Lusaka. The land delivery system in Zambia is not very conducive to allow for rapid business expansion and economic diversification. Streamlining the land delivery system to facilitate economic activities is one of the major structural reform agenda items under the PSD Reform programme. This is because for any investment to take place, one needs land as one o f the factors o f production. Moreover, land use rights have important bearing on poverty reduction. Although during recent years, some noticeable progress has been made in streamlining the land delivery system such as opening up o f the regional and provincial offices, land use planning is still very poor in Zambia. A lot o f investments are frustrated because o f poor land administration and absence o f land use plans. The lengthy process for acquiring land has made access to land difficult. A new land policy shall thus be finalised and launched during 2007 to address the multitude o f constraints in the land sector. Fifth National Developmelit Plan 2006-2010 37 4.4.1.6 TradeExpansion Zambia has made progress towards streamlining domestic laws and practices that govern foreign and local trade. These include the simplification and reduction o f tariffs and integrating into regional and multilateral programmes under the SADC, COMESA and WTO. However, deficiencies still impinge on trade facilitation. These include: a) Excessively bureaucratic trade procedures due to the involvement o f multiple government agencies and clearance systems at borders; b) Lengthyinspection andcertificationprocesses; c) Poor or non-existent border ICT infrastructure; d) Inadequate application o fmodem customs techniques; and e) Inadequate skilled personnel. These impediments shall be addressedthrough the Integrated Framework (IF), which i s an international initiative to respond to developing countries' trade needs, particularly focusing on supply-side constraints. A Diagnostic Trade Integration Study (DTIS) was developed in the context o f the PSD Reform Programme and focused on specific priority areas for intervention and support; making export incentives work for exporters; improving trade facilitation; enhancing the capacity to formulate, coordinate and implement trade policy; and negotiating trade agreements. This includes streamlining the duty drawback scheme, the development o f a single processing and payment window for all border agencies, and the amendment o f the Standards Act to separate standard testing from the regulatory functions. Duties on imported capital goods are set to be removed to stimulate private investments. Interms o f the challenge to speedup customs clearancesby 2010, the Government will seek to increase port efficiency. With the support o f the Millennium Challenge Account, a programme shall be put in place aimed at enhancing port efficiency through the establishment o f a "Comprehensive Integrated Tariff System" (CITS) that will unify all border related fees and procedures. The programme will start with two pilot border posts, namely, Chirundu and Lusaka International Airport (LIA). The aim o fthe programme is to decrease and finally eliminate administrative andprocedural barriers to trading. The PSD will also seek to improve Sanitary and Phyto-Sanitary Services (SPSS) inGovernment. Inthis regard, capacity o f the SPSS units in the Ministry o f Agriculture and Cooperatives will be strengthened to provide efficient and speedy services for local and export trade. Another key activity for enhancing trade facilitation shall be the strengthening o f the standardization, certification and inspection units o f the Zambia Bureau o f Standards (ZABS) so that they can provide efficient and speedy services for importing and exporting, thus ensuring conformity with international and regional standards and technical requirements. 4.4.1.7 Citizens Empowerment The objective under this reform area is to unlock the growth potential o f citizens through business development support and empowerment initiatives. To this effect, the Citizens Economic Empowerment Policy will be implemented. A Citizens Economic Empowerment Act was passed inParliament in early 2006 and implementation is expected to start in 2007. This will provide a durable and sustainable foundation for achieving a significant level o f citizen participation in business and the economy in general. This will also see the development o f incentives that will aid in the voluntary migration from the informal to the formal sector o f the economy. Figure 4.2 shows the PSD reform programme framework. PSD Programme activities during the FNDPperiodwill be implemented by the Government through the various statutory agencies such as the proposed Zambia Development Agency, the PACRO, the Zambia Competition Commission (ZCC), the Zambia Weights and Measures Agency and the Zambia Bureau o f Standards. These will be augmented by the actions o f private sector apex associations such as the Zambia Business Forum (ZBF), the Zambia Association o f Manufacturers (ZAM), the Zambia Chamber o f Small and Medium Business Associations (ZCSMBA), the Small-scale Industries Association o f Zambia (SSIAZ), and the Zambia Federation o f Women InBusiness (ZAFWIB). Fifth National Development Plan 2006 -2010 38 Figure 4.2: PSD Reform Programme Framework LI 7 i I I--------- 7 Initiate new Programme P m g m m e Uready mPlace 4.4.2 Enhancementof Efficient Public Service Delivery System Improvement III the performance o f the public sector shall continue to be undertaken through the Public Service Reform Programme (PSRP) whose overall goal is to improve the quality, efficiency, cost- effectiveness and delivery o f public services to the people of Zambia. The PSRP will continue to focus on three main areas, namely, Public Expenditure Management and Financial Accountability Reforms (PEMFA); Public Service Management (PSM); and Decentralization. The primary objective o f PEMFA is to improve public expenditure management and strengthen overall financial accountability in the public sector. The key activities o f the PEMFA Programme are (a) implementation o f the Commitment Control System (CCS) and Financial Management System (FMS) to all ministries, provinces and other spending agencies; (b) overhauling o f the legal and regulatory framework; (c) implementation o f the new financial management system (through IFMIS); (d) reform o f the public procurement systems; and (e) strengthening o f oversight processes, including that o f Parliament. The main objective o f the Public Service Management (PSM) programme component o f the PSRP is to enhance service delivery and programme implementation by improving management systems in the public service. This is necessary because the restructuring o f the civil service that began in 1993 has not sufficiently improved service delivery. This failure results from inadequate pay for professional and technical staff; ministerial and institutional establishments that are unaffordable given government priorities and limited resources; and lack o f effective performance incentives. To address these challenges, the PSM programme component is expected to enhance the performance and effectiveness o fthe public service. For example, under rightsizing, the objective is to ensure that all Government ministriesiinstitutions have staffing levels commensurate with their mandates and affordable in relation to their MTEF ceilings. This should lead to a better-remunerated public service. The main actions to be undertaken will include the completion of the restructuring o f the remaining ministries; the enforcement o f entry and hiring policies; and the development o f a strategy on unclassified workers. With regard to the pay reforms, the main objectives are to ensure that (a) employee remuneration is related to job responsibilities and performance; (b) essential technical, professional and managerial staff are attracted and retained in the Public Service; (c) pay arrangements support and reinforce improved service delivery; and (d) increases inpay levels are consistent with the Fifth National Development Plan 2006 - 2010 39 resource envelope. The key milestone to be undertaken will be the development and implementation o f a pay policy, which should help reduce discrepancies in remuneration to the different categories o f public officers. The pay policy is expected to be developed and implemented duringthe Planperiod. The goal o f the decentralization component o f the PSRP is to empower local government structures to effectively participate in the formulation and implementation o f development programmes. The National Decentralization Policy aims at achieving a klly decentralized and democratically elected system o f governance characterized by open, predictable and transparent policy making and implementation processes. The Government has developed the Decentralisation Implementation Plan (DIP) that provides a roadmap that will guide the efforts o f all stakeholders through the articulation of their roles in the implementation o f the Decentralization Policy. The key components o f DIP that are derived from the National Decentralization Policy itself include (a) Sensitisation and Civic Education; (b) Legal and Regulatory Framework; (c) Institutional and Human Resource Capacity Building; (d) Local Development Planning and Budgeting; (e) Financial Management and Accounting; (0 Fiscal Decentralisation and Revenue Mobilisation; (g) Sector Devolution; (h) Infrastructure Development and Services Provision; and (i) Monitoring and Evaluation. With regard to fiscal decentralisation, the Government will also accelerate the process with the view to increasing the level o f direct resource disbursements to the districts for the implementation o f development programmes at the local level. It also aims to establish and operationalize a comprehensive local government financing system and enhance the capacity o f Councils to effectively mobilize the required resources for effective service delivery. A fiscal decentralisationframework shall be developed to addresslocal government finance and fiscal issues. The sector devolution component o f decentralisation is particularly noteworthy for the operationalisation o f the FNDP. The main objective o f the component under the DIP is to achieve timely and effective devolution o f designated hnctions from sector ministries to lower levels for effective service delivery. The expected outputs include the development o f guidelines by each ministry on how it plans to effect sector devolution, with elaborate devolution plans. With respect to parastatal reforms, the main objectives are to scale down the Government's direct involvement in commercial activities by disposing o f entities that could be better managed by the private sector; reduce any budgetary outlays to state-owned enterprises; promote competition and improve the efficiency o f state-owned enterprises; and encourage wider share-based ownership and minimise the involvement o f Government bureaucracy in the operations o f enterprises. During the period 2006 to 2008, the main focus is on improving the operations o f utilities in the energy and telecommunications sectors (i.e., ZESCO and ZAMTEL) through commercialisation and restructuring. The process o f commercialising ZESCO started in2004 and is expected to be completed during the Plan period. Furthermore, the possibility o f reducing the Government's share holding in INDENI Oil Refineries will be considered. Attracting foreign investment and modernising the refinery is essential. The Government shall also focus on ensuring adequatelevels o f strategic reserves. Other notable parastatals that require attention include the Nitrogen Chemicals o fZambia (NCZ). Inthe event that no private investor acquires the company, the Government will undertake a due diligence study o f the plant to determine which operations can be commercially sustained. Although fertilizer is an important commodity for agricultural purposes, importing the commodity is currently more cost- effective than continuing to operate N C Z with obsolete equipment and technology. With respect to the improvement of economic statistics, it is noteworthy that Zambia's economic statistics require substantial revisions. This is especially true for the national accounts, balance o f payments, consumer price index, producer price index, industrial production index, and employment data. The inadequacies in some o fthese data havepreventedthe economic analysis needed to strengthen policy formulation. Some efforts to improve economic statistics started in 2004 but hrther efforts are needed. As such, revision exercises will be accelerated during the FNDP period and it is expected that Zambia will have revisednational accounts and the CPI index by 2007. F$h National Development Plan 2006 - 2010 40 4.5 NationalMonitoring and EvaluationFramework There are several macroeconomic monitoring and evaluation frameworks, including (a) the Economic Management and Monitoring Committee; (b) the Macroeconomic Sector Advisory Group (SAG); (c) the recently formed PEMFA Working Group; (d) the Financial Sector Development Plan Working Groups; and (e) the Budget Execution Monitoring Committee. There are also other institution-based frameworks such as the Monetary Policy Committee (MPC) o f the Bank of Zambia and the Medium Term Expenditure Framework (MTEF) Committee at MoFRP, the Central administration Sectoral Advisory Group and the PSRP Steering Committee. All these bodies address various aspects o f the macroeconomic and Public Service Delivery Service System programmes outlined under this Plan. Other mechanisms for monitoring and evaluating macroeconomic performance are documents such as the annual Economic Report that is produced by the Ministryo f Finance and NationalPlanning. To effectively monitor and evaluate the implementation o f the macroeconomic programmes under this Plan, the reporting framework o f the various working groups shall be streamlined and strengthened. Since the Macroeconomics SAG has a wider representation and is expected to monitor implementation o f the broad macro programmes, all the committees outlined above will be required to provide implementation progress reports to the Macroeconomics SAG on a quarterly basis. The Macroeconomics SAG will meet every quarter with a regular agenda. The monitoring o f macroeconomic performance shall be at two levels: (a) tracking progress in implementing stability-oriented policies; and (b) tracking progress in the implementation o f growth- enhancing and pro-poor policies, including structural reforms. Progress in implementing stability- oriented policies shall be measured mainly through monitoring performance in such key indicators as (a) government domestic borrowing; (b) overall budget deficit; (c) money supply growth; (d) arrears; (e) clearance o f domestic arrears; and (0 domestic debt. Monitoring o f progress shall be done through public expenditure management indicators and progress in implementing the key structural reforms in the Financial Sector Development Plan, Private Sector Development, Public Service Reform Programme and Public Expenditure Management and Financial Accountability. Fifth Natioizal Development Plan 2006-2010 41 FNDPSectoral EconomicSectors AaricuIture 5.1 lntroduction Agriculture inZambia has great potential for enhancing economic growth and reducingpoverty. A well performing agricultural sector translates into significant improvements in the country's GDP, contributes to employment generation, and broadens the country's tax base. To the extent that the livelihood o f the majority o f Zambians depends on agriculture-related activities, the sector, when well developed, should contnbute significantly to welfare improvement. It is in this regard that the FNDP positions the agricultural sector as one o fthe driving engmes for the anticipated economic growth that is required to reduce poverty. The sector's multiplier effects on the economy are particularly noteworthy, and the restoration o f its growth should guarantee a significant reduction in poverty levels currently being faced by Zambia. Agricultural productivity, especially among female headed households, is currently being affected by inadequate access to productive assets such as oxen and mechanized farm implements; limited access to agricultural inputs; high energy and transport costs; lack o f mechanisms to mitigate climatic risks; low soil fertility; inadequate access to agricultural service support, such as credit and markets; and disease andpest attacks on both crops and livestock. Inaddition, HIV andAIDS has had a negative impact on labour supply and has generally undermined the productive capacity o f households. As acknowledged in the PRSP, Zambia needs to improve agricultural production, productivity and marketcompetitiveness inorder to come out o fthe poverty trap. 5.2 Review of Past Performance Zambia is abundantly endowed with the required resources to stimulate agricultural and rural development. Presently, o f the country's 752,000 square kilometres of landmass, 58 percent is suitable for arable use and o f this, only about 14percent is currently under cultivation. The country possesses a conducive climate, and abundant arable land, labour and water resources. Prior to 1990, the agricultural policies were restrictive, distortionary and counterproductive due to heavy government intervention and participation and the dominance o f maize. In addition, the strategies pursued were not sustainable because o f their high reliance on subsidies. Consequently, these policies and strategies failed to stimulate sustained growth in the sector. The sector also lacked private sector participation inthe areas o f agricultural marketing, input supply and processing. In 1991, the Government embarked on agricultural sector policy reforms, which were part o f the overall economic reforms pursued under the Structural Adjustment Programme. The main policy thrust o f the reforms was liberalization o f the agricultural sector and promotion o f private sector participation inproduction; marketing; input supply; processing; and credit provision. Although the agricultural sector implemented various programmes, such as the Agricultural Sector Investment Programme (ASIP), the performance did not match expectations due to a number o fconstraints, including limited resources. In2001, the Government re-introduced co-operatives. The Department of Co-operatives within M A C 0 was mandated to play a major role inpromoting the formation o f and development of co-operatives in order to enhance their effective participation inagricultural production and marketing. Since the early 1990s, the agricultural sector's contribution to GDP has averaged 18 percent. However, real growth rates inagriculture have significantly fluctuated in the past four decades due mainly tohigh dependence on ram-fed production, reduced investments, and failure to strategically position the sector inline with its comparative advantage. Agriculture sector output is highlyvariable. Recurrent droughts and, more recently, unusually heavy rains, have often resulted in widespread crop failure. Crop failures have also been attributed to land degradation, poor husbandry practices and lack o f appropriate seed varieties. Nonetheless, there is considerable scope for drought mitigation through the promotion o f appropriate agricultural practices and drought insurance mechanisms. Since the mid-1990s, the agricultural sector has diversified with significant increases in the production o f such crops as cotton, coffee, tobacco, and horticultural and floricultural products. Increased Fifth National Development Plan 2006 - 2010 46 production o f these commodities has been due mainly to the support currently provided to farmers by private outgrower companies. The agricultural sector has increased its share o f export, due to the increased production and diversification. Primaryagricultural products make the largest contribution to agricultural exports. On average, exports o f products such as sugar, tobacco, cotton lint, coffee, and maize contribute significantly to non-traditional exports. Other contributors to agricultural exports are processed foods and textiles. Processed foods are largely ground maize, mealie-meal, that is exported mainly to the neighbouring Democratic Republic o f Congo (DRC). The textile industry has experienced strong demand from the regional market due to opportunities being provided by the Africa Growth and Opportunity Act (AGOA)programme o f the United States. Horticultural exports to the European Union have also contributed significantly to the country's non-traditional export receipts. The livestock sub-sector is also economically important inZambia as it accounts for about 35 percent o f the total agricultural production. The main livestock produced are cattle, goats, pigs and poultry. However, livestock production remains far below its potential due to several factors that include outbreaks o f diseases such as corridor and foot and mouth. Traditional communal grazing has, in part, been blamed for the frequent outbreaks o f cattle diseases inmany rural areas. The recurrence o f drought has often depleted animal grazing resources and drinking water, thus affecting the productivity o f the livestock sector. The fisheries sub-sector inthe country has great potential to support livelihoods although production trends have not grown consistently. Fish catches from the artisan sub-sector have remained static, averaging about 70,000 tons per annum. Consequently, the demand for fish outstrips supply. The declining yields incapture fisheries has been attributed to increasing humanpopulation infishing areas and unsustainable fishing practices, such as fishing in breeding sanctuaries and the harvesting o f immature fish. Furthermore, the sub-sector i s constrained by poor storage and preservation facilities, unreliable transport services andpoor infrastructure. The following are additional challenges that still compromise the ability o f the agricultural sector to benefit fi-om its full potential and, hence, make a significant dent on the country's poverty levels: a) Low productivity; b) Highdependence onrain-fed agriculture and limited utilization o f irrigation; c) Highpost-harvest losses; d) Deficiencies inthe earlywarningsystem; e) Inadequate infrastructure and highenergy and transport costs; f ) Limited access to affordable credit, especially for small and medium scale farmers; g) Poor functioning agricultural markets, which limit small scale farmers' access to markets; h) Restrictive trade policies, which mayresult inpricevolatility andregional specialization; i) Limiteddomesticmarket; j) Insecurityofthe traditionallandtenure system; k) Limitedmainstreaming ofgender inagriculture; and 1) Environmental degradation due to unsustainable agricultural practices. 5.3 Policies and Key Reforms Since the early 1990s, the Government has been implementing institutional reforms aimed at liberalizing the agricultural markets and encouraging the private sector to take the lead in agricultural sector development. Under these institutional reforms, Government will focus on providing public goods that are needed for efficient sector growth, such as rural and agricultural infrastructure, research, extension and pest and disease control. Agri-business will be encouraged to strengthen linkages with smallholder farmers through increased private sector participation in agricultural service delivery, such as ininput supply, output marketing, and ago-processing. Co-operatives have been identified as strategic avenues through which socio-economic development programmes could be delivered to the people, particularly the small-scale producers in rural sector To this end, the draft Co-operative Development Policy (CDP), which has been initiated for implementation d u n g the FNDP, will seek to provide an enablmg institutional and legal environment for the development o f autonomous, viable and demand driven co-operatives. Fifth National Development Plan 2006 2010 - 47 Since co-operatives are not only agriculture in nature, a broad based approach to promoting co- operatives will be adopted duringthe FNDP to include transportation, tourism, housing, mining, savings and credits and construction. The CDP will among other things provide a conceptual and policy framework within which co- operatives development will be spearheaded in the country. I t will also provide guidelines on the appropriate institutional framework to support co-operatives across all sectors o f the economy. The overall objective for the agricultural sector, as set out in the National Agricultural Policy (NAP), i s "to facilitate and support the development o f a sustainable and competitive agricultural sector in order to ensure food security and income generation at household and national levels and maximize the sector's contribution to gross domestic product (GDP)." This policy position shall be maintained during the FNDP period. Inthis respect, the specific objectives o f the agricultural sector are as follows: a) Attain national and household food security through all-year round production and post-harvest management o f adequate supplies o fbasic foodstuffs at competitive costs; b) Contribute to sustainable industrial development by providing locally produced ago-based raw materials; c) Increase agricultural exports thereby enhancing the sector's contribution to the national balance o f payments; d) Generate income and employment through increased agricultural production andproductivity; and e) Ensure that the existing agricultural resource base is maintained and improved upon. The main thrust o f the National Agricultural Policy are liberalization; commercialisation; promotion o f public and private sector partnerships; and ensuring gender equity in the provision o f effective services that will ensure sustainable agricultural growth. The agricultural sector policy recognizes the need to strengthen and expand the emerging opportunities and also deal with the challenges facing the agricultural sector. In the light of the above, the role of the public sector, in partnership with other stakeholders where possible, will be confined primarily to the following: a) Policy formulation; b) Enforcement o flegislation, regulation and inspection; c) Maintenance o f strategic food reserves; d) Provision o fmarket information; e) Financing the control ofpests and diseaseso f national economic importance; f ) Provisiono fbasic agricultural and integrated rural infrastructure; g) Provision o fagricultural services, i.e. research andextension inpartnership with the private sector; h) Provision oftargeted support to outlying areasandunderprivileged farmer groups; i) Capacitybuildingwithinpublicandprivatesectors; j) Sector coordination; and k) Monitoring and evaluation ofoverall sector performance. 5.4 Visionand Goal The vision is: An eflcient, competitive and sustainable agricultural sector that assures food security and increased income. The goal is: To promote increased and sustainable agricultural production, productivity and competitiveness in order to ensure food security; income generation; creation of employment opportunities; and reduction in poverty levels. 5.5 Programmes, Objectivesand Strategies Duringthe FNDP period, food crops such as maize, cassava, sorghum, millet, sweet potatoes, beans, wheat and groundnuts will be targeted for increased production and productivity. Others to be targeted for production and research include indigenous horticultural crops ( h i t s and vegetables). With regard to commercialisation of the agricultural sector, it is expected that an increased number o f small-scale Fifth National Development Plan 2006 - 2010 48 farmers will be fiilly integrated into commercial production through outgrower arrangements or as individuals. Major cash and high value crops to be targeted include cotton, tobacco, groundnuts, paprika, cashew nuts, soya beans, castor, sesame, marigold, herbs and spices in ago-ecologcal regions Iand11;andcoffee,tea,andsugarinregionII13.Large-scalecommercialfarmproductionofcashand export crops like floriculture and horticultural products will also bepromoted. The Government will also endeavour to promote the formation o f co-operatives and strengthen their operations so that they become the main conduit for socio-econonlic development, contributing to poverty eradication. Overall, crop production increases will come from expansion o f area under cultivation; expansion of land under irrigation from the current estimated 100,000 hectares to 200,000 hectares by 2010; increased productivity through improved variety research releases and better researcWextension linkages; increased use of better and sustainable farming practices, including conservation farming and low input agriculture; and increased use o f animal draught power. Further, post-harvest crop losses will bereduced from the current level of 30 percent to less than 10percent by 2010. Inthe livestock sector, the main thrust will be to control livestock diseases of an epidemic nature and with trans-boundary (regionalhnternational) significance. The other area o f emphasis will be re- stocking, stocking and increasing overall production, productivity and management o f marketable livestock and livestock products, especially inthe traditional sector. The fisheries sub-sector will focus on promoting community-based resource management of capture fisheries, thereby improving catches. Concerted efforts will be made to promote aquaculture development and restocking natural water bodies with fish seed. Better processing facilities will be promoted and the distribution network improved. The FNDP programmes for the agricultural sector are designed to result inthe following: a) Attainment o f food security for the majority o fhouseholds with at least 90 percent o f the population being food secureby 2010; b) The contribution ofthe agricultural sector to total foreign exchange earnings will increase from the current 3 to 5 percent to 10to 20 per cent by 2010; c) The agricultural sector will grow at 10 percent per annum from 2006 onwards; d) Overall agricultural contribution to GDPwill rise from 18 to 20 percent to 25 percent by 2010; and, e) Incomes for those involved inthe agricultural sector will increase. It is emphasised that successful planningand implementation of many o f the programmes require well- functioning linkages with and close coordination among various ministries and sector specific institutions. In this regard, it is recognised that many o f the multi-sectoral programmes cannot be implemented by the Ministry o f Agriculture and Cooperatives (MACO) alone and that public and private alliances are key. In order for MACO to be able to manage the planned spending increases, internal management capacity building will be required. Fiji11National Developnzent Plan 2006 2010 - 49 The matrix below presents the agricultural sector's programmes, objectives, and strategies during the FNDPperiod. ____ )r: Agriculture _____ Programmes Objectives Strategies Irrigation To promote a well- a) Develop socially desirable and economically viable imgation Developmentand regulated and schemes; Support profitable b) Construct communal bulk water supply systems; irrigation sub-sector c) Facilitate imgation infrastructure development for improved that is attractive to agricultural productivity; both the public and d) Establish an imgation development dund to enable farmers private sectors access funds for comprehensive irrigation development that goes beyondprovision o f imgation equipment; e) Facilitate the establishment o f water rights that are supportive o f sustainable amicultural develooment: I Promotesustainable utilization ofwetlands and dambos. Agricultural To promote the fa)) Ensure sustainable agricultural land use planning and Infrastructure and improvement o f management; Land Development agricultural b) Develop new farm blocks and facilitating basic infrastructure infrastructure and development; land for sustainable c) Develop a land information system for the agricultural sector. production and productivity Livestock To improve the Regulate and control the quality o f livestock, livestock Development productive products, and stock feeds; Programme efficiency o f the Promote private sector participation in the provision o f livestock sector in a livestock and extension services, and in marketing o f livestock sustainable manner and livestock products; and support the Create and promote awareness in the conservation o f animal marketing of both genetic resources; livestock and Facilitate implementation of disease and vector control livestock products programmes withprivate sector participation; and contribute to Establish the emergency disease control fund to control trans- food security and boundary animal diseases, such as foot and mouth disease, increased income CBPP, etc.; Rehabilitatethe vaccine unit; Strengthenthe early warning system; Establish2 disease free zones by 2010; Devise efficient and sustainable diagnostic techniques in investigations o fdiseases; Enforce all legislationinthe livestock sub-sector; Promote the establishment o f abattoirs in livestock production areas; Encourage, supporting and promoting poultry and small livestock enterprises as a way o f empowering women and female headedhouseholds. ~- Agricultural To provide Develop appropriate agronomic packages and technologies for Services and appropriate, sustained farming systems and overall agricultural production Technology efficient and and utilization; Development effective technology Promotecrop diversification; development and Design and promote appropriate on-farm transportation, transfer services in processing and storage structures, especially for small-scale order to assist farmers to minimize or preventpost-harvest losses; farmers increase Promote research/extension/farmer linkages in order to have agricultural more farmers' input inresearch and technology transfer; production and Promote cost sharing with beneficiaries o f agricultural research productivity. and extension; Regulate the introduction and use o f agro-biotechnology products, in particular Genetically Modified Organisms (GMOs); Promote and encourage the involvement o f the private sector and NGOs inthe provision o f extension services. Ensure gender equity in access to Animal Drought Power ~ __ ~. -(ADP) among female and male small scale farmers 5 Fisheries To increase fish Conserve and maintain blo-dwersity of aquatic resources __I Development production and through iniproved monitonng, promote sustainable Regulate and control the marketmg and trading o f fishing gears gtzization o f and fishing practices; _ _ _ ~- ~ Fifth National Development Plan 2006-2010 50 ___ ______ Agriculture Sector: ----- ~ ~ ~ _ _ - ~ -~ - ~ ~ No. __________ , P r o g r a m m e s - 7 - 0bjectives Strategies I I I 1thereby contnbuting fisheries resources c) Promote aquaculture development, especially among women, d) Strengthen gender balanced research-extension-farmer ' to the economy linkages: through t h e e) Promote improved fish processing and storage generation 01 employment, income and improved availability o f fish ___ ______ 6 Policy Coordination To formulate and Strengthen and monitor the liberalization o f- markets and - and Management implement facilitating private sector growth; appropriate, gendn Review and realign institutional and legislative arrangements; sensitive strategies Enforce the sector's regulatory functions; through multi- Strengthen emergency preparedness through early warning sectoral and information and data; timely and efficient crop forecasting; coordinated drought insurance mechanism; and maintenance of strategic interventions with a food reserves; focus on increased Develop a cross-sectoral strategic framework and monitoring food security and matrix for food security withinthe context o f the FNDP; economic growth Facilitate provision o f incentives for local and foreign agricultural investment; Strengthen information collection and dissemination; Promote gender equity in resource allocation and access to I agricultural services, focussing on women and young farmers. Strengthedsupport platforms for policy dialogue and public/private stakeholder consultation. 7 ~ Agricultural To promote the Facilitate market information flow among stakeholders; Marketing, Trade development o f a Impart agro-business skills to market participants and farmers, and Agribusiness competitive, especially women; Development efficient and c) Promote and enforce grades and standards o f major agricultural transparent public commodities and inputs; and private sector d) Facilitate the development o f rural infrastructure, such as roads driven marketing rural storage infrastructure; system for e) Create a market driven environment with no market distortions I agricultural for improved input and output market centres; commodities and f) Create an enabling environment for an improQed agricultural inputs input and output market, especially for small-scale faimers in rural areas; g) Promote crops with both domestic and export markets; __- h) Encourage financial institutions to be established in rural areas. 8 ~~ Cooperatives To create an a) Develop a legal and institutional framework to facilitate re- Development enabling orientation and reformation o fthe cooperative organizations; enwronment for the Develop the capacity o f cooperative members to take advantage , b) development o f the current socio-economic environment; cooperatives and c) Promote development o f business-oriented cooperatives and other farmer farmer organizations in order to enhance their capacity to organizations that access financial resources; will contnbute to d) Promote partnershipsbetween cooperatives and other sectors of economic growth the economy: and poverty e) Promote and ensure participation o f women in business- reduction oriented cooperatives and farmer organisations. f) Formulate policy on management and development o f co- operatives; g) Enhance the capacity of cooperatives and MAC0 staff in management and development o f co-operatives. ~. *---- Ii 9 HumanResource To provide skilled a') Provide short and long-term training at technical and- i, Development human resource for professional levels, including farmer training: the agncultural b) Facilitate development o f public and private sector training sector through institutions; capacity building, c) Promote agricultural education at both basic and high school and addressing levels, including young farmers' clubs; issues o f HIV and d) Promote income generating ventures in agricultural training , AIDS and Gender, institutions: I -___ in order to increase e) Establish new training institutions and rehabilitationofexisting Fifih National Development Plan 2006 -2010 51 - -~ _ _ - ~~~ ~~~~~~ ~ ~~~ ~~~ ______- Sector: Agriculture- I No. Programmes Objectives i pioduoilun the sector's, __ Strategies ones, I and 1 f) Create HIV and AIDS and Gender awareness and sensitization I I 1productivity 1 among agricultural staff and farmers, I I I 1 , h) g) Provlde relief and mitigatory measures to HIV and AIDS infected and affected staff and farmers including their famlies, 1 Ensure gender equity in professional and tecluncal training i I , ~ programmes inagnculture 1I I I 5.6 Implementation,Monitoring and Evaluation Framework The role o f the public sector will be confined to policy formulation; coordination; enforcement of legslation; regulation and inspection; maintenance o f the strategic food reserves; provision o f market information and financing the control o f pests and diseases of national economic importance. Others will include the provision o f basic agricultural and rural infrastructure; provision o f agricultural services; provision o f targeted support to outlying areas and underprivileged farmer groups; capacity building with public and private organizations; and monitoring and evaluation o f the overall sector performance. Inthis regard, the role o f the public sector will be to encourage growth inthe agricultural sector by fulfilling those functions which are truly public goods. I t will formulate and implement policies to create an enabling environment, which encourages the participation o f the private sector, NGOsandcooperating partners. For instance, the privatesector will play major roles through improving quality and increasing overall production o f goods and services; mobilizing savings and investments; employment creation; providing credit facilities; participating inthe marketing o f agricultural inputs and outputs; and information dissemination. In the same vein, cooperating partners will play an important role through the provision o f supplementary financial, technical and other support inthe implementation o f agricultural policies and programmes and capacity building for stakeholders, including NGOs and Community Based Organizations (CBOs). In order to monitor progress inthe implementation of the agricultural programmes and activities and measure impact, a monitoring and evaluation system shall be established. The Agriculture Sector Advisory Group (SAG) will play an important role in the implementation and monitoring o f the FNDP. The Agriculture SAG shall review the implementation o f the plan and provide guidance as required once every three months. The regular deliberations o f SAG meetings shall be reported to the National Sector Advisory Group Conference. Where necessary, the Agriculture SAG shall set up sub-committees to consider specific issueswhich may arise duringthe implementation and reviews o f the FNDP. Inaddition to the SAG, a standing, cross-sectoral Food Security Task Force, committee or similar body will be established, following completion o f the work o f the ad hoc Food Security Task Force that will develop the strategic framework and monitoring matrix for food security within the context o f the FNDP. This standing body will review plan implementation as it relates to achievement o f strategic food security objectives, and provide guidance for resolving specific cross-sectoral implementation issues as they arise. The programmes and activities will be monitored based on the indicators developed. Other main monitoring indicators and instruments can be developed or refmed as the programme is implemented. The more comprehensive impact evaluations will require household surveys to be conducted by the Central Statistical Office in collaboration with the Ministry o f Agriculture and Cooperatives (MACO). This shall be complemented by independent assessments from stakeholders on sector performance and programme implementation. A system for gathering both quantitative and qualitative information at national, provincial and district level in order to regularly monitor implementation and measure the impact o f the programme activities will beput inplace. Fifth National Development Plan 2006 - 2010 52 Land 6.1 Introduction Landis the most fundamental resource inany society because it is the basis o fhuman survival. Inorder to ensure that this important resource is properly administered and managed, the Government has been working on landreforms aimed at improving the landdelivery process. 6.2 Review of Past Performance At independence, Zambia inherited a customary, freehold and leasehold system inwhich administration o f customary tenure was subordinate to written law, which applied to Crown Land. The system o f land administration was not integrated into the land tenure sbxcture o f the country. Rights and interests exercisable under the Reserves, Trust Land and State Land remained unchanged. The method o f land alienation under Reserves and Trust Lands continued to be managed through traditional customs. In 1965, the Government appointed a Commission o f Inquiryto review the landpolicy and to recommend a land administration system suitable to the needs o f the new Republic. The Commission recommended unification and integration o f land administration; simplification o f the law governing statutory tenure; introduction o f individual land title registration o f customary tenure; acquisition and control o f vacant land and all land in Barotseland by the Government. It also recommended that all laws relating to conservation o f natural resources to be o f general application and the law relating to compulsory acquisition to apply irrespective o f whether landwas held undercustomary or statutory tenure. The recommendations o f the Commission o f inquiry were submitted to the Government but only the recommendations on compulsory acquisition o f unutilised land and the question o f unification o f Barotseland and the Reserves were addressed. In implementing these recommendations, the Government amended the Constitution in 1969 to provide for compulsory acquisition o f land inpublic interest. Further, in 1970, Government enacted the Western Province (Land and Miscellaneous Provisions) Act, 1970 to declare all land previously administered by the Litunga as a Reserve pursuant to the Zambia (State Landand Reserves) Order 1928 to 1964. These changes did not adequately address the system o f land administration and management and did not alter the dual tenure system o f land administration establishedby colonial authorities. The period between 1970 and 1975 saw the evolution o f laws aimed at increasing state control o f land transactions to cater for urban settlement needs, such as for control and improvement o fhousing for low income groups and a number o f Acts to provide for the regulation o f tenants and rentals. As o f 1st July 1975, all freehold was converted to 100 year lease and subsequent leases would have a maximumo f 99 years. In an effort to curb speculation in land, the Act pronounced a ban on sale o f vacant land, declaring it as having no value and introduced the requirement for Presidential consent for subdivision, sale, transfer, assignment, sublease, mortgage or charge. In 1985, the Government amended the 1975 Act to restrict non-Zambians from acquiring land without Presidential consent. In the same year, the Government issued general policy guidelines regarding the procedure o f conversion o f land from customary to leasehold tenure and system for landalienation inwhich district councils would participate in processing o f applications, selection of suitable candidates and making recommendations for alienation to the Commissioner o f Lands. These changes had a negative effect on land service professionals such as real estate agents and other survey and valuation services. The following are the challenges that hinder the ability o f the land sector to adequately empower the people o f Zambia, realize the full potential o f the land resource, and contribute to the reduction of poverty levels: a) Duality o f landtenure; b) Over centralized landadministration system; c) Inadequate empowerment o f citizens, especially in customary areas; d) Lack of landpolicy; e) Abuse o fcurrent system o facquiring landinboth customary andstate land; f) Ineffective landuse planning; g) Ignorance o f landalienation procedures; Fifth National Development Plan 2006 - 2010 56 h) Lack of clear guidelines onhow to attach value to landthat is to be allocated; i) Ineffectivelandaudit; j) Inadequate appreciationofthe roles playedbytraditional rulers andthe President inland allocation; and k) Ineffective coordination among landadministration institutions. The reintroduction o fpolitical pluralism in 1991was followed by the dismantling o f the state controlled economy through market liberalisation and privatisation policies, which considerably changed the demands for land administration. The Lands Act of 1995 repealed the Land (Conversion o f Titles) Act o f 1975 and the Orders inCouncil o f 1963 that had provided for the vestment o f land into the Secretary o f State for Colonies but retained the custodial role o f the Head o f State, ostensibly to ensure that land was held and used equitably by citizens. The Act introduced qualifications to own land. All Zambians who had attained the age o f 21 could own land and non-Zambians o f 'certain categories' such as investors, resident permit holders, were also allowed to acquire and hold landinZambia. 6.3 Policies and Key Reforms Streamlining the land delivery system to facilitate economic activities is one o f the goals of the Government. A new land policy shall be developed during the Plan period to address the multitude o f constraints in the land sector, which includes review o f legislation and creation o f land banks for all potential investors from within and outside the country in line with Citizens Empowerment Act. The Government shall also review the structure o f the Ministry o f Lands with a view to bringing all land dealing institutions under one roof. The restructuring and strengthening o f the Ministrywill aim to make it more effective, professional andtransparent so as to secure fair and equitable accessto, and control of this vital resource. Inthe light ofthe above, the Governmentwill facilitate the following duringthe FNDPperiod: Policy development; Reviewing o f existing legislation; Decentralization o f the land administration and management process; Streamline landdelivery process; Empowerment o f citizens; Promote sensitization of chiefs on the importance o freleasingland; Human Resource Development; Promote security o f tenure through registration o fprivate and communal rights; Allocating of landaccording to the landvalue; Strengthen coordination among land administration institutions; and Promote landuse planning. 6.4 Visionand Goal The vision is: A Zambia in which there is secure, fair and equitable access and control of land for sustainable socio-economic development of thepeople by 2030. The goal is: To have an eficient and effective land administration system that promotes security of tenure, equitable access and control of land for the sustainable socio-economic development of the people of Zambia. 6.5Programmes, Objectivesand Strategies The matrix below presents the FNDPprogrammes and their respective objectives and strategies for the lands sector. ____________ ' ~~~ -- I lSector: Lands I ~ - - - ' - - - __ _ _ _ _ - __ _ _ ~ I Programmes Objectives ~ Strate@!! _ _ _ _ _ _ ~ _ _ Developandimplement LandPolicy, ' 1 ' Land To promote efficiency and ' a) Administrationand effectiveness in land b) Streamline land administration and management L Management alienation. administration system, _ _ FiJihNational Development Plan 2006 2010 - 57 I SI :tor: Lands _- ._ Programmes Objectives _- Strategies and management c> Remew Land-related legislative: Harmonisation o f the institutions dealing with land. Empowerment of a) To promote effective Sensitize traditional rulers on the importance o f Citizens in Both citizenry releasing land for development; Customary and access to, and control o fland Promote the creation o f land banks for all potential State Land investors; Raise awarenessonland allocation procedures; Change legislation to restrict land allocation by the state to Zambians only; Facilitate affirmative action to empower less privileged Zambians such as persons with disabilities, women, and the rural community to own land; Promote co-ordinated and efficient land use planning Strengthening of _ _ _ _ _ _ _ _ ~ ~land _ _ _and~ .______. management incustomary areas. ~~ a) To decentralize Strengthen Provincial land offices and decentralise Institutional administration and land registrationto the provinciallevel; Framework management. Facilitate linkages in land use administration and management with ministries responsible for agriculture, tourism, environment and local government Demarcation of a) To maintain international Develop a systematic periodic inspection and International and boundaries to prevent management programme o f common international Local Chiefdom potential conflicts with boundaries; Boundaries neighbouring countries. Facilitate timely up-date and maintenance o f maps b) To provide detailed showing the extent and boundaries o f all local information on boundaries chiefdom boundaries; o fchiefdoms. Facilitate joint inspection o f chiefdom boundaries in the presence o f chiefs and Local Government officials. HumanResource a) To develop and retain Provide short and long-term training at technical and Development. qualified and motwated professional levels, personnel Introduceperformance-based annual awards systems. LandDevelopment a) To promote the opening Develop a co-ordinated working programme with Fund up o f new areas for local authorities on the identification o f land for development. development; b) To increase the collection Establish provincial Land Development Fund; o f revenue and contnbute Develop an efficient audit accounting system o f Land to the Treasury and the Development Funds; Land Development Fund. Promote cost effective means o f collecting ground rent and other fees payable. National Mapping a) To provide spatial Develop, maintain and publicise national mapping and Surveying geographic information standards; for national infrastructure Develop national topographic map databases; development Develop maintenance and publication o f national place names Gazetteers; Surveying o f land for development; Develop local maps for all areas o fZambia. ,Registrationof a) To improve and promote Develop microfilming, scanning and computerised Properties decentralised registration data storage system; o f properties in order to Introduce electronic issuance o f titles; guarantee security o f Sensitise the public on procedures governing property ownership transactions and registration. , b) Conduct Land audit, a) Harmornse Landuse and physical Plannmg, l c) Upgrade Land Information System on development , physicalplanning patterns. patterns - I 6.6 lmplementation, Monitoringand Evaluation Framework During the FNDP implementation, the Ministry of Lands will be guided by the Land Policy. The Ministryof Lands, as aprincipal government institution in land administration, will work closely with Fifth National Development Plan 2006 2010 - 58 other land delivery institutions to improve land administration and management. The other parties that are critical to the iniprovement o f the land administration system include the Ministry o f Local Government and Housing; the Ministry o f Tourism, Environment and Natural Resources; the Ministry o f Commerce, Trade and Industry; the Ministry of Agriculture and Co-operatives; the Resettlement Department inthe Office o f the Vice President; the Zambia Investment Centre; District Councils; civil society organisations; traditional rulers; and the public at large. In order to effectively monitor and evaluate the implementation of the FNDPprogrammes under the sector, the Ministry o f Lands will establish an integrated system of monitoring and evaluation. I t will also develop monitoringand evaluation instruments for the implementation o f the programmes. Fifth National DevelopmentPlan 2006 - 2010 59 7.7 introduction The mining sector has been a prime mover o f economic development inZambia for over 70 years, with exports o f mineral products contributing about 70 percent o f total foreign exchange earnings. Lately, mining has been generating between 6 percent and 9 percent o f Gross Domestic Product (GDP) and contributes about 40,000 jobs to total formal sector employment. The role that the miningsector plays in national development is enhanced by its backward and forward linkages with other sectors. It provides critically needed inputs for agriculture and agro-chemicals, industrial manufacturing o f a wide variety o f products such as ceramics, paint manufacture and essential raw materials for the building industry. In this regard, the mining sector's contribution to wealth creation in the economy is far- reaching. Duringthe 1980s and 1990s, copper productionhad declined due to a host ofreasonsthat includedpoor re-investment into new and existing mines, and unsupportive policy and management practices. Inorder to resuscitate the economy, including the mining sector, Government decided to implement a comprehensive economic restructuring programme that focused on the promotion o f private sector-led development. The privatisation o fthe mining industry was completed inthe year 2000. Copper and cobalt production dominated the miningsector over the years. Deposits o f gold, diamonds, zinc, gemstones, coal and a variety o f agro and industrial minerals are also found in Zambia. Large- scale mining is active in copper, cobalt and coal while small-scale mining is active in a variety o f gemstones that include emeralds, amethyst, aquamarine, tourmaline, garnets and citrine. Emeralds are by far the most dominant. This rich variety o f mineral resources offers great potential to provide the neededresources for financing development. Furthermore, mining has the capacity to create opportunities for increasing the stock o f needed skills and expertise, an increase ina broad spectrum o f service industries, value addition through downstream processing, and technology transfer to small-scale operators. The orderly development o f small-scale miningis also capable of loweringpoverty through the creation of development zones or areas inrural mining centres arising from the emergence o f mining communities. I t also offers a facilitating environment to support cottage industries that are related to pottery making, brick making and increased demand for skills and essential mining equipment and machinery. These considerations point to the potential significance o f miningto the reduction o fpoverty inZambia. 7.2 Review of Past Performance In the years 1965 to 1975, copper accounted for 95 percent o f export earnings and 45 percent o f Government revenues. However, in the years 1991 to 2000, copper's contnbution to export earnings had drastically decline to an average o f 62 percent. The mining sector's contnbution to GDP, estimated at 32.9 percent in 1973, declined to 6.2 in2000, representing 81.1 percent decline. These developments, accompanied by falling metal prices on the international market, drastically reduced the miningsector's contribution to government revenue. In 1991, Government embarked on a comprehensive economic restructuring o f the industry aimed at privatisation that was completed in2000. Large amounts o f investments have since been effected by the new owners o f the mines, focusing on the acquisition o f mining equipment, the rehabilitation o f infrastructure and the opening up o f new fields. Over U S $1.4 billion has been invested in the mining sector by the end of 2005. The price o f base metals, particularly copper, has also been increasing since 2003. Fifth National Development Plan 2006 -- 2010 62 The post-privatisation period was not without problems. For instance the pull-out of Anglo American Corporation from Konkola Copper Mines affected the operations o f the mine in terms o f production levels and implementation o fplanned development projects, the Konkola Deep Mining Project (KDMP) and the improvement of capacities o f refineries and smelters, to be specific. During this period, the sector also witnessed an increase in mine accidents. This was due mainly to the fact that the increase in mining activities didnot match the monitoring capacity o f the Mines Safety Department. Despite the above mentioned setbacks the sector grew by an estimated 18.4 percent in 2004 and 3.4 percent in the previous year. However, in 2005 the sector grew by only 2.8 percent mainly due to a number o f problems, which include mine accidents, fuel shortages and labour disputes. Interms o fjob creation, an estimated 13,500 people have been reemployed in the sector between 2000 and 2004. Copper production increased from 257,000 tons in2000 to 446,000 tons in2005. It is further projected that by 2010, annual copper production shall reach the 1970s levels o f over 700,000 tons. The good performance during the f i s t half o f the decade has been enhanced by the implementation o f the Transitional National Development Plan (TNDP 2002 to 2005) and the Poverty Reduction Strategy Paper (PRSP 2002 to 2004), which both recognized the importance o f large-scale and small-scale mining.The Government's policy emphasis on small-scale mining is founded onthe belief that the sub- sector could effectively contribute to poverty reduction and employment creation. In this regard, four programmes were planned to be implemented for the sub-sector during the TNDP, namely, SYSMIN (systeme de stabilisation de recettes de exportation deproducts miners) Fund (miningdiversification); establishment o f the gemstone exchange; introduction o f a plant hire scheme; and the creation o f a community development fund (revolving h d ) . The success rate o f all the four programmes has not been satisfactory. The plant hire scheme has not been established due to inadequate financial resources. Government has decided to let the gemstone exchange be private sector driven and some progress has been registered, through private sector initiative. The community development fund has been established. However, the amount o f money so far disbursed falls far short o f the original budgeted amount. The SYSMIN Fund, which provided a credit facility o f 16 million euros, has remained largely inaccessible to small-scale miners due to the stringent conditions attached to the loans. This is despite an attempt to relax the conditionality originally built into the facility. The failure o f the planned interventions has consequently meant that the gemstone and semi-precious sub-sector has remained unaffected by the PRSPITNDP planned interventions. In this respect, Government intends to refocus its attention to the sub-sector inthe FNDP. The sector has been constrained by a number of factors as follows: Weak Institutional Framework Support: Currently, institutions that provide services to the mining industry, especially MMMD, are weak. Problems range from low staffing levels to inadequately trained technical staff, poor funding, and inadequate infrastructure. This has resulted inpoor service delivery. With the unprecedented growth in mining activities in the country, an efficient institutional framework support will be critical; Outdated Policies and Legal Framework: The current mining policy was formulated in 1995. Its primary focus was on the privatization o f state mining corporations. Due to change in circumstances, it is now imperative that the policy be revised. The legal framework for the mining sector comprising the Mines and Minerals Act (1995), the Prescribed Minerals and Materials Act, Explosives Act, and various regulations are outdated due to new developments, especially technology. Furthermore, new pieces o f legislation will be required. An up to date and stable legal framework is important for attracting investments inthe mining sector; Inadequate Mineral Exploration and Resource Surveys: I t is difficult to attract mining investors if the geological potential o f a country is not known. Currently, only 55 percent o f Zambia has been geologically mapped at a scale of 1:100;000. Therefore, for a sustainable mineral-based industry, Fqih National Development Plan 2006 -2010 63 efforts must be directed at mapping the rest o f Zambia. Beyond mapping, detailed exploration has not been done, which i s required especially inpromoting small-scale mining; d) Absence of Cadastre and GIs Systems: The issuance o f mining rights is highly constrained by the absence o f an online cadastre (a computerized miningrights management system) and Geographical Information System (GIS) resulting indelays and conflicts; e) Inadequate Investment Promotion: Although there has been a programme for investment promotion, there has never been a deliberate effort to come up with appropriate implementation strategies. Investment promotions have been limited to trade shows and investment forums. There i s an urgent need to widen the scope of promoting mine investment through the use o f both electronic andprint media; f ) Constraints affecting Gemstoneand Small-scaleMining: Major constraints inhibiting the realization o fthe gemstone and small-scale miningsub-sectors potential include: i.Lackofaccesstoaffordablefinance.Thishasnotmadeitpossibleforminerstoprocure mining equipment and acquire working capital. This is the major production constraint that has resulted inmany mines being dormant; ii.Lackoftechnicalandmanagementskillsofminers.Manyminerslackbasicgeologyand miningskills that haveresulted incostly and unsafe miningmethods. Inadequate business andmanagerial skills haveresulted inmismanagement o fresources andpoor planning; iii.Poor infrastructure in mining areas. Most small-scale mining areas have poor infrastructure, poor roads, no schools, or health centres, water and power thereby making it difficult to operate inthe areas; iv. Lack of access to a formal marketing system. The absence of a transparent and formal marketing system, such as a Gemstone Exchange, has resulted in miners getting unfair deals due to under-pricing; and v. Inability to add value to rough materials prior to exportation. Further processing of gemstones into cut and polished stones adds significant value to production and creates employment. g) Constraints of Developing Large-scale Mining: Development o f large-scale miningrequires access to infrastructure such as a good road and/or rail network, power and availability o f qualified technical skills. Currently there is a serious shortage o f technicians and craftsmen in the mining industry due to restructuring and closure o f training facilities following the privatization o f the mines. Unfortunately, the output o f graduate mining engineers, geologists and metallurgists from the University o f Zambia and Copperbelt University has been declining. A recent survey by the mining companies projects a serious shortage o f these skills during the FNDP, which will impact negativiely on the development Plan; h) Fluctuations in International Prices of Mineral Products: Copper andcobalt prices tendto fluctuate beyond the control o f the country. Any shifts in demand resultinginmajor decline in international metalprices could impact negatively on the economy during the implementation o fthe Plan; and i) The impact of HZV and AIDS HIV and AIDS has been recognised as a constraint in the mining sector, particularly the small-scale mining sub-sector, which entails long absence o f workers from their homes. In recognition o f the impact o f the pandemic, Government through the PRSP/TNDP, facilitated the development o f HIV and AIDS policy within the private sector. In addition, preparations were initiated towards the development o f an outreach programme for small-scale Fifth National Development Plan 2006 2010 - 64 miners. I t i s envisaged that once completed, the programme will allow small-scale miners benefit from the general strategies beingundertaken by the Ministry o f Health. 7.3 Policies and Key Reforms Zambia's current mining policy was adopted in 1995 to guide development in the sector. Efforts to update the policy are underway in order to bring it in line with the changing miningenvironment. It is expected that the revisedpolicy will be adopted and implemented duringthe period ofthe FNDP. The strategic focus for the miningsector during the FNDPwill be to promote both large and small-scale mining by strengthening the institutional framework support and improving the policy and regulatory framework. The FNDP recognizes large-scale mining as having an important role to play in the national economy because it has the potential to: a) Generate foreign exchange and other revenue to supplement the national budget and kee resources that canbe allocated for poverty eradication; b) Contribute to economic development through the provision of basic infrastructure and other social services; c) Facilitate skills and knowledge development inorder to increase the stock o f humancapital; and d) Facilitate the development of the service input sector, downstream processing and beneficiation industries and centres ofknowledge creation and innovation. Small-scale mining has a greater potential in employment creation and poverty reduction than large- scale mining. The sub-sector has the following potential: a) Create employment, especially inrural areaswhere jobs are scarce; b) Enable the exploitation ofwhat would otherwise be uneconomic reserves; and c) Provide for the creation o fmicro-industries inrural areas. While promoting production, the Plan recognizes the important role o f downstream processing o f mineral products. Efforts to integrate the copper mining sector into the Zambian economy by encouraging value addition will be pursued by supporting manufacturing industries using copper and other raw materials. Furthermore, renewed initiatives to unblock the potential o f gemstone miningby improving production, marketing and value addition, which were identified under the PRSP and the TNDP, will be vigorously pursued. Equally important, the FNDP introduces measures to address the extreme case o f gender imbalance currently existing in the sector. However, the SADC benchmark o f 30 percent women representation in the sector may not be achieved during the Plan. The FNDP sets a target o f 10 percent as being realistically achievable. Inorder to consolidate the gains that will be realized under this Plan, measuresto mitigate the negative impact o f HIV and AIDS have been proposed for implementation. Government recognises the need to put inplace new policies and to review existing ones. To this effect, Government intends to formulate a Mine Health and Safety Policy during the period o f the FNDP to ensure a safe and healthy working environment in the mines. The Government will also review all the relevant regulations and pieces o f legislation which include: the Mines and Minerals Act; Prescribed Minerals and Materials Act; Mining Regulations; Explosives Act and Regulations; and the Guide to MiningRegulations. Fifth National Development Plan 2006-2010 65 In order for the Ministry of Mines and Mineral Development (MMMD) to hlfilits role of promoting miningsector development, the following institutional reforms shall be undertakenunder the FNDP: a) Establishment o f a Planning and Information Department; b) Restructuring the Mine Safety Department; c) Commercialisation of some of the services o f the Geological Survey Department, particularly the gemmology and lapidary laboratory; analybcal laboratory; geophysical services; minerals and ore petrology; metallurgical laboratory; and detailed exploration o fplots; d) Inclusion inthe policy o f a mandatory requirement that miningcorporations reinvest in the mining areas as part oftheir corporate-social responsibility programmes; and e) Inclusion of a legal framework and enforcement mechanism that underpins corporate social responsibility. Building up the capacity o f the Ministry of Mines and Minerals Development will require rehabilitating existing laboratories and acquiring modern equipment for the laboratories, recruiting qualified and experienced personnel in mineral sciences and acquiring exploration equipment as well as field vehicles. 6.4 Visionand Goals The vision is: A vibrant, well-organised private sector-led mineral sector for sustainable wealth creation. The mining sector goal under FNDP is: To create a conducive, stable, predictable and competitive policy, legal and regulatoryfiamework that will attract and retain investmentfor the development of the sector. 6.5 Programmes, Objectivesand Strategies The matrix below presents the plannedprogrammes and their respective objectives and strategies for the miningsector duringFNDP. :or:Mining Programmes Objectives Strategies Development of a) To attract corporate- Continue to foster investor confidence; Large-scale responsible investment for Promote Institutional Capacity Building o f the Ministry o f Mines the development o f the Mines and Minerals Development (MMMD) mining sector; Carry out Policies, Legal and Institutional Reforms b) To increase long term Plan, develop and rehabilitate infrastructure in the mining and benefits o f the mining potential areas; sector by integrating the Promoteboth local and foreign investment inthe miningsector; mining sector with the rest Streamline the administration o f investor licenses and other of the economy through relateddocuments; backward and fonvard Promote downstream processing to add value prior to linkages. exportation; c) To promote research and Develop technical humanresourcerequirements for the sector; development (R&D) inthe PromoteR&D inthe sector. mining sector; d) To ensure environmental sustainability by the __sector. Development of a) To revitalize and ensure a) Strengthen the institutional framework support, i.e., the Small-scale realization o f the potential Geological Survey Department to provide affordable geological Mining o f the small-scale mining services; strengthen regional mining bureau to decentralize sub-sector to contribute to MMMDfunctions ;strengthen the DepartmentofMines Safety; economic development b) Increase the geological mapping o fZambia; and poverty reduction c) Establishand operationalise MiningCadastre and GIS systems 1 d) Improveaccess to capital and equipment; e) Set up a skills training centre in order to provide skills and 1 knowledge in mine safety, valuation and grading, business management and entrepreneurship skills and downstream_ -. FifthNational Development Plan 2006 -2010 66 -~ - ___- ___ I ! processing of gemstones and other mnerals. I ' Plan, develop and rehabilitate infrastructure such as loads, I f ) clinics, schools, power supply, rail systems. etc in small-scale mining areas: l g) Facilitate linkages for marketing of processed and rough gemstones and other minerals ,11 I h) Strengthen women's and men's organisations involved in 1 I mining - Geological a) To attract corporate- , a) Explore for energy minerals, ~~ Mapping, responsible investment for b) Conduct mineral exploration for gemstones, agnculture and ' Mineral the development of the industrial minerals; , Exploration and mning sector I c) Acquire and install digital map production line; ! 1 Resource Surveys 1 d) Conduct highresolutionmagnetic airborne surveys; ~- ' e) Scale up @logical mapping of Zambia. Institutional _a) _ _ _ _ _ _ _c ~ - ~ ~~ TO attract o r p o r a t e - n Establisha Planningand Information Department; 4II Capacity responsible investment for ' b) Recruit humanresource to fillvacant posts, Strengthening of the development of the c) Rehabilitateand upgrade laboratones to international standards; the Ministry of mning sector; 4 Procure capital goods and equipment ~ Mines and b) To increase long term I Minerals benefits of the mining i Development sector by integrating the 1 mining sector with the rest ~ of the economy through backward and forward linkages. Mining Sector the mimng sector mining ~- 6.6 Implementation, Monitoringand Evaluation Framework The programmes outlined in the Plan will be implemented by the Ministry through the annual work plans. The programme implementation matrix includes activities phased over the Plan period. The Ministry o f Mines and Minerals Development in conjunction with the SAG, will institute monitoring and evaluation mechanisms. Occasionally, the Ministry may set up stakeholder taskforces to evaluate implementation effectiveness. Implementation progress shall be measured mainly through monitoring performance in the following key performance indicators: a) Number of corporate social responsible large-scale mining companies inthe sector; b) Number ofproductive small-scale mines; c) Value o f receipts generatedby the small-scale miningsub-sector; d) Growth o fthe sector; and e) Miningcompanies compliance with Safety HealthandEnvironment regulations. Duringthe FNDP, the setting up of a Planning Department at MMhlDwill be undertaken early FiJthNational Development Plun 2006 - 2010 67 Communicationsand Meteorology t ~ ' " " '- " ' ' ' I: 8.1 Introduction Communications and meteorology play a vital role in the socio-economic development o f a country. Communications integrates society where people and resources are able to meet their potential. Meteorology, on the other hand, safeguards life andproperty through promoting appropriate actions on scientifically based warnings, predictions, and information on weather and climatic conditions. Similarly, the Information and Communication Technology (ICT) sub-sector is gaining prominence with the rapid technological advancements experienced worldwide since the 1990s. 8.2 Review of Past Performance 8.2.1 MeteorologicalSub-Sector The development o f meteorological services in Zambia has been closely linked to the requirements o f air transport. Inrecent years, there has been a significant increase inthe demand for weather and climate data for environmental monitoring purposes and for tracking climate change and global warming. In addition, meteorology has broadened its operations to cover other applications such as agriculture, industry, construction, water resources management, environment and health. Over the years, the sub-sector has provided climatic weather information to the key sectors o f the economy. Air transport, water transport, agriculture, industry, environment and natural resources, water, energy and disaster management continue to depend on weather and climatic information for their efficient operations. However, the sub-sector continues to experience numerous challenges. Major ones include inadequate meteorological observing stations; poor meteorological observation and telecommunications equipment; inadequate skilled personnel; inadequate funding; and lack o f re- capitalisation. 8.2.2 Communications The ICT i s one o f the fastest growing industries in the world and i s changing technologies, business models, and work relations. I t is widely and increasingly regarded as the fourth factor o f production after land, labour and capital. The Government has recognised this fact and focuses at three levels, namely connectivity, capacity and content. Prior to the 199Os, the sub-sector only covered communications in its traditional sense, which included telecommunications and postal services. However, the convergence o f technologies has changed the landscape o f the communications industry worldwide. Since the early 1990s, developments in telecommunications, information technology (computer science) and broadcasting have improved and overlapped such that currently, the two have converged through the Internet. The core sub-sectors are telecommunications, information technology, broadcastingand multimedia. Upto the mid-l990s, the telecommunications sub-sector inZambia was characterised by one monopoly firm, the Post and Telecommunications Corporation (PTC). The sub-sector was then liberalised in 1994 to encourage private sector participation in the provision o f telecommunications and postal services. PTC split into two public companies, the Zambia Postal Services Corporation (ZAMPOST) and the Zambia Telecommunications Limited (ZAMTEL). The liberalisation o f the telecommunications sub- sector opened up opportunities for investment. The sub-sector has recorded increased local and foreign investment since the liberalization programme started. Currently, there are three operators inthe mobile (cellular) segment, namely Celtel, MTN (formerly Telecel) and Cell Z (the mobile branch o f ZAMTEL). Significant investment has since occurred in the mobile communications segment through the active roll out o f equipment and services aroundthe country. Fifth National Development Plan 2006 2010 - 70 The mobile segment has recorded the largest growth inthe sub-sector, estimated at 73 per cent between 2002 and 2003. The growth was attributed to pre-paid cellular service provision and the failure to meet the demand for fixed land phone services. Other reasons for the growth were reduced costs o f handsets and SIM packs. The service providers in the mobile segment offer a variety o f value-added services which include internet based services. By December 2005, the total number o f active mobile subscribers on all the three networks stood at over 970,000 while the network coverage represented 80 percent of the districts in the country. This has resulted in an exponential growth in the total national mobile teledensity. The sub-sector has become competitive in the provision o f services and the benefits o f competition can be seen through reduction intariffs for services and innovative value-added services. The internet segment has attracted more private sector participation compared to the mobile segment. This i s despite the fact that the former i s much more dependent on the roll out o f a national telecommunications infrastructure. Since the enactment o f the 1994 Telecommunications Act, several Internet Service Providers (ISPs) have been registered and are operational. These are ZAMNET (which i s the pioneer inthe provisiono f internet services inZambia), Coppernet, ZAMTEL Online (a branch o f ZAMTEL), Uunet, Microlink, and Africonnect. These service providers offer both broadband and dial up services. As at endDecember 2005, the total numberof internet subscribers was 16,981 compared to 16,288 in the previous year. The number o f users as opposed to subscribers is estimated at more than 20 times the number o f subscribers (339,620). 8.3 Policies and Key Reforms Since 1991, it has been the general policy o f the Government to provide an enabling environment for private sector participation inthe provision o f goods and services. Arising from this policy, a number o f sector policies and institutional reforms have been implemented in the communications and meteorology sector. These are summarised below. 8.3.1 MeteorologicalSub-sector The meteorological sub-sector has been operating without a policy and legal fi-amework. This has resulted in the lack o f mandate for the sub-sector to operate effectively. To reverse this trend, the Government has commenced the process o f formulating both the policy and legal framework inorder to improve the provision o f accurate weather forecasts and climate information to all sectors of the economy. These processesshall be scaled up during the FNDP. Inthe Meteorology sub-sector, the Department o f Meteorology will be strengthened during the FNDP period inorder to continue producing timely, accurate, and reliable meteorological products. Capacity in the private sector shall also be built up in order to supplement the efforts o f the Department of Meteorology. 8.3.2 Communications Sub-sector Prior to the liberalisation o f the communications sub-sector in 1994, the major player in telecommunications and postal services provision was the Posts and Telecommunications Corporation (PTC). The enactment in 1994 o f the Telecommunications Act and the Postal Services Act resulted in the establishment o f ZAMTEL and ZAMPOST respectively. The 1994 Telecommunications Act also established the Communications Authority o f Zambia as a regulator in the sub-sector and allowed for competition, resulting in increased private sector participation. In addition, in 2005 a national information and communications technology policy was put inplace whose thrust was to integrate ICT for sustainable national development and poverty reduction. The FNDP period shall strive to operationalise the new ICT policy. The Government recognises that the communications sub-sector, in general, i s also affected by the legal framework that is designed for the broadcasting sub-sector. Inthis regard, the Independent Broadcasting Act o f 2002 affected the entertainment sub-sector, particularly radio and television broadcasting. Multimedia activities are, however, neither covered inthe Telecommunications Act nor the Independent Broadcasting Act. The postal sub-sector is also not regulated by the Communications Authority. In the light o f these realities, the Government shall institute legal reforms during the FNDP to address a number o f these and related issues that affect the ICT sub-sector in totality. The Ministry o f Fijlh NationalDevelopmeat Plait 2006-2010 71 Communications and Transport (MCT) has already started the reform process through the review o f the Telecommunications Act o f 1994. Similarly, the communications sub-sector is both regulated and unregulated at various points. The Communications Authority regulates the telecommunications sub-sector. However, in view o f the rapid development intelecommunications andbroadcasting technologies and the convergence o f services and markets in the two sub-sectors, the Government shall firmly and holistically deal with the regulatory framework at both the legal and institutional levels. The M C T has already begun the process of developing a `converged' legal framework to addressthe issue o f telecommunications and broadcasting convergence. The convergence shall address the concerns o f the broadcasting sub-sector, especially with respect to the implementation o f the Independent Broadcasting Act. Inthis regard, the Government has approved the creation o f the Department o f Communications to handle I C T issues at policy level. Inorder to successfdly implement the programmes outlined above, the Government shall focus on the following key areas: a) Implementation o fprogrammes will target telecommunications infrastructure, focusing primarilyon the development o f the telecommunications infrastructure backbone at two levels, namely, i) regional and international connectivity to make Zambia a hub for telecommunications, thus, spurring other development activities, especially related to Foreign Direct Investment; and ii)a national backbone to ensure connectivity o f all provincial capitals through high capacity fibre, microwave, and .other such technologies. A secondary network to all districts in each province will complement the backbone (primary network). The implementation o f the national backbone will be private sector led. There will also be the implementation o f `last mile' connections from district centres to cover rural areas, targeting health centres, schools, and other community level strategic settlements. b) Inthe ICT services field and following the telecommunications infrastructure investments in (a) above, the private sector shall be facilitated to take up the provision o f a number o f primary services either in their individual capacities or through smart Public-Private-Partnership (PPP) arrangements. The areas shall include: i) Telephonyservices:Theprivatesectorshallbeencouragedtoinvestintelephonyservicessuch as GSM and fixed mobile; ii)Radioandtelevisionservices: ZNBCandotherpublicandprivatesector institutionsshallbe able to invest inradio and television coverage o fthe entire nation; iii)Internetservices:Theprivatesectoriscurrentlythedominantplayerinthismarket.Further expansion o f internet, e-mail and other data services are expected to `ride' on the telecommunicationsnetwork; and iv) Multimedia and other content services: Information technology is about data, voice and video (multimedia). The increase inuptake o f these services is expected to facilitate further growth in the IT sub-sector through products and services. 8.4 Visionand Goal The vision is: A developed and well maintained meteorology and Information and Communications Technology infrastructure and servicesfor sustainable national development by 2030. The goal is: To attain developed meteorological and information and communications technology systems in order to enhance the contribution of the two sub-sectors to sustainable national economic growth and improved quality of life. 8.5 Programmes, Objectivesand Strategies The programmes and their respective objectives and strategies for the communications and meteorology sector duringthe FNDP are presented inthe matrix below. Fifth National Development Plan 2006-2010 72 Sector: Communicationsand Meteorology -Strategies_ _ ~ _ _ _ No. Programmes Objectives - I 1 Policy, Legal To develon and monitor the a) Remew, strengthen and implement iiionitonng mechanisms; ' and implementationo f b) Strengthenrules and regulations for meteorology and Institutional appropnate policies, legal information and cominumcations sub-sectors, I Reforms and institutional frameworks c) Develop and implement policy. legal and inshtutional ~ to foster the development o f frameworks for the sector sustainable meteorology and i information and communications sub-sectors 2 Infrastructure- To promotepublic and a) Provide incentives for private sector participation; Development pnvate sector participation in b) Encourage open tenders inthe construction, installation and the construction, installation maintenance o finfrastructure and provision o f services; and maintenance o f c) Build capacity inlocal contractors and consultants; infrastructure and promsion d) Build capacity o f inspectorate sections inthe sector; o fsermces inthe e) Concession motor vehicle examinationand testing functions meteorological, information to the private sector; and communications sub- , Q Develop and implement meteorologicalstation sectors inorder to shmulate rehabilitation, maintenance and expansion; economc growth inrural g) Install provincial and district fibre optic cables and connect and urban areas to the African undersea fibre optic cable; _______ ,h) Buildrural community multi-purposetele-centres. ~3 E-Government To establish and maintain an a) Undertakefeasibility study to determine information, and ICT integrated and effective 1 software and hardwareneeds for all sectors o fthe economy; Application information and b) Install Wide Area Network at central and local government commumcations technology levels; system for effective c) Install electronic collaboration and communication system decision-making and for the Government; dissemmation o f mformation d) Develop ICT skills ingovernment; e) Conduct E-Government readiness assessment; 0 Develop sectorklinistry ICT Policies; g) Develop Websites and Intranet for government ministries and agencies; h) Improve and upgrade communications infrastructure; i) Improvecomiectivity. ___.__. - - ~ _ _ _ 4 Human ~~~~~~~ ~ ~~ To effectively develop --a) Conduct training needs assessments for the Meteorology and Resource human resources for efficient ICT sub-sectors; Development dehbery o f servlces in the b) Develop and upgrade local meteorology training sector programmes; c) Install and operationalise Performance Management Systems; Establishprovincial ICT centres o f excellence; Facilitate teachers training in ICTs at all teacher training colleges; Q Develop ICT curriculum and certification programmes in all leamine institutions: - g) Operationahsethe Communications Department anu xrvices I meIeoroioev ana imormarion immove m e reuomne ana anaivsis 01aara inme secror: L,* D ) I Y Development , and communication c j Ensure the protection o f lives through appropnate safety 11technology system through measures, educahon, engineenng, and d) Institute effective law enforcement mechanisms, enforcement e) Develop databases and Geographical Information Systems (GIS) to support land, water resource management and enwonmental monitonng -- 6 ~~--_____. -~ ICT To promote a stable, fair and a) Domesticate, harmonise and develop electronic commerce ~ Enterprise 1 competitive investment laws, Development I climate that facilitates the b) Develop awarenessprogrammeson the benefits o fE- development o f Zambia as Commerce among the general public, I. ~ the.hub for meteorology, . c) Establish an ICT Enterpnse Development Revolmng Fund, 1 information and d) Promote access of vouths, women and the disabled to ICT. ~ lipp commumcations technology inthe region ~ _ _ _ ~ Flfth National Development Plan 2006 - 2010 73 management attention, Thus, prompt submission o f progress reports is very important for taking timely decisions. The proposed interventions are expected to generate positive impact on the key indicators o f the sector. Impact monitoring will be based on data and information generated from the baseline surveys and follow-up surveys, such as annualperformance analyses, mid-term reviews and final sector performance analysis. This will enable stakeholders to determine if the Plan is going in the right direction. The full evaluation will be undertaken inthe last year o f the implementation o f the FNDP. Fifth National Development Plan 2006 -2010 75 ;c L I- F e e e -- c 'E 'C I - n Infrastructure 9.7 lnfroducfion Infrastructure plays a crucial role inthe country's socio-economic recovery programme aimed at improving the well being o f the Zambian people. Since 1991 it has been the general policy o f the Government to provide an enabling environment for active private sector participation inthe direct provision of goods and services. Accordingly, the infrastructure sector is required to play mainly a facilitative role inthe provision o f socio-economic infrastructural and other services aimed at stimulating socio-economic growth, particularly in the identified four main economic growth sectors o f agriculture, tourism, mining and manufacturing. Inthis chapter, infrastructure covers amongothers the following: a) Transport infrastructure, including roads, railways, bridges, airports and aerodromes and inland waterways; b) Building infrastructure, covering office and residential accommodation, schools, health centres, sports complexes, museums, heritage sites, courts andprisons; and c) Damsusedfor agriculture relatedeconomic activities. Transport infrastructure plays an important role as a catalyst in economic development by integrating society where people and resources are able to move to achieve their full potential. Large deposits of mineral wealth are o f no economic value if they cannot be shipped to the market just like huge agricultural potential areas cannot be exploited ifthey are inaccessible. Agricultural produce also requires outlets to the market. Tourism is a growing industry in Zambia whose growth and prosperity will depend on how accessible tourist resorts are to leisure seekers. Transport also provides mobility and improves the quality of life for communities by providing access to education andhealth amenities and expanding options for work. Being a landlocked country, Zambia's economic survival depends mainly on the transport system for the movement o f its exports and imports. Despite Zambia being a land locked country, it is a natural transport andcommunication hubwhich shouldbetaken advantage of. The Government recognizes the importance of transport in facilitating economic growth, poverty reduction, and employment creation, hence the emphasis itplacedon transport inthe PRSP/TNDP. The challenges that face the infrastructure sector in Zambia include excessive transport costs; high cost of building materials; expensive construction equipment; limited local contracting and consulting capacity; and unfavourable competition between local and foreign contractors. From the First through to the Fourth National Development Plans, the Government's focus in the transport sub-sector was to develop transport infrastructure throughout the country inorder to link all provincial and district centres and inaccessible areas by other modes of transport. Moreover, it has also been the desire o f the Government to open alternative railway routes and other modes o f transport to the sea as follows: a) ChipatdMchinji Railway, with possibilities o f llnking with the Zambia Railways or the Tanzania-Zambia Railway Authority system; b) TazardMpulungu link; c) Kafue/Zawi in Zimbabwe, to provide the country's shortest railway llnk to the sea through the Port o f Beira; d) Railway links with Angola, Botswana andNamibia; and e) LusakdLuangwaBridgeiZumboto linkwith the Mozambique Railway system. Concerning buildinginfrastructure, the Government had 20,000 housing units inthe districts throughout the country before 1996. These pool houses were sold to sitting tenants, leaving only three VIP houses in provincial and districts centres and one VIP house inoutlying districts for District Commissioners. With this scenario, the Government has been finding it difficult to recruit and retain qualified personnel. Nonetheless, the Government still has an obligation to provide affordable office and housing units to its employees. The Government has been spending huge sums o f money on rentalhousing allowances for its employees. This Fifth National Development Plan 2006-2010 80 has led to the Government's failure to implement its programmes in districts where it has no offices and houses. There will be no economic development in Zambia without improvement o f infrastructure in the outlying areas o f the country since the country will mainly depend on agriculture, miningand tourism industries to improve its economy. Therefore, there is need for the Government to construct roads, office blocks and houses inmost districts. 9.2 Review of Past Performance In order to stimulate growth in the productive sectors, the Government's focus since 2000 has targeted public infrastructure programmes, such as the construction and rehabilitation o f airports, dams, border infrastructure, canals, trunk, main, district, urban feeder and access roads to agricultural, manufacturing, mining and tourist areas. As a result, the construction sub-sector grew from 11.5 percent in 2001 to 21.6 percent in 2003. It declined in 2004 to 14.6 percent and increased to 19.9 percent in 2005. This positive development was attributed to continued expansion inthe Government's roadmaintenance and construction activities, development o f prime new commercial real estate, such as the Arcades in Lusaka and the Presidential Housing Initiative (PHI). The development o f such inhastructure, in addition to stimulating growth in the productive sectors, was intended to improve and integrate rural communities through easier access and better communication links. It was also intended to offer rural people self-employment and income generating opportunities, such as road construction jobs and a wider market for their goods/crops and services and in the process create wealth. The contribution o f transport and construction to the GDP during the period 1999 to 2005 is given inTable 9.1. Sub.Seclor 1999 2000 2001 2002 2503 2004 2005 Rad transpit 10.0 10.0 11.1 11.8 10.8 107 10 0 Roadtranspoti 75 4 76.8 77.3 78.3 81.9 85.3 89.2 Ai: :ramport 26.2 27 8 30 8 28.2 29.3 34.6 42 3 Constwctio? 116.0 123.6 137.8 181.8 196.8 237 1 284.3 TOTAL 227.6 238.2 257.0 280.0 318.8 367.1 425.5 Percent contributionto GDP 9.4 9.5 9.8 10.3 21.2 12.2 13.5 9.2.1 Transport Systems 9.2.1.1.Road Transport The goals o f the road infrastructure sub-sector during the First Phase o f the Road Sector Investment Programme (1997 to 2002), under the PRSPITNDP were as follows: a) Expand,rehabilitate and invest inthe road sub-sector inorder to improve accessibility andmobility, and bringa core roadnetwork of33,500 kmup to maintainable condition; b) Rehabilitate paved and unpaved roads and bring road conditions to at least 50 percent good, and 10 percent poor for all types o f roads; c) Maintainpaved andunpavedroads, including feeder roads; d) Replace pontoons with bridges, andrehabilitate and construct bridges, including footbridges; e) Promote intermediate means o ftransport; f) Buildinstitutional andmanagerial capacity inthe management o froads; and g) Create 30,000 newjobs inroad maintenance. Table 9.2 gives an overview o f disbursements for roads against annual work plans. As can be seen in the Table, overall funding for road projects compared to planned work is less than 50 percent, implying that there i s a lot o f carry over. The Table further shows the very high external resource component in disbursements over the 2000 to 2005 period. Fifth National Development Plan 2006 -2010 81 GRZ DirectFunding Source: Annual Report 2004, National Road FundAgency National Road Fund Agency annual workplan 2006 1 As shown in Table 9.3, un-remitted collections from the fuel levy in 2000 were 36.2 percent o f the total collections; this rose to 59 percent in2003. Year Collections , Remittances Unremitted Unremitted ~ K' billion I K' billion K' billion I percent 2000 35.6 22.6 12.9 36.2 ~ 2001 55.4 33.7 21.7 39.2 ~ 2002 90.3 I 45.7 44.5 49.3 2003 96.1 42.9 55.3 56.3 ~ 2004 121.5 j 121.5 0 0 2005 173.5 163.4 10.1 0.06 ~ 9.2.1.2Rail Infiastructure During the PRSPiTNDP period the following were the focus o f the Government inthe railway sub-sector: a) Ensure rehabilitation and preservation o f investment and continuous improvement o f railway infiastructure; b) Improverailway efficiency through concessioning to the private sector; c) Makearrangements for new railway connections to areas that will come into new economic production, especially large-scale mining; d) Promote and enhance complementarity between roads and rail transport networks such as Chipata Mchinji, Chipata Kasama Mpulungu, Chingola /Solwezi Lumwana, Benguela / MulobedNamibia andKafue/Zawi (lion's den)/Beira inorder to realise the hub concept inthe regional setting; e) Evaluate and implement extension o f the railway network, such as the Chipata/Mchinji lmk and the Kasamahtpulungulinkas part o f the railway network development strategy; and 9 Provide capacity building in the Government to develop supportive regulatory and investor-friendly legislation, and monitor compliance. The amount o f cargo carried by Zambia Railways during the period under review increased while the number o f passengers declined. TAZARA, on the other hand, experienced decline in both freight and passengers carried. The increase in cargo transported by Zambia Railways was due to improved performance after the restructuring o f the railways and increased economic activity in the mining sector, which provides the bulk o f traffic to the railways sub-sector. TAZARA performance was dismal due to serious operational constraints such as shortage o fmotive power and rolling stock. FifthNational Development Plan 2006-2010 82 With regard to passengers, both Zambia Railways and TAZARA carried lower numbers due to a host of reasons that included patronage having shifted to road transport because o f the superior quality o f service offered by road passenger transporters. In order to revitalise the railways, the Government concessioned Zambia Railways Limited to Rail Systems o f Zambia in December 2002 while the privatisation o f TAZARA is under study. 9.2.1.3Air Transport andNavigation Air transport is the most important mode of transport inZambia's efforts to promote tourism. The mode is very convenient, especially for international tourists. Since the liquidation o f Zambia Airways in 1994, the industryhas been predominantly inprivate hands but none o f the existing carriers has been designated the status o f a national or flag carrier. The void, left by Zambia Airways on regional and international routes, hasbeen filled by foreign airlines. In2003, the Government commissioned a study to determine the mode o f establishing a private sector driven flag carrier. Recommendations o f the study will be assessed and implemented during the planperiod. Airport 2001 2002 2003 2004 Lusaka 7,825 9,272 10,241 9,507 Ndola 2,934 2,172 2,706 2,834 Livingstone 1,617 2,890 2,382 3,076 Mfuwe 1,429 1,310 931 2,048 Total I 13,705 17,646 16,260 17,466 9.2.1.4 Waterways Transport Water transport is the cheapest mode o f transport because o f low infrastructure development and maintenance costs. Zambia has an estimated network o f 2,433 km o f canals and waterways and these are found in: Lake Tanganydca, Lake Kariba, Lake Bangweulu, Lake Mweru, Upper and Lower Zambezi, Kafbe River, Luapula River and Bangweulu, Mweru and Lukanga Swamps. Water transport, despite its mherent advantage o fbeing the cheapest mode, is not fblly developed to realize its potential for a number o f reasons that include lack o f equipment to dredge canals and waterways; lack o f handling equipment at harbours; and lack o f technical expertise to manage the sub-sector. The sub-sector will be reformed during the Planperiod. 9.2.1.5 Urban Transport Urban areas in Zambia continue to be centres o f high economic and social activities attracting higher population, urbansprawl, and high demand for transport services and facilities among others. Some notable characteristics o f the big cities, such as Lusaka, include the following: a) Vehicle congestion is already severe in certain parts o f the Central Business District (CBD) and major roads leading into the CBD; b) Inadequate facilities for pedestrians; c) Long-term parking spaces for motor vehicles are very limited resulting in vehicles parking on the roadway hence adversely affecting smooth flow o f traffic; d) Lack o fby-passes to enable through traffic to avoid congested roads inthe CBD; and e) Road network is the dominant infrastructure in urban areas although a rail network exists in Lusaka, which was used for a light rail passenger service; there is also an inter-mine town rail network on the Copperbelt, which could be usedto operate a light transit rail transport system. FifthNational Development Plan 2006-2010 83 Urbantransport infrastructure was not a priority inthe PRSP/TNDP. As a result, most of the 5,500 kmof urbanroads have defects such aspotholes, patches, cracks, edge failures and loss of gravel. InLusaka, the commuter railway network, which usedto complement the road network, has been disused since the closure o fthe NjanjiCommuter Service operations. 9.2.1.6.Corridor Development Trade enhances development and can foster growth. Therefore, improvement o f trade routes for regional and international trade is an important issue. Adverse transport costs canhave an impact on trade efficiency if they are not addressed. According to UNCTAD studies, 11.5 percent of the total value of imports is transport related in Africa compared to 6.7 percent for North America and 7.2 percent in Asia. Transport costs in Southern African countries are at 12.7 percent, which is above the Africa average. On exports, many countries in Southern Africa spend 20 percent o f their earnings on transport related costs; Zambia spends 17.1percent. Inorder to make Zambia's commodities more competitive on the regional and international markets andto mitigate against such challenges as distance from the major markets and being landlocked, the development o f transport infrastructure is critical. For landlocked countries like Zambia, the development of transport infrastructure centred on corridor development is more plausible. It i s for the above reason that the country i s hlly committed to the regional approach to infrastructure development under the Regional Economic Communities (RECs), such as SADC, COMESA, and the New Partnership for Africa's Development (NEPAD). Zambia is centrally located, which means it is the hinterland and transit point of many corridors to the sea. The main ones are: Beira Corridor: The corridor stretches from Beira in Mozambique via Zimbabwe and Zambia to Lubumbashi inthe Democratic Republic o f Congo (DRC). The corridor is traversed by roadwith a total length o f 1,580 kmandby rail with a distance o f 2,557 km; Nacala Corridor:The corridor stretches from the Port o f Nacala inMozambique via Malawi to Lusaka in Zambia. Nacala can be accessed by road from Lusaka, a distance of 1,774 km and by roadirail combination measuring 604 kmo froad and 1140 kmo f rail; Durban Corridor:The corridor consists o f road, rail androadirailcombination of network from Durban inSouthAfrica via Zimbabwe, Botswana andZambia to the DRC border. The length of the road via Beit Bridge to DRC is 2,611 km while the length o f the road to Lusaka via Plumtree is 2,524 km The length o f the railroute via Plumtree to DRC i s 2,510 kmwhile the roadirailcombination is 304 kmroad and2,227 kmrail; Dar-es-Salaam Corridor: The corridor stretches from Dar-es-Salaam in Tanzania to Harare in Zimbabwe via Lusaka. The distance by road is 2,491 km, while by roadirail combination, it is 304 km for the road and 2,176 kmrail; WalvisBay Corridor:This corridor stretches from Walvis Bay inNamibia via Katima Mulilo inZambia to Bujumbura inBurundi.The roadiwater combination is 3,151 kmroad and 65 kmwater; Mpulungu (Great Lakes) Corridor:The Mpulungucorridor services Lusaka and Malawi via Chipata to Mpulunguand the Great Lakes Region. The distance between Lusaka and Kigali in Rwanda is 1,390 kmby roadand650 kmby water; and Mbvara and Lobito: The stretch o f roads o f regional importance under the jurisdiction of Zambia is Livingstone-Ndola, Lusaka-Chipata, Lusaka-Chirundu, Kapiri Mposhi-Nakonde and Sesheke- Livingstone, while the entire railway network is part o f the regional connectivity. 9.2.2 Buildingand Construction Untilthepolicyto sellhousesto sitting tenants, centralandlocalgovernments were involvedinconstruction o f residential houses. Other institutions engaged in the construction o f houses were the Zambia National Building Society, National Housing Authority, ZIMCO Properties, Indeco Estates, private developers, individuals, and the Presidential Housing Initiative. Recently, ZIMCO Properties and Indeco Estates were transferred to the Ministryof Local Government and Housing as part o fpolicy rationalization. Funding for housing projects was uncoordinated and characterized by the existence o f several Government institutions involved in the construction o f houses, namely, Ministry o f Works and Supply; Ministry of Local Government and Housing; Ministry o f Defence; Ministry o f Education; National Housing Authority; Fifth National Development Plan 2006 -2010 84 and Zambia National Building Society. This also resulted in uncoordinated work and parallel funding. During the 2001 to 2005 period, the sub-sector undertook many projects particularly in terms o f the construction o f vital infrastructure that included markets,bus stations, office buildings, bridges anddams. 9.3 Policies and Key Reforms The Government adopted the Construction IndustryPolicy in 1995 and constituted the National Council for Construction (NCC) through the NCC Act o f 2003. As a statutory body, NCC registers and regulates all contractors and consultants inthe construction sub-sector and enforce construction standards. The Transport Policy o f 2002 instituted the Road Development Agency (RDA) under the Ministryo f Works and Supply through the Public Roads Act No. 12 o f 2002. The RDA manages all roads in Zambia. The Agency is the overall Authority inthe development o f an integratedprogramme inthe road sub-sector. The National Road Fund Agency (NRFA) manages and administers the Road Fund. In addition, it mobilises funds from various sources into a single basket for use inthe roads sub-sector as stipulated in the National Roads Fund Act No. 13 of 2002. Road traffic and safety management are the responsibility of the Roads Transport and Safety Agency (RATSA) as provided for inAct No. 11o f 2002. The Ministryo f Works and Supply will continue with the review and development o f an appropriate policy and legal framework inorder to promote public-private partnershipsinthe construction andmaintenance of public infrastructure. This will call for the establishment and maintenance o f a comprehensive Information Management System on the operations o f the sector to enhance decision-making and information provision to clients and stakeholders. Furthermore, the FNDP implementation will take on board the concerns of provinces and districts as expressed in the regional plans. This will be in conformity with the 2002 Decentralisation Policy that seeks to devolve power to the lower levels. Inthe light ofthe above andinorder for the infrastructure sector to contributemeaningfullyto the growth of the economy, poverty reduction and employment creation, the following challenges shall be addressed duringthe FNDPDeriod: Poor State of Inpastructure: The condition o f most government buildings, such as schools, health Y centres and offices, and transport infrastructure is poor mainly due to many years o f maintenance neglect and failure to meet set targets. The FNDP shall pay particular attention to infrastructure development and rehabilitation; Poor Fundingfor Inj?astructure: Fundingfor maintenance and rehabilitation of infrastructure has been erratic, inadequate anduncoordinated resulting indelays inthe completion o f projects, non-execution o f works and duplication o f work. Sufficient resources shall be earmarked for the maintenance and rehabilitation o f infrastructure. Public-private partnerships shall be explored and fully exploited. The role o f cooperating partners in infrastructure maintenance and rehabilitation shall be effectively coordinated and harmonised with the FNDPpriorities; Slow Pace of Sector Restructuring: Reforms in the sector, especially in civil aviation and water transport, are progressing at a slow pace. As a result, the sub-sectors cannot enjoy the benefits o f good management associated with restructuring. In this regard, the Government shall accelerate the process o f restructuring the civil aviation and water transport sub-sectors to maximise their contribution to national development, ingeneral, andpoverty reduction, inparticular; Low Private Sector Participation: The desire o f the Government is to involve the private sector inthe development and operation o f infrastructure. Whereas significant progress has been made inthe railway and building construction sub-sectors, the participation of the private sector in road infrastructure development and operation has been low or non-existent. During the FNDP, the Government shall explore all avenues that would open up opportunities for fuller involvement o f the private sector, particularly inroad, air andwater infrastructure; Lack of Capacity to Undertake Works:There is lack o f capacity by local companies to undertake major infrastructure programmes due to their lack o f equipment and finances. Although there is a deliberate policy by the Government to provide funds to build and strengthen local contractors, through packaging o f contracts to assist buildlocal capacity and giving preference to local contractors inthe award o fjobs, progress in buildingthe required capacity has been slow. In this regard, the Government shall review Fifth National Development Plan 2006 -2010 85 the experience thus far and embark on fbrther efforts to empower indigenous companies to hlly participate ininfrastructure development; HIV and AIDS Mainstreaming: The HIV and AIDS pandemic has not spared the transport sub-sector more so that personnelinthe sub-sector are engaged inmany assignments outside their stations for long periods. The Government shall enhance its efforts in addressing the challenges o f HIV and AIDS infection that are brought about by the nature o fthe transport sub-sector; Gender Mainstreaming: Women, especially inrural areas, undertake most o f the domestic chores, such as collecting firewood, collecting water and takingproduce to the market on foot. Because o f the time and energy spent onundertakingthese tasks, less time is available for themto undertake other economic activities as mitigation against poverty. The participation o f women in the ongoing road rehabilitation programme is also marginal. The special needs o f women in infrastructure development shall be explored and their inputs mainstreamed into the sub-sector ina more proactive andbeneficial manner; Vandalism: Vandalism is now a widespread problem in Zambia. Railway tracks, airport infrastructure, bridges and road signs have been targets o f vandals who supply the wares to scrap metal dealers and blacksmiths. The Government shall enhance its efforts in bringing awareness to local communities in addressing vandals inconjunction with law enforcement institutions; and Lack of Clear Policy in HousingC onstruction: The current institutional arrangements in the housing sub-sector are fragmented and characterized by a lack o f clearly defined roles and lines of accountability. Several government ministries, parastatals, private developers and individuals have each prominent roles to play in the sub-sector. The Government shall address the challenges o f its housing policy during the FNDP and define clearly the respective roles of various players inthis sub-sector and how best they could be coordinated. The 1996 housing policy shall be reviewed inline with the current challenges. An implementation plan shall also be developed to operationalise the revised housing policy. 9.4 Visionand Goal The vision is: Developed and well maintained quality socio-economic infiastructure for sustainable national development by 2030. The goal is: To enhance delivery of public infrastructure and achieve increased adherence to set standards and regulations on construction and maintenance in order to contribute efectively to national development. 9.5 Programmes, Objectivesand Strategies The matrix below presents the FNDP programmes and their respective objectives and strategies for the infrastructure sector. Sect r: Infrastructuri No. Programmes Objectives Strategies 1 Developmentand To develop and implement a) Develop and implement mechanisms for development Implementation of an appropriate policy and review o fpolicies and legislation; Public Private framework in order to b) Develop and implement mechanisms for monitoring Partnership Policy facilitate effective private the implementation o f Public Private Partnerships sector participation in the (PPPs); construction and c) Develop and implement private sector financing maintenance o f public under buildoperate and transfer POT). infrastructure 2 ~ Public To effectively manage public a) Ascertain the current state o fpublic infrastructure; Infrastructure infrastructure in order to b) Develop and implement mechanisms for maintenance Management ensure accountability, o fpublic infrastructure; ~ serviceability and prolonged c) Develop and implement mechanisms for rehabilitation life span o fpublic infrastructure; d) Devisemechanisms to protectpublic infiastructure. a) Facilitate the construction o f sports complexes, ~ 3 Infrastructure To provide and maintain Development sports complexes, museums museums, heritage sites, and new office and (Buildings) and heritage sites, and office residential buildings; and residential b) Develop and implement a system for allocating office Fifth National Development Plan 2006 -2010 86 Objectives 1 Strategies iccommodation in order to ! and residential accommodation to -eovernment facilitate operations o f institutions and employees; Sovemment and other Develop and implement a comprehensive jtakeholders maintenance programme for residential and office accommodation; I 4 11 d) Develop border facilities. Road To facilitate the construction a) Develop a plan for the development o f road Infrastructure Jf road infrastructure, set I infrastructure; Development standards and contribute to b) Provide technical information and specifications to national development 1 contractors and consultants; c) Effectively collaborate with professional bodies on ~ the development and enforcement o f quality I standards; dlgovernment Provide technical advice on public works to institutions and the constructionindustry; e) Strengthen the mechanism for registration o f contractors and consultants; f) Develop training programmes for small-scale contractors and technicians. sl 5 ~ Airport To facilitate the construction a) Develop a plan for development o f airport Infrastructure of airport infrastructure, set infrastructure; Development standards and contribute to b) Provide technical information and specifications to national development contractors and consultants; c) Effectively collaborate with professional bodies on the development and enforcement o f quality standards; 4 Provide technical advice on public works to government institutions and the constructionindustry; e) Strengthen the mechanism for registration of contractors and consultants; f) Develop training programmes for small-scale and technicians Develop plan for development o f railway ~6 RailInfrastructui To facilitate the construction -contractorsa a) Development o f rail infrastructure, set infrastructure; standards and contribute to b) Provide technical information and specifications to nationaldevelopment contractors and consultants; c) Effectively collaborate with professional bodies on the development and enforcement o f quality standards; d) Provide technical advice on public works to government institutions and the constructionindustry; e) Strengthen the mechanism for registration of contractors and consultants; f) Develop training programmes for small-scale - contractors and technicians. 7 Develop a plan for development o f water transport ~ Water Transpori To facilitate the construction a) Infrastructure o f water infrastructure, set infrastructure; Development standards and contribute to b) Provide technical information and specifications to national development contractors and consultants; c) Effectively collaborate with professional bodies on the development and enforcement o f quality standards; d) Provide technical advice on public works to government institutions and the constructionindustry; e) Strengthen the procedures for registration of contractors and consultants; 0 Develop training programmes for small-scale - contractors and technicians. 8 Infrastructure To coordinate infrastructure a) Develop a five-year infrastructure master plan by Planningand planning and the monitoring 2010; Monitoring o f programmes and projects b) Develop a monitoring and evaluationinstrument; in order to ensure their c) Conduct management meetings; effective implementation d) Undertake progress review meetings quarterly. 9 To establish and maintain a Establish, operationalise and maintain comprehensive ~ Information a) Management comprehensive Information information management systems; System Management System (IMS) b) Develop and implement a system linking stakeholder on the operations o f the departments, provinces and institutions through Wide Fifth National Development Plan 2006-2010 87 Sector: Infrastructure I No. I ! Programmes II Objectives i Strategies infrastructure sector in order ~ Area Network (WAN); to enhance decision-making 1 c) Develop and implement a network system 1i;lking and information provision to I stakeholder ministries and institutions through WAN; end users I d) Establish and operationalise a database on public 9.6 Implementation,Monitoring and Evaluation Framework At implementation level, firstly annualwork plans will facilitate effective implementation and execution of service delivery. The annual work plans will detail the actual activities to be carried out in a particular year with their specific timeframes and estimates o f the quantity and type o f resources required. Secondly, the activities and their associated resource requirements in the annual work plans will be costed for each particular year and incorporated into the annualbudgeting system. The implementation o f the Plan will need to be constantly monitored and evaluated, and performance reports on the various aspects of the implementation process shall be prepared and discussed annually to form the basis for the next course o f action. The performance reports will serve as input into the following round o f annual budgets. The monitoring system will consist o f annual work plans, progress reports, and specific monitoring forms, designed to collect information on activity indicators o f the programmes. The work plans will indicate the activities to be undertaken each year and their targets. These will be developed at major implementation points such as districts, provinces, national level, and in other major units involved inthe implementation o f the development o f infrastructure. The work plans will be generated through the active participation o f all stakeholders and prepared towards the end o f the year and will serve as an implementation guide. The SAG members at different implementation units will be responsible for the development o f annual work plans which will be supervised by the Planning and Monitoring Department o f the Ministryo f Works and Supply. The SAG will develop consolidated annual work plans by aggregating annual work plans from various sector members. This Plan will also include all monitoring and evaluation activities to be undertakenby the sector. The Plan will outline outputdinputs on activities and targets to be achieved. Implementation units will be required to keep a minimum set o f data and information as part o f the Management Information System (MIS). This will provide the Infrastructure SAG with information on performance, in relation to implementation o f targets and assist in making informed timely decisions on matters affecting the smooth implementation o f the infrastructure sector programmes. The progress reports will provide feedback to supervisors on the progress o f implementation o f programmes based on the comparison o f outputlinput activity targets with actual achievements. They will also highlight any problems that require management attention. Inthis respect institutions will be encouraged to submit progress reports timely. Monthly reports will be used for internal management and will highlight progress made in achieving expected outputs and inputs for activities in the Plan and the desired impact. Using monthly reports, four quarterly reports per year will be prepared by the Infrastructure SAG inliaison with implementingagencies, to review activities implemented during the quarter and to analyse achievements and constraints. Annual reports will be coordinated and compiled by the responsible institution and will analyse the implementation process in relation to targets and review activities implemented, and achievements and constraints experienced. A mid-term review o f the planned activities shall be undertaken in mid-2008. The full evaluation will be undertaken inthe last year o f the implementation o f the Plan. Fifth National Development Plan 2006 - 2010 88 'C E 'E n I- In I I- IN I I I d -4 I- IN 1- I+ I I I I I `_Iiii Natural Resources 10.1Introduction This chapter focuses only on those natural resources whose management responsibility falls directly under the portfolio o f the Ministry o f Tourism, Environment and Natural Resources (MTENR). These include wildlife, forestry, national heritage, and wetlands. However, l d a g e is made to other resources such as land, water, fisheries, minerals and energy whose mandates fall under other ministries, but whose management influences wildlife, forests, wetlands andthe nationalnatural heritage ingeneral. Zambia boasts o f rich and abundant natural resources, These resources include minerals, such as base metals (copper, zinc, lead), precious metals (emeralds, amethyst, aquamarine, garnets, and chines), industrial minerals (iron) and energy producing minerals (coal). Other resources that Zambia also has in abundance include land, water resources (both ground and surface water), and an impressive network o f wetlands, plentiful wildlife, and fish resources, extensive forestry resources and a unique and wide range o f national heritage, all within a favourable sub-tropical climatic regime. The total land surface area, for instance, i s relatively vast (752,000 square. km) and the physical landscape is still o f quality and pristine, characterized by fascinating and varied land systems and soil types. Total suitable land for agriculture is estimated to be about 58 percent o f Zambia's total land surface, and only 14 percent o f this is utilized. According to Zambia's geomorphic legend, the country could be divided into three broadregions, namely the hilly areas, the plateau areas and the valley regions. Zambia's climate is one o f the most pleasant and fiiest in sub-Saharan Africa. The average temperatures are relatively warm, between 20 and 24 degrees centigrade, and annual rainfall is over 900 mm, way above the sub-regional average. The climate has three distinct seasons: the warm-rainy season (November to April), the cool-dry season (May to July), and the hot-dry season (August to October). The country is also endowed with abundant ground and surface water resources covering about 6 percent o f the country. Zambia contains about 35 percent o f the Southern Afiican region's ground water resources, with 14 percent o f Zambia's landunder wetlands. With regard to biological resources, Zambia has a valuable and rich diversity o f biological resources. Forest resources, comprising about 60 percent o f the country, have an estimated 1,755 to 3,652 million cubic metres o f woody biomass. There is also a variety o f ecosystems with over 3,000 different species. These occur in three main biomes, each with distinctive floral characteristics. These biomes include forests, woodlands and grasslands. Over 40 percent o f the species comprise shrubs and plants, much o f which is savannah under the Miombo woodland. Out o f the total number o f species, 211 are endemic to Zambia, and 14 species are on the Red Data List and protected. To maintain biodiversity and support forest production, Zambia has set aside 9.64 percent as protected forests (reserves) throughout the country, and 60,000 ha o f plantation forestry respectively on the Copperbelt and inother provinces. Wildlife resources range from birds and reptiles to mammals. There are about 733 bird species (76 rare or endangered), 150 species o f reptiles and 224 species o f mammals (16 domesticated). Under the wildlife statutes, 25 species o f mammals, 36 species o f birds and 4 species o f reptiles have international significance and are protected. Interms o f area extent, wildlife protected areas occupy about 40 percent o f the country's land surface area. This gives Zambia one o f the largest wildlife estates in the sub-region. There is also scope for development o f private wildlife estates, as there is availability o f land in communal (open) areas. In addition, there are about 404 species o f fish (204 endemic), and a few protected areas as fish breeding sites. There are also over 3,000 sites o f outstanding natural and cultural heritage with great diversity o f attractions and unique selling features that have been identified in the Zambian landscape, including the Victoria Falls. 10.2Review of Past Performance Rapid increases in the population combined with over-exploitation o f resources have threatened the resource base and in turn the lives o f the people. The growing population implies that the number o f Fifth National Development Plan 2006 -2010 95 people who exploit natural resources as a means o f sustaining themselves will also increase. In addition, the population density in some localities i s extremely high, largely as a result o f urbanization and immigration. These factors have combined to exert pressure not only on social and economic services, but also on land, resulting in deforestation, biodiversity loss, land degradation, and scarcity o f agricultural land insome areas. These problems are particularly evident inCentral, Eastern and Southern provinces, resultingin outward migration o f the rural populations in these areas to as far as Northern and North- Western provinces. I t has been noted that a significant cause o f environmental degradation has been inadequate legislation. This i s also due to the fact that much o f the land in Zambia is under traditional tenure or `open areas' and administered by traditional rulers. Under the various traditional arrangements, the tenure regimes have no clearly defied property rights since the community usually has open access to natural resources. The dynamics o f open access are the basis o f the `tragedy o f the commons'. For many years, there has beenno national land-use planning framework to specify how land should be allocated for various purposes and what land should bereserved for different future uses at the national, provincial and district levels. The 1995 Lands Act was aimed at ensuring that all Zambians are afforded the same opportunity and encouraged to access and own land under leasehold title in customary land areas. This move is seen to be progressive because it puts inplace a system o f security o f land tenure, which provides some incentives for sound environmental protection. Progress to date has, however, been very limited on this issue. There has also been limited private sector investment in the natural resources sector in the past to stimulate growth and development. Indigenous people and local entrepreneurs have also not, as a whole, been much involved ininvestment inthe sector. Efficient and effective information management systems are key to modem day natural resource management. The sector has suffered from lack o f systematic and comprehensive information management systems to effectively support decision-making and operations and facilitate information dissemination. Consequently, it has been difficult to establish any credible trends inthe status o fZambia's naturalresources. Other challenges in the natural resources sector are poor infrastructure and inadequate and obsolete equipment. Apart from the centre and regional headquarters, most o f the natural resource management infrastructure at the district level and below is dilapidated. In addition, communication and transport facilities are poor. This state o f affairs has continued to affect natural resource management negatively. A t the sub-sector level, a host of factors have continued to affect sound natural resource management. They include the following: a) Wildlife Management: Recent data shows that in2003 the Zambia Wildlife Authority earned about ZK 5.3 billion and ZK 10.4 billion in 2003, in safari hunting and tourism, Zambia Wild Life Authority (ZAWA) earned about, as opposed to ZK 344 million and ZK 3.1 billion in 2000, respectively. The five major parks important for photographic tourism were South Luangwa, Lower Zambezi, Musi-o-Tunya, Kafue, and Kasanka. The performance o f the safari hunting industry has, however, been sluggish due to poor administration and huntingbans as a result o f irregularities in the administration o f the safari hunting tendering system. Another problem which affects the industryis the reducedbiomass interms of total numbers o f animals due to a combination o f illegal hunting and out-migration o f animals from Game Management Areas (GMAs) as a direct result of hunting pressure. The safari hunting industry has the potential o f producing four times the present revenue values ifwell managed. Inaddition to safari hunting, ZAWA has also continued to promote the economic use o f wildlife (supply o f game meat and revenues) through a quota and licensed hunting system (district, national, special licenses) and programmes. However, the benefits of the scheme are limited, as quotas are generally abused and huntingis not monitored; b) Community participation in tourism: The Government through the MTENR, is facilitating tourism development through community involvement (indigenous Zambians), with emphasis pn community based tourism through the establishment o f the Tourism Development Credit Facility (TDCF). The programme focuses on the development o f various tourism products, including conservation business, for example, game ranching, parks, botanical gardens and hunting ventures. This, however, is still in its infancy. In terms o f enhanced incomes to community and employment creation, ZAWA has employed a management framework through which 35 percent o f revenues from safari hunting are ploughed back into communities for community development and resource Fifth National Development Plan 2006-2010 96 protection in the game management areas. There is, however, lack o f capacity to monitor communities in the use o f these funds. The Government is also promoting private sector participation in conservation efforts, to re-emphasize the economic value o f wildlife, through game ranching. The Government produced a draft policy on private wildlife estates in 2005 which once enacted will encourage private game ranching. Inthis regard, the Government encourages private investors inthe tourism and wildlife sub-sectors to contribute to the improvement o f the lives o f the communities inwhich they operate; Maintenance of Biological Diversity: Although Zambia has one o f the largest forest and wildlife estates in Africa, maintenance o f biological biodiversity and the environment ingeneral has been inadequate. Wildlife depletion and deforestation have been identified as some o f the major serious environmental problems in Zambia. The main causes o f deforestation are poor agricultural practices, uncontrolled bush fires, and indiscriminate cutting o f trees for charcoal burning and buildingworks. The main causes of depletion o f wildlife populations in the protected areas and in Zambia are (commercial, illegal) hunting pressure and loss o f habitats. Of the 19 national parks, Lavushi Manda, Isangano, Mweru-wa-Ntipa, Lusenga Plains, West Lunga, Lukusuzi and Nyika National Parks are under-stocked. As for game management areas, over 50 percent o f the 34 are depleted o f game; Forest ResourcesManagement: Forests and forest industries contribute at least 3.7 percent to GDP; the largest contribution comes from the wood fuel sub-sector. Charcoal production (mostly commercial) and firewood collection (mostly subsistence) account for 2.2 and 0.8 per cent, respectively. The most significant contribution from the forest sub-sector is that o fproviding energy for the agricultural and domestic needs o f 90 percent o f the Zambian population. Moreover, the potential forest contribution to the national economy could be much higher than at present as the overall productivity o f the forest resource is sub-optimal. Productivity (measured per unit o f financial or labour input) is low at all stages o f the marketing chain, from production, to processing and marketing. Transaction costs are high due to poor infrastructure such as roads and telecommunications. Significant economic and environmental gains may be achieved through increasing the efficiency o f forest industries, including small-scale enterprises. In the light o f the above, the Zambian forest resource is dwindling; annual deforestation is estimated at 900,000 ha., indicating the urgent need to reduce the highrate o f deforestation, and to mitigate its impact on the people and the environment. Charcoal burningsignificantly contributes to rapid deforestation. Half o f Zambia's population lives inurban areas and the rate o f urbanization is increasing. Between 66 and 98 percent o f urbanhouseholds use charcoal for domestic energy needs. The highest prevalence o f consumption (98 percent) is among urban low-cost households, which constitute 85 percent o f the total number of urban households. Opportunities arising from increasing the control of deforestation include improved availability o f forest goods to the rural poor, increased sub-sector productivity and more cost-efficient use o f the nation's natural resources; High Urban Wood Fuel Energy Demand: The average urban consumption o f charcoal has been estimated at 3.9 kg./day or 1,040 kg./household/year. In 2000, the annual charcoal consumption in Lusaka was estimated at 245,000 metric tonnes (MT), which translated to 15 million cubic metres (m3) o f wood. With an estimated increase o f 100,000 new urban households in Zambia over the Plan period, it i s evident that the demand for charcoal will remain high. A consolidated effort to manage the forest resource incollaboration with the producers, improving the efficiency o f charcoal production and enhancing their bargaining power in the market place will, therefore, yield immediate direct economic benefits to the ruralpoor; Imbalances in woodproducts exploitation. The opportunities to increase production volume based on indigenous forests is limited mainly because a large part of the resource is too far from the markets, well-stocked areas are heavily harvested andmore remote areas are often not economically exploitable. However, significant benefits may be achieved from more effective regulation and monitoring o f ongoing timber extraction. While traditional forest industries have performed inadequately, non-wood forest industries are showing promising growth. A prime example is the honey andbeeswax industry inNorth-Western province, which flourished during the early 2000; FifthNational Development Plan 2006 -2010 97 Conservation of National Heritage: Over 3,000 national heritage sites have been identified, representing a great diversity o f attractions and unique selling features, with Victoria Falls as a flagship world heritage with unlimited prospects. There is generally a host o f problems affecting conservation and the promotion o f tourism. In support o f the Government's tourism strategic objective o f "contributing sustainably to the economic well being and enhanced quality o f life for Zambians", the National Heritage Conservation Commission (NHCC) has continued to promote sites o f interest for tourism. However, most o f these sites have no management and tourism plans to guide heritage management, development and conservation. As such, some o f these developments have been uncoordinated and substandard, and not environmentally friendly. These developments, therefore, have resulted in destruction o f heritage sites due to development pressures threatening their existence; and WetlandsResourceManagement: Wetlands are a unique resource and are extremely important as they perform hydrological, ecological and socio-economic functions. Despite this significance of wetlands, there is paucity o f data on the financial and economic value o f wetlands, which could be used to adequately assess the performance o f the sector. This is due to the difficulty o f calculating marketvalues for environmental goods and services and limited capacity in the field of resource economics in the country. The greatest threat to wetlands inthe country is from their degradation, causedby human-inducedprocesses and exacerbated by climatic fluctuations (particularly drought). It is estimated, for example, that over 20 percent of the flood plains and swamps have been degraded as result o f dam development, siltation and human settlements. A t least 30 percent o f dambos in Central, Eastern, Lusaka and Southern provinces o f the country are degraded through inappropriate agricultural practices, siltation, overgrazing and human settlements. Over 40 percent o f wetlands' wildlife resources have been depleted through over-hunting and habitat loss, while over 50 percent o f wetland fisheries resources have been considerably over-exploited. 10.3Policies and Key Reforms Before 1985, Zambia had no coherent and comprehensive policy framework and an apex institution for the management and utilization o f natural resources. Thereafter, important policy and institutional developments took place, which include the adoption o f the National Conservation Strategy, the enactment o f the Environmental Protection and Pollution Control Act (EPPCA), and the subsequent establishment o f the Environmental Council o f Zambia (ECZ) and the Ministry o f Environment and Natural Resources (MENR) in 1991 as apex institutions. These heralded the development o f major programmes such as the National Environmental Action Plan (NEAP, 1994); the Environmental Support Programme (ESP); the Zambia National Biodiversity and Action Plan (NBSAP); the Zambia Forestry Action Plan (ZFAP); the National Action Plan (NAP) for the implementation o f the United Nations Convention to Combat Desertification (UNCCD); and the Zambia Wetland Strategy and Action Plan. Despite these developments, the following challenges have remainedand shall be addressedby the FNDP: a) Overall, management o f natural resources has historically been designated to sectoral institutions with specific mandates based on sectoral legislation and policy frameworks. These frameworks are generally inadequate and inconsistent. Some legislation is outdated and tends to alienate local communities and does not adequately incorporate international environmental conventions. In this regard, the Government shall review and harmonise all sectoral natural resource policies and legislation. Focus shall be on the finalisation o f the National Environmental Policy (NEP) since this is animportant step inaddressing inconsistencies; b) There are more than 30 institutions and agencies (public, NGOslCBOs, and private sector organizations) involved in environment and natural resource management. The existence o f numerous institutions in itself makes coordination o f activities difficult. The establishment o f the Natural Resources Consultative Forum (NRCF) shall form the most important avenue in the Government's effort to address some o f the key challenges among all key stakeholders; c) Particular attention shall be given to addressing capacity deficiencies in the sector, focusing on the existing scarcity o f trained and appropriately experienced personnel able to carry out such specialized functions as policy development, implementation, analysis and harmonization o f legal instruments. Other capacity deficiencies include inadequate access to up-to-date natural resource data and information and lack o f adequatepolicy; Fifth National Development Plan 2006 -2010 98 The Government shall implement the National Environmental Policy once it is approved by Cabinet. To do this effectively, the Government shall facilitate the development o f an implementation plan(IP) in the context of the decentralizationpolicy. The Government shall also develop an Environmental Investment Strategic Plan (EISP) inorder to ease the process o f implementing the NEP; Presently, the Forestry Department has no capacity to adequately manage forest estates inthe country. Inview of this, the Government shall during the FNDP, consider various options for improving the operations o fthe sector; The Government shall continue to facilitate forestry development by encouraging the involvement o f local people and the private sector in forest businesses and ensure that manypeople access the Forest Development Credit Facility. The Government shall also strengthen the Zambia Forestry College through improving inhastructure and introducing skills development courses to support the private sector. The Forest Research Division shall be strengthened by improving infrastructure, equipment and staff skills to ensure availability o fup to date information; The Government shall work towards the domestication o f international environmental conventions during the FNDPperiod. Zambia has acceded to over 20 international environmental conventions, and these have a bearing on the management o f the country's natural resources. The Government shall give priority to the domestication o f five conventions that are critically relevant to Zambia namely, Convention on International Trade in Endangered Species o f Wild Flora and Fauna (CITES); Convention on Biological Diversity (CBD); United Nations Convention to Combat Desertification (UNCCD); Convention on Wetlands o f International Importance (Ramsar Convention); and Convention for the Protection o f World Heritage. The Government shall also complement ongoing efforts, including support to the implementation o f the National Capacity Self-Assessment project This project aims at taking stock o f current capacity levels and capacity needs ingovernment, NGOs, CBOs and the private sector for the implementation o f the CBD, UNCCD, and United Nations Framework Convention on Climate Change (UNFCCC). In addition, the National Adaptation Programme o f Action (NAPA), was initiated to help the country adapt and mitigate problems related to climate change; The Government shall enhance the capacity o f ZAWA to ensure that its wildlife management mandate is undertaken more effectively. This shall be done in the context o f ZAWA's current Strategic Plan which recognizes the need for promoting commercial activities through broadening the tourism revenue generating base and the creation o f sustainable partnerships. A review o f any gaps andinconsistencies inthe currentwildlife policy andlegislation shallbe addressedduringthe FNDP; The Government shall facilitate the process o f putting in place the new system and structures for decentralized, collaborative and enhanced forest management, including the option o f creating the Zambia Forestry Commission under the Ministry of Tourism, Environment and Natural Resources; and The National Heritage Conservation Act will be reviewed and harmonised with other natural resource management legislation. In addition, the Government shall develop subsidiary legislation to ensure that the Heritage Act is effective. Furthermore, the National Heritage Conservation Commission shall fiialise and implement the policy on Heritage Conservation. 10.4 Vision and Goal The Vision is: Well-conserved natural resourcesfor sustainable development by 2030. The Goal is: To ensure sustainable use of natural resourcesfor the benefit of all Zambians. 10.5Programmes, Objectivesand Strategies The programmes and their respective objectives and strategies for the natural resources sector during the FNDP are presented inthe matrix below. Fifth National Development Plan 2006-2010 99 Sec w: Natural Resourcc No. Programmes Objectives Strategies 1 aanagement of To maintain a representation of eco- a) Maintain representative protected 'rotectedAreas systems for the benefit o f current and areas network system; futuregenerations b) Expand the protected area system to include wetlands types which are not currently under protection. 2 Legislationand Policy To develop a conducive policy and a) Formulate, review and implement Review legislative framework for enhanced appropriatepolicies and plans; contribution o f the sector to the b) Integrate private sector driven national economy policies and programmes inNRM; c) Integrate international environmental conventions which are beneficial to the country innational laws and local programmes; d) Ensure that both men and women participate in natural resources management. 3 Environmental To strengthen management systems a) Improve coordination and Institutional for sustainable utilization o f natural administration; Strengtheningand resources b) Institutional development and Capacity Building capacity building. To mainstream Gender and HIV and a) Promote Gender and HIV and AIDS AIDS insector activities equity and awareness. 4 Sustainable To effectively conserve and manage a) Improve habitat productivity, Managementof wildlife and habitats protection and monitoring; Wildlife Resources b) Rehabilite o f protected areas infrastructure; c) Integrate regional law enforcement; d) Encourage co-management o f wildlife resources; e) Commercialise wildlife industries. 5 Institutional Reform To effectively manage the process o f a) Strengthen institutions and human institutional change and reform o f the resources; forestry sub-sector b) Enhance institutional inter-sectoral - and regonal collaboration. 6 Sustainable To manage and conserve indigenous a) Integrate forestry into relevant cross- IndigenousForest forests ina sustainable way sectoral development activities; Resource b) Implement sustainable forest Management management and conservation; c) Strengthen forest resource protection - and monitoring. 7 Sustainable Wood To promote efficient use of wood a) Promote sustainable and participatory FuelManagement energy and alternative sources wood fuel management; b) Establish fuel wood plantations; c) Improve efficiency and technology o f charcoalproductionand use d) Improve . collaboration with the Energy Regulation Board. 8 Industrialand To enhance the economic and social a) Strengthen commercial forestry; PlantationForestry contributions o f industrial and b) Promote forest sub-sector financing; Programme plantation forestry c) Improve access to information, market opportunities, trade channels and technology. 9 Privateand Public To develop an efficient private sector a) Promote out-grower schemes in Sector Capacity driven wood processing and rubber growing and cottage industry; Building marketing system b) Capacity building of forestry entrepreneurship; c) Distribute market information. 10 Strengthening To build up local forest governance a) Promote joint management o f forest Community Based through decentralisation and resources; ForestManagement community based forest management b) Establish community structures and develop skills; c) Formulate joint forest management Fifth National Development Aan 2006 -2010 100 Sec r: Natural Resourc -. No. Programmes Objectives Strategies plans and put in place appropriate -~ legal framgwx!g. 11 4gro-Forestry and To strengthen the capacity o f a) Establish on-station and on-farm 4fforestation extension and research officers to trials; Programme actively promote ago-forestry and b) Promote village nurseries and afforestation activities among farmers establishment of woodlots; and every one in agro forestry and c) Formulate integrated landuse plans. aforestation activities 12 Strengthening To support Zambia Forestry College a) Rehabilitate college infrastructure Forestry Education and in-service staff training and review curricula; and Training b) Improve staff skills through staff development programmes; c) Develop and implement staff training programmes. 13 Supporting Forest To improve investment inthe forestry a) Increase funding to Forest Business Enterprises sub-sector and provide support to Development Credit Facility; rural and urban livelihoods through b) Promote micro and small-scale credit sustainable forest based enterprises to rural based enterprises; c) Strengthenthe informal sector; d) Promote Bee Keeping and Api- culture: 14 Strengthening To generate and maintain up-to-date a) Implement research programmes, Forestry Researchand forest data and information inventories and assessments; lnformation b) Conduct forest accounting and ManagementSystem valuation; c) Rehabilitate research infrastructure; d) Establish forest database. 15 Managementof To promote conservation and a) Promotecommunity participation; Wetlands sustainable utilization o f wetland b) Promote commercialisation and value resources addition for wetland resources; c) Develop integrated land use planning; d) Improve regional and international collaboration; e) Improve coordination o f wetland management; 9 Improve public awareness on wetland -values and functions. 16 Sustainable To conserve and manage national a) Encourage community participation Managementof heritage in the conservation and management HeritageResources o f the national heritage; b) Promote the commercialisation o f nationalheritage; c) Promote sustainable tourism development; d) Promote public awareness and education inheritage conservation; e) Strengthen research and management planning; f ) Improve regional and international collaboration; 8) Improve infrastructure; h) Strengthen analysis, treatment and curation o f heritage materials; i) Strengthen national heritage resource -protection and monitoring. Fifth National Development Plan 2006 -2010 101 10.6 Implementation, Monitoring and Evaluation Framework The FNDP shall focus on the improvement o f the implementation capacity o f the Ministry o f Tourism, Environment and Natural Resources. Decentralization, increased stakeholder collaboration and cost- efficient implementation o f the above outlined programmes shall be targeted inthis regard. The Ministry shall put inplace an effective monitoring and evaluation system that shall involve the respective SAG and other stakeholders to ensure that the FNDP programmes in the natural resources sector are implemented. Annual work plans shall guide actual activities. The work plans shall be reviewed periodically against appropriate performance indicators, targeting primarily the achievement o f positive impact. Fifth National Development Plan 2006-2010 102 Ji: Tourism 1I.1lnfroducfion Tourism has remained one o f the major sectors in Zambia that plays a vital role in the stimulation o f national economic growth. The Government's policy aims at promoting the sector's performance in economic growth, and this was the main thrust o f both the PRSPITNDP. Growth in the tourism sector contributes to employment creation; rural and infrastructure development; increased foreign exchange earnings; and community and entrepreneurial development. More than any other sector, tourism is a labour- intensive industry and provides jobs for local people in both rural and urban areas. Tourism creates opportunities for both large and small entrepreneurs; promotes awareness and understanding among different cultures; breeds a unique informal sector; and creates economic linkages with agriculture, light manufacturing and construction industries, handicrafts, art and souvenirs. Furthermore, it creates linkages with service sectors such as health, education, entertainment, banking and insurance and also helps to conserve the environment. Tourism is one o f the sectors that can thrive inrural areas for the direct benefit o f rural communities thereby contributing positively towards povertyreduction. 11.2Review of Past Performance Tourism potential in Zambia lies in its diversity, whose features include the world famous Victoria Falls, vast wildlife resources, varied scenery, wilderness, diverse culture and national heritage, good weather, adventure activities, hunting and warm and friendly people. There are 19 National Parks and 34 Game Management Areas covering over 22.4 million hectares. Although much o f tourism in Zambia is concentrated in a limited number o f national parks, such as the South Luangwa, Kafue, Lower Zambezi, Musi-o-Tunya and Kasanka, the rest o f the parks provide considerable potential for future tourism development. Zambia's wilderness is characterised by the vastness o f unexploited areas, such as the rift valleys o f the Luangwa and Zambezi Rivers and their escarpments; mountain highlands, such as the Nyika and Mafinga; vast wetlands in the Bangweulu, Kahe and Zambezi flood plains; and the fact that most wilderness occurs inprotected areas, showing the real parts o fnatural Africa. In addition to national parks, a number of areas inZambia have been declared national heritage sites or monuments. These areas include 145 geological sites and 70 geomorphological heritage sites. The Kundalila Falls and the source o f the Zambezi River have been listed as ecological sites. Furthermore, Zambia has 73 tribes with diverse cultural traditions which include a variety o f annual traditional ceremonies. The numbers o f tourists arriving in the country has been growing over the years. An average annual growth o f 8.6 percent was recorded over the 1998 to 2002 period. The average number o f visitors coming into the country annually was 454,345 inthe five years, with business visitors accounting for about 45 percent while those coming for holidays accounted for 26.3 percent o f the total. During2002 and 2003, 64,786 tourists visited the country's national parks. The most visited parks were the South Luangwa National Park followed by Musi-o-Tunya National Park. Between 1998 and 2003, the average number o f Fifth National Development Plan 2006 -2010 106 rooms in the hospitality industry was 4,822 with over 8,000 beds. However, room capacity in the country remains very low although room supply has been growing over the years. The tourism sector has continued to face a number o f challenges over the years, namely: Tourism infiastructure in Zambia is largely underdeveloped, particularly roads, railways, airports and airstrips, telecommunications and accommodation facilities. For example, lack o f all-weather roads in national parks limits access to tourist areas duringwet periods o f the year. This results in operators confining their tours mainly to the dry season; only Musi-o-Tunya National Park remains open all year round; There is a limited product base. Much o f Zambia's tourism products continue to be wildlife- based and underdeveloped, yet if Zambia is to derive maximum benefit from tourism, it is important that the country develops a wide product range and brings the product to a level where it canbe easily accessible, attractive, saleable and abundant; There is inadequate marketing of Zambia as a tourist destination. Part o f the cause o f this is the fact that, at the moment, tourism promotion largely continues to be a government responsibility carried out by the Zambia National Tourist Board (ZNTB), with only a few stakeholders promoting their ownproducts; There are inadequate resourcesfor the industy 's long-term development. Government funding of the tourism sector has been inadequate at a time when indigenous investors do not have adequate access to medium and long-term financing. Though the Tourism Development Credit Facility (TDCF) was established by the Government in 2003 to provide affordable credit to Zambians, the quantum o f the fund (at K5 billion per year) coupled with large numbers o f applicants made this funding source inadequate; There is lack of interest and limited participation among local communities. From the time tourism was identified as a catalyst to rural development, the interests of the local communities have not been hlly incorporated; There has always been inadequate environmental management. Most o f the national parks in the country are knownto be depleted and require restocking. To realize increased growth inthe tourism industry, investment in the protection o f the environment and management o f natural resources is essential; There is a dearth of well trained human resource in the tourism sector due to inadequate resources andtraining facilities; and Lastly, Zambia is generally perceived as a high cost destination. The highcosts are attributed to various factors, such as limited international carriers and domestic flight connections; limited hotel accommodation; and inadequate dependable health facilities. 11.3 Policies and Key Reforms Some major reforms that have already taken place since 2000 include the restructuring o f the Ministryof Tourism, Environment andNaturalResources in2003; the process o fthe formation o f the Forestry Commission, which commenced in 2004; and the enactment o f the Zambia Tourism Board Act to facilitate restructuring o f the Zambia National Tourist Board into a purely marketing body. In addition, new legislation aimed among others at streamlining licensing procedures and reducing the cost o f doing business inthe tourism sector will be undertaken duringthe Planperiod. The restructuring o f the Ministry's statutory bodies will be completed to support the Plan. The general policy o f the Government during the FNDP i s for the private sector to drive tourism development within the overall public sector tourism policy framework. In this respect, the role o f the Government shall continue to be that of: Fifth National Development Plan 2006-2010 107 a) Facilitation o f tourism development; b) Formulation andimplementationo ftourism-relatedpolicies; c) Enactment o f legislation to consolidate legislative developments; d) Eliminationo f conflicts or overlaps within andoutside the sector; and e) Introduction o f appropriate administrative structures necessary for the implementation o f the policies. The major public sector institutions that will continue to operate inthe tourism sector shall continue to be the Ministry o f Tourism, Environment and Natural Resources (MTENR); the Zambia National Tourist Board as restructured; the Zambia Wildlife Authority; the National Heritage Conservation Commission; the National Museums Board; the Environmental Council o f Zambia; the Forestry Commission (when established); and the Hotel and Tourism Training Institute Trust (HTJJ). 11.4 Vision and Goal The vision is: Zambia as a major tourism destination of choice with unique features, which contributes to sustainable economic growth andpoverty reduction by 2030. The goal is: To enhance the contribution of the tourism sector to economic growth and poverty reduction. The main targets for the sector are: a) Increase tourist arrivals from 515,000 in2005 to 736,450 by 2010; b) Increasejobs inthe sector from 19,650 to 30,404 by 2010; and c) Increase tourism earnings from U S $ 174million to U S $304 million by 2010; 11.5 Programmes, Objectives and Strategies The matrix below presents the FNDP's main programmes for the tourism sector as well as their respective objectives and strategies. No. Programmes Objectives Strateoies 1 Developmentof Planning a) To develop the a) Preparetourism PlanningProgramme and Implementation National Tourism b) Preparetourism Research Programme Frameworks Development Master Plan for the country 2 (a) KafueNationalPark and a) To improve a) Develop and rehabilitate tourism and support SurroundingGame accessibility to key infrastructure; ManagementAreas tourist destination b) Increase and improve tourist facilities 2 (b) . , NorthernCircuit areas c) Improve permanent museum exhibitions and Development b) facilities; 2 (c) 11Lower Zambezi National d) Redesign public museum education programmes. Parkand Surrounding Areas LuangwaNationalParks and SurroundingAreas 2 (b LivingstoneRegional Development (Museums and HeritageSites) 3 Standards Improvement To promote quality Enhancement o f the quality o f tourism products and development and services and enforcing standards in the tourism sector efficient service through: delivery in the a) Formulate minimum standards/requirements for all tourism sector sub-sectors inthe tourism industry; b) Reclassify and grade all tourist facilities and services regularly; c) Strengthen the capacity o f bodies responsible for monitoring and enforcing standards; Fifth National Development Plan 2006 - 2010 108 Sectc Tourism I No. Programmes Objectives 1) Develop new legislation to effectively regulate thei Strategies , development and management o fthe sector I rourismInvestment and 1) To promote Encourage and promote investment intourism; I EnterprisePromotion investment in the Facilitate new -investment opportunities in tourism ~ tourism sector through mobilization and provision o f financial I resources, focusing on Small and Medium sized ' Enterprises (SMEs) intourism; Ensure promotion o f indigenous and local entrepreneurs' participation inthe tourism industry; Create awareness o f tourism values and the value o f tourism; Promote tourism for special interest groups (children, youth and the disabled); To promote and monitor eco-tourism; Promote holding of Meetings, Incentives, Conventions and Exhibitions (MICE); Sensitise local entrepreneurs to promote their products TourismMarketingand a) To diversify Promote community based tourism through Promotion tourism products ethno/cultural tourism; beyond being Encourage Meetings, Incentives, Conventions and wildlife-based only Exhibitions (MICE) and road shows; Improve and expand the currently used products (e.g. Victoria Falls, Luangwa, Kafue); Expand the tourism product range to include sports and adventure development; Promoteand monitor eco-tourism; PromoteWTO code of ethics for tourism and all other sector ethcs, principles and codes o f conducts (e.g. Quebec Declaration); Promote tourism publicity, awareness, sensitisation and education; Promote special rates for domestic tourists; Promote and encourage local tourism (including leisure and recreation); Expand the tourism product range to include cultural products like exhibitions; Facilitate or encourage the practice and expression of culture in museums as a way of promoting ethno- tourism; Strengthen research to enhance exhibitions and knowledge acquisitionby tourists; Promote community based tourism through ethno/cultural tourism in museums and heritage institutions Public andPrivateSector a) To develop Ensure adequately trained human resource in various CapacityBuildingand institutional and fields o fthe sector; HumanResource human resource Promote public-private partnership in the tourism Development capacity in the sector tourism sector and strengthen public- private sectoi linkages Community Tourism a) To promote local a) Encourage local community participation in joint Development community ventures by using land as equity; participation and b) Promotepublic-private and community partnerships; ownership in c) Facilitate access to development funds by local tourism communities Sioma NgweziandWest a) To restock a) Develop and rehabilitate tourism and support , LungaNationalParks depleted species infrastructure; 1 and develop b) Increase and improve tourist facilities __ infrastructure I Fifth National Development Plan 2006 - 2010 109 II,6Implementation,MonitoringandEvaluationFramework At the implementation level, public sector emphasis will be on policy formulation, infrastructure development, regulating the sector, and monitoring and evaluation o f the entire sector performance. Thus, the role o f the Government will be to stimulate growth inthe tourism sector by formulating and implementing policies that create an enabling environment for the private sector to contribute positively towards economic growth and wealth creation through tourism development. Inorder to effectively implement the FNDP and to attain the Vision 2030, the current institutional arrangements will be restructured to support the Plan. Inorder to assessthe performance o f the tourism sector, the Government will set up a monitoring and evaluation mechanismwhich will be supervised by a Sector Advisory Group (SAG) involving all the key stakeholders. Programmes and activities will be monitored based on the indicators to be developed by the SAG. Fifth National Development Plan 2006 -2010 110 L :: oc c x h Manufacturincr 12.7 htroduction Given Zambia's large resource endowment, expansion of the manufacturing base is required if the country is to increase its annual economic growth rates and also attain the national goal o f poverty reduction through wealth creation. The manufacturing sector is considered as one o f the leading sectors for the revitalization o f the economy in the strategy for Zambia's socio-economic development and poverty reduction. The sector has great potential for both income generation andjob creation due to its forward and backward linkages to other sectors o f the economy, particularly agriculture and mining. The key linkage between the manufacturing sub-sectors and other sectors is seen to operate through the main channels o f expansion inoutput, job creation, growth o fhousehold incomes, widened tax base and increased foreign exchange earnings. 12.2 Review of Past Performance The performance o f the manufacturing sector since independence in 1964 has been mixed. The sector grew rapidly during the period 1964 to 1973 mahly due to the high copper prices that facilitated the establishment o f local import substitution industries largely servicing the mining and urban sectors. The share o f manufacturing to total GDP during this period averaged 20 percent per annum.After the policy o f nationalization that was adopted inthe late 1960s and early 197Os, the parastatal sector grew to such an extent that, by the end o f the 1970s, it was amongst the largest in Sub-Saharan Africa. I t encompassed 90 percent o f the country's industrial and commercial activities and accounted for 35 percent o f GDP, 13 percent o f total external debt, and almost 60 percent o f total investment. It contributed about 45 percent o f formal sector employment. The manufacturing sector's performance was adversely affected when the copper prices fell and oil prices increased inthe mid-1970s. The sub-sectors that were linked to copper mining such as chemicals, rubber and basic metals and metal products were hardest hit and were consequently faced with the problems o f low capacity utilization and high production costs. During the 1980s, output in the non- copper dependent sub-sectors except for the food, beverages, and tobacco sub-sector declined as well and many industries closed down altogether. The decreasing capacity utilisation resulting from shortages o f imported inputs was reinforced by the protectionist measures that resulted in lack o f competition and inefficiency in the management o f the industry. The increasing costs for the industrial sector andpolitical appointments inthe management o f the industry hrther encouraged inefficiency and inhibited industrial growth. In 1991, the Zambian industrial sector reached a crucial turning point. A new vision with a comprehensive economic reform programme that would structurally adjust the economy was initiated to ensure dynamism, efficiency and competitiveness by the private sector. There was a policy shift away from import substitution, protectionism, and heavy public sector involvement towards the promotion of aprivate sector led, market oriented economy. Most state enterprises were privatised. Since the mid-l990s, the performance o f the manufacturing sector has been positive though with fluctuations. The growth rate fluctuated mainly because o f the performance o f the agriculture, forestry, fisheries and quarrying sectors. Table 12.1 shows the positive performance o f the manufacturing sector from 1996 to 2004 as well as the performance o f other sectors that have strong inter-sectoral relations with the manufacturing sector. Table 12.2 shows the performance of the various manufacturing sub- sectors over the 1996 to 2004 period as well as the manufacturing sector's contribution to GDP. FifthNationalDevelopmentPlan 2006-2010 114 Table 12.1: Sector Growth Rates at Constant 1994 Prices, 1994 -2004 include 2005 and 2006 I I TOTAL GDP (2.8) 6.9 3.3 (1.9) 2.2 4.3 5.0 ~ 3.6 ' 3.3 Memorandum Items 4.9 1I Non-agricultural GDP (8.5) 8.7 5.1 (2.4) 0.7 4.0 6.4 1 4.3 4.2 Non-mining GDP 2.1 7.5 3.5 1.3 4.9 3.8 4.3 2.3 4.4 Source: Economic reports 2004 The leading sub-sector in manufacturing was food, beverages, and tobacco, accounting for over two- thirds o f total value added, followed by textiles, leather, and leather products where Zambia has comparative advantage. The performance o f the textiles and leather industries was adversely affected by increased imports especially from South East Asian countries. The importationo f duty free second-hand clothes worsened the situation as duty on these products was negligible. The other significant sub- sectors were chemical, rubber and plastics and wood and wood products respectively as indicated in Table 12.2 above. The performance o f the food, beverages, and tobacco sub-sector was driven by the strong performance o f the agricultural sector, increases in domestic demand and exports to regional markets. Textiles and leather were stimulated by the increased production o f cotton lint and yam, direct exports to the USA under the AGOA arrangements and increased investments in cotton processing. Non-metallic metal products (mainly cement, lime and other building materials) also increased induced primarily by an increase in construction and the expansion in mining activity. Fabricated metal production, mainly copper cable, wire and rods also rose due to increased access to Southern and African Development Community (SADC) and CommonMarket for Eastern and Southern Africa (COMESA) markets. 12.3 Policies and Key Reforms In order to enhance the growth of the manufacturing sector, the Government duringthe FNDP period will focus on addressing constraints that have negatively impacted on the performance o f the manufacturing sector. Specific interventions include a) assisting enterprises particularly the Medium, Small and Micro Enterprises (MSMEs) to access affordable finance; b) removal o f administrative Fifth National DevelopmentPlan 2006 -2010 115 barriers to establishment o f business enterprises; c) improvement o f the regulatory frameworks and establishment o f multi-facility economic zones in order to enhance both export and locally-oriented manufacturing industries; d) provision o f adequate infrastructure (such as roads, rail and telecommunications); e) ensuring access to affordable modern technology; and f ) addressing issues o f low domestic demand and cross-cutting issues such as HIV andAIDS, gender and the environment. To achieve the above, the Government will create an enabling environment to aid the growth of the manufacturing sector through improvements to the country's legal and regulatory framework; investments in infrastructure; assisting in unlocking the growth potential o f the MSME sector; economic empowerment o f indigenous citizens to start manufacturing enterprises; removal o f obstacles to private sector development; and attaining progress inmacroeconomic stabilisation. Zambia's resolve in the long term is to attain a competitive and sustainable private sector led export-oriented manufacturing industrysector that will be able to compete favourably both regionally and globally. The policies and strategies suggested for the manufacturing sector are oriented towards promoting higher levels o f domestic and foreign direct investment (FDI) in order to stimulate economic growth and poverty alleviation mainly through employment creation. Since the private sector will be the engine o f economic growth during the FNDP period, the Government's policies and reforms are primarily designed to improve the business climate in the country by removing impediments to private sector investment, particularly inmanufacturing. The policy reforms to be implemented duringthe period o f the FNDP include the following: a) Liberalisation o f the domestic and external trade regime; b) Private sector development through the completion o f the privatisation programme and commercialisation o fpublic enterprises; and c) Review o fthe investment and export processing incentives regimes. Duringthe Planperiod, industrial development aims to achieve the following: a) Sustained economic growth through wealth creation; b) Raising investments; c) Employment creation andpoverty reduction; d) Increasinganddiversifying exports; e) Enhancing labour and factory productivity by upgrading humanresource and technical skills; f ) Promoting rural industries inan effort to stem the rural exodus towards the urbanareas; g) Protecting the environment; h) Mitigatingthe effects ofthe HIVandAIDS pandemic; and i) Promotinggenderequityinthemanufacturingsector. The FNDP aims in the long term to develop an open, competitive, dynamic, and sustainable manufacturing sector that is driven by the private sector, with emphasis on upstream and downstream manufacturing activities based on the mining and ago-industry sub-sectors. The private sector will be the principal actor in carrying out industrial activities in order to maximise economic productivity, industrial growth, and employment generation. To ensure long-term sustainability, private sector investments in the sector are expected to depend on FDI and the soundness o f the local investment regime. To promote the growth, development, and competitiveness o f the manufacturing and trade sectors, various institutional reforms have been undertaken inrecent years. In 1994, the Competition and Fair Trading Act was enacted. The Act provided for the establishment o f the Zambia Competition Commission (ZCC), an institution mandated to strengthen and uphold competition in order to ensure success o f the deregulatory reforms. Further, amendments were made to other pieces o f legislation, such as the Investment Act (1993) that was amended in 1996 inorder to create a more investor-friendly environment, and the Companies Act to set up the Patents and Companies Registration Office (PACRO) to improve efficiency in business registration. Other statutes or legislation were enacted or amended to establish institutions such as Small Enterprises Development Board (SEDB), Zambia Weights and Measures Agency (ZWMA), Zambia Export and Processing Zone (ZEPZA) and Zambia FifthNational Development Plan 2006-2010 116 Bureau o f Standards (ZABS). The major goals o f these measures were to promote small-scale entrepreneurs, remove inefficiency inthe economy, facilitate the promotion o f investments and improve the quality o f locally produced goods among others. During the FNDP, the Government shall operationalise the Zambia Development Agency (ZDA) and also set up a tariff commission. The fbnctions o f five statutory bodies, namely - Zambia Investment Centre (ZIC), Zambia Privatisation Agency (ZPA), ZEPZA, Export Board o f Zambia (EBZ) and SEDB -will be merged andrationalised into the ZDA. The ZDA shall be a one-stop window facility for operations o f business registration and administrative processes, to be created as a result o f the merger of these institutions. This would be complemented by other statutory bodies to enhance investment flows for both local and foreign. The other key organizations identified in the policy are the ZCC, ZABS, ZWMA, PACRO. Private sector investment has received a priority focus as the Government strives to enhance productivity in the economy. The role o f the private sector in fostering economic growth is considered critical to the achievement o f sustained economic growth. The Government has embarked on a Private Sector Development (PSD) Reform Programme with the aim o f accelerating private sector led economic growth. A PSD Action Plan has been developed, grouping actions under six main reform areas as shown inTable 12.3. Reform Areas Reform Ob'ectives Policy Environment and Institutions Create an enabling macroeconomic en,!ronment, strengthen public agencies that support PSD, and enhancepubliciprivate dialogue Regulations and Laws Improve regulatory frameworks and investment code to foster PSD Infrastructure Enhance the infrastructure platform for PSD by encouraging private investment ininfrastructure Business Facilitation and Economic Remove administrative bamers to business entry and operation and facilitate Diversification development o f highgrowth sectors Trade Expansion Create greater opportunities for access to regional and international marketsby Zambianbusinesses Citizens' Empowerment Unlock the growthpotential of citizens through business development support and empowerment initiatives 12.4 Vision and Goal The vision is: A competitive export-led manufacturing sector that contributes 20 percent to GDP by 2030. The goal is: To develop a sustainable, diversified, and competitive export-led value-adding manufacturing sector and to increase the share of manufacturing in total GDPJFom the current 11 percent to 15percent by 2010. 12.5 Programmes, Objectivesand Strategies The Government's commercial, trade, and industrial policy aims at fostering social and economic development through sustainable domestic and foreign private sector investments inthe manufacturing sector. The role o f the Government during the FNDP period shall primarily be that o f facilitator and regulator rather than a direct provider o f goods and services. Through a competitive industrial base, the manufacturing sector will become the engine o f economic growth and development. The overall strategy will be to strengthen and widen the country's manufacturing base with emphasis on backward andforward linkages given the country's wide resource base. Inthis regard, the programmes, objectives and strategies o fthe manufacturingsector during the FNDP are indicated inthe matrixbelow. Promotion for -Private Sector private investment; Development; b) Maintain a stable macroeconomic environment Fifth National Development Plan 2006-2010 117 Sector Vlanufacturing Programmes Objectives Strategies b) To increase domestic deepencapital market development inthe long term; and foreign c) Rationalise the Triangle o f Hope Initiative into the PSD investment in the Programme Establishment o f a one window facility manufacturingsector; (ZDA); c) To increase and d) Disseminate information on investment opportunities in diversify the range of Zambia abroad.. value added products for both the domestic and export markets. CapitalMarket a) To develop and a) Provide affordable private sector financing mechanisms Development diversify the capital such as project financing for medium to long-term lease market. financing; b) Provide through the financial markets, affordable long-term credit to support productionand investment. Technology and a) To improve a) Encourage practical proficiency through the development IndustrialSkills industrial skills o f industry-relevant skills and on-the-job apprenticeships; Development and craftsmanship; b) Provide incentives to facilitate technological transfer b) To invest and through FDI; generate adaptive c) Establish technical exchange programmes with foreign science, countries; technology, and d) Ensurethat FDI facilitates technology transfer; applied research e) Establish technical exchange programmes with foreign and development; companies. c) To promote links between research and technology institutions with the manufacturing sector. MSME a) To promote Promotiondevelopment o f indigenous investments through Development growth in micro, a) Improve access to funding and use o f public procurement to and Citizens' small and support legally compliant MSMEs; Economic medium-scale b) Support training o f MSMEs in business management and Empowerment manufacturing technical skills; Initiative enterprises c) Strengthen the linkage between the MSMEs and large (MSMEs). manufacturing firms, especially for MSMEs supplying intermediate raw materials and those utilising labour- intensive productionprocesses; d) Develop appropriate institutional and legal instruments to support MSMEs, including the informal sector; e) Develop an economic empowerment policy and empowerment programme that, inter alia, provide business development services to MSMEs; f ) Develop the Citizens' Empowerment Initiative to ensure that local entrepreneurs are afforded easy access to factors o fproduction, especially finance and land; f ) Encourage partnerships between local businesses with foreign companies in order to facilitate transfer o f skills through sub-contracting and training. g) Promote supplier consolidation in identified bulk supply needs, particularly for the mining sector. Rural a) To develop rural- Develop an appropriate infrastructure in rural areas so as to Industrialisation based industrial support small-scale manufacturing, targeting the processing o f enterprises rural-based primary products, focusing on: a) Address issues o f economic viability and poor infrastructure in order to ensure that more manufacturing entities are established inrural areas; b) Establish linkages between agricultural farming blocks, industrial estates, and outgrower schemes in order to establish industries close to the raw material source; c) Develop o f a rural industrialisationpolicy; d) Assess the economic potential o frural districts; e) Explore market opportunities for rural manufactured goods; f) Develop new forms o f small and medium financial services; @ Promote the use o f alternative and renewable sources o f Fifth National Development Plan 2006-2010 118 - Sector: Manufacturing No. Programmes Objectives Strategies energy, such as solar power. hj Encourage on-site agro-processing innew agricultural farm blocks; i) Establish partnerships between smallholders and emergent farmers and commercial growing cash crops, such as - tobacco, sugar cane, groundnuts, sunflower and soya beans. 6 Product Quality To improve the quality o f Improve the quality o f local products in order to make them Improvement domestic products competitivebothregionally and internationally, focusing on: a) Strengthen the testing, calibration, inspection, certification, and accreditation procedures; b) Ensure that manufacturers affiliate to ZABS; -~ _ _ - L D i s s e m i n a t einformation pertaining to quality control. 7 Cross-Cutting a) To reduce HI" and- a) Mitigate the negative impact o f the HJV and AIDS Issues of HIV AIDS prevalence pandemic; and AIDS, and improve the b) Encourage gender equality inthe manufacturingsector; Gender, health status o f c) Reduce environmental degradation through government governanceand employees in the enforcement o fpollution and emissioncontrol measures; Environment manufacturing d j Sensitise factoriesienterprises on the consequences o f sector; polluting the environment. b) To promote the e) Strengthen corporate governance. participation o f women and youths in commercial and manufacturing activities; c) To ensure that enterprises adopt environmentally- hendly production - systems. 12.6 Implementation,Monitoring and Evaluation Framework The Government will ensure that there is compliance by industry to laws and regulations, such as those relating to company tax and returns; stock exchange listing rules; and accounting, auditing, and environmental standards. Moreover, the Government will harmonise existing industrial property rights with those o f other countries with a view to provide investors with the opportunity to benefit from the international industrial and commercial property rights regime. This will ensure that local and international investors are free from the risk o f unfair expropriation. The implementation of manufacturing sector strategies in the FNDP will involve a broad stakeholder base that will rely on private sector initiatives and participation. The Government will play a facilitative role with very minimal involvement in production. Market regulation and infrastructure development will be the domain of the Government with full participation o f the private sector under formal business associations and representation. The Ministry of Commerce, Trade and Industry will take the lead in ensuring that the manufacturing development strategy is implemented during the FNDP period. The Ministry shall coordinate government intervention and regulation in the sector and provide the policy focus. In terms of monitoring o f progress towards implementation and evaluation of results post- implementation, various methods will be used such as the surveys. Monitoring and evaluation by the SAG will ensure that programmes are on track and are delivering the desired results. Further, it will also ensure that implementation slippages are corrected and aligned to evolving realities. The key indicators to be tracked on a quarterly basis will be the index o f industrial production, employment levels, and investment performance. This will be complemented by annual tracking o f the growth rate o f manufacturing GDP and employment inthe manufacturing sector. These indicators shall be made available from the national income accounts. Other programme-specific indicators will also be used, including special studies on technical efficiency and productivity o f large-scale and M S M E manufacturing firms. Fifth National Development Plan 2006 -2010 119 Lastly, a monitoring system will be used to assess performance in terms o f inputs, process, outputs, outcomes, and impact. Monitoring will be a continuous process, taking place at short intervals, in order to understand and correct the performance o fprogramme. Fifth National Development Plan 2006-2010 120 ,"! /n I I I I Commerce and Trade 73.7 Introduction Trade is widely viewed as an important tool for economic growth which, inturn, is a pre-requisite for long-term poverty-reduction. With a small domestic market, Zambia will use its trade policies to take advantage o f external market opportunities andpromote the diversification o f the economy. The limited domestic market size and low domestic purchasingpower suggest that sustained economic growth must be export-led. Active participation in multilateral trade will enable Zambia take advantage o f opportunities in foreign markets, while improving domestic competitiveness. Regional markets also provide additional outlets for Zambian goods. In particular, the geographic proximity o f regional markets makes them attractive export destinations for products from small and medium enterprises, as well as from smallholder farmers. Increased agricultural output from smallholder farmers, which is directed at regional markets (e.g. in Common Market for Eastern and Southern Africa (COMESA) and Southern M i c a and Development Community (SADC) can assist innational poverty-reduction efforts. Zambia shall, therefore, utilize its trade policy to promote economic growth and diversification, and to addressits poverty reduction goals. 73.2 Review of Past Performance Zambia currently participates in international trade agreements at multilateral, regional, and bilateral levels. A t the multilateral level, Zambia is a member o f the World Trade Organization (WTO). A t the regional level, the country is a member o f the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC). Zambia also participates in the European Union - African Caribbean Pacific Cotonou Trade Protocol, which is planned to be replaced by Economic Partnership Agreements (EPAs). Zambia also benefits from various preferential trade arrangements such as the Everything-but-Arms Agreement (from the EU), the Africa Growth and Opportunity Act (AGOA) from the USA andthe `Canadian Initiative.' Since the mid-l990s, the Government has pursued significant trade liberalization reforms, which were aimed at simplifying the national trade regime, stimulating economic diversification, and promoting export-led growth. Economic and trade liberalization inZambia since 1991 has brought mixedeffects. Some benefited from external market opportunities (e.g. cut flowers, sugar, etc.) and economies o f scale. A t the same time, several firms in the manufacturing sector (textiles and clothing, glass, paper, wood and wood products, leather, rubber, etc.) lost not only sizeable domestic markets but also their limited export markets. There was a rise inthe cost o f imports. External debt increased and the currency depreciated. Metal exports (copper followed by cobalt) have hitherto dominated Zambia's exports. However, in an effort to diversify the economy away from copper, the Government has directed its efforts at increasing non-traditional exports by an annual target rate o f 20 percent. These include horticultural, floricultural, and other agricultural products, processed foods, manufactures, gemstones, and processed metal products. Other exports include various categories o f primary products, including cotton, tobacco, and sugar sold on the world market. Non-traditional exports (NTEs) have shown a strong growth, rising from US $124.0 million (or 4 percent o f GDP) in 1993 to US $ 415.0 million (10 percent o f GDP) in 2003. Analysis o f import trends shows upward movement with growth registering an approximate 69 percent increase over the 1993 to 2003 period. Imports accelerated from a base o f US $700 million (21.4 % o f GDP) in 1993 to US $1,551 million (36.0% o f GDP) in2003, which in absolute terms was more than double the imports in 1993. As a result, imports as a percentage o f GDP rose from 21.4 percent in 1993 to 36.1 percent in2003. Anotable trend inthe trade statistics is that whereas from 1993 to 1997 exports were consistently above import magnitudes, this situation reversed from 1998 onwards with imports outstripping exports. This was largely attributable to increased imports o f capital goods as Fifth National Development Plan 2006 -2010 123 privatised companies acquired new plant and machinery to rehrbish their factories and mines. The result hasbeen a negative trade balance leadingto an increasingtrade deficit. Mining and quarrying still continue to dominate the trade sector, contributing around 6 percent to real GDP and some 70 percent o f Zambia's earnings from merchandise exports. Agriculture, including livestock, forestry, and fishing, accounts for about 17 percent o f GDP and over 70 percent of employment. The manufacturing sector is the source o fjust over 11percent o f employment and around 18 percent o f GDP. The services sector, meantime, provides the bulk o f non-agricultural employment opportunities inZambia, and accounts for nearly 60 percent o f GDP. An assessment o f the trade sector's performance for the period 1993 to 2003 shows a declining trend. The share o f merchandise trade inGDP has declined steadily from 62.2 percent in 1993 to 1996 to an average o f 56.5 percent for the period 2000 to 2003. The decline has been attributed mostly to the poor performance o f the mining sector during the period 1965 to 1975. During this period, other external financial difficulties, such as the depletion o f international reserves also contributed to the problem. Merchandise exports registered a decline of 21 percent as a percentage o f GDP, with these barely rising from U S $1,030 million in 1993 to U S $1,080 million in 2003 after peaking at U S $1,238 million in 1995. This represents a meagre growth, which was negatively affected by the steep decline in exports o f copper and cobalt. Overall metal exports dropped by about 48 percent up to 1999 before recovering by 43 percent over the remaining five years. Consequently, exports as a percentage o f GDP also dropped from 31.5 percent to 25.0 percent. The size o f Zambia's trade deficit steadily increased over the period 1993 to 2003. Recent increases in the size o f the deficit are partly explained by higher import costs needed for rehrbishment o f privatised mines, as well as the high costs o f other imports such as machinery, crude oil, chemicals, iron, and steel. Export trends are shown inTable 13.1. 2000 2001 2002 2003 2004 I , Metal Exports 66 41 6542 6031 61 71 69 46 NTEs 33 6 34 6 39 7 38 3 30 5 - Engineenngproducts 2 6 2 4 2 4 27 4 1 .Flonculturalproducts I 4 3 3 8 I 3 3 2 1 1 7 I -Gemstones 2 0 2 3 I 4 0 2 2 1 0 I I Total Exports US S million 784.73 901.81 1 928.03 1,084.40 1,587.92 1 Fifth National Development Plan 2006 -2010 124 Manufacturing, particularly of textiles, garments, andprocessed foods offer key opportunities to expand trade in this sector. Processed foods have potential markets in the EuropeanUnion and the Democratic Republic o f Congo. Locally, there is potential to expand trade in the food, beverages, and tobacco sub- sectors. The tourism sector also provides a key growth opportunity for Zambia. Although the agricultural sector has recorded consistent and commendable growth since 2000 and has increasingly become the largest pillar for NTE growth, many problems still affect the sector's performance record. For example, the sector has continued to be burdened by levies and taxes, poor road infrastructure, inadequate government extension services, crop piracy in cotton and tobacco amongst manyothers. The other major challenges to export expansion inZambia include the following: a) Poor infrastructure, including inadequate road andrailway networks; b) Highcostsoftelecommunications; c) High transportation costs due to landlocked status, which increases the costs of inputs for Zambian exporters; d) Uncertain business environment, including highinflation, high tax rates, high cost utilities, and burdensome regulations; e) Inadequate access to credit facilities, and high cost o f capital; fg)) Low levels o fproductivity due to lack o f skilled labour; Lack o f modern technology; h) Inability to meet standards requirements of foreign markets due to lack o f appropriate standards and certification facilities; and i) Non-technical barriers to trade, including sanitary and phytosanitary regulations 13.3Policies and Key Reforms During the Plan period, the Government shall continue with the identification o f appropriate trade expansion measures in the context o f the PSD Programme. Moreover, the Government shall remain engaged in multilateral trade negotiations at the WTO in order to secure preferential trading arrangements that provide access to foreign markets. Already, Zambia benefits from various preferential schemes such as the Everything-but-Arms Initiative (from the EU); the African Growth and Opportunity Act (AGOA); the Canadian Initiative; and other trade preferences provided under the Generalized System o f Preferences (GSPs) for developing countries. Zambia is also a signatory to the EU-ACP Cotonou Trade Protocol, and is currently negotiating Economic Partnership Agreements (EPAs) with the EUas part o f the Eastern and Southern African (ESA) configuration. The Government shall continue with these initiatives during the Planperiod. To achieve the objective o f export promotion, the Government shall continue worlung on the concept o f Multi-Facility Economic Zones (MFEZs) which takes into account domestic trade, investment and exports. The operationalisation o f MFEZs will be done through the Zambia Development Agency (ZDA). This shall continue to be supplemented by the Private Sector Development (PSD) programme that was launched in 2004, aimed at, inter alia, providing an enabling environment for private sector economic activity and addressing trade impediments. Under the FNDP, the Government will also introduce a legal and regulatory framework to ensure the protection o f industrial and commercial property rights. Duringthe FNDP a tariff commission will also be established to facilitate the effective implementation o ftrade remedies and oversee tariffclassification, rationalization and implementation. Inthe lighto fthe above, the broadpolicy objectives ofthe trade sector during the FNDPperiod are as follows: a) Transform the Zambian economy into a diversified and competitive one which is well integrated into the international trading environment; b) Stimulate and encourage value-addition activities on primary exports as a means o f increasing national earnings and income flows; c) Stimulate investment flows into export-oriented production areas in which Zambia has comparative and competitive advantages as a strategy for inducing innovation and technology transfer into the national economy; d) Formalize, monitor and regulate domestic trade activities with a view to promoting and stimulating a vibrant domestic trading sector; and FifthNational Development Plan 2006-2010 125 e) Assist domestic firms to increase their levels of efficiency and, therefore, withstand increasing competition inthe domestic market. The Government's major aim is to create a link between primary extraction and industrialization through addition o f value to primary goods, especially those for export. Such a programme is expected to induce capital market development, skills development, technology, research and development, micro, small andmediumenterprise development andrural industrialization. 13.4 Visionand Goal The vision is: To become an export-driven, competitive and viable commerce sector by 2030. The goal is: To improve the quality of locally produced goods and services and increase Zambia's share in world exports. 13.5Programmes, Objectiveand Strategies Inorder to take advantage ofthe international trade opportunities andZambia's comparative advantage inselectedproducts and, thereby, achieve the objectives of the trade sector, the main programmes and strategies for the sector are indicated inthe matrix below: w: Commerc and Trade Programmes Objectives Strategies Promotionof To strengthen a) Strengthen infrastructure capacity at the Zambia Bureau of Standards, and decentralize StandardsZABS and Zambia Weights and Measures Agency Quality the (ZWMA); Assurance, administration b) Decentralize standards, testing and certification Metrology and o f testing and infrastructure; Accreditation certification c) Affiliate to international certification and accreditation bodies; d) Capacity-building and training programmes for officials at MCTIIZABSIZWMA at other regional certification bodies; e) Facilitate certification and accreditation other laboratory centres. Export Increase volume a) Finalize and implement national export strategy; Promotion o f Zambian b) Improve andpromotemarket access; exports, c) Promote domestic value addition and export o f high value particularly in products; non-traditional d) Facilitate effective participation in trade fairs, forums and sectors expositions; e) Capacity building o f trade promotion agencies and private sector associations; f) Establish export financing facility; g) Disseminate export information to potential exporters; h) Conductmarketresearchstudies. Enhancementof Formalize and a) Promote the consumption o f locally produced goods and DomesticTrade monitor services; and Competition domestic trade b) Promote and facilitate the development o f micro and small activities and business enterprises; stimulate a c) supervise and monitor trade licensingprogrammes; vibrant domestic d) Compile and disseminate domestic commerce and trade data; trading sector e) Organize and participate indomestic trade fairs; f) Ensure fair and competitive market practices inZambia; g) Ensure compliance with Corporate Social Responsibility Tenets (CSR); h) Promotelocal economic development; i) Ensurecompliancewithfairprocurementproceduresinthe economy; j) ImplementLocal Business Development Programme; k) Implementthe Citizens EmpowermentAct. Fifth National Development Plan 2006 -2010 126 See or: Commerc and Trade ~ No. ~ Programmes Objectives Strategies Trade Promotion To secure a) Capacity building in trade-related issues for the private (Multilateral, improved sector; Bilateral and market access b) Strengthen trade reference centres in government, private Regional) for Zambian sector, and other relevant institutions; goods and c) Hold regular meetings with domestic stakeholders to services facilitate effective dialogue; d) Buildeffective negotiation capacity for multilateral, regional andbilateral trade Agreements; e) Utilize the services o f Zambian missions abroad by establishing regular consultations on trade and investment. Establishmentof To facilitate the a) EstablishTariff Commission; Tariff effective b) Review and formulate tariffpolicy; Commission implementations c) Review tariff structure and levels; o f trade d) Review other measures affecting trade (e.g. subsidies, tax remedies and structures; incentives); oversee tariff e) Build capacity to conduct investigations into unfair trade classification, practices and ensure the proper applicationo frules o f origin; rationalization fj Improve capacity to implement trade remedies. and implementation. Promotion of Increase trade in Conduct comprehensive domestic trade assessments; Commercial services Formulatenational strategy on trade inservices; Services Conduct training seminars for domestic private sector on the development and trade o f services products; Implement annual services audit survey; Promote investment opportunities intrade in services. Elimination of Reduce trade Improve transportation infrastructure; Trade-related related supply Facilitate Public Private Partnerships (PPP) development ; Supply constraints Improve access to financial services; Constraints Facilitate technology transfer; Undertake value chain analysis. 13.6Implementation, Monitoringand Evaluation Framework The Ministry o f Commerce, Trade and Industry will work actively towards achieving the goal and objectives spelt out inthe FNDP. Inaddition, other institutions, namely, Zambia Development Agency (ZDA), Zambia Bureau of Standards (ZABS), Zambia Weights and Measures Agency (ZWMA), Patents and Companies Registration Office (PACRO) and the Zambia Competition Commission (ZCC) will also play an active role in ensuring that the goals o f the FNDP inthe trade sector are realised. The Ministryof Commerce, Trade and Industry will be the lead execution agency for the implementation and monitoring of the commerce and trade sector programmes during the FNDP. The other major players inthe implementation and monitoring o f the commerce and trade sector programmeswill be the following institutions: a) Zambia Development Agency (ZDA) is to act as a one stop shop for implementing the export promotion programme and will provide monitoring and evaluation information on a monthly basis. ZDA will also participate inthe quarterly monitoring and evaluation o f this programme; b) The Zambia Bureau o f Standards (ZABS) and the Zambia Weights and Measures Agency (ZWMA) will be responsible for the implementation o f the Standards Quality Assurance, Accreditation and Metrology programmes; c) The Ministry o f Commerce, Trade and Industry will be responsible for the implementation and monitoring o f the trade programmes; and d) The Zambia Competition Commission (ZCC) will be responsible for implementing programmes relatingto Consumer Welfare Protection and Competitionand Fair Trading. Implementation o f the various programmes will also be closely aligned to other government initiatives inthe Medium Term Expenditure Framework (MTEF). The basis for implementation shall be through the annual work plans, which will also form the basis for monitoring and evaluation o fprogrammes and strategies. Fifth National Development Plan 2006 -2010 127 The Sector Advisory Group (SAG) will constitute the forum through which reporting will be achieved on a quarterly basis. Departments and participating institutions will be required to submit quarterly progress reports to the coordinating unit o f the SAG. The Ministry o f Commerce, Trade and Industry will annually set up stakeholders' review taskforce meetings to evaluate effectiveness o f the programmes. The performance o fthe commerce and trade sector programmes shall be monitored throughthe tracking o f key indicators that include new certified products entering the market; volume o f trade; and the value of export earnings from non-traditional exports in regional, European, North American and other markets. Fifth National Development Plan 2006-2010 128 Enerav 14.1Introduction Zambia is richly endowed with a range o f indigenous energy sources, particularly woodlands and forests, hydropower, coal and renewable sources o f energy. Woodland and forests cover about 66 percent o f the total land area and provide about 70 percent o f the country's energy requirements. The country's hydropower resource potential stands at an estimated 6,000 Mega Watts (MW) while the installed capacity is a mere 1,876 MW. Hydroelectric plants represent 99 percent of electricity production inthe country with the major sourcesbeing Kafue Gorge, Kariba NorthBank and Victoria Falls Power Stations. The country's electricity is predominantly consumed by the mines, accounting for 68 percent while households only use 19percent o fthe total. Proven coal reserves are estimated at 30 million tons with several hundred million tons o f probable reserves. Currently, only two coal mines are inoperation at Maamba with a design output o f 1million tons per annum. Inrecent years, the contribution o f coal to total energy consumption has declined to barely 2 percent due to production constraints. Established infrastructure for petroleum import and processing include the 1,710-kilometre TAZAMA Pipeline, the INDENIPetroleum Refinery and the Ndola Fuel Terminal. INDENI is designed to process around 1 million tons o f spiked crude per annum. The availability and accessibility o f modern energy services result in sustained economic growth, environmental protection and poverty reduction. Access to energy services is a prerequisite to the achievement o f the MillenniumDevelopment Goals. In implementing the FNDP, poverty can be reduced by increasing access to energy services. Every economic and social sector needs adequate, reliable and affordable energy input to grow. 14.2Review of Past Performance The performance o f the energy sector has been closely linked with the level o f economic activity in the country. For instance, during the period 1990 to 2002, the energy sector's growth was constrained by the economic decline experienced during the period, especially in the mining sector, the biggest consumer of petroleum and electricity. Some o f the significant characteristics o f the energy sector during the past decade include the continued rise in the consumption of wood fuel, rising international and domestic oil prices, frequent breakdowns in Zambia's petroleum delivery infrastructure, such as the Single Buoy Mooring (SBM), and Petroleum Tank Farm in Tanzania, the TAZAMA Pipeline, andthe INDENIRefinery. As shown in Figure 14.1, the overall consumption o f commercial energy (petroleum, electricity and coal) has been declining over time accounting for 32 percent o f national total energy consumption in 1990 while by 2001 it had fallen to 21 percent. This was due mainly to the decline o f the copper dependent economy in the 1980s and 1990s. Wood fuel (firewood and charcoal) remains the dominant source o f energy inZambia, accounting for almost 80 percent o f total energy consumption. Firewood is predominantly consumed by rural households while charcoal is a major source o f energy for urban households. Woodlands and forests cover about 54 percent o f the total land area with the growing stock equivalent to 4,355 million tons of wood that provides about 80 percent of the nation's energy needs. Annual loss o f forest cover was estimated at 1.2 percent for the 1975 to 2003 period. Much o f the loss was due to land clearing for agricultural use rather than energy purposes. The charcoal industryprovides employment for about 50,000 people inrural and urbanareas. Fifth National Development Plan 2006-2010 131 Figure 14.1: Energy ConsumptionTrends, 1986-2002 1 Oo0 Source: Department of Energy, 2003 The PRSP/TNDP focused on poverty reduction through increased electricity access rates, promotion o f efficient charcoal production and utilisation and use o f alternative household fuels, such as millennium gel fuel and liquidpetroleum gas (LPG). Exports o f power were to be increased from the current levels o f 100MW to 600 MW. The following progress was recorded during the PRSP /TNDP period. 14.2.1 ElectricitySub-sector 14.2.1.1 ElectrlJication of rural areas: The electrification o f rural areas continues to be slow. Nevertheless, the Government has established the Rural Electrification Authority (REA) to spearhead faster electrification o f rural areas. 14.2.1.2Power Rehabilitation Project: The Project's components include the Victoria Falls, Kafue Gorge and Kariba North Bank; ZESCO Power Transmission System; Lusaka distribution network; the distribution networks o f Ndola and Kitwe on the Copperbelt; loss reduction in the Lusaka west area; Gwembe-Tonga Development Programme; ZESCO Institutional Strengthening; and Hydropower Development and Transmission Line Policy. Rehabilitation o f some o f the components hasbeen completed while the remaining works will continue duringthe periodo f the FNDP. 14.2.2 Petroleum Sub-sector Petroleum Rehabilitation Project: The components included the rehabilitation o f the TAZAMA Pipeline fiom Dar Es Salaam to Ndola, including the tank farm inDar-es-Salaam; cathodic protection o f the pipeline; refurbishment and improvement of pumps on the pipeline. Other components include improvement o f telecommunications; rehabilitation o f the Ndola fuel terminal; construction o f a 40,000-ton capacity crude oil tank in Ndola; and creation o f a Technical Cell on petroleum in the Ministry o f Energy and Water Development. The Government will seek to mobilise resources from both public and private sources during the FNDP period to rehabilitate and refurbish the petroleum infrastructure. 14.2.3 Biomass 14.2.3.1.Promotion of Eflcient Production and Utilisation of WoodFuel: The programme has so far involved the production o f a Charcoal Production Manual and dissemination of improved wood fuel stoves. This programme will continue during the FNDPperiod. FifthNational DevelopmentPlan 2006-2010 132 14.2.3.2Promotion of Gel Fuel and Liquid Petroleum Gas: The aim o f these efforts is to provide an alternative to wood fuel for household energy requirements. The net result of these efforts is to achieve an annual saving inwood o f about 10percent of total wood consumption, which is equivalent to 400,000 tons per annum. 14.3Policies and Key Reforms There are a number o f structural and management issues that the Government is addressing and will focus upon duringthe FNDPperiod. Firstly, energy management is considered an important activity and an area o f investmentwhose benefits have not been fully exploited. This is due mainly to lack of awareness of the significant direct savings that can be generated at consumer and national level through prudent energy efficiency and conservation practices. The implementation o f energy conservation and substitution practices has in the past been undertaken on a very low scale in both households and industry. I t is anticipated that the implementation o f these measures will be enhanced during the FNDP period. Secondly, the underlyingprinciple for the policy on energy pricing is to ensure that costs among consumers are allocated according to the burden that they impose on the energy delivery system. Additionally, the policy aims at ensuring that a real return on investment and a minimumlevel o f service to persons who cannot afford the full costs are provided for. In the light o f this, the Government shall review the current pricing mechanisms in the energy sector to reflect existing arrangements in the market in addition to ensuring that a subsidy mechanism is put inplace to mitigate high energy prices, especially inrural areas. The FNDP aims to ensure that Zambia has reliable, affordable and environmentally sound energy for sustained social and economic development. Its focus is to meet the energy challenge by increasing options and exploitation o f Zambia's indigenous energy resources for a better future. In order to derive maximum sustainable benefits from Zambia's abundant renewable energy resources, such as solar, wind, geothermal, biogas, miniand micro hydro plants, research and development will also be a priority during the FNDPperiod. The Ministry o f Energy and Water Development (MEWD) is responsible for the formulation and implementation o f policy inthe energy sector. The adoption o f the National Energy Policy (NEP) in 1994 was meant to strengthen the management and coordination o f energy sector activities at government level. At institutional level, the policy was meant to improve the efficiency and effectiveness o f service delivery by the Boards and utilities in the energy sector. Consequently, appropriate pieces o f legislation in the form o f the Energy Regulation, Rural Electrification and amended Electricity Acts have been enacted. These pieces o f legislation have provided for the formation o f the EnergyRegulation Board andthe RuralElectrification Authority. While some of the aspirations o f the 1994 NEP are still valid, the Ministry is in the process o f reviewing it and the new policy is expected to take into account new developments not only in the energy sector but the economy as a whole. Some o f the policy issues to be addressed include measures on bio-fuels and strategic petroleum reserves. Inaddition, the policy will seek to encourage more players in the electricity industry through a legal framework that promotes easy access to the electricity supply industry both at producer, supplier and customer end. To achieve this, the NEP embraces the National Grid Code which outlines the rules for all the players inthe sector. Under the Public Sector Reform Programme, MEWD was restructured in 2003 to strengthen the management and coordination o f the energy sector. However, issues o f petroleum and coal supply and utilisation are still inadequately addressed, an aspect that shall be corrected during the FNDP. Existing institutions and the legislative framework will be strengthened through the review o f the institutional capacity and implementation o f the energy sector's reform measures. In the supply o f petroleum products, mechanisms will be worked out regarding the most effective means o f procurement o f petroleum products and the management o f the fuel terminal inNdola. Similarly, the Government shall put inplace an industrystructure that will promote private sector participation and competition and facilitate increased access to electricity services. Moreover, as a way o f promoting the wider exploitation o f the existing potential, a coordinating mechanism for renewable energy technologies development shall be created. Access is expected to increase rapidly after competitive tariffs have beenadopted after the industry undergoes further reforms and when the NEP is adopted. FifthNational Development Plan 2006-2010 133 The Government is pursuing other reforms in the petroleum sub-sector to include modalities for setting up strategic reserves o f petroleum products and facilitating private sector participation in the procurement of petroleum feedstock for refining. The idea behind the setting up o f strategic petroleum reserves is to ensure stabilisation of supply of petroleum products on the local market in the event of disruptions insupplyo f the product on the international market. During the FNDP period, the projects to be implemented through public-private partnerships, the Government or the private sector include those listedbelow: Kafue Gorge- Lower Power Station with the potential to generate 750MW. The project is anticipated to be developed through the public-private partnership model; Kariba NorthBank Extension, estimated at 320MW; Itezhi-Tezhi Hydropower project with a capacity o f 120 MW. Additional to this is the construction o f a 200 km 220 kV transmission line from Itezhi-Tezhi to Choma (Muzuma), which is the nearestpoint o f inter-connection to the national grid; The Zambia-Tanzania-Kenya Inte-rconnector project involving the construction o f a total of 700 km of 330 kV transmission line, 600 km on the Zambian side and about 100 km on the Tanzanian side. In addition, 200 km of 330 kV transmission line will be built from Arusha to Nairobi. The proposed line will be able to supply an estimated load o f up to 200 MW o f power in Phase I.InPhase I1another 200 MW will be exported to the East African market. Private andpublic investors are expected to develop the project; The Zambia-Democratic Republic o f Congo Inter-connector i s being developed by Copperbelt Energy Corporation (CEC) and SNEL. This will enable power transfers o f up to 500 MW from Congo DR to the Southern African market. A 200 km330 kV line between Luano and Solwezi was commissionedby ZESCO in2004 to supply power to KansanshiCopper Mines. A further 70 km of 330 kV line will be constructed to supply power to Lumwana Mine and will be extended to KolweziinCongo DR, Electrification of farmblocks and other social and health institutions; Development of bio-fuels and other renewable energy programmes that aim to work towards the integration o f the use o f renewable sources o f energy inthe provision o f energy services to communities; Implementation o f energy efficiency and conservation measures, including improved household and industry fuel combustion technologies; Implementation o f Phase I1o f the Zambia-Namibia 220 kV Inter-connector from Victoria Falls to Katima Mulilo; Hwange-Livingstone 330 kV Inter-connector (Zimbabwe-Zambia). The inter-connector is meant to decongest the Insukamini-Phokoje-Matimba400 kV line; The Kalungwishi Hydro Power Scheme (200 MW)to supply the northernpart o f the country to stabilise and increase the reliability o f the National Grid. All major power stations are located inthe Southern and Central parts of the country. The scheme would also be strategic to the regional power supply system linking to the Congo DR and Tanzania; Development o f the Lunsemfwa Lower Hydro Power Scheme (55 MW)to support mining and agriculture inthe Central and Copperbelt provinces; and Development o f both mini/micro and other hydro electric potential not captured above by both public andprivate sectors. The development of these projects will lead to tremendous increase inaccess to energy services. 14.4 Visionand Goals The vision is: Universal access to clean, reliable and afordable energy at the lowest total economic, financial, social and environmental cost consistent with national development goals by 2030. The goal is: To ensure availability and accessibility to adequate and reliable supply of energyfrom various sources at the lowest total economic, social and environmental cost consistent with national development goals of sustained growth, employment generation andpoverty reduction. FifthNationalDevelopment Plan 2006-2010 134 14.5Programmes, Objectivesand Strategies The matrix below presents the energy sector's programmes, objectives and strategies. or: Energy Programmes Objectives Strategies Energy Sector To strengthen the institutional, a) Institute a legislative and institutional Reform legal and policy framework in framework to facilitate the effective order to ensure effective development o f the energy sector; development, management b) Institute legislative reforms in the and provision o f quality sector; energy services c) Implement policy reforms in the sector; d) Undertake institutional reforms in the sector; e) Review the regulatory and pricing mechanism inthe sector f) Put in place policies that ensure poor households have access to more efficient energy sources. Electricity To increase generation a) Mobilise financial and technical Generationand capacity, accessibility resources to facilitate the TransmissionLine (through transmission lines) implementation o f new infrastructure Development and trade o f electricity development projects. Strategic Petroleum To ensure security of supply of a) Design and implement an institutional Reserves petroleum products in the and operational framework for the country management o f strategic petroleum reserves; b) Mobilise financial resources and develop infrastructurefor the reserves. Rural To increase electrification a) Develop and implement the Rural Electrification levels in order to increase Electrification Master Plan; access for social economic b) Develop Micro/Pico hydro power development in rural schemes in order to increase access to communities electricity services inrural areas; c) Mobilse financial resources to promote rural electrification. Bio-Fuel To facilitate the development a) Develop a strategy for promoting the Development o f biofuel industry utilization o fbio-fuel; b) Develop a bio-fuel development implementation. strategy Management of To enhance an enabling a) Develop and implement a petroleum PetroleumSub- environment for stable and management plan; sector and increased supply and security b) Mobilise resources for rehabilitationo f Rehabilitationof o f supply o fpetroleum petroleum infrastructure; Infrastructure c) Rehabilitatepetroleum infrastructure. Hydrocarbon To explore for hydrocarbon Promote oil exploration by the private Exploration resources inorder to increase sector; security o f supply Mobilise financial resources for exploration; Develop capacity in Government to manage hydrocarbonresources; Develop a framework for entry into the explorationindustry. Energy Efficiency To promote energy efficiency Develop and implement programmes and Conservation and conservation that promote increased energy conservation and management practices in households and the industrial sector; Mobilise financial resources for the above programmes. Renewable and To provide and disseminate a'l Undertake a comurehensive Alternative Energy up to date information on assessment o f renewable energy Development and renewable and alternative potential in selected parts o f the Promotion energy resources for effective country in order to develop a resource planning and awareness, map and bankable project proposals; development, management b) Conduct awarenesscampaigns. FiftlzNational Development Plan 2006-2010 135 or: Energy Programmes 0bjectives Strategies and utilisation Creationof Energy To create opportunities for a) Promotegasification technology; DevelopmentFund different types o f energy b) Promotethe developmentofbio-fuel; projects c) Promote other renewable energy technology. Promotionof To promote the efficient a) Promote and carry out practical ImprovedCharcoal production o f charcoal in demonstrations and pilot schemes on Production order to create an opportunity the efficient usageo f charcoal; Technology for improved charcoal b) Mobilise financial resources for production technology promotion o f improved charcoal production; c) Develop an implementation strategy for improved charcoal production. Gender andHIV To ensure that gender and a) Develop and implement specific andAIDS H I V and AIDS are measures in the sector to enhance Mainstreaming mainstreamed in all the mainstreaming o f cross-cutting issues energy programmes or project such as gender and HIV and AIDS; preparation and b) Mitigate the negative impact of HIV implementation and AIDS inthe energy sector. General To effectively manage and Develop and implement human resources Administrationand develop human resources for development and management plan. Organization efficient performance o f the sector To undertake and coordinate Develop monitoring and evaluation the planning, monitoring and guidelines. evaluation o f energy sector programmes and projects in order to ensure their effective implementation 14.6Implementation, Monitoring and Evaluation MinistryofEnergy and Water Development (MEWD)willbe the core institution, which will facilitate the effective implementation o f energy programmes in the FNDP. In this regard, MEWD will assist by providing the necessary conducive environment. The Energy SAG, comprising various stakeholders, will play a coordinating role in sector development in collaboration with relevant government institutions. It will ensure that regular and continuous checks and documentation activities are adopted to ascertain whether objectives and planned progammesiactivities have been implemented and have realised the desired outputs and impact. The Ministry will ensure that an effective approach for the collection o f data for monitoringpurposes is putinplace. The decentralisation policy and Decentralisation Implementation Plan (DIP) will facilitate the participation o f districts inthe monitoring o f results and recommend changes when required andwhere necessary. Fifth National Development Plan 2006-2010 136 i i t P -E 5: 0 2 0 - LP r: 0 P I 0 2 0 i 2 .- Science and Technolow 15.1 lnfroducfion Inthe contemporary society, Science and Technology are considered to be central to creating wealth and improving the quality of life. A well developed science and technology sector is fundamental as it allows countries to generate new scientific knowledge, to wisely select and implement existing technologies, and to effectively adapt them to local circumstances. To achieve these tasks, a critical mass o f human resource base, built by science and technology concerted effort is urgently required through more investment and efficient allocation o f existing resources. 15.2Review of Past Performance InZambia, the development ofscience andtechnology hasbeenconstrained byanumber o ffactors that include, in historical perspective, the fact that the colonial government considered the country principally as a source o f raw materials. Duringthis time, industrial apprenticeship focused on hands-on skills development as opposed to analytical skills that are usually required for high level advancement o f science and technology. This meant that, at independence in 1964, Zambia had no critical human resource to promote science and technology development and application. After independence, the Government invested heavily inhumanresource development by establishing the University o f Zambia, Zambia Institute o f Technology, and regional agricultural research centres. Notwithstanding this, the country has failed over the years to consolidate the initial developments in science and technology as a result of under-funding; inadequate policy focus on science and technology; limited integration o f curricula intraining institutions and the world o f work; and insufficient investment by the private sector ininnovative ideas. The situation in science and technology in Zambia can be described as relatively underdeveloped, as measured by Technology Achievement Index. The index measures how well a country is creating and diffusing technology and building up its human skills base. I t includes research and development expenditures as percent of GNP, number o f scientists and engineers per million population, number of patent applications and percent of exports with hightechnology content to total manufacturing exports. Between 1990 and 2003, according to Human Development Report (HDR) 2005, Zambia spent an insignificant proportion o fher GDP on research and development. Zambia has about 1,000 scientists and engineers per million population engaged in research and development, which is approx. 1 scientisvengineer per 1000 Zambians. This ratio is insignificant to make any meaningful contribution in the science and technology sector. Patent applications provide another indicator o f a country's technological innovation capacity and performance. The number of Zambianpatents since 1988 registered with the Patents Office is 28. This numbero fpatents is very low compared to the fact that over 2 million Zambians have post-secondary school qualifications. There are a number o f research centres that have been established inZambia with a view to undertake S&T-related research. They include the Zambia Agricultural Research Institute (ZARI); the National Institute for Scientific and Industrial Research (NISIR) - formerly National Council for Scientific Research (NCSR); the National Malaria Control Centre (NMCC); the Tropical Diseases Research Centre (TDRC); Universities and the Golden Valley Agricultural Research Trust (GART). Research and development institutions have achieved many successes in the development of processes and technologies inthe area o f carbonated drinks such as Tip-Top, Masuku wine, school chalks, improved seed varieties and ceramic wares, which culminated in the formation o f Zambia Ceramics Ltd. These achievements have had direct and spill-over effects on the Zambian people. The way forward for science and technology in Zambia is to increase accessibility to high quality laboratory facilities; increase funding for research and development; increased high levels of commercialization o f research and development results; sufficient numbers of well trained science and technology personnel; motivation for research and development personnel; significant links with the Fifth National Development Plan 2006-2010 140 international scientific community and high accessibility to the global stock o f up to date scientific and technological knowledge. 15.3Policies and Key Reforms Science and technology programmes are implemented across all sectors o f the Zambian economy. To facilitate this process, the National Science and Technology Policy was formulated in 1996 and the Science and Technology Act No. 26 o f 1997 set the legal environment for implementation o f the policy. The mission o f the National Science and Technology Policy is to promote and exploit science and technology as an instrument for developing an environmentally friendly indigenous technology capacity ina sustainable socio-economic manner inorder to improve the quality o f life in Zambia. The overall policy objective with respect to research and development is to embed science and technology as part o f the culture o f the key economic sectors and to promote competitiveness in the production o f a wide range o f quality goods and services. Interms ofinstitutional reforms andinits effortto addresstheproblems experienced byresearch and development institutions, the Ministry o f Science, Technology and Vocational Training (MSTVT) undertook a rationalisation programme o f the science and technology systems. Accordingly, NCSR was replaced with NISIR by the Science and Technology Act 26 o f 1997, which effectively de-linked the coordination and advisory functions o f NCSR from research activities. Consequently, the National Science and Technology Council (NSTC) was created with a view to coordinate, monitor and implement science and technology policies as well as advise the Government on the same. Similarly, the Government, through statutory instrument No. 13 o f 1999, created the National Technology Business Centre (NTBC), whose hnction is to promote research and development products to the end users, that is industryand the commercial sector. The Government will facilitate innovations that shall be characterised by sustainable and equitable distribution o f the benefits. Consequently, the following legal and policy reforms are envisaged during the FNDP period: a) Review o f the National Science andTechnology Policy; b) Enactment o f Bio-safety legislation; c) Formulation o f an Intellectual Property Rightspolicy; d) Formulation o f a National Policy on indigenous knowledge, genetic resources and folklore; and e) Review o f Science and Technology Act and related Acts. ~ _ _ _ _ _ _ _ _ _ No. Programmes 1 Researchand To identify and conduct a) Identify sectorshndustries o f national economic growth Development research and development and targeting research and development results and their activities in areas of focus towards these sectors; nationalpriority b) Encourage interdisciplinary research; I c) Conduct target-specific research and development; d) Providetarget-specific research and development funds; e) ldentify technological needs inareas o f nationalpriority; I f) Establish research and innovation funds for priority research. 2 HumanResource To develop and retain a) Link support in staff development for research and Developmentand qualified science development institutions to approved training programmes; Retention technology and b) Improve conditions o f service; personnel I1c) Re-engage retired highly experienced scientific and technological staff to impart knowledge in young scientists; d) Introduce performance based annualibi-annual awards among research and development institutions and staff; e) Develop linkages with the TEVET and tertiary system; f) Increase proportion o f bursary scheme allocated to females taking science and technology-related courses. ~ 3 Infrastructure To develop, rehabilitate a) Prepare annual development, rehabilitation and Development and and maintain science and maintenanceprogrammes; Rehabilitation technology infrastructure b) Allocate adequatefunding towards the objective. 4 ~ Commercialisation To promote and Facilitate participation o f research and development of R&D commercialise results o f institutions- in -fairs/exhibitions, public discussions, research and business forums; Development.) Ensure publication o f results o f various research and develop activities; Prepare and productpromotional materials by research and development institutions; Provide tax rebates to commercial entities taking technology from local research and development institutions. ~ 5 Policy, Legislative To review and strengthen Identify constraints in the policy, legal and institutional and Institutional the policy, legal and environment o f the sector. Strengthening institution framework ~6 Popularisation of To create and promote Develop an effective information, education and Science and public awareness on the communication system; Technology in role o f science and Promote the concept o f open or field days in all research National technology in national and develop institutions; Development economic development Ensure science week activities are conducted in all provincial centres; Promotedistrict, provincial and nationalJETS fairs; Create incentives to promote active participation in research and develop by the private sector; Promote science and technology through activities o f the proposed Museumo f Science and Technology inNdola; Encourage female participation in science and technology related courses. 15.6Implementation,Monitoring and Evaluation Framework The monitoring and evaluation o f the implementation o f the programmes under the FNDP will be achieved through the institutional framework established under the Science and Technology Act NO.26 o f 1997. Therefore, research and development will be coordinated and monitored by the National Science and Technology Council under the supervision o f MSTVT. MSTVT will also ensure that linkages of research and development activities across sectors are strengthened. In line with this, the Ministry will strengthen the legal framework. The Sector Advisory Group responsible for the sector will oversee the implementation, monitoring and evaluation o fprogrammes inthe sector. Fifth National Development Plan 2006-2010 142 // /- i_- L 7 Part ii FNDPSectoralPlans Social Sectors U V Educationand Skills Development 76.7 Introduction Education and training provide skills to drive economic and social development within the context o f both the local and global economy. Education and training also provide equality o f opportunity for individuals to participate inlocal and national development. Given the importance o f education and training for the required socio-economic development, there is need for greater investment o f resources in this sector inthe FNDP. This chapter provides an investment framework for the sector, over the next five years, which is strategically focused on improving the quality o f education and training within and outside the public education and training system. Further, the chapter has been developed taking into consideration all key stakeholders' plans to implement decentralisation as stipulated in the National Decentralisation Policy (2004). The chapter also takes cognisance o f the rights based approach to education andprovides for progressively fulfilling the rights to education. The education and training sector in Zambia comprises four ministries, namely the Ministry of Education (MoE); the Ministry o f Science, Technology and Vocational Training; the Ministry o f Sport, Youth and Child Development; and the Ministry o f Community Development and Social Services. The MoE is mandated to guide education delivery as well as provide education at basic, highschool andcollege (teacher education) levels. Itis also responsible for pre-schooling, including pre-school teacher training, schools for continuing education, the National Science Centre, Educational Broadcasting Services, the Curriculum Development Centre and university education. The Examinations Council o f Zambia also falls under the auspices o f MoE. The responsibility for technical education, vocational and entrepreneurship training (TEVET), on the other hand, lies with the Ministry of Science, Technology and Vocational Training (MSTVT). The Ministry is responsible for policy direction for the provision o f technical education and vocational training. The Ministry o f Sport, Youth and Child Development is responsible for community based skills training. The Ministry o f Community Development and Social Services is responsible for leadership and practical skills as well as literacy classes that are offered mainly to vulnerable groups, such as the handicapped, women, orphans and non-literate youth and adults. There are also many non-government providers o f education and training at all levels from the private sector. Further, some non-governmental organisations (NGOs), faith based organisations (FBOs) and community based organisations (CBOs) also provide education and training. These organisations provide education, using alternative delivery systems, to a large population o f young people by equipping them with knowledge and skills needed for their livelihood. 76.2Review of Past Performance The MoE is the largest stakeholder in the education sector and employs about 65,000 teachers and lecturers and over 4,400 administrative and support staff. Currently, under the MoE, education provision is guided by the education policy document, Educating Our Future (1996). This policy focuses on equitable access to quality education at all levels. Actual implementation of the policy has, since 2003 been based on the education sector StrategicPlan, 2003 to 2007. The major sub- sectors are basic, high school, and tertiary education. The MoE is organised according to the following levels: Headquarters, 9 Provincial Education Offices (PEOs) and 72 District Education Boards (DEBS).In order to strengthen education decentralisation and facilitate the deconcentration and devolution process, the MoE has created Provincial Education Management Committees (PEMCs) and District Education Management Committees (DEMCs) at provincial and district levels respectively. Many private and public institutions offer distance education programmes from basic to universitylevel. The M o E is also the leadingprovider o f distance education programmes in the country. FifthNationalDevelopment Plan 2006 -2010 146 16.2.1 Early Childhood Care, Developmentand Education(ECCDE) The 1977 Educational Reforms stated that the provision and funding o f early childhood and pre- school education would be the responsibility o f local councils, local communities, NGOs, private individuals and families. The major challenges in the early childhood care, development and education sub-sector include fragmented curriculum; lack o f coherent policy, standards monitoring and supervision; andconfining o f early childhood care, development and education to pre-schooling instead of offering a more comprehensive learning experience. Financing o f early childhood care, development and educationhas remainedunclear as most o f the learning dispensed at this level is in the hands o fprivate providers. 16.2.2 Basic Education Some marked successes have beenrecorded, especially concerning improvements inaccess to basic education for Grades 1-9. Enrolment in Grades 1-7 and Grades 8-9 has increased at an average o f 9 percent annually since 2000. Gross enrolment ratios (GER) for Grades 1-9 went up from 75.1 in 2000 to 89.8 in 2004; net enrolment ratios (NER) increased from 68.1 in 2000 to 79.4 in 2004. A good part o fthe overall increase in enrolment has been due to the significant increase inthe number o f community schools. Despite these gains, however, there still exists a disparity between male and female pupils, with girls representing a GER o f 86.4 in 2004 against 93.2 for boys and completion rates o f 65.8 and 78.3 respectively. During the PRSPITNDP period, in order to ensure quality education, provision of teaching and learning materials (particularly textbooks) and deployment o f more trained teachers were given priority. There was also a marked increase in the number o f teachers attending in-service training during this period. The curriculum for the basic school level was re-conceptualised inorder to make it more relevant to the needs o f the learners and society. Despite these interventions, the gains inthe quality o f education have not matched the levels achieved interms o f access. Numerous challenges still remain at the basic education level. The major ones include drastically raising the learning achievement in key subject areas; shifting o f more qualified teachers to teaching the foundation years (Grades 1 to 2); improving the quality, relevance and delivery o f the curriculum; and provision o f more teaching and learning materials to match the increased enrolment. Others include increasing access to vulnerable children; improving the retention rate for girls and ensuring they complete the education system and actually benefit from it; and increasing school places for the 7- year old age group. 16.2.3 Literacy Education The national literacy rate o f the age group 15 to 24 years old in 2003 was 70 percent. The challenges facing the provision o f literacy education include a greater commitment by the Government in terms o f more resources, and the development o f institutional structures and mechanisms to facilitate the development o f a coordinated, coherent and sustainable programme. 16.2.4 High School Education The high school education sub-sector (Grades 10 to 12) has remained stagnant since the 1970s in terms o f expanding the infrastructure; for example, the last public secondary school (Grade 8 to 12) was built in 1970. On the other hand, there has been a steady increase in student enrolment since 2000, averaging 10 percent per year. Completion rates have improved from 11.9 percent in 2000 to 18 percent in 2004. However, the high school sub-sector is also facing even greater gender disparities thanbasic education inall key indicators. Moreover, the quality of highschool education hasnot benefited from the same level o finvestment as basic education, resulting in deterioration in the quality o f education in high schools over the last 30 years. Pupillteacher ratios have also worsened from 10.9 in 2000 to 16 in 2004. In addition, many o f the teachers inthis sub-sector are only qualified to teach at upper basic level. The low investment inhighschool education principally explains the stagnation o f examination pass rates for Grade 12, which have consistently remained below 70 percent since 2000. 16.2.5Tertiary Education:Teacher Education In 2005, there were 10 basic colleges of education (CEs) and 2 Junior Secondary CEs and University o f Zambia (UNZA), training senior secondary school teachers. Recently, there have been Fifth National Development Plan 2006-2010 147 initiatives to increase teacher output, such as through the Zambia Teacher Education Course (ZATEC) at basic education level in order to meet teacher demand. From 2000 to 2005 teacher output under the ZATEC programme doubled. In a bid to upgrade teachers with certificates and diplomas, some continuing professional development programmes have been introduced, such as the Primary Teachers' Diploma by Distance Learning, along with the existing distance learning programmes at both UNZA and secondary colleges, The major challenges facing teacher education include among others, inadequate funding; rundown infrastructure; inadequate and poor staff accommodation; high lecturer-student ratios; insufficient teachindlearning materials and information communication technology (ICT); high attrition rate o f teachers due to HIV and A I D S ; andpoor retention rates. 16.2.6 Tertiary Education: University Education The combined efforts o f UNZA and Copperbelt University (CBU) have resultedin the production o f over 25,000 graduates as at December 2004. Both universities have established Staff Development Programmes, which have resulted insignificant training o f indigenous staff who make up close to 90 percent of the academic staff. While the two universities have made significant achievements in undergraduate education over the past four decades, postgraduate training is still lagging behind. The two universities have experienced severe under-funding since the 1970s. This has led to overcrowding; dilapidation in infrastructure; high student lecturer ratios; lack of expansion infacilities; highlevels o f indebtedness; and inadequate education materials and ICT. 16.2.7 Basic Skills Educationand TEVET Zambia has experienced a rapid decline in the performance o f its economy since the mid-1970s. T h i s has seriously affected its ability to generate employment opportunities for its labour force. T h i s situation has further been worsened by the rapid growth o f the labour force, which is at present about 6 million. Ofparticular concern is the problem o f large numbers o f youths, about 200,000 per annum, leaving the school system without any opportunities for acquiring skills for personal improvement. In view o f the foregoing, the Government through the MSTVT instituted the Technical Education, Vocational and Entrepreneurship Training (TEVET) Reforms in 1994 that saw the formulation o f the TEVET Policy (1996), the Strategy Paper (1997) and the TEVET Act No. 13 o f 1998. For effective management o f TEVET and other forms o f training, the Technical Education, Vocational and Entrepreneurship Training Authority (TEVETA) was established to regulate all forms o f technical education and vocational training. As a result o f this, all training providers, regardless o f ownership, are required by law to register with the Technical Education, Vocational and Entrepreneurship Training Authority (TEVETA). By way o f regulation, the TEVETA is supposed to facilitate the drawingup ofnational curricula as well as provide guidelines for the development o f local curricula. The MSTVT has under its ambit 23 institutions; 21 o f these are managed by management boards and TEVETA. The broad intentions o f the TEVET Reforms are to have an effective and efficient TEVET that will facilitate access, equity and participation inTEVET by all; ensure equality and demand responsive training; and ensure employability o f TEVET graduates. Currently, there are a total o f 319 registered technical and commercial training institutions inZambia. The main challenges facing the skills training sub-sector include the fact that formal employment has not grown to take up many of the school leavers and graduates from technical education and vocational training colleges. Besides, the institutions that promote generation o f employment have neither resources nor ability to adequately offer the skills demanded by the labour market. Addressing these challenges remains a serious concern, especially with regard to sustainable financing o f the sub-sector. Currently, the financing gap in the TEVET sub-sector is mainly covered by donor assistance. To meet the challenges o f financing skills training for the Zambian economy, the Government has established a TEVET Fundand measures are being considered for sustainingthe Fund.Ultimately, it is expected that industry (which is the major beneficiary o f TEVET graduates) will begin to contribute to financing training. This partnership between industry and government presents the most feasible long-term solution for sustaining the TEVET sub-sector. There are also other skills training institutions inother line ministries. Fifth National Development Plan 2006 -2010 148 16.2.8 Equity Issues 16.2.8.1 Orphansand VulnerableChildren The Government has made significant inroads in expanding school places for orphans and vulnerable children (OVC). In2000, it was estimated that there were 560,000 out-of-school children inthe age bracket of 7 to 13. This represented 29 percent o f the whole population. By 2004, the number had decreased to just over 290,000, representing 13.7 percent o f the population. Llkewise, the enrolment o f orphans inbasic schools increased from 11.1percent o f the total enrolment in2002 to 20.1 percent in2004. 16.2.8.2 Children with SpecialEducationalNeeds In2002, the total number o fChildren with Special EducationNeeds (CSEN) inbasic educationwas just over 23,000, representing only 1.1percent o f the total school population. By 2004, the number had risen to over 73,000 pupils, representing 2.9 percent o f all the pupils. The rate o f increase was also similar inthe high school sub-sector over the sameperiod. 16.2.8.3HIVandAIDS Under the Basic Education Sub-sector Investment Programme (BESSIP), the MoE developed a comprehensive HIV and AIDS strategy, which will be scaled up. This strategy is at 3 levels: the mainstreaming o f HIV and AIDS issues in the curriculum; dissemination o f information to both learners and teachers; and the work place programme, which includes advocacy, and Anti- Retroviral Therapy (ART). The greatest challenge remains that o f management and mitigation o f the impact o fHIV and AIDS on the teaching staff, inparticular. 16.2.8.4 Gender There have been various interventions in the education sector over the years targeted at eliminating gender disparities in order to mainstream and achieve gender equality in education. These have included a number o f projects, a full component under BESSIP, and the Pregnancy Re-admission policy. The Government is now close to reaching gender parity in Grades 1to 7. In high schools, however, the number o f girls is still below that o fboys. 16.2.8.5 SchoolHealth and Nutrition There is clear evidence o f widespread stunting o f children due to poor or insufficient diet, and the recent cycle o f food insecurity due to drought and floods has exacerbated the problem. Many children go to school hungry and are unable to concentrate; thus their performance drops. In the worst affected parts o f the country, school or community feeding programmes seem to have increased attendance. The School Health and Nutrition (SHN) pilots in Eastern province have provedeffective, and are now being scaled out to other provinces. 16.2.9 Bursaries The Bursaries Committee administers government bursaries, grants, scholarships and fellowships for study at universities both in-country and abroad. Close to 70 percent o f students are entitled to bursaries, which cover 75 percent o f tuition fees for most beneficiaries, and up to 100 percent for vulnerable groups (such as double orphans). The major challenge concerning bursaries is to make them accessible at all levels. Givenincreasing vulnerability at all levels, the Government recognises the need to widen coverage to the other sub-sectors and various vulnerable groups. However, there is a limited number o f bursaries at basic andhigh school level for vulnerable pupils. 16.2.10 Financingof Education The Government prioritises education as a key social sector. The MoE expenditure for 2005 was budgeted to be 2.8 percent o f GDP. The Government has targeted a minimum allocation o f 20.5 percent o f the total annual discretionary budget for the sector. 16.3Policies and Key Reforms The FNDP will place emphasis on improvement o f quality, while still regarding increase in access as a priority for early childhood care, development and education, upper basic, high school, vocational training and tertiary education. In this regard, reforms in curriculum development; syllabus design; professional teacher enhancement; making the learner environment more Fifth National Development Plan 2006 -2010 149 productive and conducive to the learning and welfare o f the learner; and attainment o f educational standards will be amongthe key reformareas. In the area of access to education, the major reforms in the FNDP will involve provision of education through low costhigh impact interventions for different categories o f learners who previously were not sufficiently catered for as children, youth or adults. One reform will be through the expanded use o f open and distance learning andprovision o f literacy andbasic skills education. Other reforms will continue to ensure that pro-poor policies are instituted to offer equitable education to vulnerable members o f society, notably under gender, HIV and AIDS, SHN, OVC, CSEN and out o f school chldren. Reform o f existingpolicies andlor development o fnew ones will focus on the following areas: a) Curriculumdiversification and assessment; b) Development, production, procurement and supply o feducational materials; c) Teacher education, deployment and retention; d) Governance, community participation and cost sharing; e) Early Childhood Care, Development and Education; f ) Literacy Education; g) Distanceand Open Learning; h) Community schools-ownership, management andfinancing; i) Equity;and j) Decentralisation. Inorder for thesepolicy reforms andpriorities to betranslated intoviable programmes, partnerships shall be built andlor strengthened, especially betweenthe Government, on the one hand, and donors, NGOs, FBOs, and private providers o f education and training, on the other. Additionally, appropriate legislation will be instituted for the proposed policy reforms. Finally, the Government will significantly increase the levels o f funding to the education and training sector and additional funding will be sourced from external finding agencies. This entails an increase by 2010 to Southern African funding levels o f a minimumo f 5 percent o f GDP devoted to education and training. The external partners will also need to both increase the present levels and move towards unrestricted sector support (pool funding) and general budget support to address the challenges the sector is facing inother key sub-sectors. 16.4 Visionand Goals The vision is: Innovative andproductive life long education and training accessibleto all by 2030. The goals are as follows: a) To ensure universal basic education provisionto children; b) To ensure that opportunities exist for all citizens to have equitable access to ECCDE, basic and high school, tertiary education andor technical and vocational training; c) To improve the quality andrelevance o f education and skills training; d) To promote efficiency and cost-effectiveness; e) To enhance institutional coordination in both public and private education and training institutions; and f ) To ensure that library services are improved to contribute to high standards and quality o f education inZambia. 16.5Programmes, Objectives and Strategies The five objectives below cover the whole sector, whereas the strategies and programmes are for the specific sub-sectors o f early childhood care, development and education, basic, literacy, high school, teacher education, university education, and basic skills education and technical education, vocational and entrepreneurship training. The following are the broad objectives o f the education andtraining sector duringthe FNDPperiod: a) To strengthen or establish institutional frameworks to coordinate provision o f education and training through government, community and private institutions; b) To introduce policy changesreflective o fthe current educational requirements; Fifth National Development Plan 2006 -2010 150 c) To promote use of alternative modes of educationandtraining provision; d) Topromote innovative methodologies inlearning institutions; e) To promote use ofresponsive monitoring of standards and assessmenttools; and f) Toenhanceprovisionofteachindlearningmaterialsandequipment. The matrix below presents the FNDPprogrammes andtheir respective objectives and strategies. ___ )r: Education id Skills Develo ment Programmes Objectives Strategies Curriculum .. To design a Early Childhood Care, Developmentand Education Developmentand comprehensive a) Develop a national early childhood care, development and Educational and diversified educationcurriculum framework; Materials curriculum that b) Develop, produce and distribute teachingearning materials is interlinked for early learners throughout all Basic Education educational Develop a basic school curriculum and syllabus for Grades levels a) 8 and 9 and review the curriculum framework for Grades 1 !. To provide to I; relevant b) Develop, produce and distribute teachingkarning materials educational for pupils; materials c) Develop and produce open and distance learning materials for the Alternative Basic Education Programmes Literacy Education Review and improve literacy teaching and learning materials High SchoolEducation a) Develop a high school curriculum and syllabus for Grades 10-12; b) Improve teaching and learning, especially in practical, scientific and technological disciplines; c) Develop, produce and distribute teachingearning materials for pupils Tertiaiy Education: Teacher Education a) Improve the quality o f training through the provision of equipment and teachingkarning resources; b) Develop, produce and distrihute teachingkarning materials for students TertiaryEducation: TEVET a) Develop appropriate training, assessment and qualification systems to meet current and future demands o f the labour market; b) Improve the quality o f training through the provision of equipment and teachingkarning resources; c) Develop, produce and distribute teachingkarning materials for students Tertiaiy Education: University Education a) Design a comprehensive and diversified university curriculum with relevant linkages to other educational levels and to the needs o f socio-economic development; h) Develop, produce and distribute teachingkarning materials for students 2 Standards and 1. To develop a Early Childhood Care,Developmentand Education Assessment comprehensive assessment system reflective a) Develop monitoring and evaluation instruments for early childhood care, development and education; o f an outcome and demand b) Monitor learning performance through increased standards based visits curriculum Basic Education a) Develop an assessment system, including methods of 2. To establish the continuous assessment and examinations; National b) Monitor learning performance through increased standards Qualifications visits Framework (NQF) Literacy Education Develop monitoring and evaluation instruments for literacy education Fifth National Development Plan 2006-2010 151 )r: Education nd Skills Develo 'ment Programmes Objectives Strategies High SchoolEducation a) Develop an assessment system, including methods of continuous assessmentand examinations; b) Monitor learning performance through increased standards visits Tertiary Education: TeacherEducation a) Develop an assessment system reflective o f an outcome based curriculum; b) Monitor learning performance through increased standards visits; c) Establish the criteria for the operations and management o f the Zambia Qualifications Authority (ZQA) and National Qualifications Authority (NQF) within the context o f the SADC framework Tertiary Education: TEVET a) Develop appropriate training, assessment and qualification system to meet current and future demands o f the labour market; b) Strengthen regulatorycapacity within TEVET TertiaryEducation: University Education a) Review and develop the internal mechanisms for assessment, including methods o f continuous assessment and examinations; b) Establish the criteria for the operations and management o f the ZQA and NQF within the context o f the SADC framework Teacher 1. To strengthen Early Childhood Care,Developmentand Education Education the systems for Provide continuous professional development to serving teachers continuous and care givers professional Basic Education development, Provide continuous professional development to serving management and a) teachers; support b) Provide pre and in-service training o f teachers in S H N 2. To strengthen interventions and create healthpromoting schools the systems for Literacy Education initial teacher Provide continuous professional development to serving training, providers management and support High School Education Providecontinuous professional development to serving teachers 3. To develop a Tertiary Education: Teacher Education comprehensive national policy a) Develop a training policy and plan for initial training for ECCDE teachers and care givers; and institutional framework for b) Train qualified teachers with basic education teacher promotion and competencies in order to eliminate double shifting in all development o f schools; library services c) Develop a training policy and plan for initial training for inZambia literacy providers; d) Design a comprehensive library service that is inter-linked throughout all education levels; e) Providerelevant library services and education materials Tertiary Education: TEVET a) Increase the number o f lecturing staffinTEVET; b) Increase participation of females and the disabled in slulls teacher training; c) Enhance skills and qualification levels o f lecturing personnel inskills training Tertiary Education: University Education Train qualified teachers with high school teacher competencies inorder to reallocatethose qualified Grade 8-9 teacherscurrently teaching inGrades 10-12 to basic education [nfrastructure provide Early Childhood Care,Development and Education Development I1 To appropriate and Develop designs for Early Childhood Care, Development 1 a) sufficient and Education classrooms; Fifth National Development Plan 2006-2010 152 )r: Educationand Skills Develo nent Programmes I Objectives Strategies Iinfrastructure b) Construct, rehabilitate and maintain Early Childhood Care, facilities and services Development and Education centres inselected regions and including districts rehabilitation and maintenance in order Basic Education to improve equitable c) Provide sufficient classrooms in lower basic schools in access to and quality order to eliminate double shifting; o f education d) Provide sufficient classrooms and other facilities (laboratories, etc.) to upgrade lower basic schools into full basic schools; e) Rehabilitate and maintain basic schools; f) Provide and maintain water and sanitation facilities With a view to provide equitable access for girls and CSEN; g) Provide staffhousing with emphasis on rural schools Literacy Education NB: There are no planned activities under infrastructure as literacy training will be conducted using existing infrastructure facilities for adult literacy centres High SchoolEducation a) Provide designs for low cost day schools with weekly boarding facilities for selected regions; b) Provide sufficient classrooms and other facilities (laboratories, libraries and practical classrooms etc.); c) Construct and rehabilitate boarding and technical high schools; d) Provide and maintain water and sanitation facilities with a view to provide equitable access for girls and CSEN; e) Providestaffhousingwithemphasis on rural schools TertiaryEducation: Teacher Education a) Construct additional classroom space at each of the 12 Colleges o f Education; b) Construct additionalzonal resource centres; c) Rehabilitate and maintain colleges o f education, including provincial, district and zonal teacher resource centres; d) Provide and maintain water and sanitation facilities with a view to provide equitable access for girls and CSEN; e) Providestaffhousing TertiaryEducation: TEVET a) Provide and expand infrastructure in order to increase access to TEVET; b) Rehabilitate and maintain existing infrastructure Tertiary Education: University Education a) Provide and expand infrastructure in order to increase access to university education; b) Establish a third university based on a public-private partnership model; c) Rehabilitate and maintain universities, including hostels, libraries and laboratories Distance 1. To expand access Early Childhood Care,Development and Education Educationand and participation NB: Distance education and open learning methodologies will OpenLearning in the provision not be used inthis sub-sector of basic Basic Education educationthrough a) Develop a framework to coordinate provision of open and alternative modes distance education; o f delivery using b) Identify and utilise appropriate methodologies and appropriate technologies to improve access to and quality o f open and methodologies distance education; and technoiogies c) Develop and produce open and distance learning materials for the Alternative Basic EducationProgrammes 2. Promote private Literacy Education sector a) Develop a framework to coordinate provision o f open and participation distance education; b) Establish adult literacy centres in selected regions and in coordinationwithother line ministries High SchoolEducation FifthNationalDevelopmentPlan 2006-2010 153 Sec Dr: Education ment No. Programmes Strategies a) Develop a framework to coordinate provision o f open and distance education; b) Identify and utilise appropriate methodologies and technologies for facilitating distance and open learning; c) Promote e-learning; d) Reformprovision o fAPU TertiaryEducation: TeacherEducation a) Develop a kamework to coordinate provision o f open and distance education; b) IdentifL and utilise appropriate methodologies and technologies for facilitating distance and open learning; c) Promote e-learning TertiaryEducation: TEVET a) Increase access to TEVET throughthe provision o f distance learningfacilities; b) IdentifL and utilise appropriate technologies and methodologies for facilitating distance and open learning; c) Promotee-learning. Tertiaiy Education: University Education a) Develop an effective framework to coordinate provision of open and distance education; b) Identify and utilise appropriate methodologies and technologies for facilitating distance and open learning; c) Promotee-learning. 6 1. To develop Early Childhood Care,Developmentand Education flexible and a) Develop and strengthen strategies that.encourage retention inclusive and progression o fgirls and OVC; education b) Equipteachers and caretakers with adequateand relevant programmes that information about HIV and AIDS provide mechanisms for Basic Education increasing a) Increase access, participation and retentioninbasic equitable access education, withparticular emphasis on CSEN and OVC; to quality basic b) Increasebursary provisions; educationfor c) Develop and support actions aimed at mitigating and CSEN and OVC reducingthe impact o fHIV and AIDS and other social and healthrelated issues; 2. Toprovide d) Equip teachers with adequateand relevant information interventions on about HNand AIDS HIVandAIDS Literacy Education and SHN Equip adult literacy providerswith adequate and relevant information about HIV and AIDS High SchoolEducation a) Increase access, participation and retentioninhighschools, withparticular emphasisongirls; b) Eliminate gender disparities inbothparticipation and learning achievement; c) Develop and support actions aimed at mitigating and reducingthe impact o fHIVand AIDS and other social and healthrelated issues; d) Equip teachers with adequate and relevant information about HIV and AIDS TertiaryEducation: TeacherEducation a) Equip lecturers with adequate and relevant information about HIV and AIDS; b) Increase access, participation and retentionincollege education With particular emphasis on CSEN, women and ovc; c) Eliminate gender disparities inbothparticipation and learning achievement TertiaryEducation: TEVET a) Increase access, participation and retentionof girls and women inTEVET; b) Train more lecturers incourses for the disabled and increase participation o f the disabled inTEVET; c) Identify and utilise appropriate methodologies to facility FifthNational Development Plan 2006 2010 154 )r: Education nd Skills Develo ment Programmes Objectives Strategies equity intraining; d) Facilitate access to bursaries for the disadvantaged Tertialy Education: University Education a) Equiplecturerswithadequate andrelevant information about HIV and AIDS; b) Increase access, participation and retention inbasic education for females, CSEN and OVC; c) Eliminate gender disparities inbothparticipation and learning acluevement; d) Increase bursary provisions Management and To develop, revise Establishaninstitutional framework withinthe education Administration and improve the and training sector to coordinate and oversee the overall framework for implementationo f ECCDE and community schools; quality educational Conduct focused policy relevant studies and reviews in planning, human responseto identified policy gaps; resource, financial Reviseand improve the resource allocation criteria for management and institutions and operational levels; administrationo f Develop a framework to coordinate the provision o f literacy education delivery and establish literacy programmes incollaboration with other ministries, NGOs, universities and communities; Improve information management systems that are responsive to the needs o fthe education and training sector at all levels; Devisemechanisms for retention and attractiono f teachers to rural areas; Establishan efficient, accountable and decentralised procurement and distribution system; Strengthenaccountability and transparency inthe utilisation o f funds; Improve the internal management and implementation structures at the headquarters and provincial levels, including decision-making, flow o f information, time management and procedures for meetings; Strengthen the systems for continuous professional development, management and support incolleges o f education; Expand and regulate the productiono f qualified teachers and teacher educators; Strengthen management and administrative systems in universities; Liquidate the institutional debt and expand the sustainable financial resource base inuniversities; Develop institutional capacity for dealing with HIVand AIDS at all levels o f the education and training sector. - Research in To strengthen Encourage sustainable scientific and technological Education researchand development throughresearch; innovation Implement and/or strengthen programmes on attachment to capabilities inprivate and exchange of students and staffbetweentertiary ,and public tertiary institutions and industry institutions Basic Skills 1To develop, rense a) Provide appropriate infrastructure and facilities to enhance kh~cationand and improve the increased enrolment that i s inclusive o f vulnerableand rEVET overall framework for disadvantaged learners inthe basic skills and TEVET quality educational institutions; plamng, human b) Foster community participation and investmentinthe 'resource, financial provision ofbasic slulls and TEVET; management and c) Develop diversified curricula that will mainstream 1admmstration of entrepreneurship, career guidance and development from techcal and early childhoodto TEVET inorder to provide skilled 1vocahonal education humanresources for increased productivity and income delivery generationinthe formal and informal sectors; d) Strengthen the regulatory functions o f TEVETA; 9 Improve the overall coordination andmanagement o fbasic Fifth National Development Plan 2006-2010 155 Set )r: Education and Skills Develo ment NO. Programmes Objectives Strategies skills and TEVET, including information management systems; f, Develop appropriate training, assessment and qualifications systems to meet the current and future demands of the labour market; g) Develop effective and efficient modalities for the provision o f training and support services to the micro, small and medium enterprises inorder to improve household incomes; h) Mainstream cross-cutting issues (e.g. HIV and AIDS, gender, disability and environment) inthe basic skills and TEVET systems; i) Expand a sustainable financial resource base 16.6Implementation,Monitoring and Evaluation Framework The implementation o f the ongoing programmes shall continue to be based on the existing Sector Plan, 2003 to 2007. However, some o f the programmes will be adjusted inline with the new vision and goals. Monitoringthe progress and impact o f the FNDP educational programmes will be done on a regular basis using various methods. This will mainly be based on the following key performance indicators and targets: a) Net Enrolment Ratios; b) Completion Rates; c) PupiVStudent Teacher/Instructor/Lecturer ratios; d) Teacher/Instructor/Lecturer Qualifications; e) Gender Parity Index; and f ) District Education Profile Index (number o f districts obtaining agreed minimum levels of performance). In addition, respective education administrators will monitor implementation through specific indicators and targets defined in the respective annual work plans and budgets. Finally, administrators will be expected to carry out monitoring as an integral part o f their key functions. The Education and Training SAG will play a supervisory and monitoring role. The main focus of monitoring shall be on the impact o f the FNDP interventions. FifthNational DevelopmentPlan 2006 -2010 156 17.1 Introduction Health and development are inter-related. Economic development is expected to improve the health status o f the general population but at the same time, better health contributes to economic development by increasing worker productivity and lengthening the expected working life of humanbeings. Better child health and nutrition promote future productivity growth by helping children develop into healthier and more productive adults. Better health can also reduce the amount o f money spent on curative care thereby freeing up resources for alternative investments. Inthis regard, economic investments should, to a large extent, include investments inhumancapital through improved health and education as a way of maintaining the nation's human capital base for sustained economic growth. Health care in Zambia is provided by government institutions, the Churches Health Association of Zambia (CHAZ), the mining companies, parastatal organisations, private clinics and traditional healers. The structure o f public health services run by the Government comprises: health posts, health centres, level one hospitals, level two hospitals and level three hospitals. One health post should ideally cater for a population o f 500 households in rural areas and 1,000 households in the urban areas, or to be established within 5 kmradius for sparsely populated areas. The target is to have 3,000 health posts but currently only 20 have been commissioned. Urban health centres are intended to serve a catchment population o f 30,000 to 50,000 people while rural health centres should service a catchment area o f 29 kmradius or a population of 10,000, The target is 1,385 but currently there are a total of 1,210 health centres (973 rural, 237 urban). Lastly, there should be at least one first level hospital in each district to serve as a referral point for satellite health centres. There are currently 19 districts without a district hospital. By 1991, the quality of health service delivery had deteriorated due mainly to increased demand for health services arising from rapid population growth and a declining economy. This compromised the Government's ability to provide quality health care. The Government was unable to provide adequate medical supplies, equipment and infrastructure for optimal basic health care services. At the same time the epidemiological situation o f the country was also rapidly changing and getting compounded by the HIV andAIDS pandemic. Inaneffort to improve the quality andprovisiono fhealth care delivery, the Government introduced the Health Reforms in 1992. The,key tenets o f the reforms were decentralisation o fhealth services planning and provision to the district level and a focus on preventive rather than curative care. This innovation also culminated in the introduction of an "Essential Health Care Package", which defined key interventions that the public health system should provide within the available resources. The reforms also emphasised the importance o f community participation in the management of health services and coordination of donor support in the framework o f a sector wide approach involving pooling of resources to finance ajointly approvedhealth sector plan. 17.2Review of Past Performance Between 1992 and 2002, some health indicators showed a marked decline in service delivery and quality o f care while others registered a marginal improvement. The Maternal Mortality Rate increased from 649 deaths per 100,000 live births in 1996 to 729 deaths per 100,000 live births in 2002. On the other hand, infant mortality and under five mortality rate declined from 109 and 197 per 1,000 in 1996 to 95 and 168 per 1,000 live births in2002 respectively (see Table 17.1). Factors that contributed to the decline o f some health indicators include the HIV and AIDS pandemic; brain drain; poor state o f health facilities; inadequate drugs and medical supplies; and high poverty levels. Table 17.2 presents the general trends inthe health care delivery indicators for the period2000 to 2005. Fifth National Development Plan 2006-2010 160 Indicator 1992 1996 2001/2002 Life Expectancyat birth 45 46.8 51.9 InfantMortalityRate per 1,000 births 107 109 95 Under 5 MortalityRate per 1,000 births 191 197 168 Maternal MortalityRatio per 100,000 live births NIA 649 729 HIV PrevalenceRate4 23 20 15.6 Table 17.2: Selected HealthCare Delivery and ImpactIndicators Source: Minisfry ofHealfh HMISdata base Health Centre Staff Daily Contacts measure the average number o f contacts each qualifiedworker in an institution attends to, over a given reporting period and can be used as a proxy to measure the distribution and work load o f staff in the various health institutions. Table 17.2 shows that no improvement was recorded inthis indicator for the period 2000 to 2005. Further analysis o f staffpatient ratios in fact shows that qualified workers inrural provinces have a higher workload compared to their counterparts inurbanprovinces. Table 17.2 also shows that supervised deliveries (estimated proportion of deliveries at health facilities and those assisted by trained Traditional Birth Attendants - (tTE3As) have been increasing over the years. However, the proportion o f institutional deliveries has been going down due to shortage o f trained midwives and weak referral systems while the percentage o f deliveries assisted by tTBAs has been increasing over the years. Lastly, Table 17.2 shows that the number o f children under the age o f one who completed the recommended series o f immunizations increased from 75 percent in 2003 to 80 percent in 2004 and then to 82 percent in 2005. Lusaka province had the highest coverage in2005 (101 percent) followedby Southern and Central each with 93 percent. 17.2.1 Human ResourceManagementand Development The health sector in Zambia i s experiencing a humanresource crisis, which is undermining capacity to provide basic health care services to the people. Currently, the health sector is operating at 50 percent o f the establishment, with nearly 45 percent of the rural health centres runby unqualified health workers. Insome provinces such as the Northern province, the doctor to population ratio is as high as 1:69,000 compared to the World Health Organisation recommended ratio o f 15,000. In 2004, the Government set up a humanresource task force to develop an emergency HumanResource Rescue Plan and criteria for implementation. The committee highlighted key human resource constraints and helped in identifying strategies to address these constraints; these strategies have been included in the recently developed human resources strategic plan. This strategic plan has recommended replacing the human resource task force with a higher level committee to oversee implementation o f the plan. Other efforts to check the brain drain include the rural retention loan scheme and housing development for rural staff. Training has also been made a priority on the government agenda by strengthening the operations o f institutions involved intraining o fhealth workers. "For 1992and 1996 Antenatal surveillance data was used to estimate the national seroprevalence of HIVIAIDS among the adult populationwhereas for 2001/2002 the HIVprevalence was estimated from population-based surveys. Four visits are requirements per each pregnancy Fifth National Development Plan 2006-2010 161 17.2.2The Basic Health Care Package Since the onset o f the health reforms, the focus o f the Government has been on Primary Health Care (PHC) which has been identified as the main vehicle for delivering health services. The reasoning behind the PHC approach i s that most o f the diseases in Zambia can be prevented or managed at primary health care level which in itself can lower the cost o f referral curative care by reducing the number o f people seeking services. Further, in an attempt to promote allocative efficiency in a climate o f limited resources, the Government has developed a Basic Health Care Package (BHCP) which is a set o f carefully selected high impact interventions that is offered through the public health system freely or on a cost-sharing basis at different levels o f the health care delivery system. Interventions outside this package are offered on a full cost recovery basis. Interventions included inthe BHCP were selected on the basis o f an epidemiological analysis o f those diseases and conditions that cause the highest burden o f disease and death. Currently, ten priority areas for health services have been identified for inclusion inthe BHCP as indicated inTable 17.3. Further work is needed to refine the packages anduse them in the manner they were intended. PriorityArea Objective 1 C h l dhealth and nutrition To reduce the mortality rate amongchildrenunder five 2 Integratedreproductivehealth To reduce the Maternal Mortality Ratio 3 HIVandAIDS, TB andSTIs To halt and begin to reduce the spread o f HIV, TB and STIs through effective interventions 4 Malaria To reduce incidence and mortality due to malaria 5 Epidemics To improve public healthsurveillance and control o f epidemics 6 Hygiene, sanitation and safer water To promote and implement appropriate interventions aimed at improving hygiene and access to acceptable sanitation and safer water I 7 1 I Humanresources To train, recruit and retainappropriate and adequatestaff at all levels 8 1 Essential drugs and medical 1ITo ensure availability o f essential drugs and medical supplies at all levels 9 Infrastructureand equipment To ensure availability o f appropriate infrastructure and equipment at all levels 10 Systems strengthening To strengthen existing operational systems, financing mechanisms and governance arrangements for effective delivery o fhealth services 17.2.3 Malaria Malaria remains a major public health problem in Zambia, accounting for nearly 40 percent of all outpatient attendances and 50 percent o f cases among children under-five years o f age. I t is estimated that malaria is responsible for nearly 4 million clinical cases and 50,000 deathsper year, including up to 20 percent o f maternal mortality. Malaria incidence rates inZambia tripled over the three decades, from 121/1,000 in 1976 to 396/1,000 in 2003 due predominantly to chloroquine resistance; reduced vector control; limited access to quality care and poor clinical care management; HIV and AIDS; and poverty. The Government is implementing the Roll Back Malaria (RBM) programme. The main components o f the programme include a change in the malaria treatment policy to address the emergence of chloroquine-resistant strains; indoor residual spraying; improvements in methods o f diagnosis for malaria; promotion o f the use o f insecticide treated nets (ITNs); and staff training. 17.2.4 HIV/AIDS, STls and Tuberculosis According to the 2001/2002 Zambia Demographic and Health Survey (ZDHS), HIV prevalence in the 0 general population was estimated at 16 percent o f the population aged 15 to 49. The infection rate was higher among women, at 18 percent, than men at 13 percent. The place of residence is also closely associated with HIV levels and the rate was twice as high in urban areas as in rural areas (23 percent and 11 percent, respectively). Provinces with levels above the national average include Lusaka (22 percent), Copperbelt (20 percent), and Southern (18 percent). Approximately 39.5 percent o f babies borqto HIVpositive mothers are infected with the virus. Voluntary Counselling and Testing (VCT) and Prevention o f Mother to Child Transmission (PMTCT) programmes were introduced in2000. There are currently about 72 VCT and 83 PMTCT centres country-wide with further expansions ongoing. In2002, the Government introduced provision o f anti-retroviral therapy (ART) inpublic health institutions. The numberofcentres providing ART increased from 53 in2003 to 84 in2004 while the number o fpatients Fifth National Development Plan 2006 -2010 162 on ART stood at around 43,000 by the end o f 2005. The Government targeted to have 100,000 eligible HIV patients on ART by the end of 2005. The Government has now adopted a policy to provide free ART services to all eligible patients. With regard to sexually transmitted diseases, Central Board o f Health (CBoH) Syndromic Guidelines indicate that over 10 percent o f the reported outpatient attendance to clinics is due to sexually transmitted infections (STIs). The 2001 to 2002 ZDH shows that 7 percent o fwomen and 8 percent o f men inthe 15 to 49 age group have syphilis. Tuberculosis (TB), on the other hand, is one o f the major non-pneumonia respiratory infections in Zambia. TB notification rate increased from 105 per 100,000 population in 1985 to 545 per 100,000 population in 2002 mainly due to the HIV/AIDS epidemic. It is estimated that 70 percent o f patients with TB are HIV positive. The peak age group for TJ3 is 20 to 35 years and the annual risk o f infection inZambia is estimated to be around 2.5 percent. Inrecent years, cure rates have improved from 58 percent in2001 to 64 percent in2004. Similarly, the treatment success rate improved from 74 percent in 2003 to 77 percent in 2004. These improvements were largely attributed to the successful implementation o f a number o f interventions such as the Directly Observed Treatment Short-course (DOTS) and improved supply o f TB drugs. 17.2.5 Integrated ReproductiveHealth The Maternal Mortality Rate increased from 649 per 100,000 live birthsin 1996 to 729 in2002 (which i s one o f the highest in the world) despite high antenatal attendance, currently estimated at 80 percent for urban and 68 percent for rural areas. It is estimated that approximately 50 percent o f maternal mortality is directly attributed to postpartum haemorrhage, sepsis, obstructed labour, abortion and eclampsia. Indirect causes o f maternal mortality include malaria, anaemia and HIV/AIDS related conditions. Other contributing factors include delays in accessing health care at community and health centre levels. Although on average 92 percent o f all pregnant women received some kind o f ante-natal care during the period 2000 to 2005, only an average of 38.5 percent delivered in health facilities (institutional deliveries) during the same period. However, the number o f supervised deliveries (a combination o f deliveries by both institutional and trained traditional birth attendants) increased from 39 percent in 2000 to 62 percent in 2005. The national antenatal coverage also rose from 90 percent in 2000 to 93 percent in 2005. For the Prevention o f Mother to Child Transmission (PMTCT) plus programme, an average o f 5,000 women were being counselled each month. The main challenges in integrated reproductive health include shortage o f appropriately trained staff; socio- cultural factors leading to delays in seeking health care; poor transport and communication systems resulting indelays in reaching facilities; poor quality of ante-natal care; inadequate appropriate infrastructure and equipment; and inadequacy o f drugs and other essentials. 17.2.6 Child Health Child mortality rates have inthe recent past shown some slight decrease. During the period from 1992 to 2002, the Under 5 mortality rate declined by 12 percent, from 191per 1,000 live births to 168, while infant mortality rate declined by 11 percent from 107 per 1,000 live births to 95. Despite these decreases, the current child mortality rates are still unacceptably high. The major causes o f child mortality are malaria; respiratory infection; diarrhoea; malnutrition; and anaemia. HIV and AIDS is increasingly contributing to morbidity and mortality in children. Malnutrition has also been on an increase, which is attributed to the worsening poverty levels and increase in food insecurity as well as sub-optimal infant and young child feeding practices. There is also a general critical deficiency o f micro-nutrients (iodine, iron and Vitamin A) among both children and expecting mothers. Under the 2001 to 2005 national health sector plan, various child health interventiondstrategies were implemented. These included promotion and support for nutrition and immunisation and management o f common childhood illnesses. Immunisation coverage in Zambia is higher than in most Sub-Saharan African countries, with coverage rates for measles, DPT3 and polio inthe range o f 80 to 85 percent and TB vaccination (BCG) at above 90 percent of the eligible populations. Fullimmunisation coverage in 2004 stood at 80 percent. Although improvements have been noted in child health, the constraints in achieving high impact include the inadequate coverage o f effective child health interventions and the poor quality o f services FifthNational Development Plan 2006-2010 163 provided. The major reasons for this include the critical shortage of skilled staff, weak infrastructure and inadequate hnding for child health interventions. The challenge for the health sector is to scale-up child survival interventions, including immunisation, management of childhood illnesess, management o f the new born, nutrition promotion and strengthening o f school health programmes. 17.2.7 Nutrition Nutrition and health are interrelated. Malnutrition, longrecognised as a serious public health problem in Zambia, has now worsened. The latest figures on Protein Energy Malnutrition (PEM) indicate that 47 percent o f Zambian children are stunted, 28 percent are underweight while 5 percent are wasted. These rates are among the highest inthe sub-region. The highprevalence o f HIV andAIDS inZambia has had a negative influence on breast-feeding. Exclusive breast-feeding until six months o f age has become less o f an automatic choice because o f the possibility that an infected woman can pass on the AIDS virus to her childduringbreast-feeding, which calls for introducing infantandyoung childfeedingpractices that reduce the risk o f transmission while minimising the risk o f other causes o fmorbidity and mortality. Micronutrient deficiencies continue to be o f public health concern with Vitamin A deficiency being a major public health problem. Statistics indicate that 5 percent o f children between 6 to 59 months have severe vitamin A deficiency and 49.1 percent had moderate vitamin A deficiency. Statistics also show that 50 percent o f women attending ante-natal clinics and 15 percent o f children under 15 years have Iron deficiency, while 65 percent o f the children, 39 percent o f the women and 23 percent o f the men are anaemic. One critical aspect that needs to be considered i s the dietetic management o f in-patients and referrals for non-communicable diseases which has not received much attention. There will be need to focus on adolescent and maternal nutrition which has also not received much attention in health programmes in the past. The inadequate staffing and capacity at national and provincial level to provide support to districts has contributed to poor implementation o fnutritionprogrammes and will require strengthening. 17.2.8 Other Diseases Aside from malaria, TE3, and HNIAIDSISTIs, other diseases contribute significantly to the disease burden inZambia. These diseases include acute respiratory infections, diarrhoea, worm infestations and bilharzias (schistosomiasis) and non-communicable diseases (NCDs). Schistosomiasis (bilharzias) is prevalent in rural districts especially those close to lakes and rivers. It is estimated that close to 2 million people in Zambia are infected with bilharzia. The prevalence is as high as 90 percent in some communities. Children are often heavily infected, and then suffer serious morbidity several years later when as adults their liver, bladder and kidneys become affected by trapped eggs. Infections with intestinal helminths (hookworm, ascaris and whip worm) are also very common and found throughout the country. Heavy infections cause anaemia inchildren andpregnant women. 17.2.9 Other Main Challenges Essential drugs and medical supplies still pose vexing challenges to the health system in Zambia. The 2001 to 2005 National Health Strategic Plan projected the availability o f essential drugs at 85 percent by the year 2005. Over the past 4 years, the bulk supply o f essential drugs and medical supplies was erratic, with as much as 50 percent o f essential drugs being out o f stock during some periods in each o f the years under review. However, the availability o f rural health centre kits was fairly steady. Health centre stocks, on average, improved from 73 percent in 2002 to 76 percent in 2004. A number o f activities were undertaken inthe area o f essential drugs and medical supplies. These included the following: a) Development o f a three-year procurementplanfor the period 2005 to 2007; b) "Essential Drugs" and "Tracer Drugs" lists were developed, intended to help in the monitoring o f stocks and management o fprocurement for critical drugs and supplies; c) Inorder to facilitate enforcement o f quality assurance legislation, the National DrugPolicy Steering Committee (NDP-SC) carried out in 2003 a review o f the Food and Drug Act and Laboratory to establish their capacity to effectively enforce quality control on medicines; and Fifth National Development Plan 2006-2010 164 d) in order to improve the quality o f donated drugs and medical supplies, in2004 the Pharmaceutical Regulatory Authority (PRA), in collaboration with various stakeholders, produced guidelines on donation o f drugs and medical supplies, which are awaiting dissemination. Shortages and inappropriate clinical usage o f drugs and medical supplies still remain major problems. Efforts need to be enhanced in the dissemination and enforcement o f compliance with recognised/ recommendedtreatment guidelines andprescriptions. With respect to infrastructure development, there are challenges related to distribution o f health facilities and the state o f existing infrastructure. It has been estimated that less than 50 percent o f the rural population live within 5 kilometres o f the nearest health facility compared to over 90 percent for the urbanpopulation. This has the effect o f limiting access to the much needed health services. On the other hand, the deterioration o f health facilities has reached a stage where urgent repairs and replacements are required for the health system to fbnction effectively. Various issues have contributed to this state o f affairs, including inadequate financial resources; emphasis on an expansion o f the network rather than on the rehabilitation o f existing facilities; lack o f a preventive maintenance policy (and guidelines); and lack o f skilled staff for preventive and corrective maintenance. Analysis o f the Joint Investment Plan 2001 to 2005 clearly shows that there is inadequate investment going to infrastructure. in order to provide information that would feed into the development o f a prioritised capital plan, the Government commissioned a health facility census in 2004. Information generated from the census will be usedto develop infrastructure development plans. Furthermore, efficient and effective delivery o f clinical care also depends on the availability o f appropriate equipment and accessories,The list o f essential equipment and accessories has already been defmed for the health post, health centre and level one district hospitals. Work has continued on the development o f lists for the level 2 and 3 referral hospitals. The remaining challenges at this level include developing appropriate equipment management plans whose objective would be to restock clinical centres with the right quantities o f appropriate equipment; develop criteria to determine human resource needs for equipment management and maintenance; develop appropriate maintenance facilities, with appropriate tools and equipment; and allocate adequate budget fbnds for maintenance activities at all levels o f service delivery. Gender mainstreaming is another challenge facing the health sector. Zambia still shows major gender disparities in some health outcomes such as HIV/AIDS prevalence. Overall, the issue o f gender differences in access to health care and the impact on health outcomes does not seem to have received the attention it deserves. Currently, the participation o f men in reproductive and family health is still relatively low; gender policies are not transformed into concrete action plans; there is no collection o f gender-disaggregated data within the health management information system (HMIS) and there are fewer women inmanagement positions at all levels o f the public health system. Mainstreaming gender inthe health sectorhasbeenhamperedbyinadequate conceptualunderstandingofgender andtechnical expertise and inadequate appreciationo f linkages between gender andhealth. Lastly, in line with government policy in mitigating the impact o f HIV and AIDS for its members o f staff, the health sector has developed plans aimed at implementing a programme on HIV/AIDS in the work place through creation o f HIV/AIDS campaigns at places o f work and support to those infected through the provision o f free ARVs. 17.3 Policies and Key Reforms A policy decision was made by Cabinet in 2004 to restructure the health sector. Consequently, the National Health Services Act o f 1995, which created the Central Board o f Health (CBoH) and Health Boards was repealed to pave way for restructuring the health sector. An assessment o f the functions o f MoH and CBoH conducted in 2002 concluded that "the dividing line between the two institutions remained thin", and that there was evidence o f duplication o f fbnctions resulting in "a bloated and costly central level structure." The main challenge during the FNDP period i s to proceed with the reforms and to ensure that the systems that were developed and served well are protected and that Fifth National Development Plan 2006 -2010 165 interruptions to service delivery are minimised. To this effect, the provincial and district level structures shall be retained in their present form. Statutory bodies, both regulatory and service,6 shall continue to play an important role inthe attainment o f the overall government health policy. These statutory bodies have been operating inisolation despite the Government establishing a coordinating mechanism through Statutory Instrument No. 147 o f 1997, which established the National Public Health Regulatory Authority Board (NPHRAB). This challenge shall be addressedduring the FNDP. I t is government policy to support private-public-partnerships (PPP) inhealth services delivery and the FNDP period shall strive to enhance this. The private health sub-sector may be defined as comprising all providers who exist outside the public sector whether their aim is philanthropic or commercial, and whose aim is to treat illness or prevent disease. There is a small but growing private sector comprising o f the private for profit organisations (private clinics and hospitals); the private not-for profit organisations (such as the Churches HealthAssociation o f Zambia) and an increasingnumber o f NGOs that operate at community level. The PPP policy aims at consolidating achievements by strengthening the implementation, hctioning and performance o f District Health Boards, Health Centre Committees, andNeighbourhoodHealth Committees. The Government maintains that this informal health sub-sector caters for the majority o f clients inneed o f health care though there are substantial concerns about the quality o f care given, especially at the more informal end o f the range o f providers. The main challenge for the Government during the FNDP is to strengthen its regulatory role to ensure that services provided by the private sector conformto national standards and guidelines. The health reforms embarked on in 1992, introduced the concept o f cost sharing in all public health institutions. The rationale behind the introduction o f user fees was that this would create a sense o f ownership o f the health care delivery system, regulate health seeking behaviour so as to reduce moral hazard associated with provision o f "free services" and raise some revenue to supplement funds from the central treasury for quality improvement. It has, however, been realised that user fees constitute a formidable barrier to access to health services by the poor and are a form o f direct tax that falls most heavily on the poor. The user-fee exemption system put in place proved to be ineffective due to difficulties intargeting exemptions to intended beneficiaries, namely the vulnerable, children under the age o f 5 andpeople with chronic conditions like TB. In early 2006, Government abolished user fees for primaryhealth care services with the aim o f allowing those unable to pay to access health services. The process of removinguser-fees is being done inphasesbeginning with rural areas and eventually scaling up to cover the whole country. Lastly, it is the policy o f the Government to make available at least one f i s t level hospital in each district, which would operate as a referral hospital to satellite health centres. Although there are currently 74 first level hospitals, there are 19 districts without a level one referral hospital. During the implementation o fthe FNDP, more emphasis shall be placed on constructing first level hospitals ineach o f the remaining districts. The Government has also recognised the need for rightsizing health facilities, which will involve reclassifying some level two hospitals to level one and some level one hospitals to health centres. To meaningfully address these processes during the FNDP period, the Government shall focus on the main challenges that include the need to complete the health facility infrastructure development plan in order to ease the allocation o f resources as well as prioritisation o f capital projects in under-served areas. Other interventions shall include: a) Finalisation o f the health facilities (infrastructure) databank to serve as a source o f information for formulation o f development andprocurement plans for capitalhfrastructureprogrammes; b) Finalisation o f infrastructure standards andguidelines, which will form the basis for implementation ofprogrammes; c) Approval o f the draft maintenance policy, whlch will provide guidelines on how to manage repairs and maintenance o f infrastructure; and d) Increasingallocations to capital investmentprogrammes. Fifth National Development Plan 2006-2010 166 17.4 Visionand Goal The vision is: Equitable access to cost-efective and quality health care by 2030. The goal is: To improve the health status of the people in Zambia in order to contribute to socio- economic development in line with the Millennium Development Goals (MDGs). 17.5Programmes, Objectivesand Strategies The matrix below presents the health sector's programmes, objectives and strategies during the FNDP period. or: Health Programmes Objectives Strategies Human To train, recruit and Improve the availability o f an appropriate mix o f human Resource retain adequate and resources for health through training, recruitment and retention Development appropriate staff at all o fhealthworkers; and levels Train health providers in sign language to adequately cater for Management the healthneeds o f the deaf; Strengthen systems for human resource management, planning and development; Strengthen the regulatory role o f certification and registration o f healthprofessionals; Develop appropriate mechanisms for retaining healthworkers; Review existing health legislation to increase the scope o f the healthprofession Basic Health - To provide efficient and Finalisethe BHCP for all levels; Care Package cost-effective quality Develop and distribute standards, guidelines, logistics and basic health care services supplies for implementation and coordination o f essential at all levels o f the health clinical services; care delivery system as Strengthen the provision o f the essential package o f care at defined in the Basic primary, secondary and tertiary level as required; Health Care Package Strengthen the referral system in order to support the implementationo fthe BHCP; Develop the capacity o f health providers through pre-service and in-service training o f health workers in essential clinical services Malaria To reduce morbidity and Scale-up integrated vector management interventions, including Control and mortality due to malaria access and usage of ITNs and indoor residual spraying; Prevention inthe general population Scale-up prevention o f malaria during pregnancy, through intermittentpresumptive treatment; Improve laboratory diagnosis for malaria; Scale-up the use o f Coartem to the private sector and community healthworkers; Strengthen national, provincial and district health systems' capacity to effectively and efficiently plan, implement and manage malaria control efforts; Develop and implement an effective information, education and communication system in order to impart knowledge and skills to families and communities for effective prevention and control o fmalaria HIVIAIDS and To halt new infections Facilitate the strengthening o f the multi-sectoral response STIs and begin to reverse the to HIV and AIDS; spread o f HIV and STIs Scale-up prevention activities through increased promotion and through effective support to ABC programmes and culturally sensitive IEC; interventions Increase access to BN and AIDS counselling and testing, in health facilities and at community level including special groups such as the disabled; Strengthen PMTCT activities through integration with maternal and child health and routine HIV testing in antenatal clinics; Expand access to ART for eligible adults and children; Expand access to other sexually transmitted infection interventions Tuberculosis To halt new infections Expand and strengthen the TB DOTSDOTS plus programmes Control and and begin to reverse thg inallprovinces; FifihNationalDevelopment Plan 2006-2010 167 3r: Health Programmes Objectives Strategies Prevention spread o f TB through Scale-up and strengthen diagnostic services inall districts; effective interventions IntroducingTB/HIV collaborativeactivities inall districts; Scale-up public/private partnerships inTEVHIV programmes; Improve the nutritional and socio-economic status o f TB patients and care-givers Integrated To reduce the Maternal Strengthen the quality and expand coverage o f reproductive Reproductive Mortality Ratio (MMR) healthservices, including essential obstetrics ante-natal clinics, Health by three-quarters family planning, delivery and post-natal services; Provideemergency obstetric care for all levels o f care; Promote continuum o f care from traditional birthattendants to referral centres throughprovision o f appropriate training, tools, logistical support and incentives; Accelerate midwifery training and ensure equitable distribution and retentiono f midwives; Strengthen programmes for health education, screening, treatment and care o f cervical, breast and prostatecancers Promote male responsibility and participation in family planning Child Health To reduce the mortality Scale-up and strengthen community and facility based rate among children Integrated Management o f Child Illnesses (IMCI) in all under the age o f five districts; years by two-thirds Strengthen the Expanded Programme for Immunisation in all districts; Facilitate the strengthening and expansion o f the school health programmeinthe country; Strengthen the care of new born babies incommunities and all health facilities; Promote and strengthen the involvement o f the private sector in child survival programmes Nutrition To contribute to the Strengthen the National Food and Nutrition Commission for reduction in morbidity optimal coordinationo f nutrition programmes inall sectors; and mortality among the Strengthen nutrition service delivery in HIV and AIDS general population programmes and activities; through improved Promote optimal feeding practices for infants and children in provision o f nutrition order to improve their nutritional status, growth development services and survival chances; Promote maternal nutrition inpregnancy and during lactation; Provide support to micronutrient deficiency prevention and control (supplementation); Strengthen the growth monitoring and promotionprogramme; Provide information on balanced diet including food aid management services to inand out-patients; Strengthen the School Health Programme Environmental To reduce the incidence Strengthen capacity in enforcement o f environment health Health o f water borne and vector policies and legislation; borne diseases Promote the establishment o f new and strengthening o f existing Water, Sanitation and Hygiene Education (WASHE) Committees at national, provincial, district and sub-district levels; Strengthen coordination and management o f environmental healthat all levels o f care Mental Health To improve mental health Strengthen the policy and legal framework for mental health; services at all levels o f Develop standards and guidelines for management o f mental care healthservices; Strengthen partnerships inmental health; Promote public awareness and education on mental health, especially prevention of mental illnesses; Promote the integration o f mental health patients into their families and communities; Promote the integration o f mental health in all relevant community based programmes; Strengthen coordination, management, monitoring and evaluationo f mental healthprogrammes; Strengthen programmes in the area o f alcohol, drug and substanceabuse, including HIV and AIDS Fifth NationalDevelopment Plan 2006-2010 168 )r: Health Programmes Objectives Strategies 3ral Health To improve the status o f Strengthen the policy framework for oral health; xal healthservice Scale-up oral health services to all districts; Promote oral health awareness and education; Integrate oral health in child health and HIV and AIDS programmes Helminthes r o control Promote the use o f chemotherapy through the School Health and other schistosomiasis and other Programme; Parasitic parasitic infestations Providehealth education; [nfestations Support provision o f safe water and adequate sanitation standards Dther Non- To alleviate the burden o f Develop policies on NCDs; Communicable other Non- Improve capacity o f the health system to respond to Diseases Communicable Diseases NCDs; W D s ) Integrate NCDs into Integrated Disease Surveillance and Response (DSR) Essential To provide equity o f Undertake periodic baseline surveys on the use o f drugs Drugs and access for all Zambians and medical supplies; Medica1 to good quality, Ensure efficient procurement, storage, distribution and rational Supplies efficacious and safe use o f drugs and medicalsupplies; essential drugs and ' Encourage the establishment o f a strong local pharmaceutical medical supplies and chemical industry to lower the costsif drugs Blood To ensure nationwide a) Streamline the blood transfusion system; Transfusion availability and rational b) Establish and operate an efficient coordinated national blood Services use o f safe blood and transfusion service that adequately meets national demand and blood products capability to effectively respond to emergencies at all times; c) Ensure adequatesupplies o f safe blood at all times Laboratory To provide appropriate, a) Review and maintain an appropriate policy and legal Support efficient, cost-effective framework; Services and affordable laboratory b) Review, develop and ensure adherence, laboratory protocols support services at health and standard operating procedures; centre and hospital levels c) Strengthen existing systems for stores management of throughout the country laboratory reagents and supplies; d) Strengthen coordination and management o f laboratory services; e) Ensure availability o f adequate and appropriate laboratory equipment and reagents Medical To provide efficient, a) Institute operational mechanisms on procurement, installation, Imaging cost-effective and safe repair and maintenance o f equipment; Services medical imaging and b) Deploy trained staff in key imaging modalities such as radiation therapy ultrasound, mammography and radiotherapy in underserved areas; c) Strengthen medical imaging and radiography through the development and implementation o f policy and procedural guidelines for imaging services; d) Adopt the use of imaging services for managingcancers Infrastructure To provide sustainable a) Establish a healthinfrastructuredatabase; infrastructure, conducive b) Define appropriate sizes and types o f health facilities for the for the delivery o f quality different levels o f care which can also cater for the needs o f the health services at all physically disabled; levels o f the health care c) Develop preventive maintenance plans o f infrastructure at all system levels o fcare; d) Prioritise the provision o f appropriate infrastructure to underserved areas including training institutions Medical To ensure the availability a) Develop standard checklists for essential equipment and Equipment o f adequate, appropnate accessories; and and well-maintained b) Establishand maintain an equipment database; Accessories medical equipment and c) Develop and implement appropriate equipment development accessoriesin accordance plans; with service delivery d) Enhance capacities for management and maintain equipment a1 needs at all levels all levels. Gender To provide equal a) Institutionalisegender within the organisational structure o f the Mainstreaming employment and training Ministry o f Health through establishment o f a gender opportunities to all management system; Zambians b) Integrate gender training into staff development programmes; c) Establishgender sub-committees within the health care deliveq FifthNational Development Plan 2006-2010 169 or: Health Programmes Objectives Strategies system; d) Develop and disseminate gender mainstreaming guidelines to all levels o f the health care delivery system. HIV and AIDS To mitigate the impact o f a) Create awareness o f HIVlAIDS at work place for all workers Work Place HIV and AIDS on the inthe healthsector; Programme work force o f the health b) Provide free medications (ARVs and drugs for opportunistic sector infections) to all workers inthe health sector as well as to their immediate family members; c) Provide nutritional supplements to all workers in the health sector infectedwith HIV when need arises; d) Promote VCT and other interventions to reduce stigma in the workplace Health To ensure availability of a) Strengthen the HMIS capacity to monitor health sector Management relevant, accurate, timely performance and production o f sex disaggregated health Information and accessible health care information; System data to support theb) Strengthen ICT through making the database more flexible and (HMW planning, coordination, strengthening o f decentralised information centres that are monitoring and linkedby internet to a central data clearing house; evaluation o f health care c) Undertake programmeoriented research to improve feedback services Integrated To significantly improve a) Strengthen the country's capacity to conduct effective Disease public health surveillance surveillance for both communicable and non-communicable Surveillance and control o f epidemics diseases; b) Strengthen laboratory capacity and involvement in confirming pathogens and monitoring o f drug sensitivity; c) Review HMIS inthe context o f IDSR to include integrated data collection, and strengthening its capacity to monitor the burden o fNCDs Financial and To implement a simple, a) Scale-up implementation o f FAMS to all levels o f the Administration comprehensive, timely, healthdelivery system; Management reliable, accountable and b) Integrate HMIS, FAMS and other information systems System transparent financial and into a single reporting system at all levels; @'AMs) administration c) Integrate FAMS indicators in performance audits, supportive management system at all supervision and accreditation activities at provincial, hospital levels o f the healthsector and district levels Health To facilitate effective and a) Strengthen the health education unit to provide technical Educationand efficient health education coordinationo f all healthpromotion activities; Promotion and promotion b) Buildcentral, provincial, district, health centre and community programmes focal point capacity and capability to plan and manage health communication; c) Establishcollaborative systems with partners, stakeholders and allies to support healthcommunicationprogrammes; d) Advocate for public policies that support health; e) Promote o f the role o f the lay community to participate and be involved inparticipatory health communicationprogrammes; f) Develop social support systems to foster health development programmes; g) Initiate, developing and disseminating appropriate health learning materials h) Provide of technical and ethical professional guidelines in healtheducation and promotion Policy and To mobilise resources a) Promote adoption o f Health Financing Policy as a long-term Planning through sustainable guide for financial reform; means and to ensure b) Develop new tools for costing and budgeting and allocation efficient use o f those criteria for all levels o f care; resources in order to c) Improve the targeting of exemptions oncost sharing; promote equity o f access d) Improve coordination o f various health sector financing to cost-effective and mechanisms and expand the basket funding mechanismto cover quality healthcare all levels o fhealthcare, budget lines and statutory institutions; e) Coordinate resources from bilateral, multilateral and global initiatives to ensure efficient use o f external resources; f) Promote the use o f National Health Accounts as a tool for planning and resource allocation; g) Strengthen Health Systems Research through improved coordination and establishment o f a Research Ethics FifthNational Development Plan 2006 -2010 170 No. 1 Programmes I Objectives Strategies h) EstablishaNationalHealthEthics Committee a) Develop and maintain a well coordinated, reliable and transparent procurement and supply system that is acceptable to System transparent all stakeholders; accountable procurement b) Develop and enforce procurement management regulations and services to all service guidelines at all levels, based on the Zambia National Tender delivery levels of the Board and Financial and Administration Management healthsector Systems. regulations and guidelines; c) Develop and implement a long-term strategy for Medical Stores Limited, with performance indicators and clear targets; d) Ensure that the Drug Supply Budget Line (DSBL) i s established for funding drugs and medical supplies. 17.6 Implementation,Monitoring and Evaluation Framework The structures for coordination and implementation o f the FNDP will include the MoFNP, the health sector Advisory Group (SAG), the M o H headquarters, Statutory Boards, Provincial Health Offices, DHMTIDHB, health facilities (provincial, mission and district hospitals, health centres, health posts). Each o f these institutions will have specific coordination and implementation functions as follows: Annual ConsultativeMeeting: An annual consultative meeting will be held inDecember every year and the purpose o f this meeting will be to review annual action plansiMTEF for the following year as submitted by the Ministry o f Health including financial commitments and pledges from all cooperating partners (CPs). Health Sector Advisory Group (SAG): The Health SAG will be responsible for overall steering o f the implementation process. The SAG will meet quarterly to review progress, recommend solutions to identified bottlenecks andbuildconsensus on the overall strategic direction o f the FNDP. Monthly Policy Meetings: Policy meetings between M o H and its CPs will be held every last Thursday o f the month and will serve to identify and review areas o f concern that impede implementation o f health services and requiring immediate policy interventions. Ministry of Health: The Ministry o f Health will be responsible for the overall functionalitechnical coordination o f the FNDP implementation. Explicit activities for plan coordination will, therefore, be an integral component o f the Planning Directorate's annual action plan. Concurrently to the coordinating function, the various M o H directorates and units are responsible for the implementation o f aspects o f the Plan in line with their defined roles and responsibilities. Policy development, legislative changes, strategic decision-making, standardsetting and enforcement will therefore, predominate at this level. Provincial Health Ofices: Provincial Health Offices will continue serving as intermediaries for operationalisation o f the FNDP. They are the MoH's functional link with the lower level structures, training institutions and civil society. PHOs will specifically ensure that the priorities and scope o f the hospital and district MTEF and action plans are informed by the parameters provided through the FNDP. Districts and Hospitals: Hospitals and districts will serve as the major implementing agencies for this Plan. The harmonisation o f the district and hospital plans to match the aspirations o f the FNDP will, therefore, be crucial for successful implementation. With respect to the monitoring function, this shall be done routinely depending on the type and relevance o f the indicators, on a monthly, quarterly, bi-annual and annual basis. The health management information system, FAMS and other routine systems will be the major tools for data collection. The SAG, M o H and other agencies will primarily use this data and its analyses for decision-making. There will be two evaluations during the duration of the FNDP. These will consist o f a mid-term Fifth National Development Plan 2006-2010 171 assessmentafter the first two and halfyears o f implementation and a comprehensive final evaluation at the end o f the Plan period. The mid-term assessment will focus on progress made in plan implementation and assess the appropriateness o f the overall strategic direction. It will be designed to inform the remaining period o f the Plan and recommend adjustments as needed. The final evaluation will focus on the impact/outcome o fthe FNDP and assist inproviding the contextual framework for the subsequentplanningperiod Fifth NationalDevelopment Plan 2006-2010 172 I 4 E a, Arts and Culture 18.1 introduction Culture is defined as the whole complex o f distinctive spiritual, material, intellectual and emotional features that characterises a society or social group. It includes not only the arts and letters, but also modes o f life, the hndamental rights o f the human being, value systems, traditions and beliefs. It represents a unique and irreplaceable body o f values and its presence i s demonstrated through traditions and forms o f expression. The strength o f culture in Zambia lies in its diversity whose features include national heritage sites, museums, performingarts, traditions, beliefs and ceremonies. The Zambian society comprises 73 ethnic groups, each with its own set o f traditions and forms o f expression, which demonstrate their cultural identity. The proliferation o f ethnic traditional ceremonies and the expressed desire by several ethnic language groups for their languages to be given recognition in the educational system and the media raise the need for deliberate policy measures to be put in place to protect, stimulate and enrich each ethnic group's cultural identity in order to build up a rich and diverse Zambian cultural identity. Increasingly, the Government recognises the possibility that the promotion of arts and cultural activities can harness local talents, skills and heritage that may provide innovative possibilities for raising incomes and generating quality employment and wealth creation. The preservation o f a nation's history and cultural heritage is a major factor in the maintenance o f the nation's identity and pride. The National Museums Board, National Heritage Conservation Commission, National Arts Council and Department o f Cultural Services apart from contributing to the preservation of Zambia's heritage and the buildingup o f a rich historical knowledge base for the information, education and enjoyment o f present and hture generations are foreign exchange earners for the country through cultural tourism products. Cultural institutions are essential institutions in the country's efforts to collect, preserve, document and interpret its past. Their extensive coverage, nature and character are a measure o f the country's culture and history and determination to maintain national identity. There are currently four national museums maintained and managed by the National Museums Board, namely Livingstone Museum in Livingstone; Mot0 Mot0 Museum in Mbala; the Copperbelt Museumin Ndola; and the Lusaka National Museumin Lusaka. These museums endeavour to manage and preserve the movable heritage o fthe peoples o fZambia. 18.2 Review of fast Performance The cultural sector has continued to face a number o f challenges over the years. Cultural infrastructure is largely underdeveloped, particularly buildings. For example, there is lack o f cultural theatres and arenas where members o f the public can perform as well as storage facilities which can accommodate collected artefacts for posterity. In a liberalized economy, private sector participation is crucial and therefore culture-based private sector entrepreneurship endeavours become self-rewarding while government institutions become main facilitators o f the economic development process. The decline in public expenditure which characterized the 1990s adversely affected capital projects and programmes which required government cash injections under the operation o f the cash budget system. This has resulted in the steady erosion o f the capacity o f cultural institutions to effectively contribute to national development. A prolonged neglect o f these institutions led to their run down with devastating effects on the quality o f services provided to clients and the public in general. Tourist access roads to these institutions and heritage sites have also remained virtually undeveloped. The stagnation in the number o f cultural establishments and deterioration in the quality o f services was exacerbated by a weak regulatory framework that existed in the period prior to 2000. This discouraged private sector investment in the cultural industry thereby stifling competition which i s a pre-requisite for good management and efficient and effective provision o f quality public services. This also led to unsatisfactory performance in terms o f services offered and amount o f revenue generated internally. Furthermore, high inflation rates coupled with the credit squeeze in the financial sector affected the development o f tourist resorts which are supposed to provide backward and forward linkages from which Fifth National Development Plan 2006-2010 176 cultural industry could benefit. However, the institutions have continued to exist on account o f government subvention and if properly financed have great potential to contribute to national economic growth. Following the enactment o f the National Arts Council Act No. 31 o f 1994, there has been a growth in cultural activity. Prior to this, the Government enacted the National Museums Board Act N o 174 in 1966, aimed at preserving Zambia's movable cultural and natural heritage. Although cultural activities may be perceived to be widespread inZambia, the development o f cultural industries is rarely treated as a serious economic venture and few practitioners are actually able to make a living solely based on their artistic trade. In 1996, the National Arts Council was established. In addition, the Government launched the National Cultural Policy in2003. The Government recognises that cultural industries and activities can only grow and become competitive economic ventures when they have clear and well-developed channels for their outputs. The lack o f adequate markets for cultural goods and services in Zambia is frequently identified as a major obstacle to the development of a truly vibrant and economically viable cultural sector. Zambia currently has inadequate cultural infrastructure and production materials. This has hindered the production and marketing o f culture. Inaddition, the centralisation o f cultural institutions has made it difficult for people to hllyparticipate indecision-making concerning cultural life. With regard to gender inequalities, the Cultural Sector Support Programme-funded cultural sector Mapping Report found that there are more menparticipating inthe cultural sector than women. Inview of this, the Government sees the need to promote equal opportunities for artistic cultural expression among women andmen. Another area that requires attention is cultural education. The development and promotion o f cultural educationimplies not only the formulation o f specific programmes designed to foster cultural appreciation and support groups or institutions engaged in creation and dissemination, but also the encouragement of activities that will stimulate public awareness o f the social importance o f culture and intellectual creation. However, this has not been the case and in an effort to reinforce other existing cultural institutions, the National Arts Council was created. Infrastructure for cultural creation andmanifestation is inadequate and in various states of disrepair. Furthermore, protection o f artistic and intellectual property is yet to be realiseddespite the necessary legal framework havingbeen instituted. Since the mid-l990s, several positive developments have been recorded with respect to the integration o f culture in the mainstream o f national development by putting in place policies, legislation and other strategies aimed at the preservation, development and promotion o f culture for sustainable development. The key focus areas o f cultural development andpromotion are: a) Safeguarding o f intangible and tangible cultural heritage; b) Development andpromotion o fculture for sustainable humandevelopment; c) Promotion of indigenous knowledge systems, folklore and cultural industries; d) Preservation o fcultural heritage; e) Creation o f employment; and f, Promotion o fhealth. Positive attempts have been made to develop the following areas o f culture: Cultural Research: In this field, the Government, through its stakeholders, has purchased research instrumentsandconducted someresearch inthe following areas: a) Folklore and intangible heritage in which traditional ceremonies have been recognised and they receive government grants annually; b) Luvale culture has been documented and forwarded to UNESCO, Paris for proclamation as a World Heritage (Mukanda and Makishirituals); c) Research has also been conducted inZambiantraditional names and their meanings; d) The publication of a map on the tribes o f Zambia, their music, dance and language and their location hasbeenundertaken; e) The NationalArchives o f Zambia has recorded traditional musical sounds o f Zambia insupport o f the preservation andpromotion o f indigenous music; and Fifth National Development Plan 2006 -2010 177 f) The Government has established the Centre for the Arts at the University of Zambia for capacity building andcontinued research inthe field o f folklore and intangible cultural heritage. Promotion of Cultural Industries: The Government has developed a deliberate policy o fproviding venues for production and marketing o f cultural goods and services by rehabilitating and constructing cultural centres. The reduction in import duty on artistic goods and equipment has eased access to equipment by artists andpractitioners. Moreover, in 1996 the Government established the NationalArts Councilthrough which the various National Arts Associations have given apprenticeship training invarious artistic skills such as visual arts, popular theatre, music and dance, the film industry and the entrepreneurship skills in the "start your business" (SYB) programme. This programme is spearheaded by the Ministry of Community Development and Social Services and the Ministry o f Community Development and Social Services inwhich at least 500 artists have been trained. Lastly, the Government has enacted the Copyright Act o f 1994 to reduce cases o fpiracy and copyright abrogation. Promotion of Museums: The existence of museums has contributed to diversification o f cultural products. The revival o f traditional ceremonies in many parts of Zambia will further improve cultural tourism product diversification. There is therefore, need to devise strategies which will revitalize the sector. There also exist opportunities in the external environment which both cultural institutions and local communities can take advantage o f in order to improve their operations and performance in service provision to their clients. The opportunities are that local communities are willing to effectively participate inthe promotion o f cultural institutions such as museums. Inaddition, cooperating partners are willing to participate in the establishment, development, management and promotion o f similar institutions through financial and technical assistance and o f late many cultural ceremonies inthe country have been revived providing many avenues for research and wide sources for the collection o f various historical and cultural objects. 18.3Policies and Key Reforms The major public sector institutions that will continue to operate in the cultural sector shall be the Ministry o f Tourism, Environment and Natural Resources (MTENR); Ministry o f Community Development and Social Services (MCDSS); National Arts Council; National Heritage Conservation Commission; and National MuseumsBoard. Inthe area ofpolicy, the main aim during the FNDPperiodwill beto operationalise Article 112 (g) ofthe Constitution, which states that the State shall take measures to promote the practice, enjoyment and development by any person o f that person's cultural tradition, custom, and language insofar as these are not incongruent with the Constitution. With regard to statutory frameworks, the Government shall continue to work towards the application o f the enacted laws that enhance the enjoyment o f cultural rights, such as the National Arts Council Act No. 31 o f 1994, the National Heritage Conservation Commission Act (1998), andthe Copyright and Performance Rights Act (1994). Inthis respect, support to the National Arts Council o f Zambia, the Zambia National Museums Board, and the National Heritage and Conservation Commission shall be enhanced, The Government shall also implement the new structure for the Department o f Cultural Services, focusing on, inter alia, devolving its structure down to district level. I 18.4 Visionand Goals The vision is: A thriving national cultural heritage and cultural sector industry by 2030. The goal is: Toprovide an enabling environment for safeguarding and promoting Zambian tangible and intangible heritage and to ensure the development andpromotion of cultural industries. 18.5 Programmes, Objectives and Strategies The matrix below presents the programmes and associated objectives and strategies for the cultural sector duringthe FNDPimplementationperiod. No. Objectives Strategies ~ Programmes 1 i Cultural Infrastructure To promote the a) Construct the National Cultural Centre in Lusaka and , development and Entertainment Theatre at Lusaka National Museum; w: Arts and Cultui Programmes Objectives Strategies -___ GGrvation o f Zambia's b) Prepare registers and inventory o f culture related cultural heritage associations, producers and potential beneficiaries and users o fcultural infrastructure; Establish central storage and auditorium for the National Museums Board for purposes o f preserving Zambia's cultural heritage and enhancing public programmes; Improve and upgrade museum exhibitions, heritage sites and related facilities; Establishmuseums inregional centres; Facilitate the rehabjlitation o f museum' buildings and provide storage facilihes conducive for cultural preservation. [ntangible Heritage To encourage the practice Facilitate the rehabilitation or construction o f spaces and expression o f culture, and venues for preservation, practice and expression such as folklores and art o f intangible heritage, such as theatres, museums and among indigenous people in heritage sites through provision o f grants and heritage institutions, e.g. technical assistance; museums and NAC; Create sound archives in cultural institutions, such as museums, to document and preserve traditional To preserve intangible music, dance and folklore o fZambian ethnic groups; heritage o f Zambia's ethnic Improve museum public programmes to increase groups participation of locaI people in preservation o f intangible heritage. InternationalCultural To enhance international a) Establish twinship among museum with similar Cooperation cooperation in support o f vision in various parts o f the world for purposes o f the development o f exchanging information and research findings. Zambian culture Promotionof Cultural To develop, produce and a) Expand the cultural industry range to include cultural Industries promote viable cultural products, such as exhibitions; works b) Establish viable handicraft centres to preserve traditional cultural skills and knowledge and economically empower handicraft producers by providing markets for their products in museum shops; c) Promote the practice and expression o f culture in museums as a way of promoting ethno-tourism; d) Hold food fairs to teach people the importance of traditional foods and how i t can economically be used inethno-tourism as well as culturalpreservation. - Cultural Research To generate knowledge on a) Strengthen research to enhance exhibitions and culture knowledge acquisitionby the public; b) Hold a stakeholders' conference on research in indigenous knowledge systems and folklore, such as the culture o f food and science among traditional communities. Capacity Building To enhance technical and a) Establish a cultural heritage institute that will locally financial capacity inculture; train. professionals to better manage culture To develop human resource to manage cultural heritage in order to derive economic and social benefits from culture 18.6Implementation,Monitoring and Evaluation Framework Cultural sector administration under the Ministry o f Community Development and Social Services shall continue to cut across a number o f line ministries, such as: a) Ministryo f Information and Broadcasting Services (under which Zambia Music Copyright Protection Society and film and cinema administration fall); b) Ministry o f Tourism, Environment andNatural Resources (under which the National Museums Board and the National Heritage ConservationCommission fall); c) MinistryofLocal Government andHousing(under which administration ofChiefs' Affairs falls); d) Ministry o f Science, Technology and Vocational Training (under which the training o f artists in colleges falls); and Fifth National Development Plan 2006 -2010 179 e) MinistryofHomeAffairs (under which the NationalArchives falls). The above state o f affairs calls for effective coordination o f arts and culture services to the nation and the FNDP period shall address this aspect. The culture and arts component of the FNDP will be monitored through the Sector Advisory Group. Fifth National Development Plan 2006 -2010 180 WATER AND S~NITAT~ON 182 U V h Water and Sanitation f9.f Introduction Zambia has vast water resources inform o f rivers, streams, lakes and ground water. However, declining rainfall patterns over the years have had a significant adverse impact on the country's water resources. Interms of groundwater, Zambia has favourable geological conditions for accessing groundwater with regard to depth, storage capacity, available yields and exploitation potential. The National Water Policy o f 1994, the 1994 National Environmental Support Programme and the Water Resources Master Plan, 1995 to 2015 have outlined strategies and comprehensive plans o f action to develop the water sector to realize this potential for Zambia's social and economic development. However, water resource management has not succeededto substantially improve access to water or prevent the pollution o fboth surface and groundwater. In agriculture, water is an important factor as a major input in irrigation, livestock watering, aquaculture, fisheries, food processing and other industries. The recently formulated national irrigation plan (NIP), whose focus is to make Zambia's agriculture less dependent on rain, envisages intensive exploitation o f Zambia's water resources for irrigation. Water demand in manufacturing i s projected to increase to 446,000m3/day in 2015. Water resources are also vital for Zambia's energy sector; generated energy is mainly from hydropower, using 42 percent o f the surface water resource. On average, Zambia earns over U S $10 million per year on electricity exports. Over the years, access to water has not improved significantly because o f poor assessment and development strategies. The Government having realised this, is developing a new legal and institutional frameworks that will improve the way water is managed. A new institution is proposed to manage and develop the water resources for various uses. This institution is meant to be self-sustaining inthe longrunandwill take into consideration the decentralisation policy. 19.2 Review of Past Performance Some successes were achieved in the early and late 1990s during the implementation o f the drought relief programme, upgrading o f squatter compounds inperi-urban areas, and the rehabilitation o f urban water supply programmes, which gave rise to increases in access to safe water supply. The drought relief programme was targeted at drilling and rehabilitation o f boreholes and wells in the five drought prone provinces o f Eastern, Central, Southern, Western and Lusaka. The rehabilitation o f urban water supply systems was concentrated on the line o frail from Chililabombwe to Livingstone. Very little was done for "rural" district towns. Based on constructed and rehabilitated water and sanitation facilities, access to safe water supplies in Zambia in 2000, was estimated at 86 percent o f the population in urban areas and 37 percent o f the population in rural areas, With regard to sanitation, the estimated coverage was 33 percent for urban areas in2000 and 4 percent for rural areas. Real coverage is much lower and varies considerably from one place to another due to non-functioning facilities, and poor usage. Inthe peri-urban areas, where 50 to 70 percent o f the urbanpopulation live, water supply and sanitation services are poor, inadequate and unreliable; at least 56 percent o f the population do not have access to safe water supply, and as much as 90 percent do not have access to satisfactory sanitation facilities. The 1998Living Conditions Monitoring Survey Report indicates that inmost o f the districts in Western province, more than 80 percent o f the population have no access to satisfactory sanitation facilities, and inat least four districts inNorthernprovince, more than 80 percent ofthe populationhave no access to safe water supply. Thus, there is still a large underserved population, particularly inrural areas and low- income urbancommunities. Inthe late 1980sand early 199Os, the Government began a sector review which revealed that the issues FifthNational Development Plan 2006-2010 183 constraining effective development andmanagement o fthe water sector inZambia are: a) Weak or inadequate legal and institutional frameworks for water resources development and management and also for rural water supply and sanitation; b) Inadequate data and information systems for water resources management and rural water supply and sanitation; c) Inadequate human resource and institutional capacity; d) Inadequate stakeholder participation, particularly inwater resources management; e) Lack o f integrated water resources management; f ) Inadequate and unpredictable sector funding, and relatively lower and declining share in budgetary allocation; g) Large populations without water supply and sanitation services in urban poor communities and rural areas; and h) Insufficient sustainability and self-financing (cost coverage) in the urban water supply and sanitation sub-sector. Inthe formulation of the TNDP in2001, the Government's overall policy objective inthe water sector was that o f "promoting a sustainable water resources development with a view o f facilitating an equitable provision o f an adequate quantity and quality o f water to all competing user groups at acceptable costs and ensuring security o f supply under varying conditions." The goal was to achieve sustainable development and efficient management and utilisation o f water resources in order to improve access. Inthe same vein, the PRSP programmes for the water sector included Water Resources Management; rehabilitation o f small dams in Southern province; Ground Water Mapping in Southern province; rural water supply and sanitation (RWSS) Programme; Operation and Maintenance o f rural water supply and sanitation; District-Water, Sanitation and Health Education (D-WASHE) support programme; new provincial RWSS programmes; and the urbanwater supply and sanitation programme. In spite of these positive efforts, implementation of the PRSP/TNDP programmes by the different actors was not very well coordinated, resulting in sub-optimal use o f the sector's resources. Additionally, there was inadequate Government funding. The uncoordinated implementation o f programmes made monitoring and evaluation difficult at national level. One o f the main interventions during the PRSP/TNDP period was the implementation in 2001 o f the Water Resources Action Programme (WRAP), which aimed at implementing Zambia's National Water Policy through streamlining and strengthening water resources management functions, by establishing legal and institutional frameworks and included the revision o f the National Water Policy and development o f new legislation. Through WRAP, the Government elaborated a new legal and institutional framework and decision support systems for water resources development and management. The following havebeenprepared: a) Water Resources Management Bill; b) Proposednew Water Resources Institutional Framework; and c) ImprovedWater Resources Management InformationSystem. Implementation o f these measures awaits the enactment o f the proposed Water Resources Management Bill during the plan period. Other interventions include some isolated groundwater exploration and mapping exercises; dam rehabilitation; borehole drilling; and rehabilitation o f hydrological stations. In urbanandperi-urbanwater supply and sanitation, the Government has continued with the development o f regulation and commercialisation o f water supply and sanitation services under the ongoing water sector reforms. The reforms have recordedtangible achievements including the following: a) Successful decentralisationidevolution o f service delivery from central government to local authorities; b) Ten commercial utilities were established by 2004 and performance in the sub-sector has improved; c) An effective regulatory regime has been implemented, including a sub-sector wide information andmonitoring system; and d) The Devolution Trust Fund (DTF) has been operational since 2002 and has continued to offer support to WSS service providers to extend service provision to the peri-urban poor. With Fifth National Development Plan 2006-2010 184 investments o f under K2 billion, an additional 40,000 urbanpoor have been given access to safe drinking water. With respect to rural water supply and sanitation, the Government has continued to implement RWSS programmes inmost provinces to improve access to water and sanitation services. The Government has also continued to support the planning, execution, management, operation and maintenance o f RWSS services usingD-WASHES.The complementary D-WASHE support programme has continued with the implementation o f programmes in Eastern, Southern, Central and Northern provinces and parts o f North-Westem province. However, lack o f sector-wide informationhas presented significant challenges to estimating performance and progress in the sub-sector. In terms o f overall performance, Zambia's water sector still faces major challenges inmeeting the MDGs. 19.3 Policies and Key Reforms In the late 1980s, the Government began the formulation of a policy and institutional reform of the water sector which culminated in the development and adoption o f the national water policy o f 1994. The national water policy provides the overall policy framework for the water sector. It covers water resources management, urban water supply and sanitation (i.e. water quality, water tariffs) and rural water supply and sanitation. The policy is guidedby seven key principles, namely: a) Separation o f water resources management from water supply and sanitation; b) Separation o f regulatory and executive functions; c) Devolution o f authority from central government to local authorities andprivate enterprises; d) Achievement o f full cost recovery for water supply and sanitation services through user charges inthe longrun; e) Humanresources development leadingto more effective institutions; f) The use o fmore appropriate technologies for local conditions; and g) Increased Government priority andbudget spendingto the sector. To operationalise water sector policies, a number o f strategy documents have been developed. These include: a) Strategy and institutional framework for the water and sanitation sector approved in 1995, which specifies the institutional arrangements for provision o f WSS by local authorities; b) National environmental sanitation strategy launched in 1998; c) Peri-Urban water supply and sanitation strategy launched in 2000 that targets WSS service provisionto urbanlow income communities; d) Community water supply and sanitation Strategy developed in2000 that targets rural WSS; e) Mainstreaming Gender inwater supply and sanitation sector developedin2000; f) WRAP implemented in2001; and g) The national irrigationplan developed in2001. With respect to RWSS, the most significant strategy is the WASHE, adopted in 1996. The WASHE has the objective o f promoting integrateddevelopment o f water, sanitation and health education to improve the impact o f water supply and sanitation on health and to promote community management so as to ensure sustainability o f services through better financial support andoperation and maintenance. The sector's main components are as follows: 19.3,I Wuter Resources Management and Development (WRM) which is responsible for sustainable management and development o f the country's water resources in order to secure the provision o f quality water to meet the social and economic requirements o f the country. WRM functions fall under the Department o f Water Affairs (DWA). However it is planned to decentralize some functions to the lowest appropriate levels through appropriate legislation. The Ministry o f Energy and Water Development (MEWD) has the responsibility o f initiating overall national water management policies and for setting national standards and priorities for water development and management. MEWD is also responsible for planning and construction of wells, dams and boreholes to promote irrigation and mitigate the effects o f droughts, floods and other emergencies, such as outbreaks of epidemics. Fifth National Development Plan 2006-2010 185 19.3.2 Water Supply and Sanitation (WSS), which caters for: a) The provision and maintenance o f adequate supply o f water for human consumption and domestic use in rural areas. Water supply sources may be from boreholes, shallow water wells or springs. Sanitation aspects include the promotion o f hygiene education inrural communities and schools. Rural water supply falls under the Department o f Infrastructure and Support Services (DISS) in the Ministry o f Local Government and Housing (MLGH), and implementation is decentralized to local authoritiesicouncils; and b) Services for humanconsumption, industrial, agricultural, miningand other uses for urban towns and centres. WSS is managed by ten commercial water utilities in the country. Eastern (with the exception o f Chipata) and Luapula provinces are yet to establish commercial water utilities. Duringthe plan period, a new water bill is scheduled to be presented to Parliament. The proposed new bill will have provisions for implementation of integrated water resource management. The legal framework for water supply and sanitation is currently anchored in two main pieces o f legislation namely, the Local Government Act No. 22 o f 1991and the Water Supply and Sanitation Act No. 28 o f 1997. Other legislation which has an impact on provision o f water includes the Environmental Protection and Pollution Control Act o f 1990 whose purpose i s protection o f the environment and control o f pollution, and the Public Health Act o f 1995, which has provisions for the management o f sanitation and prevention o f pollution to water supplies. The key water sector institutions and their responsibilities are given inTable 19.1. Tab1 9.1: Players in the Water Sector and their Roles Actor Roles MEWD, Water Board a) National water policy b) IWRMpolicy and international water c) Management and development o f water resources d) Regulatewater resources MLGH,DISS a) WSS sub-sector policy, strategy elaboration and overseeing service provision to urbanand m a l areas by local authorities and the commercial water utilities b) Resource mobilisation MACO, MTENR, M o H a) Strategy elaboration (is. irrigation policy), sanitation and hygiene promotion Statutory Bodies: NWASCO, a) Advisory and regulatory roles Water Development Board, b) Pollution Control (Environmental Council Zambia) ECZ cus a) Service provision Local Authorities a) Service provision inrural and urban areas; inurban areas service provisionis delegatedto CUs Training and research a) Human resource training Institutions b) Research Cooperatingpartners and a) Provisiono fcapital funds NGOs b) Execution o fWSS programmes and projects by NGOs Private Sector a) Participationinfinancing and management o fWSS b) Consultingservices c) Constructiono fWSS facilities Community and CBOs a) Beneficiary o fWSS services b) Maintenance of sources ~sou1 ::Ministry o fEnergy and Water Development 19.4 Visionand Goal The vision is: A Zambia where all users have access to water and sanitation and utilise them in an efficient and sustainable mannerfor wealth creation and improved livelihood by 2030. Fifth National Development Plan 2006-2010 186 The goal is: To promote sustainable water resources development and sanitation with a view to facilitating an equitableprovision of adequatequantity and qualityfor all users at acceptable costs and ensuring security of supply under varyingconditions. 19.5 Programmes, Objectives and Strategies The following matrix gives the water and sanitation sector's mainprogrammes and their respective objectives and strategies during the FNDP. Sector: Water and ianitation No. Programmes Objectives - Strategies 1 Water ResourceDevelopment To assess, develop, and a) Assess water resource in detail inthe and Infrastructure allocate water resources in four pillars o f national development, Development the four priority pillars o f including studies on protection o f economic development of public health and environment; agriculture, tourism, b) Construct 30 assessment and monitor environment, mining, boreholes per year and rehabilitate manufacturingand energy existing boreholes in areas where the Government has directed its economic development; c) Construct 4 small dams per year for economic production; d).Rehabilitate and expand dams; e) Water use, irrigation and land use evaluation surveys in peri-urban areas, dambos and settlement schemesinrural areas; 4 Provide drought emergency funds for development o f water resources, such as boreholes for drought prone areas 2 Institutional Capacity To promote legal and a) Legal and institutional framework Building and Enhancement institutional framework capacity enhancement (e.g. setting- capacity enhancement up o f the National Water Authority, IWRM unit at national level, catchment councils and water users association), and Marine Meteorological stations; b) Human resource development (recruitment and education and training o f personnel to align them into IWRMsphere); c) Stakeholder participation and awarenessraising 3 Water ResourceManagement To develop management Establish water resource information and Information Systems information systems for systems for planning, development planning, development, and management; allocation and management Develop catchment management o f water resources at plans; catchment, national and Assess water resources at catchment regional level and to provide level; safe water and improve Rehabilitate dams at catchment level coverage inZambia and mobilise communities; Assess groundwater based infrastructure at catchment level, such as boreholes; Produce weather and water 10-day bulletins; Maintain both surface and ground water resource database and the publish yearbooks; Implement water resource guidelines and methodology project, including water allocation guidelines; Implement conservation, including comprehensive, conjunctive surface and ground water efficiency, __ ecologicalprotection, etc.; Fifth National Development Plan 2006 -2010 187 Sector:Water and ianitation Programmes Ohiectives Strategies j) Implement o f monitoring network, wetland survey, and in-stream flow requirement studies at catchment level; k) Implement economic accounting; 1) Provide gender and IWRM issues support at catchment level; m) Provide conflict management and arbitrate water resources related conflicts and arbitration; n) Conduct NGO and CBO funding . assessment Water Resource Assessment To assess surface and a) Surface water resource assessment: Programme groundwater resources Rehabilitate and upgrade o f 300 country-wide in order to hydrometric stations, 6 marine determine the quantity and meteorological stations and ... quality o f available water establishing 10 new stations per year (including data collection); Water assessment (including existing reservoirs); Design & implement National water quality Monitoring Network (including data collection); Forecast flood and drought . (including training) in conjunction with the Meteorological Department; Study water quality for threatened areas such as Lusaka, Copperbelt, Luapula, Eastern and Northern . provinces; b) Groundwater resource assessment: Observe boreholes for groundwater .. resource development and assessment; Develop explorationboreholes; Monitor wells and boreholes . (ground water level and quality monitoring); Rehabilitate existing groundwater systems, such as monitoring boreholes InternationalWaters To manage and develop a) Establish an international waters sharedwater resources unit; b) Build up capacity in the unit, e.g. negotiatingskills; c) Facilitate the implementation o f programmes related to international waters for example. SADC, ZRA, ZamCOM programmes; d) Oversee policy, legal and institutional framework governing international waters; e) Conduct research and consultancy in international waters to address specific issues and other related activities including stakeholder consultation Research and Development To carry out research and a) Implement, monitor and harmonise development in selected legal tudy on Institutional areas in the country for Enhancement Project and IWRM improved planning, integration in Ofice of the Vice regulation and allocation o f President - Disaster Management Zambia's water resources unit; L))Implement Policy and Planning Project to bring about harmonisations o f all key sector plans/policies (for Fifth NationalDevelopmentPlan 2006- 2010 188 - Sector: Water anc ianitation -No. Programmes Objectives Strategies example, MACO& MTNER) into one through national consultative fONmS; Conduct water resource mapping, take and river levels, modelling and development o f information systems including use of Remote Sensing and GIS in mapping of selected catchments and hot-spots. Activities include feasibility studies & setting up measuring stations, mapping o f impediments to water quantity, quality (e.g. erosion, pollution) where necessary; Establish environmental and agro- forest watershed management pilots inselected areas; Conduct research in development o f simple technologies such as rain water harvesting, reclamation, recycling and re-use o f waste water discharged; activities include impact assessment, social benefits and evaluation; Promote community participation in water and environmental management for economic growth, activities include environmental regulation review, water accounting, EL4 review and assessment, NGOiCBO cooperative implementation, conflict resolution, pilot studies, small-scale imgation demonstrations and sustainable natural resource management and uses I Mainstreaming Cross-Cutting To implement measures in Develop capacity in advocacy Issues: HIV/AIDS, Genderand the sector which enhance management, coordination and Environment mainstreaming o f cross- monitoring o f HIV/AIDS and cutting issues Environment Develop community and distrct level multi-sectoral structures for the implementation o f cross-cutting issues; Reducethe negative impact o f policy T--- relatedto cross-cutting issues Monitoring and Evaluation To monitor and evaluate the Carry out: proposed programmes in a) Human Resource Development; order to achieve the desired h) Public Opinion Surveys; impacts c) Conduct monitoring and evaluation Urban Water Supply and To provide adequate, safe, Development and provision o f sustainable Sanitation and cost-effective water water and sanitation service to more supply and sanitation people in urban and pen-urban areas semces through a) commercialisation, private sector participation and independent regulation; h) support to the national U W S S development that focuses on enhancing institutional capacities, policy and legal frameworks, and information management for planning and development at national, provincial and district levels; Fifth National Development Plan 2006-2010 189 Sector:Water and Sanitation ~No. Programmes Obiectives Strategies I :) support to investment programmes ~ that aim at increasing access to safe, adequate water supply to 80 percent ~ o f the urban and pen-urban population by 2010, and proper sanitation systems to 70 percent for the urban and pen-urban population by 2010; 1) involve service providers in the achievement o f investment programmes ~ 10 Rural Water Supply and To provide adequate, safe Zacilitation o f universal access to safe, Sanitation and cost-effective water adequate and reliable water supply supply and sanitation and sanitation services inrural areas services with due regard to through environmental issues institutional support activities to facilitate more effective planning, implementation and monitoring o f RWSS, focusing on: . develop a supportive legal framework; institutional development, including development and implementation o f appropriate capacity building at community, ....district, provincial and national levels; Information Management System (IMS); advocacy and publicity; district planning; Sanitation and Hygiene Education; Operation and Maintenance (O&M) systems. capital investment programmes consisting o f projects for construction o f new facilities and rehabilitation o f facilities to secureor safeguard existing coverage, focusing on: 9 integrated rural water supply and sanitation investment projects in all provinces, with priority given to extension o f water and sanitation facilities, and related hygiene education awareness campaigns in the presently under-served Northern, Western, Luapula and Lusakaprovinces; .urogrammes existing facilities - for rehabilitation o f ~ 19.6 Implementation,Monitoring and EvaluationFramework A holistic and comprehensive approach to the development of the water sector shall be used, focusing on the Sector Wide Approach (SWAP) to programming. Institutional responsibilities mandated by national policy will be adhered to while external support will be re-aligned to support sector programmes and priorities. The adoption of a SWAP will help to create a strong constituency advocating for increased funding to the sector and improved coordination and monitoring o f sector resources. In accordance with the national policy and legal framework, the roles and responsibilities for implementing the FNDP are outlined below for each sub-sector. Fifth National Development Plan 2006-2010 190 Water ResourcesManagement WM) The following Table 19.2 summaries the current functions o f MEWD and its institutions. This arrangement will continue in the transitional period until the Water Resources Management Authority (WRMA) andits institutions are established andmade functional. Table 19.2: Currentfunctions of MEWDand its Institutions Level I Key I MainResponsibilities I Institution National MinistryofEnergyandWater a) Leader Development b) Water policy I1I c) Bilateral and multilateral internationalagreements I National Water Board 1 1 a) Water allocation b) Policyofwater abstractionfromsurface sources i' National National Water And Sanitation Regulation o fwater supply and sanitation ~ Council National DWA I1 Water resources management and development Province Provincial Water Office ' Water resources management and development at - provincial level I district level 1 Source: Ministry of Energy and Water Development The MEWD shall be the lead institution for policy making and ensuring implementation o f programmes for international waters; The new WRMA will take over the operational and regulatory functions o f Department of Water Affairs and WDB, respectively, as well as improve the sub-sector information system and reporting. Department o f Water Affairs will be responsible for policy making and management o f international waters; The catchment Councils, with guidance/oversight from the WRMA, will be expected to implement WRMfunctions intheir areas; Private sector participation shall be encouraged; and Water supply and sanitation regulatory roles will be performed by the National Water Supply and Sanitation Council (NWASCO). Table 19.3 shows institutional functions according to the Water Resources Management Bill when enacted into law. Table 19.3: Institutionalfunctions after the Water Source: Ministry of Energy and Water Development Urban, Peri-Urban Water Supply and Sanitation a) The MLGH shall be responsible for WSS policy, technical and financial supervision as well as resource mobilisation (for capital development) from foreign and local sources; b) National Water And Sanitation Council shall continue to play its role as water supply and sanitation regulator (reporting to MEWD); Fifth National DevelopmentPlan 2006-2010 191 c) Commercial utilities shall be filly responsible for planning and implementation o f infrastructure development programmes as well as operation and management o f water supply and sanitation systems intheir respective jurisdictions; d) Commercial utilities within the regulatory framework and fundingsupport o f the DTF shall extend service coverage inlow income urbanareas; e) Commercial utilities shall participate in creating awareness and demand for improved sanitation in low income urbanareas through sensitisation and demonstration projects; and Q The MLGHwill oversee capacity building inthe sector andpromote knowledge sharing among the sector players and support cost-effective in-house training. Rural Water Supply and Sanitation The implementation o f the RWSS sub-sector programme will be carried out in accordance with the institutional framework adopted by the Government (through MLGH) in2004. Implementation will be at four levels, with key responsibilities described inTable 19.4: Table 19.4: Rural Water Supp and Sanitation:ResponsibilityAllocation Level InstitutionKey Main Responsibilities National 1. Ministry of Local a) Overall responsibility for planning, implementation and Government and Housing coordinationof the nationalprogramme; Pepartment o f InfrastructureSupport b) Policy guidance, setting standards, criteria for service provision, Services) funding 2. The responsibleagency is c) Resource mobilisation, coordination with MFNP and cooperating the Rural Water Supply partners; and Sanitation Unit d) Monitoring and reporting on service provision; e) Liaison with line ministries o f water, health, and community development to ensure complementary inputs into the progrsmme Provincial Provincial Local a) Coordinate implementationof district plans; Government Office b) Monitoring progress ofimplementationofdistrictplans district District Council a) Planningof water supply and sanitation through WASHE (Department of Works, Community Development and b) Overseeingplanimplementation(approve districtplans); Health) c) Monitor progress; d) Disburse funds to communities community D-WASHE, communities a) Implementationof RWSS programmes; b) Collection o f user charges; c) Operation and Management o f facilities S rce: Minishyof EnergyandWater Development With respect to monitoring and evaluation, regular and continuous checking and documentation of progress shall be undertaken to ascertain whether objectives and planned programmes/activities have been implemented andhave realised desirable outputs and impact. The Sector Advisory Group will play an advisory role in sector development with the collaboration o f all government institutions in the sector. Further strategies on monitoring will have to be elaborated, particularly at national level. In order for water to have impact on wealth creation, cross-sectoral indicators have to be developed to account for water's input in the productivity o f such a sector. A decentralised approach to collecting data for monitoring shall be used. The implementing structure and the beneficiaries will be invited to Fifth National Development Plan 2006-2010 192 participate. Transparency o f information and reporting shall be emphasised in order to enhance effective utilisation o f budgets and inputs and equity o f distribution o f resources, which will be communicated in the operational and strategic feedback loop. With the decentralisation policy and the decentralisation implementation plan (DIP) in place, districts will be able to participate in monitoring results and make changes as andwhen required. Fifth National DevelopmentPlan 2006-2010 193 I n I 4 3 e 0 i N N I I I I I Housina 20.I Introduction The availability o f adequatehousing is an important pre-requisite to national economic development, as it is a basic social need after food and clothing. Any shortfall in the housing sector, therefore, could trigger severe negative impacts on social welfare, the environment, and on the general performance o f the national economy. Indeed, housing is one o f the most important indicators o f poverty in the country. _____ 1991 - 2001 HousingType No. ofHouses % of total stock No. o f u s e s Traditional 988,249 65.8 1,527,301 Squatter 160,703 10.7 242,771 Site and Service 58,574 3.9 87,743 Low cost 241,806 16.1 381,498 Medium cost 24,532 1.7 32,369 Highcost 26,034_-- 1.8 - -. 39,306 Total 1,50 1,898 100 2,311,988 F$th National Development Plan 2006-2010 197 f ) Infrastructure services such as water supply, sanitation, roads, storm water drainage, electricity, etc. are inadequate and/or poorly maintained in most residential areas. Land that is provided by local authorities is mostly not serviced to prepare for decent housing development. N o roads are usually provided for the developers, thereby making it difficult for them to bring in building materials, while lack o f water makes it even more difficult to undertake actual construction; and g) Very few local authorities/councils have been involved in the construction o f new dwelling structures due to inadequate funding. Inthe mid-l990s, somereformswere undertaken bythe Governmentinthe housing sector inthe areaof home ownership through the sale (to sitting tenants) o f government pool houses as well as those formerly owned by local authorities and parastatal organizations. Almost all publicly-owned housing units were offloaded onto the housing market, to empower the people with own housing. In addition maintenance o f these units proved difficult too. This empowerment policy was also meant to raise the standard o f living o f the tenants as they bought the houses at highly discounted prices. Many low cost houses were simply given away, except for expenses spent on documentation o f change o f ownership. The empowerment policy was also meant to solve the problems o f lowly paid civil servants and other public workers who had no access to loan facilities and who would have retired into destitution. In addition, the Presidential Housing Initiative (PHI) was introduced. This resulted in the construction o f medium to high cost houses, inLusaka andNdola. The National Housing Policy was adopted in 1996 with the overall aim o f providing adequate and affordable housing to all income groups in the country. To this end, the Government liberalized the .housing sector and provided an enabling environment to stimulate private investment in housing in order to provide more housing units to satisfy the ever increasing demand. Lack o f adequate fiance in the housing sector has, however, hindered satisfactory performance throughout the country. Moreover, this Policy has not been fully implemented due to the absence o f a National Housing Development Programme/Strategy. Nevertheless, the ongoing efforts through the National Housing Authority, the Zambia Low Cost Housing Development Fund Trust (ZLCHDFT), formerly Africa Housing Fund project (AHF), and the introduction o f the Municipal Bonds have the potential for improving the housing stock in the country. Housing projects undertaken by the National Housing Authority and the ZLCHDFT given inTable 20.2. Year NHA ZLCHDFT MLGH 2002 413 176 2003 265 212 2004 186 21 20.3 Policies and Key Reforms The National Housing Policy shall continue to guide policy action in the housing sector during the FNDP. I t shall, nevertheless, be reviewed to bring it inline with the Government's new initiatives as it targets the increase o f housing stock during this period. Currently, the Housing Policy defies the technical, financial and administrative framework needed to cany out housing programmes. I t also identifies the agents, both public and private, responsible for implementation. During the FNDP, the Government shall strive to increase resources earmarked for housing development. In the Plan period, the Government shall place a high premium on the facilitation o f the introduced housing bonds that provide cheap long-term finance for local authorities, obtainable on the capital market. Due to lack o f credibility o f most councils, a special purpose vehicle has been established to guarantee repayment o f such funds, as they also act as a pool o f receivable assets and issue the actual bonds. This has been necessitated also by lack o f adequate grants to councils from the Central Government and the need for councils to be self-sustaining. A pilot project in five councils (Chipata, Lusaka, Solwezi, Kitwe, and Livingstone) will be undertaken before the programme is replicated in other districts o fthe country. Fifth National Development Plan 2006-2010 198 20.4 Vision and Goal The vision is: Provision of adequateand affordable housing to the majority of Zambians by 2030. The goal is: Toprovide adequateaffordable housingfor all incomegroups in Zambia. 20.5 Programmes, Objectivesand Strategies The following are the objectives, strategies andprogrammes for the housing sector over the Planperiod. PROGRAMME STRATEGIES I 0BJECTIVE NationalHousing 1ITo increase the housing stock Construct 100 Housing units every year (50 low Development in districts for both Home cost, 30 medium cost and 20 high cost houses) in Programme Ownership and Rental. each district; Encourage Public-Private Partnerships in the provision o fhousing; Ensure gender equity inthe provision o fhousing; Ensure access by all disadvantaged groups; Providebasic services for housingdevelopment; Cany out Housing needs assessment for each district; Encourage Home Ownership and Rental Housing schemes; Provide serviced land for private housing development; Mobilize cheap long-term finance from the capital market for housing development; Review the National Housing Policy; Synergise efforts in the preparation o f building plans and bills o f quantities with Ministry o f Works and Supply and National Housing Authority. Upgradingof To improve the living a) Foster housing areas that are healthy, functional, unplanned environment o f unplanned environmentally friendly and aesthetically pleasant; b) Provide basic services such as water and sanitation, roads, and other social amenities; c) Streamline building standards, regulations and other controls; d) Providesolid waste management systems; e) Relocate families living in arrears earmarked for other development inapproved Structure Plans. Promotionof To promote the development a) Research in improving the quality o f local localbuilding and use o f cheap local material to extend the life span; materials and building materials for housingb) Encourage private sector manufacturing of technology development. affordable building materials; development c) Develop training programmes for use o f local materials; d) Disseminate and demonstrate programmes to popularize the use o flocalbuildingmaterials. NationalHousing To revise and update the a) Finalize and submit the National Housing Implementation National Housing DevelopmentProgrammedocument for approval; Programme Development Programme. b) Disseminate the National Housing Development Programme to stakeholders. a) Establish Special Purpose Vehicle (SPV) to ring- fence the Bond from the issuer (Local Authority for housing development in and Ministry o f Local Government and Housing) Local Authorities. in order to enhance credibility and boost investor confidence inthe Bondissue; b) Appoint a Board ofTrustees to manegethe SPV; c) Register the SPV as a Trust; d) EncouragePrivate Sector participation inHousing Bonds; e) Revise and update the National Housing Fifth National Development Plan 2006-2010 199 Development Programme; f ) Construct 10,000 housing units by National Housing Authority for Home Ownershp and Rentalhousing. Low Cost Housing To provide adequate, a) Involve communities in the identification and Developmentfor affordable Low Cost Housing implementation o f the Low Cost Housing the Poorest of the for the poorest o f the poor in Projects; Poor the urban areas. b) Conduct training to benefit communities' local building material production and construction To promote Capacity Building methods; in building technology for the c) Build capacity o f beneficiaries in micro credit poor and enable self-help management skills. methods. Structure Plan To prepare Integrated a) Update outdated IDPs; Development Development (Structure) Plans b) Engage consultants; (IDPs) for 68 districts. c) Strengthen the capacities o f Planning Authorities inthe country; d) Strengthen monitoring and evaluation capacities o f PlanningAuthorities; e) Review Spatial PlanningLegislation. 20.6 Implementation, Monitoringand Evaluation Framework The two main implementation structures will be the special purpose vehicle (SPV) for the National Housing Bonds Programme and the Zambia Low Cost Housing Development Fund Trust. The former, which is an independent body with its own Board of Trustees, will be used to raise funds usinghousing bonds from the capital market while the latter will concentrate its work on delivering low cost houses. Although independent, the operations o f the two structures will be coordinated by, and harmonized with, the activities of the Department o f Physical Planning and Housing at the Ministry o f Local Government and Housing (MLGH). The Ministry will be supported by the Technical Committee and the National Consultant on the National HousingBonds Programme. The sector activities shall be monitored and evaluated by the MLGH Senior Management Team; the Department o f Physical Planning and Housing; the SPV Board o f Trustees, the Technical Committee and the National Consultant on the National Housing Bonds Programme, and the Zambia Low Cost Housing Development Fund Trust Board o f Trustees. The SAG shall closely track the various implementation instruments, timetables and benchmarks which shall be established. FifthNational Development Plan 2006-2010 200 3 0 N Disabilityand Development 21.1 lnfroducfion According to the Zambian Persons with Disabilities Act No. 33 o f 1996, disability is defined as any restriction resulting from an impairment or inability to perform any activity in the manner or within the range considered normal for a human being, and would or would not entail the use o f supportive or therapeutic devices and auxiliary aids, interpreters, white cane, reading assistants, hearing aids, guide dogs or any other animals trained for that purpose. Persons with disabilities face numerous barriers in realising equal opportunities. They are more often among the poorest o f the poor. Disability limits access to education and employment, leading to economic and social exclusion. It further leads to environmental, access, legal, institutional and attitudinal barriers. These barriers are usually associated with feelings o f shame, fear and rejection. Disability does not just affect the individual, but impacts on the whole community. The cost o f excluding people with disabilities from taking an active part in community life is highand has to beborne by society, particularly those who take on the burden o f care. This exclusion often leads to losses in productivity and humanpotential. Accessibility to the physical environment and information is mostly non-existent as almost everything around was built by and for persons without disabilities. There are many persons with disabilities inall parts o fZambia and at all levels o f society. According to the World Health Organisation (WHO), there are 10 to 20 percent persons with disabilities in every givenpopulation. This meansthat there could be about 1million to 2 million persons with disabilities in Zambia. To a large extent, disability in Zambia is regarded as an issue o f charity. The responsibility o f supporting persons with disabilities has always fallen on the family. Government intervention, where it has existed, has often been channelled through welfare policies with minimal commitment to addressing disability. It has now become widely recognised that the dependency does little to empower disabled people, and finally isolates them from the mainstream o f society. Though awareness has been limited, society is slowly awakening and has come to realise that to make any progress in the struggle o f achieving equal opportunities for persons with disabilities, the rights and needs o f persons with disabilities have to be entrenched in all pieces o f legislation and development plans at all levels o f society. 21.2 Review of Past Performance Between the 1980s and 1990, there was an increase in the number o f rehabilitation centres and employment opportunities. However, the period o f economic restructuring witnessed significant decline insocial welfare as the provisionofsocial services were reduced. The structural adjustment programme, to the extent that is reduced public expenditure on the social sectors, seriously affected the services that were targeting people living with disabilities. Many disabled persons lost their jobs. Currently, the situation is changing as the government now views persons with disabilities as partners indevelopment. The PRSP/TNDP both recognised the importance o f addressing the plight o f the poor and pro-poor public expenditures were increased. However, the plight o f those that are disabled has remained generally unchanged. There is only one piece o f legislation on disability, namely, the Persons with Disabilities Act No. 33 o f 1996, which also ushered in the Zambia Agency for Persons with Disabilities. Since its enactment, however, the Act has not been enforced and its violations are rarely recognised due mainly to ignorance among the various stakeholders o f what it entails. Recently, the Ministry o f Community Development and Social Services (MCDSS) produced a national policy on disability but no implementationplanhas been put inplace to realise its objectives. FifthNational Development Plan 2006-2010 203 21.3 Policies and Key Reforms Government recognises that all persons with disabilities ought to have the same rights, choices and needs as people without disabilities. As part o f the process o f equalising opportunities, deliberate efforts shall be made during the FNDP to enable persons with disabilities to assume a more complete and meaningful responsibility as other members o f society. Deliberate and effective interventions will beput inplace to accelerate progress during the FNDP towards the attainment of the rights and needs of persons with disabilities. In particular, a deliberate effort shall be made by the Government to communicate more effectively with those with impaired vision and hearing through the provision o f sign language and braille facilities. Enhanced support to person with disabilities shall be done through, inter alia, increased government spending on disability; developing inclusive mainstream policies; review o f existing pieces o f legislation; and the establishment andor strengthening o f institutions and systems that aim to effectively address the challenges facing people with disabilities. Partnerships among various stakeholders shall be developed and nurturedand interventions up-scaled and effectively coordinated. 21.4 Vision and Goal The vision is: People with disabilities enjoying equal opportunities that are generally available in society and are necessalyfor thefundamental elements of living and developmentby 2030. The goal is: To attain &ll participation, equality and empowerment of persons with disabilities during thePlan period. 21.5 Programmes, Objectives and Strategies and Responsible Institutions The matrix below presents the FNDP programmes and their respective objectives and strategies and the responsible institutions inthe area o f Disability and Development. Sector: Disability and Development No. Programmes Objectives Strategies Responsible Institution 1 Awareness To promote a positive a) Research, develop and implement a Zambia Raising image o f persons with public awareness programme; Agency for disabilities in order to Establish and maintain a database as Persons with change society's negative b) well as websites on disability issues Disabilities attitude (ZAPD) 2 Medical Care To ensure persons with a) Provide free treatment, as well as any disabilities have access to other medical & health services, to quality medical services in persons with disabilities; order to enable them b) Formulate and disseminate a code o f M o H & ZAPD contribute to the human ethics for public and private health and socio-economic care, whch promotes quality care development o f the nation and respect for persons with disabilities 3 Rehabilitation To ensure persons with a) Undertake research, development and ZAPD & disabilities have access to application o f new technologies for MSTVT quality rehabilitation persons with disabilities; services in order to attain their full functional b) Rehabilitate and or establish new ZAPD & capacity and contribute rehabilitation centres and equip them MCDSS effectively to national with new technology; development c) Establish, promote and support community based rehabilitation for persons with disabilities 4 Support To ensure the a) Develop, distribute and maintain Services development and assistive and adaptive devices and provision o f support equipment, free of charge, for services for persons with persons with disabilities; ZAPD FifthNational Development Plan 2006-2010 204 Sector: Disabili and Development .- Programmes Objectives Strategies Responsible institution disabilities in order to b) Develop and implement programmes increase their level of on the provision o f assistive and independence in their adaptive devices, personal assistants daily living and interpreter services to persons with disabilities Social To provide social security a) Develop and implement policy on MoFNP & Security and insurance for persons significant tax exemptions on income ZAPD with disabilitiesinorder to (direct or indirect), assistive devices, improve their living etc. for persons with disabilities; conditions b) Develop and implement policy on MOL,MLGH land and housing allocation to & ZAPD persons with disabilities, including constructiono flow cost houses; c) Introduce a disability allowance for ZAPD all persons with disabilities earning an income below the poverty datum line (income tax threshold) and those in destitution, including parents of children with disabilities, as a social protection scheme from extreme __ - poverty Education To facilitate the provision a) Strengthen and implement training and Skills o f special needs education programmes for teachers in special Development for early childhood, basic, needs education; high school and tertiary b) Construct and rehabilitate schools MoE& ZAPD levels for persons with and institutions in order to address disabilities so as to special learning needs of persons develop their full human with disabilities potential and sense o f c) Provide free education to persons dignity and self-worth with disabilities, from early childhood to tertiary level; d) Provide adequate educational MoE,MSTVT facilities, services and equipment & ZAPD (e.g. Braille material and sign language interpretation) to persons with disabilities Employment To create equal a) Provide better tax incentives to MoFNP, employment opportunities organisations employing persons MoLSS & for persons with with disabilities; ZAPD disabilities in order to ensure their full participation in national b) Provide micro-credit to persons with development disabilities to enable them undertake ZAPD, entrepreneurialactivities; MCDSS & MYSCD c) Put in place measures aimed at designing and adapting work places to create accessibility for persons MOWS& with disabilities ZAPD Recreation, To provide recreation and a) Construct and rehabilitate MYSCD, Culture and sporting facilities for recreational and sporting facilities MOWS, Sports persons with disabilities (e.g. roads, airports, hotels, beaches, MTENR, so as to enable them have sports arenas, gym halls, stadia, etc.,) MoTC, MLGH the opportunity to develop for easy access by persons with k ZAPD and utilise their creative, disabilities; artistic and intellectual potential b) Collaborate with sports and Fifth National Development Plan 2006 -2010 205 Sector: Disability and Development Programmes 0bjectives Strategies Responsible Institution recreational organisations to ensure^ MYSCD, that persons with disabilities have MTENR& access to their services ZAPD ~ Political and To create an environment a) Develop, implement and disseminate All Ministries, Public life in which persons with policy on equal participation & self- ZAPD & disabilities can effectively representation in politics & public Cabinet Office and fully participate in life bypersons with disabilities; political and public life in order to contribute to the b) Establish disability desks (or All Ministries decision- makingprocess disability focal points) headed by & Cabinet persons with disabilities at all Office government levels including the Office o f the President; c) Establish a Parliamentary Committee on Disability & Development with Parliament adequaterepresentationfrom DPOs Policy and To formulate and a) Identify and review policy and All Ministries Legislation implement inclusive legislation that impact negatively on & ZAPD policies, programmes and persons with disabilities; legislation in order to promote the full participation, equality and b) Provide free legal services to persons MoJ& ZAPD empowerment o f persons with disabilities with disabilities Capacity To support and strengthen a) Develop and implement training ZAPD & Building of Disabled Peoples' programmes for DPOs and DSOs MSTVT DPOsDSOs Organisations @POs) in including, inter alia, sponsorships order to enable them and scholarships of a local or effectively represent internationalnature persons with disabilities at b) Provide techcal and financial ZAPD & local, national and support (in form o f grants) to MoFNP international levels accountable and democratically run DPOs & DSOs Resource To mobilise financial, a) Ensure that when planning and MoFNP, M F A Mobifisation material, human and reviewing technical & economic, & ZAPD. technical resources for the bilateral and multilateral cooperation implementation o f programmes, special attention is programmes and measures given to issues o f persons with to create equal disabilities; opportunities for persons with disabilities J) Take measures to include a disability All Ministries component inall government budgets and budgetary allocations at all levels; :) Develop policies and other measures MoFNP & to ensure that the private sector, state ZAPD lotteries, subscriptions, wills, etc. are other avenues o f raising funds for the implementationo fprogrammes 21.6 Implementation,Monitoring and Evaluation Framework In the implementation and monitoring of the various disability programmes contained in this Plan, respective sectors will be responsible for related issues to their sector (for example, health related issues will be handled by the health sector). Cross cutting issues (such as awareness raising) will be the responsibility of all sectors. The Zambia Agency for Persons with Disabilities (ZAPD) will be responsible for the implementation o f any other interventions such as capacity building o f disabled Fifth National Development Plan 2006-2010 206 peoples organisations (DPOs)/disability service organisations (DSOs), as well as to be in the forefront o f stimulating inclusive policies inrelevant sectors on disability. In coordinating and monitoring the implementation of various programmes, Government, in collaboration with DPOs as well as DSOs shall: Undertake to produce a baseline report on the legislative, judicial, administrative and other measures ineffect at the time o f the coming into force o f the FNDP. Such a baseline report shall serve as a basis against which subsequent progress towards the achievement o f the needs o f persons with disabilities will be measured; Strengthen the administrative and technical capacity o f ZAPD at all levels, to enable it effectively coordinate the implementation and monitoring o f the FNDP regarding disability issues with emphasis on adequate and effective representation o f all key stakeholders; Strengthen district structures o fZAPD to ensure that activities andservices reach the grassroots. District structures will be strengthened through training and mobilisation o f people with disabilities in committees and the acquisitiodsetting up o f an operating centre for each district equippedwith computers and telecommunication facilities; Establish, in monitoring the activities o f the FNDP on disability, a Coordinating Committee, under the auspices of ZAPD, comprising representatives from key Disabled Peoples Organisations and other key stakeholders indisability affairs; Periodically and systematically evaluate national disability programmes and disseminate both the bases and the results o f the evaluations; Create and submit all reports on the implementation o f the FNDP vis-&vis disability issues to anInter-Ministerial andDPOs/DSOs Committee at Cabinet Office throughZAPD; and, The SAG will oversee the implementation, monitoring and evaluation o f the programmes. FifthNationalDevelopment Plan 2006-2010 207 co 0 N Social Protection 22.7 Introduction Social protection refers to policies and practices that protect andpromote the livelhoods and welfare o f people suffering from critical levels o f poverty and deprivation andor are vulnerable to risks and shocks. The needfor social protection is based on the following considerations: a) No meaningful and sustained economic growth can be achieved inthe absence o f social protection. At the sametime, economic growth is necessaryto makepossible the financing of social protection programmes. Social protection strengthens the capacity o f the poor and vulnerable to face risks and reduces the need for expensive emergency interventions incase o f shocks; b) Social protection contributes directly to poverty reduction by providing direct transfers to people with no immediate capacity to support themselves. Direct transfers raise their incomes and consumption levels, andproviding access to education, health and other social services; c) Social protection promotes equity by reducing income inequality. Inequality, if not seriously addressed, canbe a fertile ground for political upheavals, crime, and anti-social behaviour; and d) Social protection leads to the fulfilment o f human rights o f refugees and internally displaced persons by providing services that strengthen and secure their access to basic rights and freedoms. Key risk factors can either be co-variant, affecting an entire community, such as natural disasters, HIV and AIDS, and macroeconomic shocks or idiosyncrasies, affecting individuals or defined groups of people through life cycle events, such as sickness, death o f breadwinner and old age. Key risks for the most vulnerable groups in society include lack o f sustainable livelihoods in rural areas; inadequate access to social security, education and training; inadequate health services; HIV/AIDS; violence against women and children; and lack o f legal entitlements for refugees. In its attempt to protect the affected communities and individuals from risks and shocks, social protection seeks to tackle the incidence and impact o f any risk event at three possible levels: risk reduction, risk mitigation, and risk coping. Social protection involves a range o f different actors such as family, communities, public, and private interventions. The extended family system has been particularly effective in risk management although lately it has beenover-stretched by the effects o f HIV/AIDS andpoor economic conditions. The extreme poverty and vulnerability levels in Zambia require that the affected communities, households, and individuals are protected from constant shocks. Given scarce resources and limited administrative capacity, social protection duringthe Planperiodwill focus on approximately 20 percent o f the population. The most vulnerable groups inZambia canbe grouped into three categories, namely: a) Low capacity households including widows, the disabled, the old, and other marginalised, low-income households, and informal sector operators; b) Incapacitated households with no self-help potential, includingmainly households affected by HIV and AIDS; and c) Child-headed households and street children. 22.2 Review of Past Performance Although the PRSP didnot comprehensively address issues o f social protection, numerous projects and programmes were carried out, involving many stakeholders, such as women development programmes, street children programmes, and special needs programmes for persons with disabilities. However, the coordination o f these programmes has been weak at institutional, sectoral and national levels. The impact o f variable climatic conditions on agriculture, increased ill-health and death have made important agricultural inputs too expensive for small-scale farmers. Those most affected comprise mainly rural households headedby women, elderly people, children and sick or disabled people. Fifth National Development Plan 2006 -2010 210 Past interventions usedto address vulnerable people include food aid, public works usingfood for work (FFW), cash for work (CFW) and food for assets (FFA). Access to basic services has previously been provided through social investment funds and micro-finance tailored towards the vulnerable. Public works have been proven to encourage local development, like roads, schools, etc. However, some needy groups such as the disabled, chronically sick, the aged and children are often excluded. Lessons from past interventions have cited such problems as poor quality o f work and unrealistic wages and food rations. Other interventions include food security packs and subsidies on food, fertilizer and seed. Zambia suffers from the absence o f a reliable social security system. Retrenchment and pension schemes have been hamperedby inadequacy and delays o f remittances, and poor investment decisions, with the result that many pensioners receive little or nothing of their entitlement. The present pension schemes have not addressed fully the health and other social needs o f those who fall in the vulnerable category soon after employment. The HIV/AIDS pandemic has brought about serious challenges to the social security system inZambia. Uninfected family members are also affected by HIV/AIDS, as they suffer h o m reduced incomes, and increased and changed demands on the time and labour o f both adults and children. The diverse effects o f HIViAIDS on children include being orphaned; dropping out o f school; child labour; failing to access health services; and facing emotional burdens and social stigma. Projections show that the total number of orphans will increase to 1,470,000 by 2010, making about 20 percent of children orphaned. Children living without adult caregivers are extremely vulnerable to abuse and exploitation, and live lives o f absolute poverty. The core social protection interventions on HIV/AIDS have focused on mitigation and coping activities, such as home based care and giving free ARVs. However, the coverage is small and associated costs related to medical tests are not free. The Ministryo f Health has been pursuing a user-fee strategy while FBOs and NGOs offer a range o f services that support households affected by HIV/AIDS. Children who do not access adequate education and training suffer the impact inlater life, and are less able to fmd decent employment, start businesses or manage income-generating activities. Women who have not had adequate education are generally at greater risk than those who have completed at least primary education. The most affected groups are the ruralpoor, girls, girl orphans, double orphans and children living with grandparents. Many vulnerable children o f school-going age are dropping out o f school to work or beg inthe streets due to lack o f income to sustain themselves. Past interventions have been through the policy o f free basic education and bursary schemes. Access to health care services has also worsened the problem o f vulnerability inZambia. The introduction o f user fees, which are payable for all services apart from specified exempt age groups, conditions and preventive services, has ' worsened the problem o f access to health facilities. While the age-exemptions and antenatal exemptions are well implemented, exemptions based on medical conditions are not consistently available. The implementation o f exemptions for those `unable to pay' is not directed by any criteria or guidelines, or by any agreement with the Department o f Social Welfare, and are implemented in an ad hoc manner. The Ministryo f Healthhas also introduced a policy o f free medical services inrural communities. Gender-based violence (GBV), including sexual, physical, economic or psychological abuse, has been identified as Zambia's most significant invisible threat, and as a critical problem that affects many women and children, inparticular. The most vulnerable victims are those who have low capacity to deal with the situation or to escape from it, such as the poor and uneducated and are voiceless. The Government has responded to this risk through legal means by signing to a number o f international conventions that encompass concerns with GBV. The Zambia Police Service has promoted the expansion o f Victim Support Units (VSUs). The Convention on the Rights o f the Child and the Convention on the Elimination o f Discrimination against Women are also key international covenants related to low capacity households. There is, however, lack o f compliance and domestication o f the provisions o f international charters. Lastly, Zambia is party to the 1951 Convention Relating to the Status o f Refugees, the 1967 Protocol Relating to the Status o f Rehgees as well as the Organization o f African Union Refugee Convention. Fifth National Development Plan 2006-2010 211 The fact that the Government made reservations on the articles o f the 1951 Convention, which guarantee rehgees' freedom o f movement and access to employment, requires special attention from the point o fview o f social protection. 22.3 Policies and Key Reforms To support the effective implementation o f social protection strategies, a number o f key policy and institutional reforms have been put in place. The Government recognises that more needs to be done. Reforms in the Ministryo f Community Development and Social Services (MCDSS) during the FNDP will place emphasis on assisting the most vulnerable with basic services that enhance their standard of living. Inthis regard, the reforms shall focus on the following: a) The needs o f disadvantaged women and children; b) Development of a comprehensive social security system which will include informal sector workers; c) Enhancement o f child survival, development and protection interventions, and support for, andprotection of, orphans andvulnerable children through the review o fchild legislation; d) Support for victims of sexual abuse; e) Addressing the needs o f children livingwith HIV andAIDS; f) Development o fpolicy on the aged; and g) The Ministry o fLabour andSocial Security (MoLSS) will focus on the following changes: i.Development of a comprehensive social security system which will include informal sector workers; and ii.Enhancementofchildsurvival, development andprotectioninterventions, andsupportfor, and protection of, orphans and vulnerable children to eliminate child labour. The relevant ministries, incollaboration with the affected communities, inparticular, shall handle some o f the interventions that address the challenges o f vulnerability, in general, and social protection in particular. These shall include the Ministry o f Education and the Ministry o f Health on the fee waivers. Collaborative strategies with agencies such as MCDSS and NGOswill be required to ensure that orphans with special learning difficulties enrol in school by developing strategies that address their special needs. This includes basic clothing, school materials and boarding facilities, where applicable. Consistent with the obligation o f any state to provide security and a long-term social safety net within which its citizens can prosper and based on the guiding principle that, where and when this safety net is endangered, the state is obliged to take action to preserve it, Zambia has put inplace a national Disaster Management structure with its Secretariat (DMMU) as the hub o f coordination mechanism. This structure promotes the vision o f a "safety net" for protection o f the citizenry, their assets and environment against disasters through a proactive, community based, developmental and multi-sectoral approach that combines disaster preparedness,prevention andmitigation and integrates disaster management into national development. 22.4 Visionand Goal The vision is: A nation with capacity to promote and provide sustainable security against constant or periodic critical levels of deprivation and extreme vulnerability by 2030. The goal is: To contribute to the security of all vulnerable Zambians by ensuring that incapacitated and low capacity households have suficient livelihood security to meet basic needs, and are protected from the worst impacts of risks and shocks. 22,5 Programmes, Objectivesand Strategies The matrix below presents the Social Protectionprogrammes, objectives andstrategies. Fifth National Development Plan 2006 -2010 212 Sector: Social Protection ~ 40. Programmes Objectives Strategies ~ 1 h p o w e r m e n t To increase the L) Create a social security scheme for the informal economy; ,f Low tbility o f low 1) Design best practice support mechanisms for LCHs, including Japacity :apacity households explorationo f the feasibility o f establishing a funding basket; 3ouseholds :LCHs) to meet their :) Undertake entrepreneurship training targeting the facilitation o f iasic needs livelihood skills for LCHs; 1) Provide low capacity households with agricultural inputs; :) Providemicro-credit and public works services to LCHs; Build up the capacity o f institutions catering for incapacitated households 2 Welfare 1) Strengthen PWAS under cash transfer scheme; Support to To reduce extreme Linkcashtransfers WithregularPWAS activities; [ncapacitated ioverty in 1) :) Review the PWAS scheme with a view to making it more Households ncapacitated iouseholds through effective welfare support 3 Support for i) Promoteresearch on street children and vulnerableyouth; Vulnerable To rehabilitate street I) Expand the scope o f rehabilitation centres to cater for more Children and m d other vulnerable children on and offthe street; Youths :hildren and youth m d those with :) Provide technical support and resources to NGOs and institutions iisabilities supporting street children, vulnerable youth and those with disabilities; i)and Provide vocational and life skills training for children, the youth those with disabilities; 2) Promote livelihood empowerment programmes for street youth and vulnerable youth; =Rehabilitate street children and youth 4 Enhancement To increase access to 1) Strengthen healthcost schemes; o f Access to health services for b) Remove user fees; Health people from 1) Elaborate designoptions on community health insurance schemes; Facilities incapacitated and low b) Reduce costs for HIViAIDS affected households; capacity households a) Develop a policy on home based care to prevent labour withdrawal; c) Providefree HIV and AIDS testing To increase access to ~ 5 Enhancement a) Providebursaries (school fees and other school requirements); of Access to education for people b) Review and scale-up school feeding programmes; Education from incapacitated c) Raise awareness on the application of the policy on free basic Facilities and low capacity education and re-entry into the education system for school drop households outs; d) Provide tailor-made services in education to persons with disabilities; e) Provide technical and financial support to the Zambia Community Schools Secretariat and community schools 6 Enhancement To increase the level a) Conduct sensitisation on legal rights through legislation, of Vulnerable o f awareness and dissemination, discussions and awareness raising; People's ensure the protection b) Conduct training o fparalegal staff incommunities; Justice o f legal rights for c) Support services for victims o f violence, such as women and __ vulnerable groups children 7 Capacity To enhance capacity a) Develop database on all social protectionproviders; Strengthening o f local and national b) Undertake mapping o f institutions and their respective target of Institutions institutions delivering groups; Delivering social protection c) Build up capacity for resource mobilisation and programming; Social programmes d) Appoint social protectionfocal point persons at all levels; Protection e) Build up capacity o f social protection providers for effective service delivery; f, Undertake needs assessment for capacity building; g) Sensitise all social protection stakeholders on social protection issues; h) Establish an efficient coordinationmechanism andnational social p r o t e c t i o n delivery system . a Monitoring and To develop a a) Establish and maintain a comprehensive and up-to-date database Evaluation monitoring and and information management system; Framework evaluation b) Establish and institutionalisean effective data collection system; Fifth NationalDevelopment Plan 2006 -2010 213 I Sector: Social Protection i No. Programmes Objectives Strategies framework that c) Disseminate accurate and up-to-date information to all users guides the throughbothprintand electronic media implementation o f social protection programmes Resource To mobilise adequate a) Lobby and advocate for an increase inresources to support social Mobilisation resources for social protectionprogrammes; for Social protection b) Identify funds that could be freed for social protection activities; Protection programmes c) Explorepossibilities for basket funding for social protection The private sector, NGOs, FBOs and communities will, in turn, complement government efforts in providing social protection by operating within a coordinated framework and taking up roles o f implementation and monitoring. The role o f donor agencies will include provision and pooling o f financial resources, materials and technical support. Fifth National Development Plan 2006 -2010 214 With respect to monitoring and evaluation, the SP-SAG will provide the overall framework for reporting, monitoring and evaluation. However, the implementers will do the actual reporting, monitoring and evaluation as integral parts o f their functions. The SP-SAG will provide advice and make sure that key data are provided by implementers. The key elements o f monitoring and evaluation will be impact assessment against overall goals, sub-sector goals and objectives, feedback (documentation and reporting) and routine inspectionsivisits. Apart from institutional quarterly stakeholder briefings, quarterly performance reports, annual performance reports and mid-tern performance reports, the SP-SAG shall carry out a mid-term review o f the FNDP social protection activities in mid-2008 as well as a comprehensive review o f plan performance in 2010. Surveys on the status o f vulnerability, shocks and risks will be undertaken periodically. Fifth National Development Plan 2006 -2010 215 Youth and Child Development 23.I Introduction Zambia is a youthful country, with young people aged 25 years and below accounting for 68 percent o f the country's population o f an estimated 11.7 million people in 2006 according to Central Statistics Office projections. Furthermore, the 2000 Census o f Population and Housing indicates that there were more than 5.5 million children and 1.3 million youth in Zambia, This bottom heavy demographic structure presents a major challenge for policy makers as it has far reaching consequences on the productive and social sectors o f the country. The revised national child policy (NCP) defies a `child' as any person aged 18 years and below. The 2004 Orphans and Vulnerable Children in Zambia Situation Analysis (OVCSA), the national child policy and the medium-term strategic plan(MTP) (2005 to 2007) on OVC, indicate that the majority of Zambian children suffer from numerous socio-economic problems that negatively affect their growth and development. The children mostly suffer from poverty, hunger, lack o f access to safe drlnking water and proper sanitation, lack o f decent shelter, destitution, exposure to numerous epidemics and illiteracy. The situation o f children in Zambia has been aggravated by the adverse social impact o f economic restructuring and the HIV and AIDS pandemic. Nearly 90,000 children in Zambia are infected with HIV.The linkbetweenHIVandAIDS andpoverty has worsened the problem, especially as it relates to orphans. It is estimated that over one million children in Zambia are in the category o f orphans, disadvantaged and vulnerable children. These children are extremely vulnerable. Many suffer severe deprivation, quit school, fail to access training, fall prey to abuse, exploitation and risk HIV infection more than other children. This is especially the case among street children. According to the NCP, there are over 75,000 street children inZambia, while child-headed households account for an estimated 1-2 percent (about 20,000) o f all households in the country. Further, most children are not registered at birth, thereby makingplanning for children's programmesdifficult due to unreliable data. Although somewhat different, the problems facing children in Zambia are similar to those faced by the youth. According to the revised national youth policy, a `youth' in Zambia is defmed as any person aged between 18 and 35 years. The main problems that youth in Zambia face include poor information flow on issues affecting their survival and transition into adulthood; lack o f protection; limited participation in national development and decision-making; and an absence o f youth rights. Moreover, most youth in Zambia are affected by high levels o f poverty, HIV and AIDS infections and substance abuse as a result o fpeer pressure and other economic and social factors. Despite the high levels o f HIV andAIDS, most o fthe youth have not been able to access ARVs as they are not specifically targeted in current intervention programmes and they have little or no voice in the current strategies for the mitigation o f the impact o fHIV andAIDS. The plight o f the youth has been worsened by their limited access to education, which has constrained their access to formal employment. The inadequate number o f skills training facilities has hrther limited youth access to informal employment. This has been worsened by the non-availability o f youth friendly credit facilities, which are a potential source o f capital for entrepreneurship development among young people. The youth also find it difficult to access land, which has constrained their attempts to go into agriculture. The institutional response to the social and economic marginalisation o f youth in Zambia has only had limited impact. The existing strategies and approaches do not take sufficient account o f youth needs, capabilities andpotential. The absence o f recreation facilities for young people has worsened their situation. The deteriorating socio-economic situation has affected the development o f sport, leisure and recreation. Both rural and Fifth National Development Plan 2006-2010 218 urban areas in the country lack the necessary sport and recreation facilities as the available infrastructure is dilapidated. In addition, physical education is not taught in most government schools despite being part o f the school curriculum. The Government has recognised the importance o f sport, play, leisure and recreation inhumandevelopment and character formation o f young people by signing the InternationalConvention on Economic, Social and CulturalRights (ICESCR). 23.2 Review of Pasf Performance The Government has recognised the need to develop a comprehensive legislative and regulatory framework to guide all institutions dealing with child and youth issues. In 1994, the Government launched the first national child, youth and sports policy. The main objectives o f the policy was to holistically address problems affecting children and the youth through implementing programmes that ensured the development o f young people who are responsible, assertive and disciplined and to maximise their potential for humanresource and national development. The policy was revised in2006 to make it relevant to the changingneeds o f children and the youth. The Government in conjunction with non-governmental organisations (NGOs), community based organisations (CBOs) and faith based organisations (FBOs), often supported by the international community has implemented the following child intervention programmes: Widespread information dissemination and increased awareness o f the United Nations Convention on the Rights o f the Child (UNCRC) among the general public through the formation o f the CRC-NPA district committees; Localisation o f the UnitedNations Convention on the Rights o f the Child (UNCRC); The Child Rights Bill has already been presented to Parliament on the review o f child legislation anddomesticationo fthe UnitedNations Convention on the Rights o fthe Child; Simplification o f the United Nations Convention on the Rights o f the Child and its translation into local languages; Commemoration o f the Day o f the African Child and the International Children's Day of Broadcasting; Support provided to gender and development activities to combat discriminatory practices arising from gender bias; Government and civil society organisations have made strides towards eradication o f violence against women and children, e.g. the establishment o f the Victim Support Unit in the Police Service; Strengthening o f coordinating NGOs through the establishment o f the Children inNeedNetwork; Commencement o f children empowerment programmes aimed at addressing the problemo f child streetism; Introduction o f juvenile programmes under the Ministry o f Home Affairs and community development and social services; Establishment o f a national steering committee on OVCs comprising the Government, NGOs and cooperating partners; and, Submission o f state party reports to the UntiedNations. Withrespect to the youth, the following programmeshave been implemented: a) Support provided to gender and development activities to combat discriminatory practices arising from gender bias; b) Commencement o f youth empowerment programmes aimed at addressing the problem o f youth unemployment using Zambia National Service facilities; c) Establishment o f more youth skills training institutions offering demand-driven programmes throughout the country; d) Introduction o f bursary schemes targeting youth in skills training institutions under the Zambia Education Capacity BuildingProgramme (ZECAE3); e) Inclusiono f unemployed youth in the resettlement programme initiated by the Office o f the Vice President inliaison with the Ministry o f Sport, Youth and Child Development; and f') Re-constitution o f the National Youth Development Council. Fifth National Development Plan 2006-2010 219 Inthe areaofsport-leisure andrecreation, the Governmentintendsto revise legislation to makephysical education compulsory in all government schools. In addition, the Ministry o f Sport, Youth and Child Development has been restructured to ensure the presence o f sports development officers inprovinces and selected districts. Sports development committees have also been established at district level to coordinate sports activities. There has been an increase in private sector participation in sports development with corporate entities sponsoring club and community sport and rehabilitation o f sport infrastructure. 23.3 Policies and Key Reforms During the FNDP, the Government shall prioritise national child and youth programmes through comprehensive and multi-sectoral plans for integrating young people as partners indevelopment. Since the adoption and launch o f the national youth policy by the Government in 1994, the profile o f young people in Zambia has changed drastically. The changing profile o f children has necessitated the need to revise the national child and youth policies. As part o f the policy reform process, countrywide consultations were undertaken and existing gaps identified to inform the prioritisation o f interventions under the revised policies. These consultations resulted in the development of the revised national child and youth policies. The FNDP shall use the revised national child and youth policies to inform actions. As a signatory to the many international humanrights instruments affecting the child andyouth, Zambia shall take the necessary legislative and administrative measures during the FNDP towards the fulfilment o f the ideals that are enshrined in the international instruments. The process of localizing or domesticating international agreements requires that the principles o f such instruments are enshrined in the laws governing the country. The Government maintains that constitutional rights, including family, national and global obligations, cultural, moral and religious values are fundamental for the Zambian child andyouth inorder for themto grow into responsible andproductive citizens. The new youth policy subscribes to the principles o f equal opportunities and equitable distribution of resources. The Government shall endeavour to promote equal access to socio-economic and employment opportunities commensurate with ability, potential and needs o f all vulnerable youth. The major driving force for equitable provision o f services to the youth will be the promotion o f appropriate and modem technology and the bridgingof the technological gap that perpetuates imbalances o f the ruralhrban, richlpoor, able and disabled youth. The youth policy underscores the need to promote a gender inclusive approach to the development o f youth inpublic and private sectors and incivil society. The policy seeks to promote gender equality, including working to elimination o f all forms o f gender discrimination and violence. The child and youth policies also provide for the mainstreaming o f HIV andAIDS inchildren andyouthprogrammes. 23.4 Visionand Goal The vision is: Enhanced youth and child survival, development and protection through a well coordinated and multi-sectoral approach by 2030. The goal is: To achieve increased empowerment and participation of children and youth in all areas affecting their well-beingand livelihood and enhance observanceandprotection of their rights in order to build a sound human resource base, contribute to wealth creation and ensure socially optimal investmentsand sustainable national development. 23.5 Programmes, Objectives and Strategies The matrix belowpresents the child and youth development programmesandtheir objectives and strategies duringthe FNDP. FifthNational DevelopmentPlan 2006 -2010 220 Sector: Child and Youth Development Programmes Objectives Strategies Child and To equip children and a) Promote and support for non-formal Community Based Early Youth youth with relevant Childhood Care and Development(CBECCD) programmes; Empowerment skills that will prepare b) Promote and support for access to education and training for out- them to cope with the of-school children and youth; demands o f the c) Develop deliberate policy to train street children and youth, take dynamic world and them back to school and reintegrate them into society; support their transition d) Promote formation o f young farmers' clubs, cooperatives and re- into adulthood establish resettlement schemes for youth; e) Establishyouth empowerment fund. ~ Skills Training To reduce inter- a) Equip children and youth with life long multiple skills for and Capacity generahonal poverty by sustainable livelihood; Building promoting life long b) Establish community-based mobile skills training programmes, learning, catch-up community libraries and virtual learning centres; education, vocational c) Promote the utilisation o f ICT among children and the youth for training, multi-skilling continued learning and sustainable livelihood and re-skilling programmes Entrepreneursh To enhance and support a) Promote o f youth entrepreneurship development programmes; ipDevelopment youth entrepreneurship b) Provide financial and material resources for entrepreneurship development in order to development; reduce poverty and c) Promoteenterprise training to improve livelihood for the youth; improve living d) Establishyouth labour market programmes, such asjob and career standards counselling, internship and apprenticeship Young To promote innovations a) Support youth creativity so as to develop their potential; Inventors' by the youth at b) Establishcentres for promotion o f innovations for the youth Programme communitv and national levels Child and To promote the rights o f a) Protect children and youth from all forms o f exploitation and Youth chldren and youth for abuse; Protection their survival, b) Increase the number ofJuvenile Courts and open air prisons; protection and c) Promote o f community sentencing as opposed to custodial development sentencing for juvenile offenders; d) Strengthenall child andjuvenile protection legslation; e) Enforce birthregistration; __-the - Enforcecouncilbylawstopreventkidsfromlivingonstreets 0 To reduce vulnerability o f children Strengthen the socio-economic status o f vulnerable families and and youth and protect care-givers to look after children; them from all forms o f Promote awareness in communities and families on the abuse importance of early childhood and adolescent development; Develop an information system and a documentation centre; Promote family values among parents and other family members to take care o fchildren and prevent them from living on streets Child and To promote the Provide o f an enabling environment that develops potential and Youth participation o f female desire o f children and youths to participate in matters that affect Participation and male children them; andLeadership including youths in Strengthen inter-ministerial cooperation on children and youth national development issues through mainstreaming children and youth participation and increase budget allocations to children and youth programmes in line ministries; Strengthen networking between government and youth civil society organisations; Re-introduce o f non-military national service for the youth To promote the virtues a) Promote f national youth excellence awards, o f hard work, national b) Promote a positive attitude and volunteensm towards commumty pride and good semce among chldren and youth; citizenship among c) Engage youth innon-rmlitary national semce, I children and youth d) Promote and strengthen institutions engaged in leaderslp and outward bound courses for chldren and youth, Encourage chldren and youth camps and exchange programmes II , Sport and ~ _ _ _ _ _sport,_ - _ e) To promote I recreation and physical a) Mainstream sport into nationalpolicies and programmes, Fifth National DevelopmentPlan 2006-2010 221 Sector: Child and Youth Development No. Programmes Objectives Strategies Recreation education as tools for Strengthen the capacity o f institutions dealing with sport and human and economic physical education; development and for Establish and rehabilitate community play parks and other mitigating the impact o f recreationfacilities; HIV/AIDS and other Procure and provide sports equipment to communities and vices among children learning institutions; and youth; Promote investment insport, physical education and recreation by the Government, cooperating partners, NGOs, research institutions To promote the Rightto and the private sector; Play Institutionalise the use o f sport, physical education and recreation activities as viable tools for mitigating the impact o f HIV and AIDS and substanceand rights abuse among children and youth; Design competitive sporting activities that ensure participation o f both sexes a Culture and To develop cultural and Rehabilitate and construct art and cultural infrastructure inschools other creative arts and communities; ExpressiveArts infrastructure, strengthen capacity in Build capacities of arts, music and cultural teachers/trainers, cultural delivery and administrators and peer educators; use cultural Develop outreach programmes for increased access to museums, participation and heritage sites and archives among children, youth and expression as a viable communities; tool for development Increase the use o f art and cultural activities and expression as a and to mitigate the viable tool to mitigate the impact o f HIV and AIDS, and substance impact o f HlV and and rights abuse among children and youth, AIDS and other vices Promoteof inter-provincial child and youth exchange programmes among children and youth 9 HIV andAIDS, a) Develop and, translate into local languages and distribute IEC and Gender Reduce the HlV and training materials on HIV and AIDS and other reproductive health and Disability AIDS prevalence rate and scale-up awareness, matters; prevention and b) MainstreamHIVand AIDS inall children and youth programmes; treatment programmes c) Increase the involvement o f psycho-social counsellors inHIV and to mitigate the impact AIDS interventions; o f HIV and AIDS and d) Strengthen and promote integrated community based care and other reproductive support system for orphans and vulnerable children and youth health concerns among children and youth To promote gender a) Provide full access to female youth and girl child education within equity and eliminate the Rights-Based Approach; gender disparity in b) Introduce programmes to educate parents to prioritise girl child access to resources and education; participation in c) Promote female youth involvement inmicro agro based businesses development and other income generating activities; programmes for d) Promote greater participation o f female youth in employment children and youth creation programmes and projects to counter male domination; e) Establishsafety and rehabilitate centres for abused female youth. To promote a) Integrate youth with disabilities in all youth development inclusiveness o f programmes; children and youth with b) Provide appropriateuser-friendly facilities; disabilities in all c) Provide equipment and materials suitable for specific disabilities programmes among youths 10 Human To strengthen the a) Promote and support for professionalism among child and youth Resource human resource serviceproviders for improvedservice delivery; Development capacity and institutions b) Promote and support for training o fchild and youth workers; and delivering services for c) Strengthen the capacity o f law enforcement agencies (Zambia Institutional children and youth Police Service, Judicial and Drug Enforcement Commission) on Capacity child andjuvenile protection; Building d) Monitor and evaluate child and youth development programmes Fifth National Development Plan 2006-2010 222 Sector: Child and Youth Development ,, No. Programmes Objectives Strategies I Infrastructure To build and a) Construct three ultra- modemsports complexes; rehabilitate child, youth b) Develop comprehensive policy for the development, provision andI and sport infrastructure management o f infrastructure; l1 Ito ensure their c) Rehabilitate exiiting sports, child and youth development 1 availability and infrastructure , 23.6 Implementation, Monitoringand Evaluation Framework Child and youth development cuts across all sectors. Inthis regard, the Government seeks to promote a multi-sectoral approach in the implementation o f national child and youth programmes. Implementation will require the involvement o f all stakeholders in child and youth development. These include the Sector Advisory Group (SAG) on child and youth that will be responsible for overall steering o f the implementation process. The SAG will meet quarterly or any agreed number o f times to review progress, recommend solutions to identified bottlenecks, and build consensus on overall strategic direction. Public institutions at provincial, district, central and local government levels, NGOs, cooperating partners, CBOs, FBOs, the private sector, various youth organisations, organisations o f people with disability, churches, youth and communities will work together with a common purpose, avoiding duplication, andpromotingrational use o fthe available resources. The implementation o f interventions will be done through utilization of existing structures, based on the principles of equity, accessibility and inclusiveness, HIV and AIDS impact mitigation, youth participation, partnership and networking, human rights, and respect of cultural, religious, customary and ethical values. The MSYCD will play a critical role in the implementation process. The major hnction o f the Ministry is to provide direction for sport, youth and child services, to set policies and translate them into tangible programmes. The sector's implementation on child and youth development requires effective monitoring and evaluation with appropriate feedback mechanisms amongst all stakeholders. Inthis regard, the Ministry responsible for sport, youth and child development, in partnership with key stakeholders, will conduct regular monitoring of children and youth projects and programmes, in addition to yearly evaluations. Reports will be circulated to all stakeholders. Appropriate indicators will be developed and used to assess the performance o f the Plan's interventions in this area. Members o f the multi-sectoral committee shall be part o f the monitoringprocess. Periodic surveys and research on the status o f sport, youth and children will be undertaken from time to time to generate information for policy making and planning o f sector development. FifthNational Development Plan 2006-2010 223 Employment and Labour 24.7 Introduction The high unemployment and poverty levels have been a major concern to the Government. The MinistryofLabour and Social Security has the mandate to analyse the causes and consequenceso fhigh and persistent unemployment with a view to proposing effective policy solutions to deal with this challenge. In order to address the unemployment and poverty challenges, it is necessary to secure significant improvement in employment creation, labour productivity, skills development, working conditions and the provision o f welfare and social security measures, to workers inboth the formal and informal economy. Above all, it is important to ensure that all employees work under conditions that are very conducive. Therefore, the integration o f the employment strategy into the national development plan is essential. I t i s prudent to note that the employment and labour policy has been evolving in response to the needs o f economic development and social justice. This has had a two-fold objective, that is, maintaining industrial harmony, and promoting labour welfare and protecting the rights o f workers. However, issues directly linked to poverty reduction and economic growth, such as employment creation and maintaining labour standards at places o f work, have not been adequately addressed. For instance, occupational health and safety matters, HIV and AIDS at work places, social security for the informal sector, elimination o f child labour, and labour market information management still remain major challenges inthe labour market. 24.2 Review of Past Performance Zambia's population has continued to increase at a rate that the economy has been unable to sustain, resulting inhighunemployment levels. University and college graduates are entering the labour market with limited hope for gainful employment. This state o f affairs has created a mismatch between the increasing labour force and the rate at which the economy can absorb this increasing labour force leading to high levels o f unemployment. The resulting high unemployment levels are also putting pressure on the resource base. According to the 2000 census, the average population growth between 1990 to 2000 was 2.3 percent, with the current population standing at approximately 11.7 million people. According to employment statistics from Central Statistical Office (CSO), 10 percent o f workers are employed in the formal sector, while 68 percent are employed in the informal sector. The lack o f new employment opportunities has led to increased brain drain that has continued to affect many important sectors, such ~s education and health. Furthermore, recent massive job losses have continued to put further pressure on the existing social security system in Zambia. Despite reforms undertaken on the formal social security schemes in the mid-1990s and transformation o f Zambia National Provident Fund into the National Pension Scheme and the merger o f Pneumoconiosis Board and the Workers' Compensation Control Board, the coverage o f these schemes continues to be restricted to employees in the formal sector. Occupational safety and health standards in the liberalised economy generally still remain low, as demonstrated by the increase in the number o f industrial accidents and occupational diseases over the years. Workers have continued to work in unsafe and unhygienic conditions in both the informal and formal sectors. The industries associated with such risks are mainly mining, construction, electricity, forestry, manufacturing and agriculture. There are several laws that govern occupational safety and health at work places. The process o f reviewing some o f these pieces o f legislation has already commenced in order to modernize and harmonise them with international standards o f occupational safety and health and the needs o f the current socio-economic environment. The HIV and AIDS pandemic has also continued to impact negatively on labour productivity and national economic FifthNational Development Plan 2006-2010 227 development. The effects o f HIV and AIDS on labour productivity include highmedical costs; loss o f person-hours; loss o f skilled labour; andincreased funeral costs. There has been a need to review the following pieces o f legislation: Employment Act; Industrial and Labour Relations Act; Employment o f Young Persons and Children Act; Factories Act; and Statutory Instruments on minimum wages and conditions o f service in order to align them with regional and international standards. Zambia has since ratified the core ILO conventions that seek to uphold the fundamental rights o fworkers at places o fwork. Inorder to achieve improved industrial harmony, greater consideration should be given to appropriate means o f dispute resolution both in the public and private sectors, involving the participation o f representative organizations o f employers and workers. Inthis regard the Ministryo f Labour and Social Security is expected to play a pivotal role in enhancing economic growth and poverty reduction by the maintenance o f industrial harmony through social dialogue and the provision o f labour market information needed for appropriate formulation o fpolicies. Inview of the changes on the labour market, there is need for Zambia to direct its policies inline with the Millennium Development Goals (MDGs), the Decent Work Agenda under ILO, and the New Economic Partnership for Afi+ica'sDevelopment (NEPAD) programmes aimed at employment creation andreducingpoverty inAfrica. 24.3 Policies and Key Reforms During the FNDP period, the Government shall adopt a multi-dimensional approach in the implementation o f interventions that seek to create an enabling environment for job creation by targeting employment generation in both rural and urban areas. With respect to the safeguarding o f labour standards and safety in the workplace, the Government shall facilitate more frequent random checking o f factories with severe penalties imposed on those that break the law. Inspections shall be complemented by educational awareness campaigns with regard to the provisions o f the Factories Act and related legislation. Labour legislation will be reviewed to align it to regional and international standards. With regard to the social security reforms that would be undertaken, the objective would be to ensure harmonisation o f social protection schemes in order to improve the coverage and delivery o f social services in the country. In this regard there is also need to ensure that the coverage o f social security schemes i s extended to workers inthe fast growing informal economy. Inorder to respond to various changes inthe labour market, the Government, through the Ministry of Labour and Social Security, has developed a national employment and labour market policy. The following are the focal areas that shall be implemented under the FNDP: a) Support to the various sectors o f the economy aimed at achieving higher employment creation, productivity and improved wages and working conditions; b) Revision and formulation o f employmenflabour policies and legislation; c) Contribution to the reduction o fpopulation growth and HIV andAIDS prevalence rates; d) Reduction o fbrain drain inthe country; e) Strengthening the participation o f government, employers and workers insocial dialogue; f) Provision o f comparative information on the state o f labour through monitoring and analysing the labour market; g) Elimination o f all forms of discrimination inemployment; h) Elimination o f the worst forms o f child labour; i) Provisionofsocialprotectiodsecurity andintegrationofspecialandvulnerablegroupsintothe labour market; and j) Promotion o f awarenessandrecognition o f fundamental rights o f workers. FifthNational Development Plan 2006-2010 228 24.4 Visionand Goal The Vision is: An EJtfZcient and effective labour market system that promotes j o b creation in the economy by 2030. The Goal is: Toprovide thepolicy and legalfiamework on employment creation, labour administration and social protection in order to contribute to the enhancement of job creation andproductivity in the country. 24.5 Programmes, Objectivesand Strategies The matrix below presents the progames, objectives and strategies for the employment and labour sector. Programmes 0bjectives Strategies ______ Decent Work 1) To promote a) Introduce labour market programmes targeting the i n f o r m r Promotion :mployment sector; b) Implement labour administrationprojects I) To promote a) Hold regular meetings o f the Tripartite Consultative Labour social dialogue Council; b) Enhance capacity o f employers' and workers' organizations to participateeffectively inmacro-economic issues; c) Train social partners inconflict management techniques; d)' Establish a Secretariat to coordinate tripartite consultative mechanisms withinthe Departmento fLabour :) To promote a) Improve social security service delivery; jocial protection b) Extend coverage o f social security contingencies to those :bough the creation currently excluded; Jf a comprehensive c) Carry out research on social security in order to monitor social social security security trends and establish and maintain a social security System database; d) Improve benefit levels; e) Carry out awareness campaigns on social security; f ) Facilitate the review o f laws and social security systems inorder to remove gender discriminatory practices and biases i)To promote a) Conduct regular labour inspections; fundamental rights o f b) Convene sensitisation workshops and conduct awareness workers campaigns on labour laws; c) Enhance employment and labour administration services at provincial and district levels Labour Market To create public a) Identify labour and employment information needs o f Management awareness on labour stakeholders; Information and employment b) Establish and maintainboth an online and in-house database on System matters and enhance employment, the labour market and operations o fthe Ministry; decision-making c) Develop and strengthen the Ministry's Management Information System; d) Strengthenthe institutional capacity o f field stations; e) Schedule and convene information and dissemination workshops and seminars; f ) Conduct effective awarenesscampaigns; g) Revive the Public Employment Exchanges; h) Conduct periodiclabour market surveys; i) Developdatacollectiontools; J) Monitor labour migration Labour Market To strengthen the a) Review and re-formulate employment and labour policies and Legal and regulatory and legislation; Regulatory legislative b) Develop guidelines that foster efficient and effective labour Framework framework for the administration in conformity With both local and international Reforms employment and standards; labour sector c) Conduct research on various labour-related issues; d) Review relevant labour legislation; e) Review and re-formulatelabour and social security policies Fifth National Development Plan 2006-2010 229 )r: Employmc nt and Labour Programmes 0bjectives Strategies Occupational To promote and -Conduct a) occupational health and safety awareness and accident Safety and enforce occupational prevention programmes; Health health and safety b) Conduct factories and machinery inspections; Promotion standards at places o f c) Investigate occupational accidents and diseases and provide work to ensure a safe remedial and control measuresand feedback; and healthy working d) Conduct registrationo f factories; environment e) Identify, examine and test pressure vessels and lifting machmery; 0 Conduct surveys on occupational accidents and diseases; XL Improve the provision o f occupation health services. National To promote a) Conduct work culture attitude workshops for employees; Labour productivity in the b) Introduce productivity-basedcollectivebargaining; Productivity country so as to c) Design and conduct annual productivity surveys; Promotion enhance economic 4 Schedule and organise productivity seminars and workshops; growth e) Design and implement productivity improvement techniques; 0 Undertake public awareness campaigns on educational and occupational assessmentservices; g) Schedule and undertake educational and occupational assessment activities; h) Collect data for test validation and statistical analysis; i) Provide career guidance and counselling services; j) Conduct tracer studies to ascertain the performance o f assessed candidates; J5.LEstablish a National Productivity Centre Mainstream To increase a) Increase programmes for entrepreneurship, apprenticeship and Special Interest employment in-house training and industrial attachments for youths, women and Vulnerable opportunities for and vulnerable people; Groups youths, women and b) Increase youth and women's access to land and other factors o f persons with production; disabilities c) Develop special skills training for persons with disabilities; d) Increask access to credit facilities for persons with disabilities HIV and AIDS To reduce the spread a) Educate workers on HIV and AIDS legal provisions; Interventions at and impact o f HIV b) Formulatelegislationto protectHIVand AIDS infectedworkers; the Work Place and AIDS on c) Educate workers on the dangers and effects o f HIV and AIDS; workers and d) Undertake HIV and AIDS awareness and sensitisation employers programmes; e) Facilitate the formulation o f HIV and AIDS policies at work places Prevention of To eradicate the a) Conduct awareness campaigns to educate trade unions, Child Labour worst forms o f child employers and the general public on the dangers o fchild labour; labour b) Review, harmonise and enforce existing pieces of legislation on child welfare; d, c) Effectivelv monitor child labour trends inZambia; Conduct daseline surveys on child labour Labour a) To reduce a) Facilitate the improvement o f working conditions for strategic Migration the brain drain inthe personnel; country b) Promotethe principle o fequalpay for equalwork ofequal value; c) Provide up-to-date labour market information on job b) To opportunities to Zambians working abroad; effectively utilize d) Strengthen the Zambianisation programme; skills o f migrant a) Identify skill gaps requiredinvarious sectors o f the economy; workers and skilled b) Create a database o fmigrant workers including skilled refugees; refugees c) Develop guidelines o f succession plans were migrant workers will eventually transfer skills to Zambians. Discrimination To end a) Promotethe principle of equal pay for equal work o f equal value; Prevention discrimination in the b) Actively promotethe greater participationofwomen ineconomic labour market and enterprise development activities; c) Ensure greater employment and entrepreneurial opportunities for peoplewith disabilities; d) Combat discrimination and stigmatization in employment based onHIV and AIDS; e) Cooperate with GIDD, MCDSS and other ministries to end discrimination. Monitoring and To monitor the a) Constitute a monitoring and evaluation team; Evaluation implementation o f b) Develop amonitoringand evaluation system; Fifth National Development Plan 2006-2010 230 Sector: Employment and Labour No Programmes Objectives Strategies programmes and c) Train officers inmonitoring and evolution tools and techniques; ensure that the d) Demonstrate impact of employment and labour policies and intended objectives activities; are achieved e) Disseminate results. 24.6 Implementation,Monitoring and EvaluationFramework Employment and labour programmes will be monitored by the Ministryof Labour and Social Security in collaboration with the SAG and the Provincial and District Advocacy Groups spearheading the implementation of the national employment and labour market policy. They will ensure timely submission of reports, and verify and validate expenditure and objectives against the following indicators: a) Employmenthnemployment rates (gender and age disaggregated); b) Number ofindividuals coveredby social security schemes(gender and age disaggregated); c) Productivity levels (aggregated by sector); d) Numberhahe ofbenefits paid; e) Child labour prevalence rates (gender and age disaggregated); f) Days lost through industrial disputes; g) Number of industrial accidents; and h) Dayslost through industrial accidents. The selection of the above indicators also took into account the need to monitor Zambia's progress towards the achievement of the Millennium Development Goals. The FNDP implementation review meetings involving stakeholders will be held annually. The objective will be to ensure dialogue with all stakeholders. The Tripartite Consultative Labour Council being a major stakeholder will be expected to play a pivotalrole duringthis process as it has the representation o f the Government, and workers' and employers' organisations. The monitoring and evaluation will be undertakenby the Sector Advisory Group. Fifth NationalDevelopmentPlan 2006-2010 231 GovernmentAdministration Central Administration 25.1 lnfroducfion Central administration plays a pivotal role inthe development o f Zambia. It comprises Cabinet Office, Public Service Management Division (PSMD), and Public Service Commission (PSC). Cabinet Office, whose functions are mainly derived from Article 53 o f the Constitution o f Zambia, is the highest administrative office in the Public Service. It is responsible for coordinating the effective implementation o f government policies, systems andprocedures, and for monitoring and evaluating the overall performance o fthe Public Service. The Public Service Management Division is charged with the overall responsibility o f human resources management and development while the Public Service Commission is responsible for prescribing policies and procedures for employment inthe Civil Service, making appointments to any office in the Civil Service and exercising disciplinary control over Civil Service personnel. 25.2 Review of Past Performance In the early 199Os, the Government began a political and socio-economic reform process which involved democratising the political system, transforming the administrative system and liberalizingthe economy. During this period the Public Service was bloated, inefficient, ineffective, and inadequately responsive to the needs o f the public. It was also characterised by poor discipline, and inadequate professionalism and accountability, resulting in poor service delivery. To redress this situation, the Government embarked on implementing the Public Service Reform Programme (PSRP) in 1993 as a systematic long-term measure to reform the Public Service. The overall goal o f the PSRP is "to improve the quality, delivery, efficiency and cost effectiveness o f public services to the people o f Zambia". Initially, the Public Service Reform Programme had three main areas o f focus, namely, Restructuring; Management and HumanResources Performance Improvement; and Decentralization and strengthening o f Local Government. These were aimed at streamlining the fbnctions, structures, establishments, and operations o f ministrieshstitutions in order to create a lean, less costly, but well motivated Public Service. They were also aimed at introducing organisational, management, and accountability systems into government operations to improve efficiency and effectiveness in delivery o f public services and decentralising authority and control o f resource allocation and utilisation from Central Government to districts and local authorities. Itwas realisedthat for the reformsto have apositive impact onthe well-being ofthe citizens, the Public Service needed significant institutional and human resources capacity building. In 2000, the Government commenced the implementation o f the Public Service Capacity Building Project (PSCAP) in order to facilitate and sustain the reform efforts. The PSCAP was designed as a long-term comprehensive government strategy to be implemented inthree phases. The first phase, which became operational in 2000 focused on right sizing and pay reform o f the public service; improved policy and public service management; improved financial management, accountability and transparency; improved capacity o f the judicial and legal systems; and decentralisation and participatory governance. Implementation o f various reform initiatives under the PSRP has resulted in a number o f significant achievements including the following: a) The size o f the Public Service was reduced substantially from 139,000 in 1997 to 104,000 in2000, before increasing to 115,000 in2004; b) Key technical andprofessional positions were filled by competent and qualified staff; c) Appropriate management structures were put inplace; d) The salary structure was rationalised from 17 salary scales to 5 salary scales by consolidating 14 scales into two, one for civil servants and the other for teachers; e) A new open Appraisal System was introduced; f ) The Performance Management Package was installed inrestructuredministries/institutions; Fifth National Development Plan 2006-2010 235 g) The General Orders were repealed and replaced by Terms and Conditions o f Service for the Public Service; Disciplinary Code and Procedures for Handling Offences in the Public Service; Service Commission Regulations; and Procedures for Employment inthe Public Service; and h) The Payroll Management and Establishment Control (PMEC) System was developed and adopted with unique position codes for all the jobs in the public service. In addition, Payroll and Establishment Cleaning and documentation o f Payroll and Establishment related policies and procedures andtraining o fgovernment employees inthe use o f the PMEC system were undertaken. 25.3 Policies and Key Reforms During the period 2006 to 2010, the Central Administration will continue to spearhead the implementation o f Public Sector Reforms through the Public Service Management (PSM) Component, which is one o f the three pillars o f the PSW. The other two pillars are Public Expenditure Management (PEM) and Financial Accountability Reforms (PEMFA) and Decentralization. The overarching policy goal o f PSM Component will continue to be that o f enhancing effective delivery o f services to the people o f Zambia. The PSMhas four sub-components namely, rightsizing; pay reforms, service delivery improvement andpayroll management and establishment control. 25.3.1 RightsizingSub-Component The goal o f the sub-component is to ensure that all government ministries and institution have staff complements that are appropriate to their agreed mandates and affordable in relation to the Medium Term Expenditure Framework (MTEF) ceilings. The main thrust o f the reforms under this area shall be to continue with right sizing efforts within the dictates o f the resource constraints, and with particular emphasis on Provincial and District Administration as well as Local Authorities. Under the rightsizing component, the Government will do the following during the FNDP: a) Re-examine current downsizing strategies with a view to reducing costs; b) Ensurepayment o fredundancypackages promptly; c) Develop proposals to contract-out non-core services; d) Develop and implement an HIV and AIDS prevention and mitigation strategy for the Public Service; e) Develop and implement a strategy to create a more gender responsive Public Service; and f) Develop andimplementasocialprotectionstrategy. 25.3.2 Pay Reform Sub-component The goal o f this sub-component i s to ensure the following: a) Employees' remuneration i s related to the job andperformance; b) The Public Service is able to attract andretainessential technical, professional andmanagerial staff; c) Pay arrangements support andreinforce improved service delivery; d) Increases inpay levels are consistent with the resource envelope; and e) Development o f the public service pay policy. In line with the above commitments under this sub-component, the Government shall carry out diagnostic work to inform the development o f a comprehensive pay policy; develop a Public Service pay structure, which reflects the pay policy; enhance planning and budgeting arrangements for personnel emoluments; and create a sustainable public service pensions fund. 25.3.3 Service Delivery ImprovementSub-component The goal o f this sub-component i s to ensure that all ministries and institutions are managing performance effectively within an agreed framework o fplannedobjectives and standards, and are taking action to improve their capacity to deliver better services. In this regard, the Government will do the following duringthe FNDP: a) Undertake an in-depth review o f the implementation o f all performance management initiatives; b) Revise andimplement the strategy for performancemanagement; c) Implement service delivery charter and a service delivery improvement fund to strengthen the capacity o f ministrieshstitutions to deliver better services; and, d) Buildmanagement capacity. Fifth National Development Plan 2006-2010 236 25.3.4 Payroll Managementand EstablishmentControl (PMEC) Sub-component The goal o f this sub-component is to ensure that personal emoluments and establishments for the Public Service are effectively managedand maintained at approved levels. To this end, the Government will do the following during the FNDP: a) Conduct sensitisation programmes for stakeholders; b) Buildadequatebusiness and technical capacity to manage andmaintain the PMEC system; c) Complete verification o f establishments and staffing in order to roll-out the system across all ministries, institutions, and provinces: d) Contract technical assistanceto support implementation as andwhen needed; e) Strengthen payroll integrity; f) Implement additional humanresource sub-modules; g) Decentralise the ITinfrastructure to provincial level; h) Integrate PMECwith IFMIS; and, i)InterfacethePMECsystemtoothersystems. 25.3.5 Routine Programmes In addition to the key reform initiatives, institutions under central administration shall continue implementing routine programmes aimed at sustaining Government operations. These will cover broad areas of management o f the policy process, and strategic and human resource management and provision o f institutional and system support services. 25.4 Visionand Goal The vision is: Qualitypublic servicesfor all by 2030. The goal is: Toachieve and sustain eficiency and effectiveness in the delivery ofpublic services. 25.5 Programmes, Objectivesand Strategies The matrix below presents the programmes and their respective objectives and strategies for Central Administration. Programmes Objectives Strategies General To effectively provide a) Provide o f office administration and logistical support Administration and administrative support services services; Support to for efficient management o f b) Provide staff welfare; Institutions government business c) Staff development; d) Plan and budget; e) Transport management; 0 Coordinatepublic affairs and summit meetings; 8) Manage internationaland national days; h) Coordinateprovincial administration; i) Provide o f grants to Government Communications, NPA, PSPF, Future Search, ESAMI and Civil Service ___Recreation Club Government To develop and facilitate the a) Develop and install performance management systems; Systems Re- implementation o f resultsb) Implement institutional assessments and service delivery organisation and oriented management systems audit; Capacity in order to improve c) Develop and implement service delivery charters; Enhancement performance and productivity d) Institutionaliseperformance management package inthe Public Service a) Improvement To improve human resource Review o f legal framework; of Human management and development Develop and review of human resource policies and Resources policies and systems in order to procedures; Management enhance delivery o f public Establish and maintain a database on separations and and services; disciplinary cases; Development Develop leadershipprograms; To mainstream o f Gender in Facilitate negotiationand dialogue; b) Management of management o f policies an Produce establishment register; an Integrated procedures; Strengthen human resource management information FifthNational DevelopmentPlan 2006-2010 237 :tor: Central Adr inistration Programmes Objectives Strategies Payroll system and planning; Management To attract and retain essential h) Upgradeandmaintain PMEC system; Establishment technical, professional and i) Developandimplementcomprehensivepaypolicy; Control managerial staff and to j) Develop and implement strategy for performance (PMEC) reinforce performance within management; System budget ceilings. k) Build capacities to implement service delivery initiatives; c) Pay Reform To ensure that all ministries/ 1) Ensure timely payment o fredundancy packages; m) Develop andimplement a social protectionstrategy; d) Service institutions are managing n) Develop and implement HIV and AIDS prevention and Delivery performance effectively within mitigation strategy for the public service; Improvement agreed frameworks o f planned activities and strategies. 0) Develop and implement a strategy to create a more gender responsivepublic service. a) Strengthening To strengthen monitoring and a) Develop and institutionalise an effective consultative of evaluation o f the process and enhance intra and inter ministerial and Coordination, implementation o f government public consultation; Monitoring and policies and programmes in b) Build capacity inMinistries through the development o f Eva1uation order to establish their skills inpolicy formulation, implementation, monitoring Systems effectiveness and impact and evaluation, and Writing o f Cabinet Memoranda; b) Management of c) Maintain electronic system for policy management and Policy Process coordination; c) Cabinet and d) Disseminate procedures and guidelines and preparation Cabinet o fnationalpolicy documents and Cabinet Memoranda; Committee e) Improve Record Management Systems. M eetings Secretariat Services 25.6 Implementation,Monitoring and EvaluationFramework The ENDP programmes will be translated into Annual Work Plans, which will be costed using the Medium Term Expenditure Framework. Further, implementation of some activities under the Improvement o f Salaries and Conditions o f Service and the Enhancement and Alignment of Government Systems and Procedures programmeswill be facilitated by the Public Service Management Component o f the Public Service Reform Programme. The Central Administration Strategic Plans for the period 2006-2010 set out key strategies and their corresponding performance indicators; Annual Work Plans; andbudgets.These Strategic Plans will form the basis for the FNDP monitoring. A review o f implementation will be carried out at the end o f each year from which activities for the following year will be identified. The responsible divisions will carry out quarterlyprogress reviews. These quarterly reviews will form the basis for preparingAnnual Reports. An independent evaluationwill be conducted mid-term and at the end of the Plan period. The entire monitoringand evaluation process will be overseen by the SAG, which will be formed for central administration. FifthNational Development Plan 2006-2010 238 l i8 ; x ---r--- I I a y tl .- - - m N ? r- m r -I- ? 0tn 2 x x 8 -... I .- 9 x x x 8 f 0 2 ? e. 0 2 x x - 8 1 2 x x - I x - x s x x a ---I- d 0 N Local Government and Decentralisation 26.1 Introduction The Ministry o f Local Government and Housing (MLGH) is responsible for the facilitation o f an enabling environment for the smooth fimctioning o f all councils in the country. The local government and decentralisation sector is multi-functional in nature because it is a recipient of delegated responsibilities from various sectors. The sector i s driven by the national aspiration to uplift the standard o f living o f the people through democratisation and strengthening o f local decision- making to ensure the provision of quality services by councils. The sector covers such issues as physical and regional planning; infrastructure development and social services; water and sanitation; chiefs' affairs; fire services; decentralization; local economic development; and poverty reduction. The delegated responsibilities o f the local authorities are democratised and strengthened through local decision-making processesas defined under various pieces o f legislation. 26.2 Review of Past Performance The Government's provision o f services registered marked improvement during the 1960s and 1970s, reflecting the buoyancy o f the economy at the time and the general efficiency o f the delivery system then. Since the 198Os, however, considerable decline has been evident inservice delivery by both the central government, generally, and councils, inparticular. In2001, the Governmentrecognised that inspite o fthe changesto the local government system, very little positive change was registered, particularly with respect to improvements in service provision. PDCCs and DDCCs, it has been observed, have remained ineffective. The fact that they control no budgets and that budgeting is actually being done and approved at levels much higher than these committees has continued to reduce their economic and political relevance. Consequently, the Government has recognised that the decentralisation efforts so far made are largely deconcentration o f central government responsibilities rather than devolution o f functions and authority to local levels. A number of factors explain the poor stateof service delivery by councils. These are as follows: a) Inadequate budget allocation by central government; b) Inadequate andlate disbursementso f funds; c) Delays inthe implementation o f the decentralisation policy, particularly fiscal decentralisation; and d) Inadequate capacity inplanning, budgeting, revenue collection and expenditure management. Against the above background, it is evident that there is need to address, in a more inclusive and devolved manner, the challenges being faced by communities inboth urban and rural areas inthe area o f service provision, generally, and interms o fhow decisions are made, inparticular. Decentralised systems o f service delivery seek to improve governance inthree ways: improving the efficiency o f resource allocation; promoting accountability and reducing corruption; and improving cost recovery. Decentralisationhas generally been associated with the following: a) Reduction inpower, size, and cost o f central government; b) Improvedefficiency indecision-making; c) Better coordination o fdevelopment activities at the local level; d) Greater equity and effectiveness inthe allocation o f resources; e) Better responsiveness from government to the needs o fmarginalised groups; f ) Enhanced participation indevelopment; g) Improvedtransparency andaccountability; and h) Moreeffective mobilizationofresources. Fifth National Development Plan 2006-2010 242 Inthe light of the above, the most fundamental rationale for decentralisation in Zambia lies in its opportunity to bring the government closer to the people by providing citizens with greater control over the decision-making process andallowing their direct participation inpublic service delivery. 26.3 Policies and Key Reforms Through the Public Service Reform Programme (PSRP) that was launched in 1993, the Government re-affirmed its commitment to the decentralisation process by pledging to strengthen the management o f local authorities. The PSRP includes a component on decentralisation and strengthening o f local government. In the document, Public Service Reform Programme 2000: Strategy and Action Plan, 2000 to 2002, the Government reiterated its commitment to the principles o f decentralisation and the strengthening o f the local government system. It is against this background that the Decentralisation Policy was adopted in2002 and subsequently launched by the President in2004. The policy provides the vision o f "a fully decentralized and democratically elected system o f governance characterized by open, predictable and transparent policy making and implementation process, effective community participation in decision making, development and administration o f their local affairs while maintaining sufficient linkages between the centre andthe periphery." The decentralisation policy objectives are as follows: a) Empower local communities by devolving decision-making authority, functions, and resources from the centre to the lowest level with matching resources in order to improve efficiency and effectiveness inthe delivery o f services; b) Design and implement mechanisms to ensure a "bottom-up'' flow o f integrated development planning andbudgeting from the district to the central government; c) Enhance political and administrative authority in order to effectively and efficiently deliver services to the lowest level; d) Promote accountability and transparency inthe management andutilizationo fresources; e) Develop the capacity o f councils and communities in development planning, financing, coordinating, and managing the delivery o f services intheir areas; f ) Buildcapacity for development andmaintenance ofinfrastructure at local level; g) Introduce an integratedbudget for district development and management; and h) Provide a legal and institutional framework to promote autonomy in decision-making at local level. In the light of the above, the decentralisation policy has been developed to provide for a more facilitative policy environment for addressing the identified problems. The decentralisation implementation plan (DIP) has been developed to operationalise the decentralisation policy and to give guidance on the activities that shall be undertaken during the 2006 to 2010 period coinciding with the FNDP period. Inspite o f the urgency to devolve power and authority to lower levels, it is the Government's view that it is not appropriate to transfer all functions and finance matters to those local authorities that still suffer from severe humanresource capacity shortfalls. I t is in this vein that the issue o f capacity building prior to, and during the implementation of, a decentralised system shall receive particular attention during the FNDP implementation. 26.4 Visionand Goal The vision is: A country with afully decentralised and democratically elected system of governance by 2030. The goal is: To enhancedemocratic governanceand delivery of quality service at the local level. 26.5 Programmes, Objectives and Strategies The matrix below presents the core programmes and their respective objectives and strategies for the local government and decentralisationcomponent o f the FNDP. Fifth National Development Plan 2006-2010 243 or: Local Gove iment and Decentralisation Programme Objectives Strategies Local Development 1. To contribute to sustainable service Empower communities and targeting Programme delivery for communities and resources for the poorest segments of the Planningand districts communities; Budgeting Strengthen the local government system and 2. To contribute to enhanced capacity o f implement aspects o f the decentralisation local authorities to manage own policy, so that decision making is devolved revenue and expenditure to the people and results in active participationby the communities; 3. To contribute to the development o f a Strengthen public expenditures process and framework for sustainable fiscal district administrationfor resource allocation 4. Decentralisation and financial management; Transfer o f resources to districts as intended 5. To support local social and economic inthe decentralisationpolicy; development at the district level Carry out intensive training in financial management and district development 6. To develop and implement a new planning; integrated planning and budgeting Create an integrated district budget and system that i s supportive o f the resourcemobilisation system at district level National Decentralization Policy Institutionaland To create and strengthen human and Assess and develop the management and Human Resource institutional capacities to implement, techmcal capacities o f the human resources Capacity manage, and support decentralized o f the key institutions responsible for Development governance, development, and service implementing the decentralization process; delivery Develop and rehabilitate local government institutional capacities, such as Chalimbana and National FireTraining School; Prepare and implement o f capacity building programmes and monitoring the performance o f local authorities. Retrench programs for councils Implement HIV and AIDS programs Implementationof To empower councils through the Empower councils through effective the implementation o f the decentralisation devolution o f power, responsibilities and Decentralisation policy and the enhancement o f good resources from central ministries; Policy governance, community participation in Conduct nation-wide sensitisation on decision-making for effective and efficient Decentralise Policy and DIP; generation, and delivery o f services to Produce and disseminate materials on local communities decentralisation; Facilitate the mounting o f civic education programmes; Create an enabling operational environment for the decentralisationsecretariat Financial a. To promote accountability and Train finance officers incouncils; Management and transparency in the management Assess capacity o f finance officers in Accountability and utilization o fresources councils; Capacity for Train finance officers in councils on councils and Local financial management and accounting; Authorities b. To establish and operationalise a Implement district planning and budgeting comprehensive local government manuals; financing system; Ensure that Councils are entitled to adequate financial resources o f their own, distinct from those o f the central government and to c. To enhance the capacity o f councils dispose freely o f such revenue within the to mobilize resources and to widen framework o f their powers; their economic base Provide block grants, which are not earmarked for the financing o f specific projects or services, shall be promoted; Work towards the financial empowerment o f Councils through fair and equitable sharing o f public resources for effective service delivery; Enhance internal capacities o f Councils to raise and manage ownresources; Develop financial management and accounting capacities for Councils; FifthNational Development Plan 2006-2010 244 No Programme Objectives Strategies j) Improvepropertyvaluationprocedures; k) Enhance participation o f stakeholders including chiefs in governance and development issues at the local level. 5 Poliey,Legal,and To provide a legal and institutional Identify and amend laws needed for effective Regulatory framework in order to promote autonomy implementation o f the decentralisation policy and Framework in decision-making and service delivery at strengtheninglocal government 26.6 Implementation,Monitoring and Evaluation Framework The implementation o f the FNDP interventions for local government and decentralisation shall be closely guided by the DIP. A t the national level, Cabinet Office shall assume a strategic role in providing oversight over the implementation o f the interventions outlined above. The Government maintains that community participation in service delivery as well as in actual maintenance o f facilities is crucial for the improvement o f the communities' welfare. The development o f this form o f partnership is considered essential not only in terms o f people's direct material inputs but, equally important, the use o f their presence in councils to establish actual community needs and demands and alter these in the light o f increased demand for the services as expressed by the beneficiaries themselves. Inthis respect, the involvement o f communities inservice provision at the local level shall be one o f the cornerstones o f decentralisation. Community involvement shall particularly be facilitated in the delivery o f services that are highly localised and which use relatively small-scale infrastructure. This option offers good promise inmeeting the social service demands o f those in unplanned settlements in the provision o f such services as communal boreholes supplying ground water; local drainage and sanitation systems; and solid waste disposal. To secure the effectiveness o f this option, the Government, through the decentralisation secretariat, will ensure that stakeholders are directly involved at all decision-making levels o f preparation/planning, implementation, and monitoring and evaluation. The introduction o f commercialisation principles in service delivery will be emphasized during the FNDP implementation. Thus, the Government will ensure that, under commercialisation, the provision o f services achieves a balance between the economic imperatives o f councils and private companies to make money and the social needs o f the whole population for adequate service provision. With respect to the monitoring and evaluation system, the main objective is to develop and institutionalise an appropriate monitoring and evaluation system that will facilitate effective surveillance over the implementation o f the national decentralization policy, in general, and the identifiedprogrammes/activities for the FNDP, in particular. In this respect, an effective national results-based monitoring and evaluation system will be put in place, supported by effective monitoring and evaluation units at all levels. The strengthening o f the oversight role o f communities and other stakeholders through their effective participation in monitoring and evaluation o f decentralisation functions shall be one o f the focal areas o f intervention. At the more practical level, periodic monitoring of activities will be undertaken to ensure effective implementation o f the interventions. Monitoring reports will be between and among various actors in the decentralizationprocess. Evaluations will also be undertakenby the Ministryperiodically and will come up with recommendations for improvements and the way forward. Capacity building through training aimed at equipping different levels o f personnellstakeholders to undertake the effective monitoring and evaluation o f programmes within the decentralized structure will be a continuous process during the FNDP period. The role o f the National Development Coordinating Committee, PSRP steering committee, the SAG, the Provincial Development Coordinating Committee and the District Development Coordinating Committee will be enhanced. FifthNational Development Plan 2006 -2010 245 * c h m Y B zI!! N N 2 ..- s .- h 0 0 Information Services 27.I Introduction The information services sector inZambia plays an important role inthe socio-economic development o f the country. Essentially, the flow o f information takes place between information producers and information consumers. This takes place mainly through the print and electronic media, folklore and music. Nations which have effectively used information to their advantage have made tremendous strides inmany development initiatives. The objective o f the sector is to enhance the use o f the print media, electronic media and Information and Communication Technology (ICT) by various sections o f Zambiansociety for the benefit o f the entire nation. 27.2 Review of Past Performance During the implementation o f the PRSP/TNDP, a number o f programmes were implemented in the information services sector. Most public media institutions were hlly computerised while the exercise is still ongoing in others. To improve radio reception in the country, the Government procured 56 FM radio transmitters that have since beeninstalled ina number o f districts. Further, implementation o f the satellite television project, whose objective is to improve television reception countrywide commenced. Withregardto training, the sector performedwell. Notwithstanding the above achievements, the sector experienced a number o f challenges that should be addressedinorder to achieve the set objectives. Key challenges include: Inadequate infrastructure, financialresources i dlack of legal framework; Obsolete or inadequate equipment; archaic technologies; inadequate transport; and poorly motivated staff. The challenge at this level is to devise new ways o f financing media operations on a more sustainable basis; Lack o f access to modem ICTs has adversely affected timely and effective delivery o f information as the current information and communication infrastructure is inadequate to meet the information needs o f the whole population. This has led to poor and limited radio and television coverage, thereby denying information to most people living inthe rural parts o f Zambia. Inaccessible roads inrural areas and non-existence of telecommunication services inother areas has equally affected distribution and outreach o f print media products, such as newspapers and magazines. There is, therefore, need to establish communication channels which ensure that every citizen has access to information as a basic humanright; The prevailing media legislative environment does not adequately provide for fieedom o f the media, freedom o f information and good governance. Some existing laws are inconsistent with the requirements o f media operations in a changing political environment. There is, therefore, need for a review o f the current media law regime and enactment or enforcement o f new laws that promote press freedom, freedom o f information and democratic governance; In spite of the many gender sensitisation initiatives carried out in the last few years, gender insensitivity in the media continues to be a contributing factor to inequalities between male and female journalists. Limited participation o f women in information and the media is a factor contributing to the continued stereotypical manner in which women are portrayed as passive participants in national development activities. The situation is compounded by women's limited access to ICT, especially in rural areas where infrastructure is inadequate or does not exist at all. Further, women's interests are not well-catered for becausedecision-making positions inthe media are dominatedby males who generally are not gender-sensitive. Inview o f this, there is need for the mainstreaming o f gender equity in all media operations in line with the international treaties to Fifth National Development Plan 2006 -2OIO 248 which Zambia is a signatory, such as the SADC Declaration on Gender and Development signed by Heads o f State and Government in 1997; Q The HIV and AIDS pandemic has negatively impacted the information services sector through morbidity and mortality. In spite o f this, the media have not been successful in designing and communicating appropriate messages to address the problem. There is, therefore, need for fresh approaches to the coverage o f HIV and AIDS and related issues. An additional challenge is to develop effective ways o f combating the spread o f the pandemic within the information services sector itself. This calls for the mainstreaming o f HIV and AIDS in all media operations and activities; g) The liberalization o f the media industry, which allows the importation o f unedited foreign media products, some o f which conflict with the norms and values o f Zambian culture, poses a challenge for the Zambian media to counter the negative influences o f such products with the positive aspects o f Zambian culture. The revival of, and support given to, manytraditional or cultural ceremonies all over the country is evidence that this i s possible; There i s need for capacity building that enhances candidates for setting-up community radio stations to expand on-going programmes; and h) There is also need to establish an interface system between the Government and the media by developing fitting finctional infrastructure service units inMPSAs. 27.3 Policies and Key Reforms The information services sector operates under a number of statutes, which are complemented by the National Media Policy o f 1996, which is currently under review. The statutes include the Zambia National Broadcasting Corporation (ZNBC) Amendment Act No. 20 o f 2002 Cap. 154; the Copyright andPerformance RightsAct No. 44 o f 1994 Cap 406; the Theatres and Cinematography Exhibition Act Cap 158; the Zambia Institute o f Mass Communication (ZAMCOM) Act o f 1996; the Independent Broadcasting Authority (IBA) Act No. 17 o f 2002; and the Printed Publication Act Cap 161. A number o f institutional reforms in the sector have also been implemented. The key reforms have been the liberalisation o f the airwaves, which has facilitated the establishment o f a number o f community radio stations andprivate commercial radio and television stations. The numbero fprivate radio stations stood at 29 in 2005 while that o f private television stations stood at four. In addition, three construction permits for television stations have been issued. Further,inorder to streamline operations, the Zambia News Agency and Zambia Information Services were merged to form the Zambia News and Information Services (ZANIS). This was done in the context o f the Public Service Reform Programme. To improve ethics and professional standards, a number o f media bodies, including the Zambia Community Media Forum (ZaCoMeQ and the Media Ethics Council of Zambia (MECOZ), have been formed. The FNDP period shall concentrate on the consolidation o f these positive structural reforms and ensure that legislation is enabling enough to guarantee effective performance o f the information services sector. Above all, the role o f the private sector and communities in providing information services shall be one o f the focal points during the FNDPperiod. 27.4 Visionand Goal The vision is: A well informed citizenry fully utilizing Information and Communication Technologyfor national development by 2030. The goal is: To increase media access and outreach throughout the country in order to promote p e e flow of information on development relatedprogrammes. 27.5 Programmes, Objectivesand Strategies The programmes and their respective objectives and strategies for the information services sector during the FNDP are presented inthe matrix below. FifthNationalDevelopment Plan 2006 -2010 249 services Objectives Strategies ElectronicMedia To facilitate the timely a) Procure specialized equipment; Promotion dissemination o f relevant b) Develop electronic media infrastructure; information in order to promote c) Expandmedia coverage. public awareness for national development Development of To facilitate the timely a) Decentralise the printing o f newspapers and PrintMedia dissemination o f relevant periodicals; Infrastructure information in order to promote b) Develop print media infrastructure; public awareness for national c) Expandmedia coverage; development d) Streamline newspaper distribution. Computerisation To promote utilization o f ICTs in a) Establisha Wide Area Network to link the sector; of Sector information gathering and b) Establishmanagement information systems; Operations dissemination for improved c) Promote wider usage o f ICT inoutreach efforts decision-making Promotionof To promote participation o f the a) Formulate guidelines for the establishment o f a Private-Public private partners in media Media Revolving Fund; Partnerships development b) Create baseline data on community media; c) Promote government-donor partnershps; d) Promote rural-based media; e) Improve access to information inorder to promote citizenry participation in economic development activities. Media Policy and To provide a conducive legal and a) Operationalise the IBA; Institutional institutional framework for the b) Review statutes that impede press freedom; Reforms development o f the sector c) Finalize the review o f the 1996 Media Policy; d) Build capacity indevelopment reporting; e) Build capacity in media management at local level; f) Engender the 1996Media Policy. 27.6 Implementation, Monitoringand Evaluation Framework The information services component o f the FNDP shall be implemented at national, provincial, and district levels in line with sector development programmes. The Ministry o f Information and Broadcasting Services shall perform the functions o f policy development and overall coordination and programming. Responsibility for overseeing the monitoring and evaluation will be undertaken by the Sector Advisory Group. The actual monitoring and evaluation functions will be undertaken at all levels. Specific outputs identified under respective programmes will form the basis for monitoring and evaluation. Monitoring will be undertaken quarterly, while the evaluation will be done at the end o f the FNDP. Fifth National Development Plan 2006 -2010 250 N rn N Foreign Relations 28.7 Introduction Zambia's foreign policy i s premised on the need to promote and maintain the country's international relations and safeguard its sovereignty, territorial integrity, socio-economic development, and other national interests. The Ministry of Foreign Affairs is the principal custodian and coordinator o f implementation o f Zambia's foreign policy. Inorder to ensure achievement o f foreign policy goals, the Government, through the Ministry,has established diplomatic missions in various parts o f the world. The missions are charged with the responsibility o f articulating the country's political, social, and economic interests to ensure that maximumbenefits are derived from the country's interactions with the international community. Inline with its foreign policy objectives, the Government has also entered into various agreements and arrangements with cooperating partners aimed at enhancing development cooperation. 28.2 Review of Past Performance A number of developments have taken place in the recent past that have affected Zambia's foreign relations. Zambia is not insulated from the effects of advancements in technology at the international level such as globalisation. Technological advancements have led to the opening up o f societies, markets, easier movement o f people, free flow o f ideas, goods, services and capital to the extent that it i s facilitating the rapid integration o f the world economy into one global village. These advances in technology and the resultant effect o f globalisation pose a number o f challenges that Zambia has to come to terms with inits foreign relations. Inparticular, to integrate Zambia into the regional and global economy requires the country to restructure its international relations to maximize the country's benefits from the unfolding global order. The country is presently not sufficiently benefiting from global economic integration. Presently, the majority o f Zambians continue to live inabject poverty, contrasting quite markedly to the more favourable global economic trends elsewhere. As the situation obtains presently, globalisation is not likely to bring about equitable and sustainable growth in Zambia. The situation is true for most Sub-Saharan African countries. Several initiatives thus far undertaken by Zambia testify to the Government's resolve to enhance development cooperation through foreign relations. Zambia, for example, has entered into Joint Permanent Commissions o f Cooperation (JPCs) with other African countries within and outside the region. JPCs provide an important forum for coordinating bilateral development programmes with other African countries. Zambia is a member o f the Southern African Development Community (SADC). In addition, the hosting o f the Common Market for Eastern and Southern Africa (COMESA) Secretariat has continued to enhance Zambia's role in coordinating regional economic integration initiatives. Zambia also continues to affiliate herself to a number o f development-oriented international organizations as well as regional groupings and other initiatives, which provide useful platforms for the country to articulate her development needs in order to take advantage o f the technical and financial assistance on offer. In this respect, four multilateral missions were established dealing with the United Nations (New York and Geneva), the European Union (Brussels) and the African Union (Addis Ababa). In addition, a number of trade and investment promotion agreements have been entered into with various bilateral and multilateral cooperating partners resulting in increased inflows o f aid as well as foreign direct investment into the country. The successful completion o f the Zambia NEPAD Action Plan and the subsequent facilitation o f an autonomous Zambia NEPAD secretariat by the Ministry o f Foreign Affairs is further testimony to the strategic shift o f the Government towards the nurturingo f more economic-oriented foreign relations. In line with the NEPAD declaration on democracy, political, economic and corporate governance, Zambia acceded to the African Peer Review Mechanism (APRM) on 22"d January 2006. The Ministry o f Foreign Affairs is the focal point for the APRM process in Zambia. The African Peer Review Fifth National Development Plan 2006 -2010 254 Mechanism is a country self-monitoring system that encourages member states to undertake a national self-assessment o f its political and economic governance systems. Zambia will produce and submit its first country review report inJuly 2007. The country will then be required to undertake periodic reviews every two to four years. A positive APRM report will further enhance Zambia's opportunities of benefiting from more development aid from cooperating partners as well as create investor confidence inthe country. Zambia has been a member o f the Organisation o f African Unity (OAU) now the African Union (AU), since its independence. The country has supported the organisation's peace and security agenda to the extent that it embraces some o f Zambia's most cherished ideals, namely, an expanded, pro-active, and holistic programme o f peace and security that includes democratic and participatory governance, the promotion o fbasic humanrights, and the implementation o fpeace-building initiatives o f reconsbuction and development in areas affectedbyviolent conflicts. Inrecent years, Zambia has played a significant role in facilitating the signing of a ceasefire agreement, known as the Lusaka Protocol, between the Angolan Government and the Union for the Total Independence o f Angola (UNITA). Zambia has also contributed to the peace process in the Democratic Republic o f Congo (DRC) and the Great Lakes Region. Elsewhere, Zambia has played an important role in other peace efforts by sending peace- keeping troops, under the auspices o f the UN, to countries such as Angola, Sierra Leone, Congo DR, Sudan and Kosovo. These activities have had the effect o f enhancing the image o f the country as a peace facilitator. Despite the above achievements, government efforts in Zambia's foreign relations continue to face a number o f challenges, which have often resulted in the country failing to exploit the full potential of some o f the economic and political arrangements. The major challenges include absence of representation inkey regions and economic blocks such as the South Pacific and the Middle East. These regions represent some o f the most dynamic and fastest growing economies o f the world. Zambia's absence, therefore, means that the country is unable to effectively tap into investment potential as well as other social and economic benefits these regions have to offer. In addition, lack o f adequate representation at key multilateral institutions, lack of a career diplomatic service, and the deployment of unqualified humanresource personnel in missions abroad have resulted in ineffective participation of the country at important economic andpolitical forums. Furthermore, the weak institutional capacity at both the Ministry o f Foreign Affairs, as the primary point o f contact with the international community, and its missions abroad has often compromised more effective management o f international relations. Other challenges are the inability o f the Zambian Institute o f Diplomacy and International Studies (ZIDIS) to sustain its operations. This has resulted in the failure to produce career diplomats in a sustained manner. Gender imbalance and HIV and AIDS have also proved to be important challenges impacting negatively on the management o f Zambia's external relations. 28.3 Policies and Key Reforms The FNDP shall continue with a number o f policies that have been initiated within the general framework o f the Public Service Reform Programme. These include restructuring o f the Ministry o f Foreign Affairs in order to shift emphasis from political to economic diplomacy. In this respect, the Government shall continue to refocus its attention to foreign relations that, first and foremost, advance the country's economic welfare in the global economy. For a long time, Zambia's foreign policy has been influenced by a number o f factors, such as its association with international organizations llke the United Nations, AU, and Non-Aligned Movement. The geo-political location of Zambia, with most o f its neighbours under colonial rule, meant that the country had to assist in regional countries' freedom struggles. However, with the end o f colonialism and the subsequent end o f apartheid in South Africa, it has become necessary for Zambia to re-direct its foreign policy thrust towards economic and development issues. Pressures o f globalisation have also brought the challenges o f economic advancement at the forefront o f most developing countries' foreign relations agenda. Inthe lightof the changing economic andpolitical landscape above, the Government shall, during the FNDP period, continue to strengthen the country's role in the global community focusing primarily FifthNational Development Plan 2006-2010 255 upon the country's direct participation in positive interventions that advocate pro-poor changes to international trade policies at such fora as the World Trade Organisation and the European Union. The issue o f attracting FDI shall also occupy centre stage in the country's foreign interactions. Similarly, Zambia sees value inthe promotion of South-South cooperation, an aspect that calls for the redefinition o f its position at this level. The treaty for the establishment o f the African Economic Community, ratifiedby African governments and later operationalised through the formation o f the African Union in Lusaka in July 2001, envisaged the use o f existing regional economic integration schemes as the `building blocks' towards a fill integration o f the continent. The Government regards this initiative, complemented by NEPAD, to offer opportunities for meaninghl South-South cooperation and the FNDP shall practically apply these principles. Furthermore, Zambia is increasingly considering the opportunities being offered by SADC and COMESA as important determinants o f her emerging external relations as the Government recasts its foreign policy imperatives more towards economic growth and developmental issues. With the shift in the area o f emphasis from political to economic and developmental issues, the Government shall review the prospects o f opening missions in key economic regions such as South Pacific and the Middle East. Further, the Government shall seek to strengthen representation in key multilateral institutions to enable Zambia effectively participate and benefit from the global arena. TO this effect, the Government shall, during the FNDP, strive to strengthen its career diplomatic service to secure a more sustained supply o f qualified personnel inforeign service. 28.4 Vision and Goal The vision is: A prosperous Zambia, which participates competitively in the global economic and political environment and contributes to the promotion of ajust economic world order and towards a safe andpeace@ world by 2030. The goal is: To ensure suflcient safeguard and activepromotion of Zambia's national interest in order to enhance socio-economic development. 28.5 Programmes, Objectives and Strategies The programmes and their respective objectives and strategies for foreign relations during the FNDP are presented inthe matrix below. Sector: Foreian Relations Programmes 0bjective StrategieslActivities Strengthening of To facilitate and promote a) Establish new missions in strategic regions and economic Bilateral and regional and blocks; Multilateral internationalcooperation b) Strengthen bilateral and multilateral relations; Relations c) Maintain closer contact With the NEPAD Secretariat, UN organization, SADC, COMESA and other regional and global institutions; d) Strengthen commercial wings of missions abroad in order to aggressively market Zambia abroad; e) Promote Trade and Investment; f) Undertake trade-lobbying missions; g) Sensitise stakeholders on Zambia's Foreign Policy and its implementationrequirements; h) Review existingbilateral andmultilateral agreements. i) Facilitateactivities relatedto theNewAsia-Africa Strategic Partnership a) Humanand To increase efficiency in a) Develop infrastructure Institutional service delivery b) Procure equipment Capacity c) Establish career training campus; building d) Affiliate diplomatic school to higher institutions o f learning; e) Acquire office and staff accommodation and equipment for b) Development Missions abroad; of aCareer f) Implement Career Diplomatic Service; Diplomatic g) Appoint specialized professional attaches and staff inmissions Service abroad Fifth National Development Plan 2006 -2010 256 -~ ________ -~ ~ 3 Promotion of To safeguard Zambia's a) Facilitate production o f brochures, fliers, and other Regional and sovereignty, temtorial promotional materials to support efforts that contribute to International integrity, freedom, and internationalpeace and security Peace and national security b) Participateininternationalpeaceinitiatives Security 4 Implementation To foster the adoption o f i) EstablishaNationalGoverningCounciloftheAPRM of the African good political and ii) EstablishanAPRMSecretariat Peer Review economic governance iii)DevelopaCountrySelfAssessmentReport Mechanism policies, standards and iv) National ProgrammeofAction practices in line with the v) Ensure public participation through a competent information, 1NEPAD Declaration education and communicationstrategy 28.6 Implementation,Monitoring and Evaluation Framework The implementation of these programmes will be guided by the sector's strategic plan, foreign policy, and other relevant national documents. The Ministryof Foreign Affairs is mandated to coordinate the implementation of foreign relations programmes. Other institutions under this sector, which are expected to participate inthe implementation o f these programmes, include Cabinet Office, the Ministry of Finance and National Planning, Ministry o f Commerce, Trade and Industry, Ministry o f Tourism, Environment andNatural Resources and the Ministryof Home Affairs. The monitoring and evaluating of the FNDP programmes will be undertaken by the Sector Advisory Group and will be coordinated by the Ministry of Foreign Affairs. Monitoring will be undertaken continuously, while evaluations will be done annually. Fifth National Development Plan 2006-2010 257 PublicSafety Defence 29.7 Introduction The defence sector has a legal mandate to manage instruments o f national defence as per dictates o f the Constitution through the Ministry o f Defence (MOD).Defence institutions fall into two categories namely, the Zambia Defence Force comprising the Zambia Army (Army) and Zambia Air Force (ZAF), andthe Zambia National Service (ZNS). The functions o f these defence organs include field operations, economic activities, infrastructure development, and sustenance o f national peace and stability. The defence structures are influenced by the geo-political and socio-economic position o fthe country. 29.2 Review of Past Performance The security situation in the world, in general, has improved although new sources o f tension and potential conflicts have emerged as a result o f struggles over resources, such as land, water, food, oil, and minerals. In the area o f global peace initiatives, dramatic changes have occurred at the United Nations (UN)where peace support operations have taken new dimensions o f wider peace keeping as opposed to the traditional peace keeping methods. Zambia is actively involved in these peace keeping operations as a member o f the UNand African Union (AU). At the continental level, the AU has long recognised conflict as the major impediment to economic prosperity. The continental body responded to these challenges by establishing, in 1993, the Organisation o f Africa Unity (OAU) mechanism for conflict prevention, management, and resolution with the prime objective o f anticipating andpreventing conflicts on the continent. Terrorism has brought in a new dimension o f a global threat on a grand scale. This trend is a matter o f great concern among governments the world over, more so that it does not only have security connotations but, to a very large extent, economic, social, and political implications as well. Terrorism has brought inunprecedented unity among most nations o f the world whose focus is tryingto find ways and means o f preventing and combating it. Zambia subscribes to the fight against international terrorism and, consequently, stresses the need for ratification o f international agreements and treaties designed to prevent and combat this threat. To this end, Zambia cooperates with the international community ininformationsharing, training, and other appropriate measures to combat terrorism. Inthe Southern African region, considerable progress hasbeenmade towards the resolution of internal conflicts and the establishment o f democratic systems. The SouthernAfrican Development Community (SADC) whose principles and objectives provide, inter alia, for the peaceful settlement o f disputes and the promotion o f peace and security respectively, has established the SADC organ on politics, defence, and security cooperation to prevent and manage inter- and intra-state conflicts in the region. This is because competition between specific national interests and values such as political, economic, social, andmilitaryconflicts inor between states often occurs. 29.3 Policies and Key Reforms Zambia's geo-political and social position has impacted on the development o f the nature o f defence mechanisms since independence. The defence sector operates under a number o f statutes that are complemented by the defence policy. The Ministry o f Defence, which coordinates the defence sector, has been restructured under the Public Service Reform Programme. One o f the key reforms was the establishment o f the Defence Procurement Bureau at MOD.The role o f the Bureau is to effectively facilitate, monitor, and evaluate procurement and utilisation o f equipment, goods, and services within its organs, and the establishment o f the staff college, which has saved the country foreign exchange through the localisation o f senior staff officer training. Fifth National Development Plan 2006-2010 261 29.4 Visionand Goal The vision is: Sustainable peace and stability for national development. The goal is: Toprotect and defend the sovereignty and territorial integrity of the countqj in order to sustain peace and stability for national development. 29.5 Programmes, Objectivesand Strategies The matrix below presents the planned programmes and their respective objectives and strategies for the defence sector during the FNDP. Strategies I I Infrastructure Programmes 0bjectives To develon and rehabilitate infrastructure a) Improve and maintain existing infrastructure; Rehabilitation in order to improve operations of the b) Buildnew infrastructure; Development, and sector c) Procure infrastructure; Procurement d) Acquire more land for strategic purposes To procure and rehabilitate equipment in a) Improve and maintain existing equipment; Procurement order to improve the operations o f the b) Procure equipment; Rehabilitation, and sector c) Rehabilitate equipment To undertake agricultural and industrial a) Undertake feasibility studies in industrial and and Mining ventures in order to contribute to the mining activities; socio-economic development o f the Agro-Processing Farming Procurement Marketing 5 Researchand To protect and defend the sovereignty and a) Undertake research and development activities Development territorial integrity o f the country inorder indefenceindustries 6 Sustaining peace and to sustain peace and stability for national a) Defendthe sovereignty and territorial integrity stability development. 7 Human Resource Development 29.6 Implementation,Monitoring and Evaluation Framework Given the current state o f the national economy, programmes and activities for all organs o f the sector have been designed to initially concentrate efforts on rehabilitation o f equipment and infrastructure in the initial two years o f the FNDP. Thereafter, in the last three years o f the FNDP, programmes and activities aimed at infusing new equipment and modernising the organs shall be incorporated. The emphasis o f the Plan, therefore, i s rehabilitation o f existing equipment and structures with gradual infusiono fnew equipment. The Ministry o f Defence shall provide overall superintendence over the implementation o f the programmes. The respective services or organs o f the defence sector shall be responsible for the day-to- day implementation o f the programmes. Programmes and activities inthe Plan will be monitored by the Defence Sector Advisory Group (D-SAG) comprising nominated members from Ministryo f Defence (MOD)headquarters, Army, ZAF, and ZNS. The D-SAG shall be chaired by the MODPermanent Secretary and will periodically convene to review progress on implementation and make appropriate adjustments as required. D-SAG shall be assisted by the Defence Procurement Bureau at MOD headquarters, Budget Committees and the Directorates o fAudit and Inspections inthe sector. Fifth National Development Plan 2006 -2010 262 Fifth National Development Plan 2006-2010 264 FifthNational Development Plan 2006-2010 266 8@ Public Safetv and Order 30.1 lnfroducfion Public safety and order relates to internal security. The principal actors inthe sector are Zambia Police Service (ZP), Zambia Prisons Service (PS), Drug Enforcement Commission (DEC), Departments o f Immigration, National Registration, Passport and Citizenship, National Archives o f Zambia, Commission for Refugees and the Office o f the Registrar o f Societies. These institutions fall under the superintendence o f the Ministry o f Home Affairs. They cany out their respective mandates in collaboration with other government wings such as the Anti-Corruption Commission (ACC) and the Zambia Security Intelligence Service (ZSIS). All these institutions have a critical role in fighting crime, which has the potential to undermine economic development andnational stability. 30.2 Review of Past Performance The maintenance o f internal security is a pre-requisite for the continuity o f a stable government and the enjoyment o f human rights. The continuity o f stability depends, to a large extent, on the effectiveness o f the internal security institutions that exist inthe country. The environment within which the Ministry o f Home Affairs discharges its functions has changed drastically since 1991. Politically, the change has been from the norms and values of a one-party system characterised by considerable powers o f the State over the people, to multi-party democracy that aims at ensuring the people's enjoyment o f basic humanrights and freedoms. The Ministryhas experienced problems o f shortage o f humanresources, transport, logistics and poor conditions o f service. As a solution to the organisational constraints, the Ministry will be restructured during the FNDP through the on-going Public Service Reform Programme. The low educational calibre o f some law enforcement officers has also affected the adoption, adaptation and appreciation o f new and better approaches to law enforcement requirements. Poor conditions o f service and lack o f adequateresidential accommodation contribute to the seemingly growing practices o f the vices o f corruption and bribery and the abuse o f office and people's human rights. Lack o f appropriate equipment for human rights-friendly investigative technologies such as finger printing facilities leave law enforcement officers with little option but to resort to antiquated methods o f investigation. In addition, lack o f equipment for marine policing, cross-border crimes and smuggling are among other challenges o fpublic safety. Zambia has also seen an increase inproliferation o fprivate security services provision inrecent years. The Zambia Police Service has produced a strategic plan. The core functions identified inthe strategic planinclude: a) Maintenance o fpublic safety and order; b) Prevention o f crime andprotection o f life andproperty; c) Detection o f crime andprosecution o f offenders; d) Traffic management; e) Upholding o f humanrightsinprotecting the Constitution; and f ) Provision o fhighquality service to the public. The Government has introduced reforms that aim to enhance professionalism and accountability and respect for human rights. The Zambia Police Service has been re-oriented and re-trained into a community based service. I t has established a Community Services Division which contributes to the protection and maintenance o f human rights and the promotion o f sound police/public relations. This Division has a Victim Support Unit which offers counselling to families o f victims o f crime and educates the general public on their rights. The establishment o f this Division has resulted in the improvement o f relations between the Police and the general public. The Government recognises that these reforms are still intheir infancy and a lot still remains to be done inre-orienting the police from a Fifth National Development Plan 2006-2010 267 police `force' to a police `service' that upholds the humanrightso f citizens. This is inconformity with the Constitutional provision that a person is innocent untilfound guiltyby a competent court. Evidence o f police torture has been revealed in the past and an effort is being made to correct such weaknesses that compromise stated government policy. A t another level, the Zambia Prisons Service forms a section o f the broader criminal justice system striving to provide safe custody, and efficient and effective correctional services to effectively contribute to the maintenance of internal security, law and order. The Zambia Prisons Service has operated under difficult conditions since its establishment in 1965. Most o f the prison buildings were builtbefore independence, e.g., Lusaka Central Prison (1924), Kalomo (1924) and Chipata (1924), and were designed at that time to accommodate a small number o f prisoners. For example, Lusaka Central Prison was built for 200 inmates, but now caters for more than 1,000 prisoners on a daily average. Most prison structures have also become unfit for humanhabitation. Moreover, while the prison population has increased many folds, the staff establishment has not increased significantly. Inrecognition o f the above problems, the Government facilitated the initiation o f the Prisons Service Reform Programme that resulted inthe development o f a multi-year reform plan. The planprimarily focuses on increasing institutional capacity o f the service for effective delivery within the framework o f the Prisons Service Reform Programme, targeting, inter alia, the reorganisation o f the Prisons Service structure; training and staff development; review o f enabling legislation (particularly the Prisons Act); and infrastructure improvements. In addition, juvenile prisons would be built to rehabilitate, protect and safeguard young prisoners. The Immigration Department regulates entry into and stay within Zambia o f immigrants and visitors. The failure by the Immigration Department to deport persons who have been declared prohibited immigrants for a long time has been one o f the contributing factors to the congestion of prisons in Zambia. The Immigration Department has several logistical and administrative constraints, such as shortage o f trained personnel; inadequate transport; absence o f separate immigration courts and detention centres; and lack o f training or re-training inhumanrights law for Immigration Officers. Poor funding and management capacity weaknesses o f the Department significantly explain some of the identified problems. With respect to the question o f human rights, the Immigration and Deportation Act, Cap. 123 has no provision for the review by an independent tribunal o f decisions made by individual Immigration Officers and the Chief Immigration Officer on the detention o f persons who have allegedly entered Zambia illegally. Inline with tenets o f good governance, there is need to review the Immigration and DeportationAct duringthe planperiod. Against this background, a number o f initiatives have been taken inthe area o f public safety and order. Duringthe implementation ofthe PRSP/TNDP, the sector institutedthe integration ofhumanrights and good governance programmes into the Police and Prisons training curricula inorder to ensure effective delivery o f services. Inaddition, prison and cell facilities were constructed and rehabilitated resulting in the creation o f room for over 1,000 inmates. Further, the sector intensified border patrols and operations and prosecuted a number o f culprits indrug-related cases. Other successes registered by the sector include increased revenue collection, digitisation o f district notebooks and introduction o f the Zambia Initiative Programme (ZIP), a pilot project for refbgee-hosting communities in Western and North-Western provinces. Despite the above achievements, inadequate infrastructure, humanresources, transport and appropriate equipment to fight crime have remained major challenges. The threat o f terrorism and trans-national organized crime; proliferation o f firearms; corruption; drugs and money laundering; and cyber crime persist. Gender imbalance and HIV and AIDS have also posed a threat to effective delivery o f services. These challenges have been compounded by high unemployment levels and conflict insome neighbouring countries. 30.3 Policies and Key Reforms During the FNDP period, the public safety and order sector will consolidate its policy goals and objectives o f maintenance o f internal security inorder to secure the continuity o f a stable government and the enjoyment o f personal freedoms. The Government will strive to build and maintain effective internal security institutions, guided by the respective strategic plans o f the various arms o f the Fifth National Development Plan 2006 -2010 268 Government that are contributing to the public safety and order function as well as by the overarching goals o f the Public Service Reform Programme. The sector will also focus on securing the trust and confidence o f the community as the Government continues its emphasis on community-based policing through such programmes as the Neighbourhood Watch; the Victim Support Unit; Offender Management Programme; and Extension Services for ex-prisoners. 30.4 Visionand Goals The vision is: A safer and more secure Zambia by theyear 2030. The goal is: Topresewe and maintain internalpeace and security for national development. 30.5 Programmes, Objectivesand Strategies The following are the programmes, strategies and objectives o f the public safety and order sector during the FNDP. 3r: Public Safety and Order Programmes Objectives Crime Prevention 11 To develop Establish crime preventionmechanisms; effective Implement systems for monitoring and evaluating the mechanisms for effectiveness o f crime preventionmechanisms; prevention o f Maintain and updatedatabaseon crime; crime, in order Disseminate information on crime; to significantly Computerization; reduce criminal Strengthen marinepolicing ininland waters; activities in the Introduce policing air wing country Enhancementof a) Streamline and implement effective investigations and Investigationand efficiency and prosecution management system; ProsecutionMethods effectiveness in b) Monitor and evaluate implementation of investigation and investigation prosecution measures; and prosecution c) Apply science and technology in the investigation o f crime in order to including gender basedcrime; expedite the d) Establish a specialized training school for law enforcement clearance o f officers; cases e) Strengthen the legal framework -___ Infrastructure To acquire and a) Develop and implement rehabilitation programme for offices Development maintain and houses; buildings, plant b) Develop and implement rehabilitation programme for training and equipment facilities; in order to c) Develop and implement electrification programme; improve the d) Develop and implement rehabilitation programme for cells, work such as police, prisons andjuvenile prisodcells; environment e) Construction o fnew offices and housing stock; f) Rehabilitate existing offices and housing stock HumanResource a) Undertake staff exchange programmes; Development develop human b) Strengthen the capacity of, and maintain linkages with, training resources for the institutions; efficient c) Undertake a comprehensive training needs assessment; performance o f d) Develop and implement a training programme; the sector e) Mitigate the negative impact o fhosting refugees; f) MaiweamHIVand AIDS; g) Mainstream Gender 30.6 Implementation,Monitoring and Evaluation Framework The Ministryo f Home Affairs shall assume overall superintendence o f the implementation o f the public safety and order components o f the FNDP. Actual implementation shall be undertaken by the various principal actors inthe sector. These are the Zambia Police, Zambia Prisons Service, Drug Enforcement Commission, Department o f Immigration, National Registration, Passport and Citizenship, Commission for Refugees andNationalArchives. Fifth National Development Plan 2006 -2010 269 With respect to the monitoring function, the Research and Planning Units of the relevant bodies shall produce annual, quarterly and monthly reports which shall highlight the performance record and put forward recommendations on improving outputs and outcomes. Institutions will also ensure that efficiency is promoted through strengthening o f the existing legislation by the end o f 2007; strengthening the management information system in order to improve the operations o f the institutions, including improved collaboration with other special agencies and institutions; and intensification o f regional and international cooperation in a bid to keep the institutions abreast o f modern methods o f maintaining law and order. The public safety and order Sector Advisory Group will provide overall consensus framework or reporting formats for monitoring and evaluation. The SAG will provide advice and ensure that key data is provided by implementers. Key elements o f monitoring and evaluation will be impact assessment against overall goals, sub-sector goals and objectives, feedback (documentation and reporting) and routine inspectionshisits. Apart from institutional quarterly stakeholder briefmgs, quarterly performance reports, annual performance reports and mid-term performance reports, the public safety and order Sector Advisory Group shall carry out an all-encompassing mid-term review by mid-2008 and end-of-Plan review in2010. Fifth National Development Plan 2006 -2010 270 v) 6 .-.- -c Cross-CuttingIssues Governance 31.1 Introduction The concept o f `governance' cuts across the entire spectrum o f both Government and non-Government delivery systems. It is essential that the Government provides good systems o f governance which will create the conditions for markets to function; facilitate the efficient and effective delivery o f basic services; ensure civil society participates in decision-making processes; and, ultimately, maximise the welfare o f Zambian communities and individuals. Government recognises that to deliver the FNDP effectively, there must be a coordinating function for these different aspects o f governance. The entity responsible for discharging this coordinating function must be held accountable for its discharge to ensure that management o f governance i s being undertaken to the standards required for effective delivery. Accordingly, the coordinating entity mustbe vested with the necessary mandate to be able to coordinate a diverse range o f stakeholders inthe interests o f delivery. To be able to address governance concerns effectively, Government intends to work through Constitutional structures and to honour its international obligations. Without a functional separation of powers under the constitution in which citizens are able to claim their rights to education, health and improving standards o f living, Government will not be able to address those constraints. Support for the independence o f the judiciary, the vibrancy o f Parliament, rights o f assembly and free speech all need to be guaranteed by the executive, for delivery o f the FNDP. This chapter incorporates other key areas o f governance which are not covered elsewhere in the FNDP. These governance areas are: constitutionalism, human rights, transparency and accountability, administration o f justice and democratisation. The governance organisations that are discussed inthis chapter are: The HumanRights Commission; Police Public Complaints Authority; National Assembly o fZambia; Anti-Corruption Commission; Commission for Investigations; Judicial Complaints Authority; Office o f the Auditor-General; Judiciary; Ministry of Justice; Electoral Commission o f Zambia; and Office of the Vice President (Parliamentary Business Division) Continued close coordination will be maintained between the Governance SAG institutions and institutions under the Ministry o f Home Affairs related to work under administration o f justice. The coordination mechanisms will continuously be assessed during the planning period for attainment o f maximum synergies. 31.2 Review of Past Performance Inthe Zambiancontext the term `good governance' was first defined inthe NationalCapacity Building Programme for Good Governance inZambia (NCBPGGZ), approved by Cabinet in 2000. The Poverty Reduction Strategy Paper (PRSP) built on the definition in the NCBPGGZ and went on to emphasise mutually reinforcingrelationship between bad governance and deepening levels o f poverty. On the one hand, bad governance imposes a particular burden on the poor and throws them deeper into poverty. Equally, poverty constrains the poor from participating in national development, leading to weak governance o f institutions. Good governance, on the other hand, is associated with larger growth rates and incomes for the poor. The test o f good governance for poverty reduction will continue to be how Fifth National Development Plan 2006 -2010 276 equipped and politically prepared the stakeholders are to bias resources, once economic growth has generated these, towards those social services that are fundamental to poverty reduction and alleviation. The Government has, based on the above, undertaken a number o f activities in the areas o f constitutionalism, human rights, transparency and accountability, administration o f justice and democratisation. These are explained below. 31.2.1 Constitutionalism Government has endeavoured to promote constitutionalism through the implementation o f various constitutional provisions. In 1990, the Mvunga Commission o f Inquirywas appointed to recommend a Constitution which would assist the country to revert to a multi-partypolitical system. In 1993, the Government appointed the Mwanakatwe Commission o f Inquiry to review the 1991 Mvunga Constitution. This was inresponse to sentiments from various quarters, that the 1991 Constitution was a caretaker constitution meant to allow for multi-party elections. In 2003, the Government appointed the Mung'omba Constitutional Review Commission (CRC) to, inter-alia, address shortcomings o f the last two commissions, while ensuring that it came up with a widely accepted constitution. The CRC released its report and draft constitution in December 2005. Arising out o f the CRC recommendations, Government has accepted the path o f utilising the Constituent Assembly towards concluding the constitutional review exercise. 31.2.2 Human Rights The Government establishedthe Human Rights Commission (HRC) in 1996 specifically to focus on the protection and promotion o f humanrights. The HRC has since its inception enhanced its accessibility through a decentralisation programme which has seen the establishment o f four provincial offices; partnership and collaboration with various stakeholders; establishment o f a prohibited immigrant's fund; and a complaints database. The complaints handled by the HRC includ employment and labour related cases, torture, and child abuse. The HRC also undertook a number o f prison visits. It is worth noting that the HRC faced a number o f challenges which ranged from inadequate funding and logistics to understaffing. In 1999, the Government established the Police Public Complaints Authority (PPCA) which commenced its operations in2002. The PPCA addressespublic complaints against police misconduct in order to secure individual fundamental human rights and freedoms and achieve professionalism in the Zambia Police Service. Zambia has submitted her state party reports to various treaty bodies as provided for invarious international and regional human rights instruments ratified or acceded to by the State. 31.2.3 Transparencyand Accountability The Legislature has three main functions namely, to make laws, to vote money for public expenditure, and to oversee Government administration and subject its activities to scrutiny. Other functions are also undertaken, such as ratification o f certain presidential appointments, and representation o f the electorate. Under the Parliamentary Reform Project (PRP), the National Assembly has undertaken to reform its operations in five key areas namely, the legislative process, member-constituency relations, administration o f the National Assembly, support services to Parliament and the Committee system. The PRP activities included; the development and implementation o f a strategic plan; review o f the standing orders; Information and Communication Technology (ICT), enhancement in National Assembly operations; development o f a directory o f all civil society organisations; members' handbook; establishment o f constituency offices; design o f an Internship Programme; Indexing o f Committee Hearings and Bills; and the National Assembly Directory. The Transitional National Development Plan (TNDP) period saw the publication o f literature by the National Assembly on various aspects o f Parliamentary practice, procedure, traditions, and administration for distribution to the public and to constituency offices. In the area o f capacity building, training for members o f parliament and staff has been conducted. In order to increase coverage o f parliamentary news, radio broadcast was expanded 50 kilometres to all places along the line o f rail. The Library Collection Development Policy was also developedduring the TNDP. The PRP is inits phase I1and is expected to be extended into phase I11in2007. Fifth National Development Plan 2006 - 2010 277 The Office o f the Vice President Parliamentary Business Division (OVP - PBD) is another governance institution which coordinates the executive side o f Government business inParliament. The efforts will concentrate on enhancingtransparency, accountability and collective responsibility o f the Cabinet inthe discharge o f parliamentary business, particularly the oversight function o f parliament over Government Administration. The task of co-ordinating parliamentary duties, was in 1994, delinked from Cabinet Office to the Office o f the Vice-president, where the Vice-president became the Leader o f Government Business inthe National Assembly. The Government established the Anti-Corruption Commission (ACC) in 1980. The ACC has three main functions namely, to prevent corruption; to investigate and prosecute offenders; educate the public about corrupt practices and foster public support inthe fight against the scourge. The ACC consists o f five part-time commissioners who are answerable to Parliament and under them is the Director-General who heads the directorate. The ACC has been strengthened by decentralising its operations and establishing offices inall the provincial centres o f the country. In addition, a Task Force on Corruption, which is complementing the efforts o f the ACC, has been constituted to investigate the plunder o f public resources which occurred during the period 1991 to 2001. The ACC's strategic plan and organizational structure were reviewed in 2003 and new ones developed. Furthermore, in 2003 the Government conducted a National Governance Baseline Survey whose aim was to measure perceptions o f corruption andpublic service delivery with a view to developing a comprehensive strategy to combat corruption and enhance public service delivery. The survey provided empirical data on corruption in Zambia and is assisting the ACC develop appropriate corruption prevention mechanisms and interventions. A follow-up National Governance Survey will be conducted duringthe FNDPperiod. The Commission for Investigations came into existence in 1973. The Commission redresses grievances from members o f the public and employees in the public service which arise as a result o f mal- administration or abuse o f office by public organisations. In 2004, the Commission handled a total number of 825 out of which 526 were concluded. This highsuccessrate was partlyattributed to the on the spot resolution o f cases during the Commission's provincial tours. However, the Commission does not have a policy document. In addition, a strategic plan for the Commission was developed to cover the period 1998 to 2003, but it was never implemented. Consequently, the restructuring process in the Commission never took place. In 1999, the Government established the Judicial Complaints Authority (JCA), which began operating inmid-2003. The JCA's operations are meant to curb corruption and other forms of misconduct inthe judiciary. The JCA has the fimction o f receiving and investigating complaints from the public on alleged misconduct by judicial officers. According to findings o f its investigations, the JCA makes recommendations to appropriate authorities for possible disciplinary action. Judicial officers arejudges, including the Chief Justice, Deputy Chief Justice, Chairman and Vice Chairman o f the Industrial Relations Court, Magistrates, Local Court Justices, and all persons who have the power to hold or exercise the judicial powers o f a court. The Office o f the Auditor-General (OAG) is established under the Constitution o f Zambia. The Auditor-General's function is to submit an audit report on the accounts relating to the general revenues o f the country and the expenditure appropriated by Parliament, the accounts relating to the stocks and stores o f the Government, and o f such other bodies as may beprescribedby or under any law, inrespect o f a particular financial year, to the President who causes the report to be laid before the National Assembly. The OAG is also mandated to audit every statutory body, private institutions which receive Government grants, subsidy and or subvention in any financial year, Government ministries and departments, and report to Parliament on the results o f the audit. The OAG also conducts environment, IT and performance audits. In 2004, the Government approved the restructuring of the OAG. Notwithstanding the achievements made so far, some o f the challenges that the OAG has faced include inadequate allocation o f funding. 31.2.4Administration of Justice The Judicature o f Zambia is a creation o f the Constitution and it consists o f the Supreme Court, High Court, Industrial Relations Court, Subordinate Court, Small Claims Courts, and the Local Courts. A Fifth National Development Plan 2006-2010 278 number o f successes were recorded in this area, which included the holding o f all the gazetted High Court and Supreme Court sessions. However, a number o f challenges were faced, namely, inadequate court space and time to handle the case loads. The Ministry o f Justice has two chambers namely, Attorney-General's and Director o f Public Prosecutions, both constitutional in character. The Ministry has departments structured along constitutional and statutory mandates. The Ministry has under it three statutory bodies, namely Zambia Law Development Commission, Zambia Institute o f Advanced Legal Education, Administrator General and Official Receiver and Legal Aid Board and some departments falling under the Attorney-General's Chambers and Administration. The Ministry also houses the Governance Development Unit created following the adoption o f the National Capacity Building Programme for Good Governance in Zambia by Cabinet in March 2000. Challenges faced by all statutory bodies and departments o f the Ministry during the TNDP included low staffing levels due to unattractive working conditions; inadequate logistics rangingfrom office space, transport, office equipment, and tools o f the trade; andpoor funding for operations. The TNDP period saw the Ministryo f Justice embarking on policy formulation inthe areas o fprosecution and legal aid. These policy initiatives are broad-based in focus, in that they also target service providers outside the confines o f the Director o f Public Prosecutions and Legal Aid Board respectively. The National Prosecutions Policy was developed and is awaiting Cabinet approval. Duringthe TNDP period, the Legal Aid Directorate underwent institutional reform giving it administrative and financial autonomy. The period initially saw an independent Board appointed with the mandate o f administering the Legal Aid Fund. Institutional reforms to improve the administration of justice also included the transformation in 2001 o f the juvenile justice system into one conforming to international standards. Plans to extend court annexed mediation were commenced. The more effective discharge o f justice has been boosted by a number o f infrastructure developments at HighCourt, Subordinate, and Local Court levels. The absence o f policy frameworks for the Director o f Public Prosecutions Chamber and the Legal Aid Board continued to undermine the proper administering o f prosecutorial and legal aid services respectively, as did the absence o f decentralised structures. The Legal Aid Fund, established under the Legal Aid (Amendment) Act o f 2000, could not be operationalised due to the lack o f administrative and financial autonomy. This was, however, attained following the enactment o f the Legal Aid (Amendment) Act 2005. The Administrator-General and Official Receiver's office has undergone some organisational changes, though its services are not readily available to those that need them as the office is not fully decentralised. The effectiveness o f the Office is also affected by lack of administrative and financial autonomy despite the viability o f the Department to stand on its own as an autonomous statutory body following its establishment. Poor institutional coordination and linkages between the Ministry's departments and statutory bodies and other institutions within and across the governance sector have affected the Ministry's performance interms of the time it takes to dispose of matters and complete assignments. This situation can equally be attributed to underdeveloped work systems within the Ministry. The absence o f a reliable information management system has continued to affect the pace at which the Ministry performs its various functions. 31.2.5 Democratisation Inthis area the multi-party system of Government is gaining ground as political parties freely conduct their business and elections are held ina generally conducive atmosphere. The Electoral Commission o f Zambia (ECZ) is established as an autonomous body under the Constitution o f Zambia and is empowered to make regulations providing for the registration o f voters, conduct of presidential, parliamentary and local government elections, election offences, andpenalties. The ECZ has performed generally well during the TNDP period. Though mandated to carry out the registration o f voters on a continuous basis under Act No. 4 o f 2001, the ECZ has not implemented this thus far due to insufficient funds. It is also worth noting that the Government constituted the Electoral Reform Technical Fifth National Development Plan 2006-2010 279 Committee (ERTC) in 2003 that has addressed weaknesses in the electoral process and thereby enhancing democratisation. 31.3 Policies and Key Reforms Duringthe FNDP period, the Government will undertake a number o f policies and reforms inthe areas o f constitutionalism, human rights, transparency and accountability, administration o f justice and democratisation. These are discussed below: 31.3.1 Constitutionalism The current constitutional review process commenced with a wide consultative agenda and i s to be concluded during the FNDP period. The Mung'omba CRC report and draft constitution provide a useful input inthe constitutional review process. The outcome of the constitutional review process will have an impact on many governance areas, some o f which are mentioned in the following paragraphs. The Government shall facilitate the process that shall usher in a new Republican Constitution that shall be adopted during the FNDP period by the Constituent Assembly. A new constitution will entail development o f new national institutions, legal frameworks and capacities for the implementation of the constitution by the Government. 31.3.2 Human Rights Arising from the 1998 National Vision Conference, a National Plan o f Action for HumanRights for the period 2000 to 2009 was adopted in 1999. This Plan o f Action shall continue to provide guidance and a framework for the effective promotion andprotection o fhumanrights inZambia duringthe FNDP period. Duringthe FNDP period, the Government intendsto domesticate the seven (7) international humanrights conventions to which it is party. Zambia was elected as a member o f the newly created United Nations Human Rights Council (UNHRC) in2006. Zambia's mandate runs from 2006 to 2008. Zambia's membershipto the UNHRC will require that it participates at high political and technical level at various international meetings during Zambia's tenure o f office. During the FNDP, Zambia will be required to prepare and submit six (6) State Reports as follows: Convention on the Elimination o f all Forms o f Racial Discrimination (due in 2009), Convention on Economic Social and Cultural Rights (due in2009), the African Charter on Humanand Peoples Rights (due in 2010), Convention Against Torture and all Forms o f Inhumanand Degrading Treatment (due in 2010), Convention on Civil and Political Rights (due in2010) and Convention on the Rights o f a Child (due in2009). 31.3.3 Transparency and Accountability The Government will continue to support Parliamentary reforms in order to make the legislative body more transparent, independent, and accountable to the people o f Zambia. Inthis regard, the Government shall continue to support the Parliamentary Reform Programme and its effort to make Parliament independent and ensure that its capacity to provide its oversight function over the Executive is enhanced. Government will review the law on corruption in order to strengthen it further and provide for internationally accepted best practices. In this regard, the ACC shall be transformed into a proactive performance-based institution. Emphasis shall be placed on prevention of corruption and related malpractices and seeking to institutionalise corruption prevention inpublic and private institutions. A new law is expected to be passed in2006 to this effect. The ACC shall develop the national corruption prevention policy and a strategic implementation plan which are expected to be in place during 2006. The ACC will, during the FNDP, attract, develop, and retain skilled human resources to enable it achieve the objectives set out inthe Plan. A need has also been identified to harmonise the operations o f the ACC with those o f other institutions and offices dealing with prevention o f corruption so as to strengthen the administration o f criminaljustice and the rule o f law ingeneral. The strengthening o f the administration o f criminaljustice will require new laws to be passed in the areas o f conflict o f interest FifthNationalDevelopment Plan 2006-2010 280 and disclosure o f assets and liabilities by public officers apart from Cabinet Ministers and Members of Parliament as has beenthe case. The Government will continue its efforts under the Anti-Money Laundering Authority and aims to have ananti-money laundering strategy inplace. The JCA intends to amend its constitutive Act in order to strengthen its functions. Among others, the Committee proposes to acquire a corporate body status with a title that connotes permanency, such as Commission or Authority. In addition, the JCA has prepared a strategic plan for the period 2005-2011. The Commission for Investigations will also develop a policy document and strategic plan which will guide its operations duringthe FNDPperiod. The OAG will continue in its effort to have its position strengthened in order to enable it deliver its services on an enhanced basis to arms o f Government. The Government will seek to facilitate the review and enactment o f relevant legislation inorder to provide autonomy for the Office o f the Auditor General. 31.3.4 Administrationof Justice The most current policy document o f the Ministryo f Justice was prepared in 1997. The Ministry will up-date its policy document during the FNDP. The Judicature has put in place the process o f developing a strategic plan. This will be finalised during the Plan period. It is worth noting that the Judicature in its submissions to the CRC proposed the creation o f a Constitutional Court, the establishment o f a Court o fAppeal, specialization inthe court system, and enhancement o f the financial autonomy o f the Judicature. The outcome o f the constitutional review process will, therefore, have an influence on the operations o f the Judicature. 31.3.5 Democratisation The full implementation o f the Electoral Commission o f Zambia's 2006 to 2010 strategic plan will enhance the democratizationprocess inthe country duringthe planperiod. 31.4 Vision and Goals The vision is: Totaladherence toprinciples of good governance by 2030. The goals are : a) To improve access to justice; b) To effectively andefficiently manage free and fair elections; c) To promote andprotect human rights equally for women, men, youths and children; d) To strengthen cooperationand collaboration among governance institutions; e) To improve effectiveness and efficiency o f the National Assembly to enhance its oversight o f Government affairs; f) To enhanceconstitutionalism andthe ruleoflaw; g) To achieve a significant reduction incorruption inZambia; and h) To embed good corporate governance practices inthepublic andprivate institutions 31.5 Programmes, Objectives and Strategies The matrix below shows the programmes and their respective objectives and strategies for the governance sector during the FNDPperiod. No. Programmes 0bjectives Strategies Implementing Institution 1 Administration of 1. To improve access to justice a) Improve coordination and All Justice for all. communication among justice institutions and other stakeholders. b) Capacity building and retention of All personnel. Fifth National Development Plan 2006 -2010 281 Sec )r:Governana ~ No. Programmes Objectives Strategies Implementing Institution c) Develop Courts and other Judiciary, MoJ infrastructure d) ensure the autonomy, effectiveness LAD, DPP, MoJ, and efficiency o f LAD, Admin. G. Administrator General, and DPP,. e) Legislative process and policy LAD, DPP, MoJ framework affecting the administrationo fjustice improved. f) Decentralise Judicial Complaint JCA, MoJ, Admin. Committee, Admin. G. G. g) Increase public awareness o f human All rights and criminaljustice system. h) Decentralise civil litigation, Judiciary, MoJ Administrator General and Official Receiver, Legal Aids and Director o f Public Prosecution i) Improve record management and All information management. j) Improve access to justice for the All vulnerable, especially women and children. k) Capacity Building for personnel in All gender issues on A L L ~ 2 Constitutionalism 1. To develop a new national a) Disseminate information constitution based on broad awareness of constitutional issues participation and national consensus. 2. To conclude the b) Develop a road map for ALL constitutional reform and constitutionalprocess electoral review exercises, preferably in2009 3. To devolve power to local Government 4. To develop national a) Implement capacity development ALL institutions, legal framework programmes for individuals, and capacities for the institutions and to improve the implementation o f the new enabling environment constitution Engage all stakeholders to provide ECZ ~ 3 Democratisation 1. To strengthen national a) capacities to organise and data and use o f the GIS by staff at manage free, fair and the ECZ transparent elections b) Recruit, train and retain qualified ECZ human resowce for ECZ 2. To periodically review and a) Review, amend and enact legislation All reform legislation to enable the implementation o f governance priorities b) Implement recommendations from ECZ Electoral Reform Technical Committee 3. To promote broad based a) Develop continuous voter ECZ participation in national and registration and an updated accurate local Government elections, voters register especially women candidates b) Conduct regular civic and voter ECZ, Civil society and voters. education programmes especially targeting women and vulnerable groups to increase representation as candidates and voters. 4. To foster legal and policy a) Regular monitoring o f policy MoJ, ECZ, Civil environment for enhance implementation and electoral society, Judiciary, public participation between legislationreviews. N A Fifth National Development Plan 2006 - 2010 282 r:Governie Programmes 0bjectives Strategies Implementing Institution electoral events and to I) Develop frameworks and policy for MoJ, ECZ, Civil exercise choice public participation in political, society, Judiciary, social, economic and cultural VA decision making. :) Review of electoral legislation, code MoJ, ECZ, Civil ofconduct and electoral processes. society, Judiciary, VA I. ToenhanceCivicawareness 3) Conduct civic education and of the citizens teaching o f civics inschools b) Enhance freedom o f the press ;) Empower Civilsociety HumanRights 2. To promotehumanrights a) Information dissemination and HRC, ECZ, PPCA, awareness on electoral, Judiciary, MoJ administration o fjustice and human rightsissues. b) Domestication o f international MoJ conventions and covenants. c) Create a better understanding o f JCA, Judiciary, human rights issues especially for HRC. women and children by all justice administrators and intermediaries d) Establish rehabilitation centres for HRC human rights victims. e) Continue to monitor status by HRC, MoJ reporting on relevant conventions and treaties and cany out surveys. f) Strengthen institutional capacity HRC, MoJ, work to ensure legislative change in Judiciary furtherance o fhumanrights Accountability 1. To create effective a) Facilitate the development o f ACC, OAG, JCA, andTransparency mechanisms for prevention Integrity Programmes for CFI, PPCA o f corruption, abuse o f office Government Ministries, and misappropriation in Departments or Agencies public and private bodies b) Develop a corporate code o f conduct BOZ, LuSE, and a legal framework at company ZICA, Institute o f level Directors, Institute o f Secretaries 2. To create efficiency in a) Capacity building o f relevant staff. ACC, OAG, CFI, audits, investigations and b) Strengthen organisational JCA, PPCA prosecutions. framework. ACC, OAG, CFI, ~ _ _ _ _ JCA, PPCA, DPP All ~3. To establish and maintain a) Integrate through SAG the collaborative and coordination and collaboration of consultative mechanisms the governance institutions. with stakeholders both local b) Involve civil society in decision All and international in order to making and implementation of share experience and governance initiatives. enhance co-operation. c) Seek inspiration and guidance from All national and international stakeholders 4. To increase efficiency and a) Assess and develop mechanisms for CFI, JCA, PPCA, effectiveness in the improved complaint management ACC processing and disposal of complaints received by all All governance institutions. b) Capacity building c) Conduct inspections and t o u r s x j CFI, PPC, JCA, selected Government and parastatal Judiciary organisations that generate numerous recurrent complaints in public institutions to ensure corrective action. Fifth National Development Plan 2006-2010 283 )r: Governance Programmes 0bjectives Strategies ImDlementina Institution- d) Inform public on rights and CFI, PPC, JCA, obligations concerning complaints. Judiciary e) Strengthen operational and legal CFI, PPCA framework and decentralise operations o f CFI 5. To facilitate the review and a) Legislative review before budget OAG, MoJ enactment o f relevant 2008. legislation in order to attain autonomy o f the Office o f the Auditor General 6. Decentralise OAG and a) Decentralisation, including OAG develop new services to identification o f resource needs. clients b) Develop consultancy services to clients 7. To Develop and implement a) Develop a permanent professional NA effective legislative, staff trained to serve MPs in a non- oversight and budgetary partisanmanner. roles o f the National Assembly. b) Use o f ICT to enhance the efficient NA use o f Human Resources in Parliamentary procedures and operations c) Review current legislation and NA budgetary processes in order to enhance public participation through the enactment of the Parliamentary Service Commission Act and the Budget Act d) Budgetaryindependence o f N A N A 8. To ensure that the Members a) Build Constituency Ofices in every N A of Parliament and their Constituency inZambia. Parliamentary Committees b) Reinforce linkages between are well linked to their Parliamentary Committees and Constituents and Civil relevant CSOs society organisations. N A 9. To Ensure that all rules and a) Sensitise the public on the activities NA systems and procedures o f Governance institutions through encourage openness and printand electronic media transparency in a multi-party b) Review and strengthen Governance NA democracy institutions' legal and institutional framework in order to ensure that the institutions remain responsive and accountable to the stakeholders changingneeds c) Capacity Building o f staff to ALL enhance their performance d) Establish and implement quality A L L control systems e) Develop a client profile based on A L L Government priorities in the provinces and districts; and recommend corrective measures to Government, local authorities and Parastatal bodies to remedy defective administrative systems and practices observed f) Review impact o f policy and N A legislative implementation by Government onintended targets Fifth National Development Plan 2006-2010 284 Set )r: Governanct No. Programmes 0bjectives Strategies implementing Institution 10. To increase efficiency and a) Revise procedures for process OW-PBD, All effectiveness in the answers to parliamentary questions Line Ministries, performance o f the b) Train parliamentary liaison; All Provinces, Parliamentary oversight c) Establish parliamentary liaison Statutory functions by the Executive structures inprovinces; Institutions/Depart Wing o f Government d) Monitor development o f ments parliamentary constituency officers e) Produce timely actions taken reports, annual reports and answers to questions for oral answers 6 M a nagement , 1. Efficient and Effective a) Capacity Building for the GDU GDU(Governance Reportingand facilitation o f activities (Governance Secretariat) Secretariat) Facilitation of under the governance SAG. Governance 2. High quality reporting and a) Publication o f a "State o f GDU(Governance researchprovided governance report" yearly. Follow- Secretariat) up to governance baseline survey publishedin2004. b) A d hoc research and reporting on GDU(Governance governance. Secretariat) c) Negotiation o f M O U with A h c a n GDU(Governance Peer review Mechanism Secretariat Secretariat) on future reporting and assessment. 3. Sound management o f a) Strategic planning and management All governance institutions, support to governance institutions to ensuring efficiency and be developed. effectiveness 1. Ensure adequate electronic a) Continuously assess the current All systems, are in place for status o f ICT equipment and efficient and effective determine the needs o f Governance performance o f mandates institutions and Develop institutional ICTpolicies and plans. 31.6 Implementation,Monitoring and Evaluation Framework Governance institutions will undertake the implementation of the Governance programmes. The Governance Secretariat will undertake the coordination role o fthe FNDP programmes. The Governance SAG, chaired by the Permanent Secretary responsible for the governance SAG, shall continue to play the oversight role. Interms ofmonitoringand evaluation, the Governance SAGwillprovidethe overall framework format for monitoring and evaluation. However, the implementing institutions will do the actual day to day monitoring and evaluation as integral parts of their functions. The Governance SAG will carry out an all encompassing mid-term review in mid-2008 and end-term review in 2010. Periodic surveys and researches on good governance topics will be undertaken collaboratively with all the key players. The Governance Secretariat will produce review reports highlighting the successes and failures o f the programmes and make recommendations. Fifth National Development Plan 2006-2010 285 W 00 N I , 00 00 hl I r a n 0 E In 4 r: Q ! I HIV and AIDS 32.1 Introduction Zambia is one o f the Sub-Saharan African countries worst affected by the HIV and AIDS pandemic. Estimates put the prevalence rate at about 16 percent among the 15 to 49 years age group and about 1 million Zambians infected with HIV, o f which over 200,000 are in need o f anti-retroviral therapy (ART). About 8 percent o f boys and 17 percent of girls aged 15 to 24 are living with HIV and 40 percent o f infants born to HIV infected parents are HIV infected. The epidemic is characterised as follows: a) Overall stabilisation o f national HIV prevalence to 1994 levels after years o f a consistently increasingtrend; b) Higher prevalence among women, with women 1.4 times more likely to be HIV-infected than men, and infection rates among young women aged 15 to 24 years 4 times higher than those for young meninthe same age group; c) HIV rates vary considerably among and within provinces, ranging from 8 percent in Northern province to 22 percent in Lusaka province, and higher prevalence inurban areas with 23 percent o f urbanresidents HIV-infected compared with 11percent inrural areas; d) Nearly 80 percent o f HIV transmission inZambia is through heterosexual contact exacerbated by the high levels o f poverty; stigma and discriminatory practices; gender inequity; highprevalence o f sexually transmitted infections (STIs); and high risk sexual practices. The remaining 20 percent is predominantly due to mother-to-child transmission during pregnancy, at birth or while breastfeeding. The humantoll o fAIDS is a tragic reality being experienced by families, communities and the nation at large. There is no aspect o f life that has not directly or indirectly been negatively influenced by the AIDS epidemic. AIDS has become one of the major causes of illness and death among the young and middle aged Zambians, depriving households and society o f a critical humanresource base and thereby reversing the social and economic gains the country is striving to attain. Further, the feminisation o f AIDS means that young women are 4 times at greater risk o f contracting HIV than young men. These are key factors in influencing the reasons for engaging in sexual activity and how much power one has indeterminingthe nature andfrequency ofsexual activity. Ineffect, HIVandAIDS are limitingthe realizationofeconomic development andhave the potential to continue diminishing the chances o f alleviating poverty and hunger; o f achieving universal primary education; o fpromoting gender equality; and o f reducing child andmaternal mortality. The pandemic i s one o f the factors limiting achievement o f the Millennium Development Goals (MDGs). It threatens the country's development efforts because it affects the most productive age group o f 15 to 49 years. As much as poverty makes people vulnerable to risky behaviours vis-a-vis HIV, the loss of the main income earner or earners inthe prime o f their lives due to HIV and AIDS is pushingmany families into poverty - and the cycle repeats itself. The HIV and AIDS epidemic is as much a development concern as it is a health and gender concern. The increase inmorbidity and mortality rates due to HIV and AIDS i s altering the structure o f the Zambian population, in particular the labour force and the dependency ratios, thereby negatively impacting the functioning o f the productive sectors by limitingproductivity and the supply o f services. Simultaneously, HIV and AIDS increase the demand for adequate and qualitative health and other social services. Consequently, the nation has continued to witness a breakdown in social service delivery, reduction inhousehold incomes and a less than optimal national economic growth rate necessary for overall national development. While there have been major advancements in HIV and AIDS prevention, treatment and care in Zambia, behavioural change has not been commensurate with these advancements and efforts to FifthNational Development Plan 2006-2010 296 significantly scale up responses to HIV and AIDS have been inadequate. Therefore, a more systematic approach is needed to build up local capacity to manage and sustain a comprehensive response to the epidemic. Through efforts to create a more enabling environment for community based and local government initiatives, foundations canbebuiltup to support the scaling up o fresponses to HIV/AIDS. 32.2 Review of Past Performance The national HIV and AIDS response to date has successfully focused on mass media campaigns to sensitise and educate the general population, especially young people, on the ABCs (abstinence from sex, being faithful to one partner, consistently using condoms) o f safer sex and on reduction o f stigma anddiscrimination against people living with HIV andAIDS. As a result, the meanage o f sex debut has increased to 18.5 years and the percentage o f young people 15 to 24 years reporting sexual relations with a non-regular partner has decreased to 29 percent for males and 16 percent for females. Whereas nearly everyone has heard about HIV andAIDS, only 34 percent o f young people can correctly identify ways of preventing sexual transmission o f HIV and reject major misconceptions about HIV transmission. Also, condom utilisation for this group with a non-cohabiting partner is low, at 38.4 percent for males and 26.1 percent for females. Access to Voluntary Counselling and Testing (VCT) and Prevention of Mother to Child Transmission (PMTCT) services has continued to increase with 400 and 270 sites respectively offering these services. However, only 25 percent o f HIV positive mothers are receiving a complete course o f anti-retroviral (ARV)prevention and 39 percent of infants born to HIV positive mothers are infected. 100percent of transfused blood units are routinely screened for HIV. In 2003, the Government launched its national policy o f providing free and universal access to anti-retroviral therapy, which was expanded in 2005 to include all anti-retroviral therapy related services. By the end of 2005, an estimated 43,000 persons living with HIV and AIDS, out o f an estimated 200,000 persons requiring treatment, were on anti- retroviral therapy. However, only 10 percent o f persons with STIs are estimated to be appropriately diagnosed, treated and counselled. Links between the treatment o f HIV and AIDS and STIs, TB and other opportunistic infections need to be strengthened to ensure the prioritisation o f related interventions to improve the quality o f life for people livingwith HIV and AIDS. A stark example of a group made more vulnerable is orphans whose parents died from HIV andAIDS. Estimates o f the number o f orphans range from 750,000 to 1.2 million, o f which 75 percent are HIV orphans. Access to formal education is a key consideration for this group o f children, which inturn will affect the quality of the labour force as well as possible impacts on national security. The increase in community schools and the provision o f bursaries for poor children have contributed to increasing orphan access to basic education. According to the Ministry o f Education, in 2004 total orphan enrolment inschools was 536,672. The ratio of orphaned pupils to non-orphans aged 10 to 14 years was 0.2 in2005. Throughout Zambia, there are initiatives in support o f orphans and vulnerable children being implemented by the Government, cooperatingpartners, NGOs, and several other groups. There are also successful programmes that keep children in the community rather than in orphanages. Currently, over 400 organisations are running programmes that work towards increasing income to vulnerable households. Other programmes provide psycho-social and physical help to vulnerable families. Some other additional national achievements include: a) The development o f a child policy that addresses orphans and vulnerable children (OVC) issues comprehensively; b) The development o f a five-year national strategic planon OVC; c) The establishment o f district level coordinating mechanisms for OVC insome districts. 32-3Policies and Key Reforms 32.3.1 Macro-levelResponse The Government has put inplace a number o fnational support structures as follows: a) A highlevel Cabinet Committee of Ministers on HIV andAIDS, which provides policy direction and supervises andmonitors the implementation ofHIV andAIDS programmes; Fifth National Development Plan 2006 -2010 297 A Partnership Forum has been established to include high level representation o f different stakeholders inthe Zambian Multi-sectoral HIV Response; The NationalAIDS Council (NAC), established through an Act o f Parliament in2002, is abroad- based corporate body with government, private sector and civil society representation. The N A C is the national mechanism to coordinate and support the development, monitoring and evaluation o f a multi-sectoral national response to HN and AIDS whose overall mission is the prevention and combating o f the spread o f HIV and AIDS and reduction o f the personal, social and economic impacts o fthe HNand A I D S epidemic; The National HIV/AIDS/STI/TB Policy o f 2005 provides the direction and mandate for the national response; At lower levels, provincial, district and community HIV andAIDS Task Forces (PATFs, DATFs and CATFS) have been established to operate as sub-committees o f the decentralised development coordinating structures, the Provincial Development Coordinating Committees (PDCCs) and the District Development Coordinating Committees (DDCCs) respectively. Local level planning to support development of more strategic planning for HIV and AIDS at decentralised district level has been initiated. Districts have also been given guidelines for the mainstreaming of HIV andAIDS into the district development plans and sector plans. 32.3.2 Sector-Level Response Sectoral mainstreaming o f HIV/AIDS in the public sector is being addressed. The capacity of the Ministries o f Agriculture and Cooperatives (MACO), Health and Education were assessed by a Public Service Management Division (PSMD) commissioned study in December 2004. The study indicates multiple factors limiting their capacity. Statistics in the Ministry of Agriculture and Cooperatives (MACO) on mortality trends show that deaths in six provinces and MACO headquarters increased by more than 100 percent between 1990 and 1998. Analysis o f causes o f mortality unveils a pattern that follows the national picture. While the bulk o f cases (55 percent) were classified as "unknown," the major cause o f death was tuberculosis (16.22 percent), followed by malaria (15.91 percent). By the end o f March 2005, line ministries had conducted workshops on HIV andAIDS awareness that had reached 17,290 sector employees by 2005. Seventy-six employees from line ministries had been trained in counselling (34 in2004 and 42 in2005), and 918 had been trained as peer educators (628 in 2004 and 290 in2005). 32.3.3 Civil Society Response Within the context o f the Government's participatory structures, civil society is considered to include the media, trade unions, traditional healers, youth structures as well as NGOs, CBOs and FBOs. Civil society is considered an important stakeholder and plays a significant role in strengthening the multi- sectoral response to HIV/AIDS, TB and STIs. Civil society organisations (CSOs) are frequently key role-players in developing and implementing innovative, culturally-sensitive approaches that include elements o f mainstreaming, decentralisation, outreach and community participation. Zambia is making considerable progress in strengthening its grant administration systems for CSOs, especially those innon-metropolitan areas. Nevertheless, it is acknowledged that grant making to CSOs canbe bureaucratic and slow andthere are significant humanresource constraints inproviding technical andmonitoring support to fundedprojects. The role o f Traditional Health Practitioners in strengthening the national response to HIVIAIDS, TB and STIs is increasingly acknowledged. The Traditional Health Practitioners' Association o f Zambia (THPAZ) has also been active in natural remedies research and income generating activities, such as crop production andprocessing as well as community-based catering. 32.3.4 PrivateSector Response The private sector accounts for an estimated 58.5 percent o f the formally employed work force in Zambia, which is an estimated 243,645 employees. The design and implementation o f HIV and AIDS work place programmes incompanies andbusinesseshave been largely supported by the private sector. Fifth National Development Plan 2006-2010 298 A workplace survey o f21 of the larger companies inZambia was completed by N A C in2005 inorder to provide some preliminary information on the range o f HIV and AIDS activities and the type o f support that was needed to continue the development o f the private sector response. There are many examples o f Zambian companies undertaking innovative practices in the work place across prevention, treatment, care and support. 32.3.5 The Main Challenges The commitment to tackling HIV and AIDS is unprecedented. The challenge for Zambia is to secure ownership by developing capacity to continuously identify HIV and AIDS related problems, set priorities and establish accountable systems to enable the rapid scaling up o f a multi-sectoral response to AIDS at all levels on a continuous basis. The Government shall facilitate the expansion o f ART access during the FNDP period, accompanied by the implementation o f a renewed and intensified prevention programme. Despite some o f the successes that have been demonstrated with HIV prevention efforts with small populations, such as sex workers, many o f these lessons have not been taken to scale for the general population to have an impact on overall incidence. It is government position that the epidemic can only be reversed by intensifylng effective HIVprevention inscale and scope, to control the rate o fnew infections. During the FNDP, the Government and other stakeholders will have to place additional emphasis on reaching the youth o f Zambia, and even more effort to reach the youth and children to reduce stigma and discrimination for the growing number of persons who will live with HIV.The combined impact of intensified HIV prevention and expanded access to treatment, care and support will have a multiplier effect for the communities in the longer term. The FNDP has the potential to achieve this by focusing new and available resources in a more harmonised way and to institutionalise the response in the evolving coordination structures and mechanisms. The challenges can be summarised as follows: Understandingand application o f the concept o f mainstreaming HIV and AIDS in development sector plans and operations; The serious "implementation" gap existing betweennational plans and strategies on the one hand andoperational capacity to implement them at the locallevel on the other; Devolving power, authority, functions and resources including relevant capacity building for HIV andAIDS at the locallevel; and, The financing o f technical support. Vision and Goal The vision is: A nationfieefrom the threat ofHWand AIDS by 2030. The goal is: To halt and begin to reverse the spread of HIV andAIDS. 32.5 Programmes, Objectivesand Strategies The overall objective for the sector i s "to prevent the spread o f HIV and provide appropriate care, support and treatment to HIV and AIDS infected persons and those affected by HIV and AIDS, TB, STIs and other opportunistic infections by the year 2010. The Government shall, furthermore, strive to integrate VCT, PMTCT and anti-retroviral therapy into the public health care delivery system and in private health care services. The matrix below presents the specific programmes, objectives and strategies inthe HIV and AIDS field during the FNDP implementation period. No. Programmes Objectives Strategies 1 Promotionof Safer To intensify prevention of HIV a) Promote safer sexual behaviour; Sex Practices infection - b) Prevent Mother to Child Transmission; FifthNational Development Plan 2006-2010 299 I Objectives Strategies c) Imtxove blood safety through transfusion, - Mother to Child injection and universalprecautions; Transmissionof Improve access to Voluntary Counselling and HIV Testing; SafeBlood, Blood Reduce stigma and discrimination; ProductsandBody Promote male involvement in safer sex Parts andInfection practices; Control Provide Human Rights based education to both female and male citizens Voluntary To provide appropriate care, support, Integrate Voluntary Counselling and Testing Counsellingand and treatment to HIV and AIDS with treatment; Testing infectedpersons and those affected by Provide universal access to anti-retroviral HN therapy; ART Expanding treatment for common HomeBasedCare opportunistic infections; Strengthen home/community based care and PalliativeCare support; Utilise alternative andior traditional medicines; Promote research invaccines and cure; Promotiono f appropriate nutrition; Support to the infected and affected; Promoting male involvement in home based care Orphans and To provide improved care and a) Protect orphans and vulnerable chldren; Vulnerable support services for orphans and b) Support highly vulnerable groups Children vulnerable children and others affected and at risk Decentralised To strengthen the decentralised Develop capacity in advocacy, management, Response response and mainstreaming HIV and coordination and monitoring o f multi-sectoral Mainstreaming AIDS response at district level; HIV and AIDS Develop district multi-sectoral HIV and AIDS inAll programmes and annual implementationplans; Developmental Organizational development in support of Activities mainstreaming and improving coordination o f multi-sectoral responseat district level; Improve the capacity o f district, provincial and national planning mechanisms in multi- sectoral HN and AIDS planning and mainstreaming; Reduce the negative impacts of sectoral development policies, plans and strategies; Reducing the impact of HIV and AIDS in work place settings; Monitoringand a) To improve leadership, Strengthening country monitoring and Evaluation management and coordination o f evaluation mechanisms; Mechanismsand multi-sectoral capacity at Strengthening research and access to Structures national level W A C and information on best practices and cost- Secretariat), provlnces and effective interventions; districts (decentralised Strengthening the collection, storage and institutions); analysis o f gender disaggregated data b) To develop the national HIV and AIDS strategy and refine or adapt tools for the effective mainstreaming or operationalisation o f HIV and AIDS into development instruments; c) To strengthen country monitoring and evaluation mechanisms and smtctures that facilitate oversight by N A C and district stakeholders Coordination of To strengthen advocacy and multi- a) Strengthening the institutional and legal the Multi-sectoral sectoral responseto HNand AIDS framework; Response b) Resolving areas o f duplication and gaps in the Fifth National Development Plan 2006-2010 300 No. Programmes Objectives Strategies 13 11Advocacyofthe 11 multi-sectoral response to HIV and AIDS, Multi-Sectoral including resource-rnobilisation; Response c) Advocacy for mainstreaming, effective policy 14 Resource implementation and fighting stigma and Mobilisation, discrimination; Disbursement and d) Strengthening the collection, storage and Tracking analysis o f gender disaggregated data At national level, the HIV and AIDS Sector Advisory Group (SAG) shall continue to monitor and evaluate the implementation o f the Plan. The HIV and AIDS structures at the district and provincial levels (DATFs and (PATFs) shall be harmonised within formal existing structures and will be supported by the Government on a permanent basis in order to allow for improved and sustainable implementation, monitoringand evaluation. For the period2006 to 2010 and inkeeping with the focus on improving coordination at local levels, the implementation of the monitoring and evaluation Plan will continue to elaborate mechanisms for monitoring o f the response at local levels. Too often, data is collected to be passed onwards and not enough attention is paid to the use of monitoring data and information for decision-making at local or provider levels. This is an imperative for this planningperiod. The joint annual programme review is a key element o f the monitoring and coordination o f the multi- sectoral response to ensure appropriate responses and value for money at a strategic level. However, it is not meant to replace the continuous monitoring and performance management by providers, but rather build on that to ensure that best practice and value for money aspects are being shared and incorporated intoaction plans. FifthNationalDevelopment Plan 2006-2010 301 cv 0 m I"" Environment 33.1 Introduction The term "environment" in this chapter is taken to cover a) management o f environmental resources (such as clean water, fertile soils, clean air and healthy biodiversity) that provide goods and services important to people as well as b) environmental hazards (such as floods and drought and climate change) that affect people's vulnerability, and c) the ecological processes that drive the above (energy, water and nutrient flows andpopulation dynamics). The chapter generally discusses issues in all these three sub-groups but specifically addresses issues dealing with the so-called "brown issues" concerned with environmental conditions, including environmental stresses andthe ecosystem. The purpose o f environmental management is to guide the utilization o f environmental goods and services and to promote sustainable development in Zambia during the Fifth National Development Plan period and beyond. Sustainability factors are environmental, social and economic in nature. This means that apart from ensuring growth in GDP per capita income and ensuring accessibility o f the population to basic needs and an improved living standard, maintaining environmental standards during the planperiod andbeyond will also be critical. While socio-economic development is imperative to addressing poverty in Zambia, economic growth can result in the deterioration o f the environment in the short-term if uncontrolled and further cause irreparable damage to the natural resources that support it. Optimising development and maintaining its sustainability will only be possible by safeguarding the environment through conserving it and its life support systems. Poverty should be regarded as both a consequence o f environmental degradation as well as its cause. Environmental degradation exacerbates the poverty situation through the depletion of the natural resource base thereby contributing to, for example, food insecurity, water and airborne diseasesand limiting survival strategies resulting indisempowerment o f most people particularly in the rural areas and especially women. Thus, tackling poverty requires that adequate environmental protection and natural resource management systems are put in place. For example, the proposed economic development drivers (agriculture and tourism) are nature based, and in order to contribute to poverty reduction, they should ensure environmental sustainability intheir expansion programmes. 33.2 Review of Past Performance In Zambia, unsustainable utilization of the environment has affected the livelihoods of people especially the poor. Land contamination from solid waste disposal continues to grow as an environmental problem. Although still a relatively new issue in environmental protection in Zambia, waste management particularly the management o f municipal solid waste (domestic, trade and manufacturing and hospital waste) has emerged as serious environmental concerns inurban areas. The extraction and production processes o f industries also have negative impacts on the environment which principally relate to disposal o f waste that generate both on and off-site pollution. Notable polluters include chemical fertilizer plants, textile factories, edible oil factories, tanneries and cement factories. The limited knowledge o f the problems and appropriate solutions in connection with restricted economic resources makes it difficult to solve the problems o fhazardous waste management. Land dereliction is also a problem in miningareas. The problem occurs and manifests itself as tailings dumps largely un-vegetated and aesthetically unpleasant. Land subsidence too is a problem in mining areas on the Copperbelt. InKitwe residential areas above shafts, like Chamboli and AMCO are at risk. Possible land subsidence is manifested through cracking houses, as foundations are sheared by sinking motion. Fifth NationalDevelopment Plan 2006-2010 304 Water ecosystems are pollutedmainly from the release o f dissolved substances, including heavy metals as well as oils, into rivers, wetlands and ground water. Water quality inthe Kafue river, for example, is threatened by industrial activity and residue from agriculture run-off. On the Copperbelt, the discharge o f effluent with sediments from the mining industry continues to compromise the quality o f water as well as threaten the Kafue river base due to sedimentation. Water contamination problems are more acute inthe peri-urban areas than inthe rural areas. Highpopulation densities inurban areas leading to smaller plots and consequently very short distances between latrines and open yard wells or hand pumpspresent considerable riskto subterraneanand surface pollutionofwater. There is still localised air pollution in Zambia, mainly felt in and around fertilizer manufacturers, cement manufacturers, lime producers as well as around petroleum production facilities. On the Copperbelt where mining activity is again picking up, air pollution is mostly felt in areas near Nkana mine smelter in Wusakile and in Mufulira. Dust dispersal from the desiccated surfaces or tailings impoundments from mine areas also continue to contribute to air pollution. Highemissions o f sulphur dioxide into the atmosphere from the Mufulira smelter have been blamed for desertification in Kankoyo, a very large highdensity residential area. With respect to global warming, greenhouse gases in Zambia (carbon dioxide, methane and nitrous oxide) are negligible compared to world levels. Carbon dioxide has significant implications for atmospheric warming and climate change. Despite low green house gas emissions, the threat o f climate change looms inZambia. Predictedtemperature warming is expected to decrease rainfall inthe range o f 8 to 30 percent and drought frequencies expected to be more pronounced in agro-ecological zone I which covers the valley areas (Gwembe, Lunsemfwa and Luangwa and the southern parts o f Western and Southern provinces). Zambia is also likely to be affected by damage to the ozone layer which is causedby ozone depleting substances (ODS) emitted into the atmosphere, which results inthe thinning out o f the layer. Demography also has an adverse effect on the environment. Rapid increases in the population combined with over-exploitation o f resources have threatened the resource base and, inturn, the lives o f the people. Much o f the land in Zambia is under traditional tenure and administered by traditional rulers under their respective traditional arrangement. In many cases, the tenure systems prevailing under these arrangements have no clearly defined property rights. For many years, there has been no national land- use planning framework to specify how land should be allocated for various purposes ayd what land should be reserved for different future uses at the national, provincial and district levels. I t is noteworthy that environmental degradation has also been due to inadequate institutions particularly ill- defined property rights. Although a comprehensive assessment o f ecosystems has never been undertaken for Zambia, there are pointers to the fact that ecosystem services are consistently being degraded or used unsustainably. This has serious ramifications for the sustainability o fthe economy. The MDGs that Zambia has committed herself to reflect the relationship between the environment and sustainable development: the targets and indicators are based on the delivery o f ecosystem services to the poor. While MDG 7 is the only goal explicitly targeting the environment, achieving each o f the goals will require the support o f functioning ecosystems. In turn, achieving Goals 1-6 will support delivery o f Goal 7. As demands for the services provided by ecosystems grow and the ability o f these systems to meet these demands is compromised, increasingly difficult challenges must be confronted by the Government. 33.3Policies and Key Reforms Sustainable development objectives for Zambia must be supported by sectoral policies and strategies that hlfil national obligations. Over the years, significant progress has been made in developing policies and strategies which will contribute to acheving environmental sustainability and poverty alleviation. In 2004, the Government prepared the draft National Policy on the Environment (NPE) which proposes an all encompassing approach to environmental management. FifthNational Development Plan 2006 -2010 305 In the context o f the above, the NPE shall continue to be implemented to secure the promotion of environmental sustainability. This shall be done through the following actions during the FNDP: a) Raising the profile o f the environment by mainstreaming environmental issues into national development programmes and enforcement o f existing policies and laws to protect the environment; b) Strengthening the current instruments for policy implementation, such as licensing fees and permits; c) Quickening thejudicial process for handling environmental offences; d) Retention o flicensing fees andother charges for implementation ofpolicy instruments; e) Instituting economic incentives/disincentives which seek to influence the behaviour o f producers and consumers by enabling them to choose the most appropriate measures based on own assessed costs andbenefits; f) Promotion o f implementation strategies that focus more on establishing an economic environment for promoting environmental protection and less o f the government implemented environmental protection initiatives; and g) Provision o f a broad legal framework for environmental management and implementation. The National Environmental Action Plan (NEAP) shall remain key to national environmental planning and implementation during the FNDP period. As a complement to this, Environmental Impact Assessment (EIA) Regulations shall be strengthened through the following actions: a) Developing cohesiveness between sectors and existing structures; b) Extending EIA beyond industry to other equally important sectors, such as agriculture, fisheries and tourism; c) Integrating EIA into large sectoral programmes and core national programmes; d) Promoting EIA as a positive environmental management tool contributing to sustainable development; e) Promoting o f effective public participation inthe EIAprocess; f) Developing andmaintaining skilled capacity to manage EIAprocesses; g) Strengthening regular monitoring o f mitigation plans; and, h) Preparingandimplementing district environmentalplans. Before 1985, Zambia had no coherent and comprehensive policy framework and an apex institution for the management andutilization of environment andnatural resources. Thereafter, important policy and institutional developments took place which include the adoption o f the national conservation strategy, the enactment of the Environmental Protection and Pollution Control Act (EPPCA) and the subsequent establishment o f the Environmental Council o f Zambia (ECZ) and the Ministry o f Environment and Natural Resources (MENR) in 1992 as apex institutions. These heralded the development o f major programmes such as the National Environmental Action Plan (NEAP) (1994), the Environmental Support Programme (ESP), the Zambia National Biodiversity and Action Plan (NBSAP), the Zambia Forestry Action Plan (ZFAP), the National Action Plan (NAP) for the implementation o f the United Nations Convention to Combat Desertification (UNCCD), and the Zambia Wetland Strategy and Action Plan. Despite these developments that have taken place inthe sector, the following issues have continued to persist and are challenges for the FNDP: a) Coordination Problems: There are various institutions and agencies (public, NGOs/CBOs and private sector organizations) involved in environment and natural resources management. The existence o f the various institutions initselfmakes coordination o f activities inthe sector extremely difficult. Recently, however, the Inter-Regulatory Environmental Coordinating Committee (IECC) has been established in an effort to address some o f the key issues among all key stakeholders and will lead to improved coordination and effective implementation o f programmes. These efforts shallbe strengthened andsupported during the FNDPperiod; b) Implementation of the National Policy on the Environment: The preparation of the NPE has since been finalized through a nation-wide consultative and participatory process. The next steps include the development o f an Implementation Plan and the Environmental Investment Strategic Plan (EISP). These activities shall be undertaken duringthe FNDP; Fifth National Development Plan 2006 -2010 306 c) Domestication of International Environmental Conventions: Zambia has acceded to over 20 international environmental conventions, and these have a bearing on natural resource management. Different conventions are at different levels o f domestication and implementation. Duringthe FNDP, the Government shall focus on the domestication of 5 conventions, particularly those that are critically relevant to Zambia; d) The Government will expand the protected area system to include ecosystem and wetland types which are in open areas in order to conserve them for the present and fbture generations. The Government shall maintain a representative protectedarea system; and e) Zambia lacks a well informed and organized local public sector to participate in publicising the vulnerability o f the environment and inculcating a sense of responsibility for the environment. The Government shall promote public participation and a sense of responsibility for the environment through the use of environmental education methodology to publicize vulnerability o f the environment. 33.4 Vision and Goal The vision is: A productive environment and well conserved natural resource for sustainable development by 2030. The goal is: To reverse environmental damage, maintain essential environmental and biological processes and ensure sustainable use of natural resourcesfor the benefit of thepeople." 33.5 Programmes, Objectives and Strategies The programmes, objectives and strategies for the environment sector during the FNDP period are presented inthe matrix below. Sector: Environment No. Programmes Objectives Strategies 1 Environmental To improve institutional a) Enhancenational and regional coordination; Institutional Capacity capacity and b) Improve human resources for organisation and Building coordination for administrative systems; environmental c) Improve financial management systems; management d) Improve the legal and policy framework; e) Improve data management systems; f, Improve monitoring capability; g) Improve coordination and administration; h) Develop institutional andbuildcapacity; i) Promoteeffectiveparticipationofwomenindecision- making at all levels in institutions dealing with management o f the environment. Sustainable To protect essential a) Formulation and implementation o f appropriate gender Environmental environmental sensitive policies, legal frameworks and plans inorder to Management processesand functions; enhance environmental sustainability; b) Incorporation of provisions for strategic and To promote sustainable environmental assessment, biological diversity impact development by assessment and management in all economic and minimizing irreversible development activities; environmental damage, c) Pollution control; biodiversity loss, waste d) Maintenance o f a representation o f eco-systems for the production and benefit of current and future generations; pollution e) Integrationo f international environmentalconventions in national laws and local programmes; f, Environmental rehabilitation; g) Waste collection, transportation and disposal; h) Retention in the sector o f charges for environmental offences and license fees To establish and support Improved coordination and partnerships for environmental Environmental an effective institutional information management Information framework able to ___ effectively manage Fifth National Development Plan 2006 -2010 307 Sector: Environment 1 Programmes Objectives Strategies ~ NO. i environmental information 4 Public Participation To promote public Use environmental education methodology to publicize andAwareness participation and a vulnerability o f the environment sense o f responsibility for the environment 5 Gender and HIV and To mainstream gender a) Promotegender and HIV and AIDS awareness; AIDS and HIV and AIDS in b) Mainstream Gender and HIV and AIDS in wetlands environmental concerns management 33.6 Implementation,Monitoring and Evaluation Framework The pivotal aspect in the environment sector during the FNDP i s to increase the implementation capacity o f the Ministry o f Tourism, Environment and Natural Resources, its Departments and Statutory bodies. Decentralization, increased stakeholder collaboration and effective implementation of the above programmes crucially hinge on well guided annual planning processes. Accordingly, institutional reforms and improved sector administration and capacity buildingshall be given special consideration during Plan implementation. Monitoring mechanisms shall be made simple and aligned to existing capacity. The key monitoring input for performance will be the management information system. A limited number o fperformance indicators shall be selected for which it is feasible to collect monitoring data. The SAG will oversee overall monitoring and evaluation o fthe programmes inthe sector. Fifth National Development Plan 2006 -2010 308 t I 2 m 34.1 Introduction Government takes cognizance o f the importance gender plays insocio-economic development. Gender can be defined as an analytical concept, which focuses on women's roles and responsibilities in relation to those o f men. These roles andresponsibilities explain existing disparities between women and menwhich further leads to the differential impact inthe socio-economic development processes. This has resulted inwomen's limited participation in the development processes. In order to ensure that both men and women participate fully in the development process, there is need for gender mainstreaming which is the makingo f girls'lwomen's and boys'lmen's issues an integral dimension o f the design, budgeting, implementation, monitoring andevaluation processes so that all canparticipate andbenefit equally. In order to achieve this, Government will, inthe next five years strategically focus on the programmes that will address the strategic needs o f women and men. These include education and skills training; economic empowerment o f women; the review o f laws that discriminate against women; and institutional capacity building. 34.2 Review of Past Performance Mainstreaming o f gender in the development programmes has been challenging. Even though gender is mentioned, its importance in the development process still remains to be understood. According to the Population Census o f 2000, there are more women than men in the country. However, due to a number o f factors such as the low levels o f education, limited access and control over resources o f production, and the division o f labour, women's participation inthe development process has been impeded. These factors have been exacerbated by cultural norms and values which promote unequal power relations among men and women. Consequently, women's vulnerability to poverty has increased leading to the `feminisation' o f poverty. According to the CSO report 200212003, poverty among female headed households stood at 58 percent compared to 43 percent among male headed households. Moreover, the proportion o f female headed households has increased from 16.9percent in 1990 to 18.9percent in2000. Inaddition, the gender dimension o f HIV and AIDS has exacerbated the problem o f poverty among women. Inthe age group 24 to 29, the HIV prevalence rate among women is four times higher than that o f men. Not only are women faced with the challenge o f bearing the burden o f poverty but also bear the burden o f HIV and AIDS in terms o f risk o f infectionand as care givers. Zambia is also faced with the challenge o f reducingthe highmaternal mortality rate which was 729 deaths per 100,000 births in 2002. This rate was among the highest in the world. In this regard, Government has embarked on the provision o f free ante-natal services, especially in rural areas, and upgraded the training of traditional blrthattendants. Further, illiteracy levels are higher among women at 75 percent compared to men at 65 percent. This is linked to the higher dropout rates and lower completion rates for girls compared to boys which stands at 95.4 percent for boys compared to 75.1 percent for girls at primary school level. Factors leading to high dropout rates among girls include pregnancies, early marriages, poverty and HIV and AIDS. Consequently, the lower levels o f education among women have led to their lower levels o f participation indecision-making and economic development. Although, the level o f women's participation in decision-making has been increasing steadily from 10percent in 1997 to 18 percent in2003, the 1997 SADC gender declaration of 30 percent representation has not yet Fifth National Development Plan 2006 -2010 313 been attained. Women representation in Parliament in 2004 was 14 percent. A t Cabinet, this increased significantly from 7.3 percent in2000 to 22.7 percent in2005. Inorder to address some ofthe factors leadingto poor education, Government introduced the return to school for pregnant girls policy, the free basic education and has been providing scholarships to vulnerable girls. These measureshave contributed to the increase.in the enrolment o f girls. The Government, in its effort to encourage and enhance women's participation in economic development, facilitated the training o f women inentrepreneurship skills. The dual legal system in Zambia, in which both statutory and customary laws apply has often led to discriminatory practices which in most cases are biased against women especially in the application of customary law which is not written. For this reason, the Government has initiated the review o f customary law to avoid arbitrary interpretation o fthe customary laws andto align them to statutory laws. The Government has also embarked on the process o f addressing negative cultural beliefs and practices such as early marriages and property grabbing. A cultural policy has been developed to ensure that the traditions and customs do not discriminate against women. Inaddition, the Government has commenced the process of domesticating the Convention on the Elimination o f all forms o f Discrimination Against Women (CEDAW) into the Zambian law. Further, the constitutional review process afforded women the opportunity to address issues inthe constitution which were discriminatory. Gender based violence is a critical area o f concern particularly in cases relating to girls' and women's rights and its contribution to the spread o f HIV. The major cause o f gender based violence is unequal power relations. With regard to gender based violence, Government established the victim support unit (VSU) inthe Zambia Police Service to address the issue. . 34.3 Policies and Key Reforms The Government adopted the national gender policy in2000 and launchedthe strategic plano f action (2004 to 2008) in2004. The national gender policy highlights a number o f policy areas which include poverty, health, education, decision making, gender based violence, land, agriculture, environment, science and technology, legal reforms, natural resources, commerce and trade and labour and employment. The national gender policy takes into account the issues and concerns contained in strategic documents such as the Convention on the Elimination o f all forms o f Discrimination Against Women (1979); the Beijing Declaration and Platform for Action (1995); the SADC Declaration on Gender and Development (1997); and the Millennium Declaration and Development Goals (2000). In 2003, the Government established the gender consultative forum aimed at advising Government on emerging issues and ensuring that policies being formulated and programmes being implemented are gender responsive. A t the provincial and district level, gender sub-committees were established as part o f the process o f strengthening the institutional .framework o fthe national gender strategic plan in2005. The Government i s preparing the land policy in which it seeks to address, among other things the constraint encountered by women in accessing titled land. Out o fthe many objectives o f this policy is the allocation o f at least 30 percent o fthe available landto women. 34.4 Vision and Goal The vision is: Gender equity and equality in the developmentprocess by 2030. The goal is: To reduce gender imbalances and attain gender equality. FifthNational Development Plan 2006-2010 314 34.5 Programmes, Objectivesand Strategies The programmes, objectives and strategies for the gender sector during the FNDP period are presented inthe matrix below. lr: Gender and I welopment Programmes Objectives Strategies Implementing Institution Gender To mainstreaming gender in a) Mainstream gender into macro and GIDD, Ministryof Mainstreaming in the National Development sectoralpolicies and programmes; Finance and National the National Process b) Review the implementation plan for Planning, Ministry o f Development the national gender policy; Health, National AIDS Process c) Facilitate and coordinate the review o f Council policies and programmes; d) Identify and lobby for the implementation o f measures to correct gender imbalances; e) Facilitate the design and implementation o f a mechanism for mainstreaming gender into the human resource management and development process; 9 Mainstream gender in all policies and programmes on the control and prevention o f HIV and AIDS and other STIs. Safe Motherhood To contribute to providing a) Ensure increased accessibility and Ministry of.Healtb, enabling conditions for quality o f maternal health services to GIDD reproductive health o f men women inbothrural and urban areas; and women; b) Promote increased awareness on the involvement o f men in reproductive To ensure safe motherhood healthprogrammes; c) Facilitate training o f traditional birth attendants (TBAs). Capacity Building To build capacity in a) Develop and implement gender GIDD, Ministry of for Gender institutions to deal with training programmes inall government Education, PSMD, Mainstreaming gender issues effectively ministries and institutions; Ministry o f Foreign b) Facilitate integration o f gender into the Affairs existing curricula in 'training institutions; c) Conduct backstopping missions to ministries, provinces and districts. Gender To provide information on a) Develop and implement gender GIDD, Ministry o f Management gender to all stakeholders programmes for the print and Information and Information electronic media; BroadcastingServices, Systems b) Identify gender information gaps and Media organizations, conduct relevant research; Central Statistics c) Establish and maintain links with Office. strategic institutions dealing with research and information; d) Redress the negative portrayal o f women inthe media; e) Ensure the collection o f gender disaggregated data inkey sectors Fifth National Development Plan 2006 -2010 315 __ 5 Review of Legal To put in place gender a) Facilitate the review and amendment GIDD, Ministry o f Framework responsive legal framework o f discriminatory laws and procedures; Justice, b) Facilitate the dissemination o f regional and international instruments on gender; c) Domesticate regional and international instruments on gender; d) Strengthen collaboration with stakeholders; e) Strengthen the Penal Code on gender based violence; f) Strengthen the Bill o f Rights for women inthe Constitution; g) Facilitate enactment o f gender based violence bill; h) Review customary law and align with __ statutory law. 6 Economic To promote equal a) Put in place mechanism and facilities GIDD, Ministry of Empowerment of participation o f females and to encourage the retention o f girls in Education Women males ineducation the education system; b) Provide facilities in education institutionsthat are girl-friendly. To ensure women's a) Ensure that at least 30 percent of land GIDD,Ministry o f increased control over land allocated is reservedfor women; Lands, Ministry o f and access to agricultural b) Ensure women have access to Agriculture and services agriculturalextension and credit. Cooperatives To ensure women's access a) Facilitatewomen's access to credit; GIDD, Ministryof to factors o fproduction b) Train women entrepreneurs; Commerce, Trade and c) Facilitate the removal barriers that Industry and Ministry constrain women's participation in of Justice commerce, trade and industry. To increase participation of a) Facilitate the provision o f scholarshps GIDD, Ministry of girls in science and to girls who have excelled in science Educationand technology and technology subjects. Ministry o f Science, Technology and VocationiiTraining To redress gender a) Ensure at least 30 percent GIDD, Ministry o f imbalances in labour, representation o f women in the labour Labour employment and social market and at decision-making levels; security at all levels b) Redress gender imbalances in the labour sector. To reduce the vulnerability a) Facilitate awareness creation on the GIDD, Ministryo f o f women and men through existing social protection measures community equitable implementation of among women and men; Development and social protection measures b) Ensure equitable participation of Social Services women and men in social protection schemes. 7 GIDD. Line Ministries ~ Monitoring and To monitor and evaluate the a) Establish coordination, monitoring and Evaluation implementation o f gender evaluation mechanism; and development b) Strengthen the operations ofthe gender programmes inall sectors consultative forum; c) Promote a system of collecting gender disaggregated data; d) Undertake gender audits in the five priority areas every two years. 34.6 Implementation,Monitoring and Evaluation Framework For effective implementation o f gender mainstreaming, the Government has established an integrated institutional mechanism for policy formulation, coordination, resource mobilization, utilization, monitoring andevaluation. Cabinet Office will continue with its role of coordinating, monitoring and evaluation o f the activities identified inthis sector. Besides Cabinet Office being a keyplayer, the gender/HIV/AIDS SAGwill also be o f utmost importance in the process o f monitoring and evaluating the sector interventions. The gender focal points (GFPs) inline ministries and the gender consultative forum will also be key players inthis process. In Fifth National Development Plan 2006-2010 316 addition, the Government has put in place an institutional framework for gender mainstreaming, monitoring and evaluation at provincial and district levels. These include provincial administration through gender sub- committees o f the provincial development coordinating committees (PDCCs) and district development coordinating committees (DDCCs). Fifth National Development Plan 2006 -2010 317 Food and Nutrition 35.I Introduction Nutritional status is determinedby a number o f factors which, among others, include access to adequate food; good health and sanitation; affordable food prices; steady food availability; stability o f sources of income; and the general education for male and female parents and guardians. Poverty i s the major underlying factor for poor nutrition. Other principal causes o f malnutrition relate to the highprevalence o f infectious diseases, including HIV and AIDS, insufficient care for the vulnerable, especially children, and poor environmental, economic, and social conditions. Poor weaning practices and infrequent and inappropriate feeding also contribute to malnutrition. The deteriorating economic situation in the aftermath o f radical economic reforms in several African countries has worsened the rising number o f cases o f malnutrition. Among the major nutrition problem in Zambia, which affect the vulnerable groups o f women, children, the differently abled and the poor, are protein-energy malnutrition, iron deficiency anaemia, and Vitamin A deficiency. Zambia's commitment to ensuring the health and well being o f its children has been demonstrated by its ratification o f various Conventions, which have been developed at such international meetings as the World Summit on Children in 1990, the International Conference on Nutrition in 1992,andthe MillenniumSummit o f2000. Inadequate nutrition hampers economic and social development by reducing labour productivity and increasingthe costs o f health and educational programmes. In children, malnutrition compromises their cognitive development, immunity, and physical growth. Adequate nutrition is fundamental and critical to the achievement o f the following six o f the Millennium Development Goals (MDGs): eradicating extreme hunger and poverty; achieving universal primary education; promoting gender equality; reducing child mortality; improving maternal health; and helping to combat HIV and AIDS. This chapter provides scope for accelerating food and nutrition security interventions nationwide. 35.2 Review of Past Performance Malnutrition has long been recognised as a serious public health problem in Zambia. Indicators for nutritional status o f children under five inthe twelve year period from 1990 to 2003 show no decrease inthe prevalence o funder-weight(under nutrition) andwasting (acute malnutrition) and an increase in the prevalence o f stunting (chronic malnutrition) from 39.6 percent to 49 percent (Table 35.1). These rates o f stunting are among the highest inthe region. Chronic malnutrition, as seen inZambia, indicates long-term exposure o f children to poor diets and is associated with worsening poverty levels and an increase infood insecurity where 70percent o f the population is food insecure. ZPSl ZDHS ZPSII ZDHS ZDHS LCMS FHANIS LCMS Underweight(W/A) < -2SD 23.1 25 25.3 24 28 23 24 23 Stunting(WA) < -2SD 39.6 40 48.4 42.0 53 49 53 49 Wasting(WiH) < -2SD 6.9 5 5.7 4 5 5 5 5 Fifth National Development Plan 2006-2010 320 Several efforts have been made to reduce malnutrition in Zambia. In terms o f improving case management o f severely malnourished children admitted to various health facilities, there has been provision o f training in the appropriate management o f severe malnutrition for frontline health care providers. Other ongoing child survival interventions include Insecticide Treated Nets for the control o f malaria; immunization; de-worming; promotion o f exclusive breast-feeding; complimentary feeding; and growth monitoringandpromotion. Inthe case of VitaminA deficiency, a supplementation programme has been implemented providing children between the ages o f 6 and 59 months with Vitamin A capsules every six months through routine and Child Health Weeks. Inaddition, there is nutrition education on consumption o f VitaminA rich foods. Interventions for iron deficiency anaemia include iron and folic acid supplementation to pregnant women, and de-worming young children through child health weeks. Zambia has also accelerated implementation o f the food fortification programme aimed at reducing the prevalence o f micro-nutrient deficiencies. Maternal nutrition also poses significant challenges in Zambia. According to the Zambia Demographic and Health Survey (1996), 10percent o f all women o f reproductive age have a low Body Mass Index (BMI).About 9 percent of Zambian mothers of children under 3 years of age are also malnourished with a BMIo f less than 18.5. I t is estimated that between 10 and 13 percent of children born inZambia have a low birthweight indicating poor maternal nutrition. Efforts made to address the problem include provision o f nutrition education on good diets before, during, and after pregnancy through maternal and child health services and micronutrient supplementation during antenatal care. Feeding is a critical aspect o f caring for infants and young children. WHO/UNICEF recommend that children should be breast-fed for the first six months o f life (with the possible exceptions o f children o f HIVpositive mothers-see below). InZambia, only 25 percent of children are exclusively breastfedfor the first 6 months o f life (LCMS 2002 to 2003). However, this shows a significant rise from the 6 percent reported in the 1998 LCMS and may indicate success o f recent exclusive breast feeding programmes. The National Food and Nutrition Commission (NFNC) has initiated an extensive breastfeeding promotion campaign encouraging women to exclusively breastfeed their newborn children up to six months. Nutrition also plays a very important role inthe management o f HIV and AIDS. Inthe quest to enable the Government to fight the HIV and AIDS epidemic, in 2003 the NFNC spearheaded and facilitated the production o f nutrition guidelines for the care and support o fpeople living with HIV and AIDS. 35.3 Policies and Key Reforms In2005, the national food andnutrition policy was adopted by the Government inorder to ensure that there is proper coordination and adequate capacity to undertake nutrition programmes by strengthening the NFNC institutional framework. To manage this process the policy provides for the amendment o f the NFNC Act inorder to respond to the demands o f emerging nutrition issues. It further empowers NFNC to adapt to relevant strategic institutional arrangements as they deem necessary as well as strengthen existing and establish new structures for undertaking nutrition activities at national, provincial, district, and community levels, including the private sector. Strong partnershipsand promotion o f collaboration among all stakeholders at national, provincial, district, and communitylevels is also emphasised. To facilitate implementation o f the programmes in the FNDP, the NFNC has a five-year strategic plan, 2005 to 2010, providing a framework for strengthening and scaling up o f food and nutrition interventions. To operationalise this strategic plan, the NFNC will be restructured to make it effective to meet the challenges and demands o f nutrition issues inthe next five years. It is, therefore, inthis regard that the 1967 National Food andNutrition Commission Act needs to be reviewed to align to the current issues relating to governance and to the emerging policy directions as guided by the new vision and goal o fthe food andnutrition sector. Fifth National Development Plan 2006-2010 321 35.4 Visionand Goals The vision is: Optimal nutritional statusfor all sections of the Zambian population. The goal is: Toachieve sustainablefood and nutrition security. 35.5 Programmes, Objectivesand Strategies The matrix below presents the programmes and their respective objectives and strategies for the food andnutrition sector duringthe FNDP. n Programmes Objectives Strategies Policy Implementation To develop and/or advocate for policy a) Develop and implement o f formulation and programmes that will National Food and Nutrition Plan; ensure food and nutrition security, b) Establish a functional multi- food quality, and safety at individual sectoral coordinating mechanism Advocacy and Sensitisation household, community, and national level Monitoring and Evaluation To effectively formulate, coordinate, a) Establish an Integrated Nutrition and monitor food and nutrition Monitoring and Evaluationsystem; Nutrition Information programmes in order to improve b) Establish the Zambia Nutrition Management delivery and access to nutrition Information System (ZAMNIS) services c) Collect, collate and disseminate relevant food and nutrition Nutrition Research To conduct comprehensive surveys a) Develop nutrition research agenda and research on food and nutrition in order to provide appropriate interventions Human Resource To develop human resources in the a) Facilitate establishment o f degree Development food and nutrition sector in order to programmes in human nutrition improve the delivery o f nutrition and dietetics as disciplines o f study services inrelevant academic institutions; b) Strengthen the food and nutrition component o f the cumculum inthe formal and informal educational sector and other relevant training institutions; c) Develop and implement a food and nutrition training policy Nutrition Educationand To reduce all forms o f malnutrition, a) Promote healthy diets and lifestyles Promotion including micronutrient deficiencies b) Promote food and nutrition and establish safe levels o f nutrient awareness for positive nutrition intake for Zambia behaviour change To provide food and nutrition Nutritional Technical awareness for positive nutrition Provide support to ongoing nutrition Support behaviour change programmes under different line ministries 35.6 Implementation,Monitoring and Evaluation Framework The framework for undertaking nutrition activities inZambia is entrusted, by legislation, inthe National Food and Nutrition Commission that is mandated to develop policies and strategies as well as provide coordination inthis field. Currently, as a statutory body, National Food and Nutrition Commission falls under the Ministry of Health. National Food and Nutrition Commission will be the lead agency to coordinate and support nutrition programmes and projects during the FNDP. As provided for in the national food and nutrition policy, the food and nutrition sector will form a national multi-sectoral committee that shall provide technical andpolicy direction. This committee, with the National Food and Nutrition Commission serving as Secretariat, will monitor and evaluate progress in implementing activities. The key ministries for implementing food and nutritionprogrammes are Ministries o f Health, Fifth National Development Plan 2006-2010 322 Education, and Agriculture and Cooperatives. During the Plan period, the Ministry o f Community Development and Social Services will be included to strengthen this. At district level, National Food and Nutrition Commission will promote multi-sectoral nutrition programming. The National Food and Nutrition Commission will also participate and coordinate interventions aimed at strengthening the operations of DDCCs in providing nutritional technical advice on the role that DDCCs can play in achieving the objectives o f the FNDP. Further more, National Food and Nutrition Commission will utilize nutrition groups in accordance with Amendment Act No. 23 o f 1975. The National Food and Nutrition Commission will also maintain close links and cooperation with local and international organisations inits programmes. Information from all partners involved in food and nutrition programmes is essential for assessing progress and making policy and programmatic decisions. Information collection systems will logically provide critical data to multiple programmes and sectors. Key indicators, their source, andpartners have been identified and an integrated monitoring system that llnks information from different sources, sectors, and partners will be developed. The National Food and Nutrition Commission will have the primary responsibility of coordinating the collection, analysis, and use of nutrition data from various sources. To do this, a minimumrequirement will be the establishment o f a multi-disciplinary core team o f nutrition analysts drawn from stakeholders at National Food and Nutrition Commission to ensure strong inter-sectoral and inter-institutional collaboration in nutrition programme implementation. Activities shall be periodically evaluated to ascertain the effectiveness with which they are implemented andthe level o f their impact. Fifth National Development Plan 2006-2010 323 RegionalDeveloDment Fifth National Development Plan 2006 -2010 325 REGIONALDEWLOPMENT Reaional DeveloDment 36.1 Introduction Zambia is divided into nine provinces, namely, Central, Copperbelt, Eastern, Luapula, Lusaka, Northern, North-Western, Southern and Western. These provinces consist o f 72 districts. The population distribution o f the nine provinces varies considerably, with the Copperbelt province having the highest population at about 1.6 million people. The high population on the Copperbelt i s attributable to miningactivity (see Table 36.1). Table 36.1: 2000 Census Population by Province and Sex Source CSO 2000 Census Report With a land mass o f only 21,896 square kilometres, Lusaka has over 14 percent o f the national population with population density o f 63.5 persons per square kilometre. The Copperbelt province has a density o f 50.5 persons per square kilometre. Northern province with the largest land mass o f 147,826 square kilometre has a population density o f 8.5 persons per square kilometre. North-Western province has the smallest population at 583,350 with apopulationdensity o f4.3 persons per square kilometre. Duringthe period 1990 and 2000, population growth rates for the provinces varied, with the Copperbelt province showing the lowest rate o f 0.7 percent per annum and Lusaka and North-Western provinces recording the highest rates o f 3.4 percent per annum. Migration, fertility andmortality have affected the population growth rates, distribution and density o f the regions. The Copperbelt has witnessed a low population growth rate due to decreased mining activities and the continued effects o f privatisation o f the mines that has resulted in out-migration on the Copperbelt and in-migration in provinces like Lusaka and Central. There is likelhood o f population increase in North-Western province during the Plan period due to the opening o f new mines. Meanwhile, Southern province has recently been experiencing persistent droughts resulting in the migration o f farmers from the province to other provinces. Luapula, Northern, North-Western and Western provinces are affected by a high influx o f rehgees fleeing mainly from civil conflict in neighbouring countries. The population projections indicate that the national population will be around 13,272,553 with AIDS and 13,616,688 without AIDS as indicated inTable 36.2. Fifth National Development Plan 2006-2010 327 2005 2010WITHOUTAIDS 2010 WITH AIDS I , 697,834 688,794 1,053,418 1,034,728 873,719 870,713 1 532,085 532,337 880,706 853,120 1 757,852 756,020 ~ ~ 403,690 404,356 ~ ~ 846,799 859,669 485,503 503,842 6,659,427 I 6,613,126 1 Source: Central Statisticsoftice Projections 2000 - 2025 In terms of socio- economic development, there are variations between provinces with respect to the poverty profile. It i s clear that there are major differences between rural and urbanprovinces interms o f economic and social provisioning. Economic opportunities that tend to be concentrated inurban centres have tended to encourage the phenomenal rural-urban migration that has dire consequences for the urban centres where pressure on infrastructure services such as housing and sanitation has been great. The remainder o f this chapter summarises the conditions in the nine provinces o f Zambia, highlighting the key programmes and strategies during the FNDP period. This chapter is based on the 72 district development plansfor the period2006 to 2010. 36.2 Central Province 36.2.1 Resource Endowments, ComparativeAdvantage, and Socio-EconomicConditions Central province has a landmass o f 94,394 square kilometres, and shares borders with all o f the other eight provinces. It has forests and forest reserves occupying 9,095,566 hectares o f land as well as a National Park and three Game Management Areas. I t comprises six administrative districts, namely, Kabwe (provincial headquarters), Kapiri Mposhi, Mkushi, Serenje, Chibombo and Mumbwa. Most o f the country's trunk roads and railway routes traverse through the province. All the districts have access to the national electricity grid, and there i s potential for harnessing alternative sources o f energy to service rural areas. Mobile and landline communication networks cover all the districts. As a major transit point, the province has the potential for a booming trading sector. The province has fertile soils, particularly around Chisamba, Mkushiand Mumbwa, which are ideal for the production o f cash crops such as cotton and maize. Fed with the normal rainfall received in the province, the soils also support the production o f maize at subsistence level. Furthermore, there are prospects for the fish industry especially at Lukanga swamps inKapiri Mposhi. The Kasanka national park and Kundalilafalls inSerenje as well as the Mumbwa caves have the potential to boost tourism in the province. The availability o f precious metals in Mkushi offers the prospect for small to medium- scale mining inprecious metals. Other miningprospects include gold in Mumbwa and coal in Kapiri Mposhi. The socio-economic situation in Central province declined in the 1990s following the closure o f the mining and manufacturing companies that were operating in the province. The number of people in employment significantly declined following the closure o f Kapiri glass factory, national milling company, Kabwe pharmaceutical ltd and Kabwe hide and leather industry (tannery industry). The FifthNationalDevelopment Plan 2006-2010 328 Zambia Railways Limitedwas placed under a concession resulting inthe downsizing o f staff. Informal business sector particularly trading has, thus, grown noticeably inthe province especially inKabwe and KapiriMposhi. Small-scale agriculture dominates the agricultural sector in terms o f production levels, especially for maize production. The production o f maize, particularly among small-scale farmers, has since 2002 increased significantly. This has, in turn, increased the contribution o f the province to the national output up to 30 percent. Large-scale agriculture dominates incash crop production, although integration to small-scale production is being facilitated through out-grower schemes. The lack o f agricultural extension services and poor infrastructure, including feeder roads and dams, access to markets as well as frequent drought and livestock diseases, has limited the growth o fthe sector. As a result of the general decline in economic activity experienced during the 1990s and general stagnation recently, poverty levels have remained very high in the province. According to the 2004 LCMS, the incidence o f poverty for the province was 69 percent, while the national average was 67 percent. The severity o fpoverty has equally beenhighat 15.5 percent, particularly for rural households which are most vulnerable to food insecurity. The social situation has remained unsatisfactory. Access to quality education has remained low mainly due to poor infiastructure, inadequate teaching staff and teaching materials. Enrolments at upper basic as well as high school have been low due to inadequate infrastructure for both urban and rural areas. The aggregate pupivteacher ratio was recorded at 48:l in2005. Access to quality healthcare has similarly remained poor with people walking long distances to the nearest health facilities, especially inrural communities. Inadequate medical personnel and equipment at these facilities have compounded this scenario. The rural communities are affected by poor access to safe and adequate water sources. Peri-urban communities in all the districts have similarly experienced poor access to safe water and good sanitation resulting in frequent outbreaks o f water related diseases, such as cholera. 36.2.2 The Strategic Focus and Interventionsfor Central Province duringthe FNDP Period Inorder to turn the socio-economic situation of the province around, the goal o f the FNDP is to fully exploit the agricultural potential o f the province by improving infrastructure especially feeder roads, improving agricultural marketing and related services. Attention will also be directed to programmes that offer potential for sustainable household income generation. In the social sectors of health, education, water and sanitation, emphasis will be placed on infrastructure development. The strategic focus for Central province is "increased investment in agriculture andprovision of social infiastructure and related services with emphasis on education and health. " 36.2.3 Programmes,Objectivesand Strategies The programmes, objectives and strategies for Central province during the FNDPperiod are presented inthe matrurbelow. __ Central Province- __ --. -- _- --.-.- I-___- I_ I I__ - Programmes Objectives Strategies 1 Agriculture Infrastructure, To increase investment and a) Facilitate the construction and Extension and Marketingand output inagnculture rehabilitation of feeder roads; Related Services b) Facilitate the construction and rehabilitation of rural storage infrastructure and developing market centres; c) Create an enabling environment for improved agricultural input and output market especially to small-scale farmers inrural areas; d) Promotelivestock and fish farming; e) Promote small scale irrigation. f ) Support to development o f resettlement schemes; Fifth National Development Plan 2006 -2010 329 Central Province Programmes Objectives Strategies - g) Facilitate the construction and rehabilitationo f dams; h) Facilitate the establishment of cottage industries. Provision of Social a) Facilitate the construction, Infrastructure and Related To improve equitable access rehabilitation and expansion o f school Services inEducationand and quality o f basic and infrastructure and teachers' housing; Skills Training skills education b) Suppo3 youth skills training inshtutions. Provision of Social To improve equitable access a) Facilitate the construction and Infrastructure and Related and quality o f health rehabilitation and expansion of health Services inHealth services facilities; b) Provisionofhealthequipment. Development of Public a) Establish new town centre and related Infrastructure and Housing infrastructure in Chibombo district and Improvement other districts; b) Facilitate the construction and rehabilitation o f public buildings and To facilitate habitable staff housing; housing and the conduct of c) Improve housing in unplanned administrative and private settlements; sector functions d) Establish a place o f safety (transit ' home) inKap& Mposhi. Sustainable NaturalResource a) Support tourism infrastructure in Management and Tourism Mumbwa and Serenje and other To promote sustainable use districts; o f naturalresources b) Support community participation in natural resource management; c) Provide extension services in natural resource management. Rural and Peri-urban Water To improve the access to a) Provide safe water points to rural and Supply safe and adequate water in pen-urbanareas; rural and pen-urban b) Support water and sanitation education. communities Road and Waterway a) Facilitate construction . and Infrastructure Development To improve transportation o f improvement road infrastructure in all goods and services districts; b) Improvewaterway infrastructure; EconomicEmpowerment a) Facilitate sustainable small-scale food processing such as hammer mill To improve livelihoods o f projects; disadvantaged groups b) Support community entrepreneurship initiatives. Policy Coordination and a) Strengthen institutional arrangement Monitoring To coordinate multi-sector and stakeholder participation for policy policies and monitor coordinationand monitoring; implementation o f b) Establish natural resource database; programmes and projects in c) Facilitate resource mobilization and the province capacity building. 36.3 Copperbelt Province 36.3.1 ResourceEndowments,ComparativeAdvantage, and Socio-EconomicConditions The Copperbelt province covers approximately 31,328 square km. I t has a population o f 1,58 1,221. Of this population, 78 percent live inurban areas, which cover 25 percent of the land area while 22 percent reside in the rural areas. Administratively, the province has 10 districts 2 of which are cities, Ndola, the provincial headquarters and Kitwe, 5 municipalities, Mufulira, Chingola, Chililabombwe, Kalulushi and Luanshya and 3 rural districts, Lufwanyama, Mpongwe and Masaiti. The Kafue river flows through the province and has many tributaries with high potential for dam sites. The province has favourable climatic conditions andvast land. Out of the 31,328 square km, 75 percent is arable land for crop production and livestock farming. The province has potential for agriculture in Masaiti, Mpongwe and Lufwanyama which could make it a breadbasket for the country. The province also has always been the country's economic hub due to the copper mining activities. In addition, the province produces precious and semi-precious stones from Lufwanyama district. However, production Fifth National Development Plan 2006 - 2010 330 o f these resources requires to be better managed in order to benefit the province and the nation as a whole. The other predominant economic activities include quarrying and manufacturing industries, trading and banking, agriculture and forestry which contribute to the economic development o f the province. The province is one o f the major suppliers o f both hardand soft wood. Arising from the vast forest reserves, the province has great potential in the forestry sector. I t has well established forestry- related activities such as milling,paper, pulp andfurniture industries. 36.3.2 The Strategic Focus and Interventionsfor the Copperbeltfor the FNDP Period In view of the abundant natural resources in the province, and the experienced drawback of depending on one economic activity, there is need to reorient the priorities for the province. Thus, the major challenge facing the province is to diversify away from miningto agriculture, forestry, tourism, non-traditional mining as well as revamping the manufacturing sector, inview o f the volatility o f the copper mining sector. As such, the programmes to be implemented during the FNDP will aim at addressing the identified challenges. Therefore, the province's strategic focus over the next five years will be "Diversify the economic base from mining to agriculture, tourism, forestry and manufacturing. )' In order to kick-start the diversification programme, the province will embark on providing the necessary economic and social infrastructure. Inparticular, irrigation development, roads, health and education facilities, housing, communication facilities, rural electrification and landresettlement will receive the highestpriority. 36.3.3 Programmes,Objectivesand Strategies The programmes, objectives and strategies for the Copperbelt province during the FNDP period are presented inthe matrix below. Copperbelt Province ___ - Programmes Objectives Promote Developmentof To facilitate and support a) Improve economic infrastructure Agriculture sustainable and competihve in order to create an enabling agncultural sector environment; b) Promote agnculture diversification; c) Promote ago-industry development. Provision of Quality Health, To increase access to quality a) Improve rundown infrastructure Education and Water and Health, Educationand Water for health, education and water Sanitation Facilities and Sanitation facilities and and sanitation; services for all. b) Expand infrastructure for health `Ndola and Kitwe Central hospitals and Arthur davison Children's hospital, education and water and sanitation facilities; c) Improve water supply to Health and Education facilities; d) Provide alternative sources o f energy to schools and health centres; e) Provision o f water reticulation and sewer systemsto Masaiti, Lufwanyama and Mpongwe districts; f ) Capacity building o f institutions and personnel to ensure quality service provision. Forestry Development and To promote sustainable use a) Promote participatory forest Conservation of forestry resources and the management and development o f ecosystem small scale forest based enterprises; b) Enhance forestry awareness education. Land Resettlement To improve living a) Provide infrastructure for Land Programme zonditions o f settlers resettlement Fifth National Development Plan 2006-2010 33 1 CopperbeltProvince ,._I____ ~ through provision o f b) Provide land for resettlement Infrastructure and Services schemes DevelopEnergy, Transport To improve communication a) Encourage partnerships with and Communications infrastructure private sector for energy, transport Infrastructure and communications infrastructure development; b) Enhance rural communication system; c) To develop and improve infrastructureo f existing transport system.(Kitwe Chingola T3 road -construction o f dual carriageway, 2km runway at South Downs Airport reconstruction, improvement of anxillary structures and an access road, maintenance o f feeder roads, Chililabombwe - Kasumbalesa dual carriageway construction, Mpongwe - Machiya road, Mpongwe - Mwinuna, Fungulwe - Mpongwe road, Kalengwa - Lumpuma - Mwinuna roads constructions. Promotionof Tourism To promote and develop a) Promote Community Development Tourism participation; b) Improve economic infrastructure in order to create an enabling environment. Developmentof Institutional a) Expand and rehabilitate prisons, Infrastructure courts; b) Provide residential and office accommodation. Planning,Monitoringand ?? a) Upgrade squatters; Eva1uation b) Landuseplanning; c) Carry out monitoring and evaluation. 36.4 Eastern Province 36.4.1 ResourceEndowments, ComparativeAdvantage, and Socio-EconomicConditions The Easternprovince has a total area o f approximately 69,100 square km. It sharesborders with Malawi in the East, Mozambique in the South, Northern province in the North and Central and Lusaka provinces in the West. Administratively, the province is divided into eight districts, namely, Chipata, the provincial capital, Chama, Lundazi, Mambwe, Chadiza, Katete, Petauke andNyimba. The province is predominantly rural. It has two main geographical areas, which are productive and habitable, namely, the Plateau and the Luangwa Valley. The vegetation is mainly Savannah woodlands and grassland, which provides a buffer for wildlife tourism and mineral deposits. There are also streams and rivers providing potential for dams. The province has a tropical climate with three distinct seasons, the cool and dry season, the hot and dry season and the hot and wet season. The Plateau has good soils and receives sufficient rainfall, making it a highpotential area for agricultural production. The valley with quite a good number o f isolated portions o f fertile soils is generally suitable for drought resistant crops. Inaddition, there are anumber oftourist attractions such as nationalparks, the diverse ethnic groups of people and their traditional ceremonies. According to the Living Conditions Monitoring Survey Report 2004, the Eastern province is one o f the provinces with a high incidence o f poverty, estimated at 70 per cent. The province ranks below the country average o f (68 percent and is only surpassedby the Northern province (Central provinces 76 percent and 74 percent North-Western) Luapula province (79 percent) and Western province (83 percent). The report hrther suggests that 57 percent o f the population inEastern province are extremely poor. The moderately poor comprise 13 percent o f the population. The persistent droughts and floods over the past few years have adversely affected the livelihood o fpeople, especially small-scale farmers. The situation has been compounded by poor agricultural marketing arrangements, which have not supported the growth o f the agricultural sector inthe province. Fifth National Development Plan 2006-2010 332 Literacy rates remained low at 62.1 percent as per the 2000 census. Thus, 37.9 percent o f all persons 5 years and above are illiterate and o f the same age group 19.4 percent were reported to be inschool. The main reason cited for not attending school is lack o f support. At primary school level, there are more female children enrolled whereas at secondary school level the situation is reversed. The major constraint inthe education sector has beenpoor infrastructure from the basic to the tertiary sub-sectors. Inaddition, thepupil-teacher ratio has consistently remainedabove thenationalaverage. The province has two general hospitals, one belongs to the Government while the other is a mission hospital. There are also three other mission hospitals and four district hospitals that are all Government manned. There are also 168 health centres mostly run by Government. The most commonly reported illness is malaria. The prevalence o f HIV and AIDS has had a negative impact on the health o f the people. Access to safe drinking water by rural communities is at less than 40 percent, consequently most communities travel long distances to fetch safe clean drinking water and only 4 districts have stable supply o fpipedwater i.e. Petauke, Chipata, Katete andLundazidistricts. 36.4.2 The Strategic Focus and Interventionsfor Eastern Provincefor the FNDP period The major constraint to development in the province has been poor socio-economic infrastructure, coupled with inadequate and inappropriate marketing arrangements. In addition, environmental degradation, including deforestation, and livestock diseases such as the east coast fever and trypanosomosis have negatively affected agricultural production. In order to boost socio-economic development, the development o f infrastructure in agriculture, education and health will receive the highest priority duringthe FNDPperiod. The provincial strategic focus is: `to increase the linkages between agriculture and related industries with a view to createjobs in order to reduce the highpoverty levels in theprovince.' 36.4.3 Programmes,Objectivesand Strategies The programmes, objectives and strategies for the Eastern province during the FNDP period are presented inthe matrix below. -.- __---- - ___ Programmes Objectives Strategies 1 a) Improve and construct district, urban Development and feeder roads; b) Develop infrastructure in the North and South Luangwa National Park and surrounding areas; c) Construct and rehabilitateschools; d) Construct and rehabilitate health structures; e) Construct and rehabilitate dams and water points; f ) Construct Police Post and Immigration Post g) Construct courts; h) Extend electricity grid and other energy renewable sources; , i) Con%uct skillscentres. 2 Education Development To provide quality education a) Provide teachmg facilities for arts, sciences and practical subjects at all levels of education system; b) Staff development at all levels of education system. a) Veterinary Development; Fisheries Development o f livestock and fish sector in b) Facilitate implementation of disease a sustainable manner and vector control programmes in priority areas; c) Monitor and regulate the disease and vector control programmes inpriority Fifth National Development Plan 2006-2010 333 . EasternProvince .II,_.___.._...._.. ... _-I_.-I-. --- Programmes 0bjectives Strategies d) Regulate and enforce animal and animal welfare legislation; e) Livestock production and extension; f, Produce and distribute livestock training and extension materials/manuals for both farmers and field staff; g) Enforce the legislation on livestock production; h) Promote the production of small livestock (chicken, sheep, goats and pigs); i) Promote the development of dams, ponds and water points for livestock.; j) Livestockresearch; k) Devise efficient and sustainable diagnostic techniques in investigations o f diseases o f national importance; 1) Strengthen the mechanisms o f the cost sharing o f diagnostic services provided to farmers; m) Produce veterinary vaccines to meet the national demands; n) AquacultureExtension; 0) Promote aquaculture by providing appropriate extension services and the production and distribution o f quality fish seed; p) Enforce the legislation on aquaculture q) Aquaculture Research; r) Conduct fish feed trials to determine the suitable feeds for aquaculture using locally produced and available materials. 4 Crops andMarketing To provide efficient and Promote and strengthen farmer Development effective Crop Extension and groups and farmer field schools as Technical and Marketing targets for technology transfers; services Use electronic and print media as communication tools to support extension information delivery; Promote crop diversification and use o fimproved technologies; Promote gender responsive agricultural extension services; Facilitate delivery o f skills training and technology transfers to small- scale farmers using farmer training centers at farmer land.; Promote food crop processing and utilization; Conduct soils, crops and fisheries research aimed at generating and adapting technologies for increased and sustainable agricultural production; Promote the development o f a competitive, efficient and transparent public and private sector driven marketing system for agricultural commodities and inputs; Put in place a well regulated and profitable irrigation sector that i s attractive to both the private sector and other development partners; Promote sustainable use of Fifth National Development Plan 2006 -2010 334 ~- Eastern Prev-irice- ...I___" Programmes ------ Objectives Strategies appropriate farm machinery and equipment, appropriate tillage techniques, farm structures, crop storage, and processing and packaging techniques suitable for small-scale farmers. Community Tourism To promote local community a) Encourage local community Development participation and ownership participation in joint ventures by intourism using land as equity;; b) Promote public, private and community partnerships; c) Facilitate access to development fundsby local communities. Sustainable Tourism To sustain economic and a) Incorporate provisions for an Development social development environmental impact assessment in all economic and development activities ; b) Mainstream of a representation of economic system; for the benefit of current and future generations. Gender andHIV/AIDS Mainstreaming gender and a) Promote gender and HIV and AIDS HIV/AIDS in s o c i e awareness; economic development b) Mainstream gender and HIV and AIDS indevelopment. HealthDevelopment To provide quality heath a) Construct and rehabilitate health services facilities; b) Improve diagnostic equipment. SustainableEnvironmental To ensure sustainable a) Forest resource management; Management utilization and management b) WatershedManagement. of forest resources 36.5 Luapula Province 36.5.1 Resource Endowments, ComparativeAdvantage, and Socio-EconomicConditions Luapula province has a landmass o f 51,000 square kmout o f which 40 percent consists o f water bodies. It shares borders with Democratic Republic of Congo from the north to southwest, Northernprovince on the eastern side and Central province on the south eastern side. Administratively, the province is divided into seven districts, namely, Mansa (the provincial head quarters), Kawambwa, Samfya, Mwense, Nchelenge Chienge and Milenge. The province has two big water bodies, namely, lakes Mweru and Bangweulu. In addition, it has a number o f rivers, the main one being the Luapula river. The province also boasts o f eight spectacular waterfalls, wildlife and a rich cultural heritage. All these resources provide the province with an ideal setting for the development o f a vibrant fishing and tourism industry. Minerals such as manganese, lime, copper and some precious metals are available, stretching from Milenge to Chienge. Out o f the total land mass, half is arable land ideal for crop production, particularly cassava, maize, beans, groundnuts, citrus fruits, millet, tea, coffee sugar cane, palm oil and rubber. ' The socio-economic situation in Luapula province has been declining over the years. Despite the rich resource endowment, the province remains one o fthe poorest inZambia. According to the 2004 LCMS, the incidence o f poverty i s estimated at 79 percent o f the population, far above the national average o f 68 percent. The extreme poor are estimated at 64 percent while the non-poor and moderately poor comprise 21 and 15 percent o f the population, respectively. Inline with the general decline inthe socio- economic situation, employment levels in Luapula have remained low, decreasing from 14.3 percent in 1990 to 8.1 percent in 2000. However, the labour force increased from 157,861 in 1990 to 267,726 in 2000. Some social indicators in Luapula province have shown signs o f improvements such as the Infant Mortality Rate which declined to 138 per 1000 live births in 2000 from 166 per 1000 live births in 1990. Life expectancy at birth increased from 39 to 44 years between 1990 and 2000 respectively. However, adult life expectancy decreased inthe same period due to the HIV and AIDS pandemic. The province has six hospitals out o f which two are government owned while the rest are mission hospitals. There are 2 nursingschools and 106 health centres, mostly owned by the Government. Literacy levels Fifth National Development Plan 2006 -2010 335 inLuapulaprovince increasedslightlyfrom 61.3 percent to 61.5 percent between 1990 and2000 which was lower than the national adult literacy rate o f 67.2 percent. In2000, nearly half o f the population in the province was illiterate with illiteracy rate o f 51.6 percent o f the population aged 5 years and above. The province has 360 government schools (basic) 18 high schools, one Teacher Training College and Trades Training institute. The total enrolment for basic schools ( grades 1-7) increased from 109,703 in 1997 to 127,430 in2000. The province has about 700 kilometres o f paved roads that links the provincial headquarters to other districts as well as other provinces. It also has over 2,000 kmo f unpavedroads. Of the unpaved roads in Luapula province, 20 percent is in good condition while 80 percent is not. With regard to paved roads, 60 percent is in good condition while 40 percent is not. Less than 5 percent o f the province has access to electricity with Mansa having the highest, at 7.1 percent while Milenge has the lowest coverage at 1.7 percent. The low level o f electrification has a bearing on the slow pace o f development inthe province. Luapula province has registered some marginal increase inhouseholds' access to safe dnnking water. 36.5.2 The Strategic Focus and interventionsfor Luapula Provincefor the FNDP Period Inview of the current socio-economic conditions inthe province, the strategic focus during the FNDP period is "to develop agricultural, tourism, mining and social sectors to create wealth." Programmes shall focus primarily on infrastructure development in agriculture, tourism and mining. In addition, infrastructure activities will be undertaken inhealth, education as well as water and sanitation sectors. 36.5.3 Programmes, Objectives and Strategies The programmes, objectives and strategies for Luapula province during the FNDPperiod are presented inthe matrixbelow. Luapula Province Programmes Objectives 1 AgriculturalDevelopment ~ ~ a) Improving economic infrastructure in order to create an enabling environment for agricultural activities. b) Supporting small scale agro- processing development in the province. c) Provision and development o f land for commercial farming. d) Development o fLuena farmblock e) Development o f palm oil out grower To diversify away from schemes fishing to commercial f ) Fishrestocking and farming. agriculture and high value 9 Provision o f infrastructure for crops agriculturaldevelopment. h) Provision o f support services to farmers. i) Improving and rehabilitating feeder roads. j) Improving land delivery for t Tourism Development To promote tourism -Improving agriculturaldevelopment. a) economic infrastructure 2 development inthe province to facilitate tourism development. b) Provision credit facilities to promote the development o f hospitality industry. c) Improving and developing tourist sites. d) Market tourism destinations in the province. e) Rehabilitation o f road, water canals and airstrips inthe province. f ) Improving road, water and air transport infrastructure. g) Improving delivery o f serviced land ___ for tourism development Fifth NationalDevelopment Plan 2006-2010 336 LuapulaProvince--...-........ "-" Programmes Objectives Strategies MiningDevelopment To promote the development a) Provision of economic infrastructure o f the Mining industry in to create an enabling environment the province for mining development. b) Provision o f support facilities to the development o fmines. c) Formation o f mining groups in the -._____ province. NaturalResources To develop the natural a) Forestryprotection and development. Developmentand resources for the economic b) Beekeepingdevelopment. Management benefit of communities and c) Rattandevelopment and protection. the protection of the natural d) Development o f forestry products environment inthe province processingplants. e) Protection o f water shed areas and biodiversity. f) Environmental protection and management. Provisionof Health To improve health delivery a) Improve health facilities. Infrastructure through improved health b) Buildnew health facilities inremote infrastructure areas c) Provide alternative source o f energy to healthcenters d) Complete Mansa General Hospital's kitchen and laundry Provisionof Education To improve the quality o f a) Improve water supply to schools Infrastructure education inthe province. b) Provide alternative sources of energy to schools To improve access to education facilities c) Rehabilitate and maintain rundown education infrastructure. d) Expand education infrastructure. Provisionof Water and To provide clean safe a) Provide water and sanitation SanitationInfrastructure drinking water and sanitary facilities inurban and rural areas. facilities. b) sink more boreholes in rural communities. c) Construction o f more dams for drinking and agricultural purposes. d) Improvewater supply inurbanareas InfrastructureDevelopment To improve security in the a) Construct more police posts and for Public Security province through the stations. provision o f infrastructure b) Constructionof more prisons. for public security. c) Constructiono f more boarder posts . d) Construction o f more staff accommodation for security wings personnel. e) Rehabilitate and improve security installations. InfrastructureSupport to To improve service delivery Construction o f office and staff New Districts by the new districts and accommodation for public officers. attract key personnel Provide basic services to the townships areas. Housing development. Structure Plans ro update and develop Improve township plans for all Development structure plans for all Luapulatowns. districts inthe province. Update and prepare new structure plans for all the townshlps. Improve physical development controls inthe districts. Improve land delivery for development. 36.6 LusakaProvince 36.6.1 Resource Endowments,Comparative Advantage, and Socio-Economic Conditions Lusakaprovince covers an area of about 22,000 square kmandhas 2,190,000 hectares of land of which 55 percent is arable. The province has three major rivers, namely, Zambezi, Kafbe and Luangwa. Lusaka province has moderate temperatures. The plateau part of the province has fertile soils and good Fifth National Development Plan 2006 -2010 337 rains as opposed to the valley with poor soils and insufficient rains. The province shares borders internationally with Zimbabwe and Mozambique and locally with Southern, Central and Eastern provinces. Administratively, Lusaka province has fout districts, namely, Lusaka, Kafue, Chongwe and Luangwa. Lusaka district is the provincial and national capital and hosts the central government. foreign missions, and headquarters o f most local and international organisations. This presents a unique opportunity for partnerships for economic and social development. Lusaka, as compared to other provinces, has superior infrastructure, industrial base and service delivery systems. The province, though the smallest in terms o f land size, is the second largest populated with 1,391,329 dabitants (CSO, 2003). This population includes skilled and trained human resource. In addition, Lusaka has tourist attractions and the international airport, which is the main entry point for most tourists and foreign dignitaries. Being the province hosting the capital city, it is normally privileged to hosting major international conferences. Economic activity is highest in Lusaka province compared to the other provinces in the country. The manufacturing base has been growing in urban areas o f Lusaka province in the last five years. There has been an increase in the production o f agro, paper and plastic products, among others. The other major economic activities include construction, stone quarrying, wholesale and trading, tourism, transport and communication. Smallholder agriculture is also on the increase, including informal sector activities. Despite, the relatively high economic activity in the province, there is overwhelmingly high levels o f unemployment, standing at 21 percent o fwhich 17 percent are male and 27 percent are female. Lusaka province's annual population growth rate over the 1990 to 2000 period was 3.5 percent, the highest in the country (CSO, 2003). The province also has the highest population density o f 63.5 per square krn. This state o f affairs, coupled with rapid urbanisation, has exerted pressure on the existing social and economic infrastructure such as school and health facilities. In addition, Lusaka has poor water and sanitation facilities, poor shelter, overcrowding, high incidence o f street kids and HIV and AIDS prevalence. These deteriorating socio-economic conditions have been worsened by limited capacity incity planning and development. An estimated 70 percent o f the population inLusaka lives in unplanned settlements. Among the districts in the province, Luangwa districts is faced with critical infrastructural limitations such as roads and electricity despite the district having immensepotential for tourism and trade. Lusaka province has one o f the highest incidence o f moderate poverty at 19 percent and the lowest incidence o f overall poverty and extreme poverty, which stand at 48 percent and 29 percent, respectively, (CSO, 2004). The non-poor stand at 52 percent o f the total provincial population. However, given the demographic factors affecting the province, compounded by the fact that Lusaka province has the highest rate o f urbanisation, the poverty situation continues to be critical. 36.6.2 The Strategic Focus and Interventionsfor Lusaka Provincefor the FNDP Arising from the above challenges and identified potentials, Lusaka province's strategic focus is "to develop social and economic infrastructure to enhance accessibility to social and economic services. I' 36.6.3 Programmes, Objectivesand Strategies The programmes, objectives and strategies for Lusaka province during the FNDP period are presented inthe matrix below. -I.__.____.__._--- ................. LusakaProvince ~ Programmes Strategies 1 1 1- DevelopmentofEconomic To facilitate enhanced I a) Facilitate construction and Infrastructure 'Igrowthin agriculture, agro rehabilitation o f feeder roads, forestry and agribusiness storage shades, dip tanks and dams Tarring Luangwa Road D145 Rehabilitation o f feeder roads in all the districts Constructiono fChiawa bridge Constructiono f dams Sinkingboreholes Promotion o f resettlement schemes FifthNational Development Plan 2006-2010 338 .... "- ............................. Lusaka Province Programmes 0bjectives Strategies h) Land acquisition for resettlement schemes i) Provisionofinfrastructure j) Ruralelectrification k) Connection of Luangwa to National Grid 1) Provision of electricity in Schools and Clinics m) Revitalization o f agricultural extension services n) Construction of Houses for ExtensionStaff 0) Provision o f transport ( Motor Bikes & Bicycles) p) Provisiono fextension services q) Aforestation r) Bee-Keepingdevelopment Provisionof Social Construction and a) Construction and rehabilitation Infrastructurein Education rehabilitation o f leaming o f schools (especially basic) institutions in order to b) Constructionof houses promoteliteracy levels c) Facilitation o fprovision o f skills training d) Establishing literacy clubs e) Provision of laboratory, teaching and leamingmaterials Provisionof Social To increase availability a) Facilitate construction and InfrastructureinHealth and accessibility o f health rehabilitation o f Provincial services Hospital, health centers and posts b) Construction o f provincial hospital c) Construction o f clinics (Mandevu and Chaisa) d) Construction o f district hospital (Chongwe) DevelopmentPlanningand To facilitate orderly a) Preparation o f structure plans Housing housing, service and (Development Plans) for all infrastructure provision, Districts and development of b) Upgrading of squatters townshps inall Districts c) Provision o f Urban Infrastructureand Services Coordination,Monitoring To ensure efficient and a) Construction and rehabilitation and Evaluationof effective implement o f o f office accommodation DevelopmentProjects projects and programmes b) Provisionoftransport c) Provision o f equipment d) Conducting monitoring and Evaluation Promotionof Tourism To increase job -e) Facilitating establishment o f opportunities and income quality hospitality infrastructure generation especially for f ) Facilitating construction of the youth access roads to tourist attractions(Chiawa and Luangwa) g) Facilitating identification, documentation and preservation o ftourism 36.7 Northern Province 36.7.1 Resource Endowments,ComparativeAdvantage, and Socio-Economic Conditions Northern province shares boundaries with Luapula, Central, Eastern provinces and international boundaries with Malawi, Tanzania andthe Democratic Republic of the Congo. Kasama is the provincial headquarters. It has twelve districts, namely, Chinsali, Chilubi, Isoka, Kasama, Kaputa, Luwingu, m a l a , Mpika, Mporokoso, Mungwi, Mpulungu and Nakonde. With the total area of 147,831 square km Northern province is die largest province in Zambia.The land mass consists o f natural vegetation comprising o f savannah woodlands, grassland, small amounts o f forest and swamps. The province is in Fifth National Development Plan 2006 -2010 339 the heavy rainfall zone although there are some regions that receive below average rainfall. Soils o f the province are mainly acidic due to the leaching, thus, not fertile without the application o f lime. According to the 2000 census o f population and housing, the provincial population was 1,258,696 out o f which 629,976 were male and 628,720 were females. According to LCMS., 49.49 percent o f the population were children below the age o f 15. The total poverty level in the province as per 1998 Living Condition Monitoring Survey (LCMS) is 81 percent. This is the thirdhighest inthe country after Western and Luapula provinces. Statistics show that 66 percent o f people inthe province are extremely poor, 15 percent are moderately poor, and 19percent are not poor. The province economy is predominantly agricultural based. Farming, fishing and trading are the mainstay o f the majority o f the population. Major crops are grown both at subsistence and commercial scale and include coffee, sorghum, cassava, groundnuts, mixed beans, paddy rice, sugarcane and millet. Ago-processing industries have sprung up such as the Kalungwishi sugar, Kateshi coffee, maize milling and rice polishing. Other economic activities include fisheries and wood processing. The province has considerable potential for growth as a tourist destination because it is endowed with abundant, untapped and unique tourism resources. The diversity ranges from attractions such as water sceneries, fauna and flora sanctuaries, traditional ceremonies, unspoiled beaches and numerous cultural and heritage sites that spread throughout the province. The province also has many water resources whose hydro-electricity power potential is largely untapped. 36.7.2 The Strategic Focusand Interventionsof the NorthernProvincefor the FNDP Period Arising from the above challenges and identified potentials, Northern province's strategic focus is "sustainable socio-economic growth and provision of quality and equitable services ". This shall be attained by focusing on the improvement o f the socio-economic infrastructure. 36.7.3 Programmes,Objectivesand Strategies The programmes, objectives and strategies for Northernprovince duringthe FNDPperiod are presented inthe matrixbelow. - Programmes Objectives Strategies 1 Development of Economic To facilitate enhanced a) Facilitate construction and Infrastructure growth and production in rehabilitation o f irrigation systems the districts Constructiono f earth dams Train farmers on imgation Rehabilitation o f Priority feeder roads inall the districts Re -grading o f gravel roads Construction o f culverts on priority roads Construction o f drainage systems on major roads b) Promoteresettlement schemes Land acquisition for Resettlement Schemes Construction o f schools and Healthposts Provision o f water and road infrastructure c) Rural Electrification Provision o f Solar Pannels to Palaces, Schools and Clinics Promotion o f mini and micro electric plants d) Revitalization o f agricultural extension services Construction o f Houses for ExtensionStaff Provision o f Motor Bikes and Bicycles Training Crop, fish, and Livestock Farmers Fifth National Development Plan 2006 - 2010 340 ........ Northern Province --,.I l_l_l .. " _I_ Programmes Objectives Strategies Establishment o fnurseries Promotion o f conservation farming Bee-Keeping Development Formation o fCRMB Re- aforestation Promotion o f farm power and mechanization e) Rehabilitation o f the Kasama-Isoka - road Provision of Social To promote literacy levels a) Construction and rehabilitation o f Infrastructure inEducation schools (especially basic) b) Constructiono f staff houses c) Rehabilitation of all High Schools d) Facilitateprovision o f skills training e) Procurement o f desks and requisites 9 Provision o f laboratory, teaching and - learning materials Provision of Social To increase availability a) Rehabilitation o f Kasama General Infrastructure in Health and accessibility of health Hospital services b) Rehabilitation and construction of District Hospitals T provide quality second c) Procurement o f new equipment level referral facilities d) Construction o f health centres and posts e) Rehabilitation o f new health centres and posts Regional and Urban To facilitate orderly a) To procure equipment for collection Development Planning service and infrastructure and analysis data provision, and b) Preparation o f Township structure development of townships plan c) Preparation (Layout plans and written analysis) d) Upgrading ofsquatters Monitoring and Evaluation To ensure efficient and a) Procurement o f motor vehicles for of Development Projects effective implement o f motoring projects and programmes b) Procurement of equipment for data entry and processing c) Conducting quarterly monitoring trips d) Productiono f quarterly reports e) Conducting o f coordination -. mcetings(PDCC,DDCC) Promotion of Tourism To increase job a) Facilitate establishment of quality opportunities and income hospitality infrastructure generation especially for b) Facilitate construction of access roads the youth to major tourist attractions c) Facilitate identification and documentation o f tourist attractions Mining Development To promote mineral a) Resource mapping exploration b) Promotiono f small scale mining c) Conduct stake holders meeting 36.8 North-Western Province 36.8.1 Resource Endowments,Comparativeadvantage, and Socio-Economic Conditions North-Westem province covers an area o f 125,827 square km, representing 16.8 percent o f Zambia's area coverage. The province is borderedby Angola to the west, Democratic Republic o f Congo (DRC) inthe north, Copperbeltprovince to the east, Centralprovince to the south east andWesternprovince to the south. The province has seven districts, namely, Solwezi (the provincial headquarters), Chavuma, Kabompo, Kasempa, Mufkmbwe, Mwinulunga, and Zambezi. The province has vast forests covered by Miombo woodlands, grassland and dambos, accounting for over 10 percent o f the total area. About 47 percent o f the area in the province is gazetted as forest woodlands and game management areas. It is estimated that about 10 percent of the land in the province is suitable for farmland use. However, only about one percent o f this total area o f the province is under cultivation annually, mostly using traditional shifting cultivation methods. The province has the largest known copper deposit outside Fifth National Development Plan 2006-2010 341 Copperbelt province inZambia found at Kansanshi and Lumwana mines. Other mineral occurrences in the province include gold, cobalt, nickel, feldspar, limestone, emerald, amethyst, granite, sodalite and syenite. Inrecent years, North-Westem province has been the focus of economic development especially with the opening o f the mines at Kansanshi and Lumwana.. The province also has huge forest reserves for timber that also provide a vibrant beekeeping industry. Furthermore, the province has an excellent climate with favourable ramfall making it a huge agricultural potential for a broad variety o f crops. The crops grown include beans, pineapples, sweet potatoes, rice, groundnuts, cassava and maize. The establishment o f agro-processing industries inthe province would help small-scale farmers and increase production tremendously. The pineapple factory, for instance, would make use o f the natural fruits that are in abundance in the province. Most o f the pineapples that are grown go to waste due to lack o f processing facilities. North-Westem province has abundant tourism potential and investment facilities such as lodges and campsites. These facilities would make the place ideal for visits by both local and foreign tourists. The tourism industry offers opportunities for investments in the province. Some o f the tourist attractions include Mutanda falls which is about 26 km from Solwezi; National parks which covers the northern part o f the Kafue national park and the West Lunga National Park; source o f the Zambezi, Kafue and Kabompo rivers; traditional ceremonies and the Chinyingi foot bridge. The living condition o f the population in North-Westem province has remained poor with poverty levels standing at 76 percent and 72 percent in2004 and 2003, respectively. The extreme poor stood at 61 percent while the non-poor were 24 percent o f the population. In spite o f the new mines, the economy o f the province is predominantly subsistence farming with emphasis on growing the food crops. The free education policy from grades 1-7 and the re-entry policy for girls who get pregnant has increased access to education in the province. Access to basic education has been on an increase from 68.33 percent in2001 to 82.67 percent in2004. Provision o f school requisites, rehabilitation o f schools and staff houses are the major focus for the province. The under five mortality rate for the province stands at 68 percent against the targeted 80 percent by the year 2015. The maternal mortality rate was 2.52/1000 population in 2005 while the HIV and AIDS prevalence rate stood at 9 percent. Delivery o f health services is, however, hampered by the shortage o f trained personnel, long distances and bad roads to health facilities in some cases, traditional and cultural beliefs, myths and misconceptions on family planning. Interms of infrastructure, the roads linkingother towns inthe province are allunpaved except for those that connect Mwinilunga and Kasempa from Solwezi. The unpaved roads make travel and repairs on vehicles more expensive and hamper the delivery o f both inputs and outputs to the markets. Interms o f electricity supply, only the two districts, Solwezi and Kasempa are connected to the national grid. Kabompo, Zambezi, Mwinilunga, Chavuma and Mufumbwe, are supplied by isolated thermal power stations. Accessibility to safe drinking water has improved at a fast rate for the population in the urban areas through the commercialization o f the water supply utilities. The access rates are as high as 90 percent in urban and peri-urban areas. Interms o f sanitation, over 50 percent o f households in urban areas are serviced with septic tank and soak away facilities. But the coverage inthe rural areas remains low due to low investment and sensitization. In 2005, over 168,000 o f the rural population representing 33 percent o f the population inthe province, had access to safe drinking water. Water supply is through the provision o f boreholes and shallow ~vellsequipped with handpumps and windlasses. The sanitation levelremainedbelow 30 percent among the rural population. 36.8.2The Strategic Focus and Interventionsin North-WesternProvincein the FNDP Period The programmes that will be implemented during the FNDP will aim at addressing the identified challenges. The strategic focus o f the province therefore, will be "the provision of infiastructure to support the economicgrowth in the area." The programmes that will be implemented to achieve these goals are infrastructure development in roads (tarring and feeder roads); and the construction o f infrastructure to support miningactivities, agriculture and tourism. Inaddition, infrastructure activities will beundertaken inhealth, education as well as water and sanitation. Fifth National Development Plan 2006 - 2010 342 36.8.3 Programmes,Objectives and Strategies The programmes, objectives and strategies for North-western province during the FNDP period are presented inthe matrix below. N%h-Western Prov -- ___._.I___ ll______.__l_ Objectives Strategies ~ Programmes Infrastructure Development To increase investment and a) Tar Kasempa-Chavuma road (M8) improve access b) Tar Kasempa-Mumbwa road (D181) c) Tar Mwinilunga-Kabompo road P-286) d) Tar Kasempa-Kaoma road (D301) e) RehabilitateMwiililunga road (TS) f) Rehabilitate Chingola-Solwezi road (T5) g) Construct feeder roads h) Construct infrastructure to support mining activities i) Connect 6 district to national electricity grid j) Resettle scheme infrastructure k) Drillingofboreholes andwells 1) Rehabilitatehealth facilities m) RehabilitateSchools n) Rehabilitatecommon userblocksNIF' houses Provision of Social To improve literacy levels a) Facilitate the expansion o f school Infrastructure and Related among the poor households infrastructure Services in Education Provision of Social To improve the health and a) Improve and rehabilitate health Infrastructure and Related nutritional standards in the infrastructure Services in Health poor households Agricultural development To improve food security Fishfarming and incomes for small-scale Training activities farmers Extensionservices Use o f irrigation Improve Landhusbandry practices Support ago-processing industries Cattle Restocking and animal disease control Forestry Development Sustainable management of Beekeeping development forests ecosystems and Participatory Forest Management biodiversity application, Develop small scale forest based through indigenous and enterprises scientific technical Forestry awareness education knowledge Tourism Development To improve tourism a) Construct a cultural village infrastructure Coordinationand To coordinate multi-sector a) Facilitate resource mobilisation and Monitoring policies and monitor capacity building implementationprogramme b) Strengthen institutional arrangements and project implementation and stakeholder participation for policy coordination and monitoring 36.9 Southern Province 36.9.1 Resource Endowments,ComparativeAdvantage, and Socio-Economic Conditions Southern province is composed of eleven districts with the provincial headquarters being Livingstone. The other districts are Sinazongwe, Siavonga, Gwembe, Mazabuka, Itezhi-Tezhi, Kazungula, Choma, Kalomo, Namwala and Monze. It has a total land area of 85,283 square km. The province consists o f the valley along the Zambezi river and Lake Kariba that is 300,000 hectares, the escarpment which is 1,074,500 hectares, the plateau with 5,900,000 hectares, the Kafue flats with 1,000,000 hectares, and a stretch o f the Barotse plains in Kazungula district. The province is endowed with abundant natural resources and houses one o f the seven wonders o f the world, the Victoria falls. The province, however, lies in the low to medium rainfall region and i s highly susceptible to drought conditions. Fifth National DevelopmentPlan 2006-2010 343 The economy o f Southern province i s dependent on livestock and crop production. There is substantial dairy and game ranching and a number o f ago-processors operating inChoma and Mazabuka districts. Medium-scale ginneries have been established to support the cotton industry in Kalomo and Sinazongwe districts. Large-scale sugar production is done in Mazabuka, with the sugar industry employing about 6,000 people. In addition, small-scale production, such as at Kaleya small-holders employs a further 1,400 people. There are many small-scale livestock farmers inthe province. However, livestock and crops production has been hampered by the frequent occurrence o f droughts and livestock diseases. This has caused a decline inthe socio-economic status o f the people, especially those that depended on agriculture. Other economic activities include tourism, mining, quarrying, trade and industry. With regard to tourism, the major tourist attractions include Victoria Falls, wildlife andbird viewing inMusi-0-Tunya, K a h e and Lochinvar National Park as well as Kariba Damin Siavonga. Poor tourism infrastructure such as poor access roads to and within national parks continues to be a major challenge in the tourism sector. The tourism sector in the province has recorded an increase in arrivals, bed capacity, employment and income. In2006, Livingstone alone had a total o f 1,938 rooms with a total bed capacity o f 3,802 and a room occupancy rate of 59.1 percent. Itezhi-tezhi i s the other district inwhich tourism has potential and needs to be promoted. Siavonga also needs new attractions and activities if it i s to rejuvenate and compete favourably with Livingstone. Inthe miningsector, coalproduction at Maamba Collieries is the mainmining activity inthe province. Sustained production o f coal has been constrained by operational problems at the mine. There is also exploitation o f amethyst at Mapatizya mine in Kalomo, and tin in Choma at small-scale. SmaI1-scale mining o f aquamarine, yellow and green tourmaline, white quartz, fluoride, malachite and red garnet is carried out in Kalomo, Gwembe, Sinazongwe and Siavonga districts. Nickel is found in Mazabuka district and emeralds inItezhi-tezhi district. Interms o fpoverty status, the headcount poverty for the province was estimated at 69 percent in2004 with extreme poverty estimated at 35 percent. The non-poor and moderately poor stands at 31percent and 14percent, respectively. 36.9.2 The Strategic Focus and Interventionsfor Southern Provincefor the FNDP period The main challenge that the province has is the lack o f infrastructure to develop the economic sectors like agriculture and tourism. The issue o f low ground water table due to droughts is yet another challenge. The strategic focus for Southern province during the FNDP period is `>provision of infrastructurefor thepromotion of agriculture, education, tourism and health services." 36.9.3 Programmes, Objectives and Strategies The programmes, objectives and strategies for Southern province during the FNDP period are presented inthe matrixbelow. I_ SouthernProvince Programmes 0bjectives " Strategies RoadInfrastructure To improve accessibility a) Mobilise resources for construction Development to productive agricultural o fnew roads (Bottom Road); areas inthe province. b) Tar gravel roads (MonzeKhomaNamwala roads Gwembe-Chipepo roads); c) Rehabilitate degradedroads. Agriculture, Livestock and To enhance growth in a) Encourage community participation Fisheries Development crop production, fisheries in disease and vector conixol and animal husbandry programmes; b) Encourage private sector participation; c) Develop infrastructure; d) Revive cooperatives; e) Train Extension Officers in fisheries; f ) Establish fish processing plant; g) Restock cattle. FifthNational Development Plan 2006-2010 344 SouthernProvince Programmes Objectives -,.~ - Strateaies .. Water and Sanitation To orovide clean and safe Construct boreholes, wells and drinkngwater dams; Maintain water infrastructure; Monitor the quality o f water in boreholes, dams and wells periodically; Maintain and monitor hydrological stations periodically; check and maintain hydraulic structures periodically; Supervise water related activities done byNGOs; Establish and train o f V-WASHE Committees; Coordinate district community based WASHE programmes; Construct dams; Rehabilitate periodically the dams at district and community level; Construct water harvesting processing plant. Resettlement To establish resettlement a) Acquire land; schemes b) Develop and provide infrastructure;. Provisionof Health To provide quality health a) Construct and improve health Infrastructure services inthe province infrastructure; b) Acquire new equipment for health institutions. Education infrastructure To improve the a) Construct houses. accommodation for teachers Tourism Development To improve tourism a) Facilitate the establishment o f infrastructure quality hospitality infrastructure; b) Facilitate construction of access roads to tourist attractions; c) Construct an airstrip in Siavonga district. ForestryManagement To enhance sustainable a) participatory forest management; management o f forests, b) Develop small scale forest based ecosystems and enterprises; biodiversity application, c) reforestation; through indigenous and d) Enhance forestry awareness scientific technical education; knowledge e) Build capacity. Meteorological To provide reliable, a) Rehabilitate o f station networks; Infrastructure Development accurate, timely and safe b) Integrate monitoring o f Weather and Forecasting weatherklimate data management; information. c) Build capacity building o f staff and volunteer stations; d) Mitigate strategies to avert weather-climate related disasters; e) Install new meteorological equipment and instruments; f ) Revitalize volunteer rainfall stations; g) Sensitize community to appreciate Meteorological; products; h) Annual maintenance o f infrastructure; i) Construct meteorological stations innew areas. Fifth National Development Plan 2006-2010 345 36.I O Western Province 36.10.1 Resource Endowments,ComparativeAdvantage, and Socio-Economic Conditions Western province, the second largest province in Zambia, has a total land area o f 126,386 square km, with a population o f 784,509 according to the 2000 Census o f Population and Housing. The province is bordered to the west by Angola and to the south by the Namibian. Internally, the province is bordered to the east by Central province, to the north by North-Western province and to the southeast by Southern province. Administratively the province is divided into 7 districts, namely, Mongu, Kalabo, Sesheke, Senanga, Shangombo, Lukuluand Kaoma with the provincial headquarters being Mongu. The province consists o f a vast sandy uplandplain at an altitude o f 1,188 metres in the northwest sloping gently to 814 metres in the southeast. This upland-plain i s intersected by the floodplains o f the Zambezi and its tributaries together covering an area o f 12,950 square kilometres. Western province has a huge abundance o f both surface and ground water. The major river Zambezi that has many tributaries passes through the province. In addition, there are many wetlands. The Zambezi floodplain has immense potential for rice production, cattle rearing and citrus production. The Kalahari sands favour growth o f significant timber trees o f Zambia llke Mukusi, Mukwa and Muzauli which are habitat for bees. The province has abundant natural resources such as land, water, forests, and a promising potential for mineral production. The main economic activities are fishing, livestock rearing, rice growing and other agricultural activities. Fishing and rice growing are carried out mainly on the flood plains o f the Zambezi river while maize production is concentrated in Kaoma district because o f its fertile soils. About 65 percent o f the people o f Western province derive their livelihood from agriculture. In agriculture, cattle rearing is the most important activity in the province's internal economy as it is not only an input into crop production (manure, animal draught power), but also a source o f security in a region where cropping is marginal. Cattle by-products such as hides, horns and hooves canbe exploited intheprovincefor employment creation. The province also has abundant potential in cashew nuts and mango production, which products have been neglected for a long time. Western province is one o f the richest interms o f forest resources inthe country. About 75 percent o f the province is covered with forests, most o f which are open woodlands under traditional authorities. Timber production has been the mainstay o f Mongu, Shangombo,Senanga and Sesheke districts though, in recent years, there has been a decline due to the closure o f Mulobezi sawmills. More than 10,000 cubic metres of sawn timber is exported from the province every year. The province lacks information on stocking levels and standing timber volumes o f various tree species due to lack o f forest inventories. There is also lack o f information on forest regeneration, rate o f deforestation and the status o fplantbiodiversity. The socio-economic situation inwestern province has been improving with 65 percent o fthe population being poor compared to 83 percent in 1998 according to the Living Conditions Monitoring Survey 2004. From a gender perspective, women are poorer than men. Factors that worsen women's vulnerability include the rise in H N and AIDS, increasingworkload, socio-cultural factors and limited involvement in decision-making processes. Major poverty indicators include low-income levels, food insecurity; rising deaths from preventable diseasesand limited access to safe and clean drmkingwater. The infrastructure in the province is very undeveloped. Road network in the province is under developed apart from the tarred national roads lmking Mongu to Lusaka, Sesheke to Livingstone and Limulunga to Senanga. The rest o f the (KaomaLukulu, LuampaIMachile, SenangdSesheke, Sitoti/Shangombo, KaomaKasempa Kalabo/Slkongo) are gravel roads in a very poor state. Road construction in Western province is more expensive than elsewhere in the country due to the area's sandy soils. The social conditions o f the people o f Western province remains poor and a great impediment to the overall development o f the province. Poor access to health services and water and sanitation facilities are among the major challenges in the province. The rate o f illiteracy o f 50.6 percent is due mainly to FifthNational Development Plan 2006 -2010 346 the limited number o f basic schools. Most o f the classrooms are o f temporary materials and lack basic requisites for provision o f quality education such as desks andbooks. Wood fuel is the predominant source o f energy for the rural communities and the majority o f the urban andperi urbancommunities. As is the case inother provinces, solar power has not been fully exploited except for a few units in schools and rural health centres. Charcoal burning and indiscriminate and uncontrolled harvesting o f timber in the province for export to other parts o f the country have put pressure on the Western province forests. Areas, which urgently need electricity, include Nkeyema, Lombelombe, Kalumwange and Mangango in Kaoma district and Nangweshi and Shangombo in Shangombo district. 36.10.2 The Strategic Focus and Interventionsfor Western Provincefor the FNDP period Western province has an abundance o f unexploited potential in crop production, livestock production, forest production, citrus production, fisheries and tourism. The greatest challenges include poor road infiastructure, poor health status o f the people, illiteracy and poverty. Inview o f the above, the province will implement programmes aimed at addressing these challenges. The strategic focus for the province during the FNDP will, thus be "increased investment in inJFastructure development, targeting agriculture, health, education and water and sanitation services." 36.10.3 Programmes, Objectivesand Strategies The programmes, objectives and strategies for Western province during the FNDP period are presented inthe matrix below. stern Province .. I_ Programmes 0bjectives Strategies I____ Agricultural To increase agricultural a) Develop resettlement schemes; Development production b) Develop irrigation schemes; c) Encourage the use o f animal draught power;. - -~ d) Fish farming on commercial scale. Roadand To expand and rehabilitate a) Rehabilitate roads; Communication road net- work in the b) Construct new roads; Infrastructure province c) Improve pontoon crossing facilities; Development d) EquipRoads Department (Revive road camps). Water Transport To improve water Improve water communicationsystems. transport Health Services To increase access to a) Expand health facilities- accessibility and availability o f better quality health services; services b) Training of healthpersonnel; c) Strengthenhealthneighbourhood groups; d) Provide adequate and decent housing to healthpersonnel; e) Provide transport for health service delivery (including ambulances); tJ Provide adequatemedicines to all health facilities; g) Construct anew district hospital inMongu; h) Extend VCT services to each rural health centre and ensureprovision o f sufficient ARVs. Educationand To increase access to a) Expand the Basic, High school and tertiary education Skills Training education facilities and facilities; life skills training in the b) Increase the number o f schools/literacy classes; province c) In-service training to improve on the staff qualification and performance: d) Pro;ide adequateand decent housingto teachers. Water and To improve peoples a) Rehabilitate old boreholes; Sanitation access to clean and safe b) Sink moreboreholes; water c) Construct sewer ponds; d) Rehabilitate and expand the water treatment plants inall districts. ForestProtection To conserve forests a) Improve the system o f allocation o f licenses for the andManagement through environmentally- exploitation o f forest resources; friendly exploitation o f b) Improve community involvement in conservation forest resources systems. Industrial To revitalize the industrial a) Revitalise cashew production and processing; Development development b) Investinmango processing; c) Invest inhides and skins processing. Fifth National Development Plan 2006 -2010 347 36.I1Implementation,Monitoring and Evaluation Framework The institutional policies for provincial development shall be guided by the National Decentralization Policy that has been developed within the broader Public Service Reform Programme (PSRP) objectives. The aim is to improve the quality, efficiency, cost-effectiveness and delivery o f public services to the people o f Zambia. Government has put measures in place both within this FNDP (see Chapter 26) and the Decentralization Implementation Plan to guide the implementation process. The underlying strategy is that o f decentralisation through devolution o f functions so that central government and lower level organs, including local government authorities, are mutually accountable to each other in service delivery (see Chapter 38 on Institutional Framework for FNDP Implementation, Monitoring and Evaluation for details). Fifth National Development Plan 2006- 2010 348 Financing,Implementation,Monitoringand EvaluationFramework 37.7 lnfroduction This chapter outlines the financing framework for the FNDP. The framework includes an outline o f the current resource envelope (baseline) and the FNDP fmancial requirements. On this basis, a resource gap between the Baseline and the FNDP financial requirements has been estimated. In order to fill the gap, a consolidated programme o f action on resource mobilisation will be prepared by the Ministry o f Finance and National Planning with the aim o f closing up the financing gap o f the FNDP. A summary o f the key priorities o f the Plan and how resources have been allocated among the priority areas is presented. 37.2 Financing of the FNDP 37.2.1 FinancingSources The FNDP will largely be financed through three sources, namely, domestic revenues; external grants; and, to a limited extent, borrowing (both internally and externally). Additionally, Public Private Partnerships (PPP) for infrastructure programmes shall be encouraged. Other likely sources o f financing are regional and international financing initiatives such as the New Economic Partnership for African Development (NEPAD), investment climate facility and the proposed Africa Enterprise Challenge Fund.Internationally, such initiatives as the Infrastructure consortiumunder the G8 andthe Millennium Challenge Corporation will also be considered, particularly for large investments, which cannot be easily accommodated within the resource envelope. Domestic revenues: These are financial resources that the Government mobilises locally and include tax and non-tax revenues. Taxes are collected by the Zambia Revenue Authority (ZM), while most non- tax revenues are collected at both the central and local government level. External Grants: This refers to development assistance (aid) that shall be provided to Zambia by cooperating partnerddonors through direct budget support; sector-wide approach (SWAP); project support; and debt relief. Inline with Zambia's Aid Policy and Strategy,the Government prefers direct budget support. This is important for the enhancement of efficiency and the reduction o f transaction costs for both the donors and the Government. For cooperating partners that are yet to channel their support directly to the budget, SWAP is the second preferred mode o f external support. Nonetheless, Government will respect the diversification o f modality o f assistance considering needs o f each sector and restrictions indonor assistance institutions. The Government assumes that more external resources will be forthcoming to support the FNDP following international commitments made bythe G8 Nations at the Gleneagles Summit in 2005 as well as similar commitments by both bilateral and multilateral donors. Borrowing: This refers to resources generated through domestic and external loans. In the case of external loans, the mediumto long-term focus is to avoid a return to the high indebtedness o f the past. Therefore, any new borrowings over the period 2006 to 2010 will be procured ina manner that does not affect the debt sustainability ratios negatively. The country shall also continue to rely on highly concessional loans. It is estimated that during the Plan period, new borrowing inthe region o f U S $50 to U S $60 million annually would be allowed and will mostly be from the World Bank and African Development Bank. 37.2.2 FNDP Resource Envelope 37.2.2.1 Overview The resource envelope is the sum total of the domestic revenues, external grants and loans from both domestic and external sources. A baseline projection o f the resource envelope is presented, which essentially assumes a continuation of the current policy conditions and the existing levels of commitment from donors. The resource envelope provides an indication o f the level o f expenditures that the Government plans to incur over the 2006 to 2010 Plan period. In the light o f the need to FifthNational DevelopmentPlan 2006-2010 35I accelerate growth and to reduce poverty, the FNDP will require additional resources over and above the baseline to implement the various key programmes that have been identified. It is on this basis that the resource envelope needed to implement the scaled-up expenditures inthe FNDPhas been constructed. 37.2.2.2BaselineResource Envelope In the baseline scenario, total domestic revenues over the Plan period from both tax and non-taxes sources are estimated to average 17.7 percent o f GDP. Annually, domestic revenues are estimated to gradually rise from 16.8 percent o f GDP in2006 to 18.1 percent o f GDPby 2010 (see Table 37.1). This marginal rise in domestic revenues will essentially stem from taxes planned to increase from 16.1 percent in 2006 to 17.6 percent by 2010 onwards. Non-tax revenues are, however, expected to remain flat at around 0.6 percent o f GDP. Even with the taxes, the rise is still marginal reflecting the difficulties in broadening the tax base as well as the existing concessions in the key sectors of agriculture andmining. Swrce: Ministv ofFinance and Nafional Planning Fifth National Development Plan 2006-2010 352 External aid flows, inturn, are projectedto average 4.6 percent o f GDP per annumover the Planperiod. I t is expected that from 2009, most donors would move towards direct budget support and sector wide frameworks. Source: Ministry of Finance and National Planning After Zambia's accession to the Heavily Indebted Poor Countries (HIPC) Completion Point and following the Multilateral Debt Relief Initiative (MDRI), Zambia will receive debt relief, resulting in the reduction in the stock o f external debt to less than U S $ lbillion from U S $7.2 billion at the end o f 2004. The real effect o f the reduced debt is through reductions in annual debt service (interest and principal) payments. Debt servicing (interest and amortisation) is expected to average less than US $65 million per annum over the Plan period. In contrast, if Zambia had not received debt relief under the HIPC initiative and the MDRI, debt servicing would have averaged U S $261 million per annumwhich was unsustainable. Fifth NationalDevelopment Plan 2006 -2010 353 Domestic borrowing will be consistent with the attainment o f the Government's macroeconomic objectives, which include further consolidation o f recent gains to lower inflation and interest rates and reducing the domestic debt. In line with these targets, projected domestic borrowing i s estimated to drop to less than 1.O percent o f GDP by 2008 from 1.8 percent of GDP in2006 and 1.1percent o f GDP . in2007. Consistent with the objective ofkeeping external debt within sustainable limits, total external borrowing in the baseline scenario is projected to average 1.3 percent o f GDP, or U S $200 million per annum. This is taking into account already existing loans to be disbursed over the Plan period. The potential total resource envelope inthe baseline scenario is, therefore, projected to average 23.6 percent of GDP. Implicitly, this is roughly the maximum level o f public expenditures that can be allowed inthe Baseline Scenario. 37.3 The Development Plan 37.3.1 MainAssumptions The FNDP has been constructed on the basis o f two major assumptions. These are: (a) accelerated growth and poverty reduction through the scaling-up of implementation o f the FNDP programmes in the key sectors o f this Plan; and (b) an increase in the resource envelope based on an anticipated scaling-up o f donor aid over the baseline projections. The anticipated increase in aid assumes that the international community will honour the commitments they made at the Gleneagles G8 Summit in 2005. At this Summit, the G8 countries pledged that Official Development Assistance (ODA) d 1be $50 billionhigherby2010 thanis currently the case, withhalfo fthe increasebeingearmarkedfor Africa. However in the event that scaling up of aid does not occurs, two things are hkely to occur, (i) down of scaling expendituresespecdly inthe nonpriority sectors and further reprioritisation within the priority sectors and (ii) domesticborrowingmay increasebutwihn sustainablelevels. With regard to domestic revenues, the expectation is that the tax review exercise and the reforms to be carried out during the Plan period will yield some positive benefits interms o f broadening the tax base. Itis projected that domestic revenues would slightly increase from 17.8 percent in2008 and reach 18.5 percent o f GDP by 2010, compared to 18.1 percent in the baseline scenario. On average, domestic revenues are projected to average 17.7 percent o f GDP in the FNDP scenario, remaining at the same level as inthe baseline. (put a sentence on non-tax revenues). 37.3.2 Gross Public Expenditure Based on the key broad spending objectives and priorities outlined in the preceding sections, total (or gross) public expenditure in the FNDP is planned to increase to an average of 25.0 percent from an average o f 23.8 percent in the baseline scenario (Tables 37.1 and 37.2). In absolute terms, gross public expenditure is projected to total K62,623.22 billion inthe FNDP, compared to K59,36.39 billion inthe baseline scenario. Inline with the Plan's strategic focus of accelerated growth, capital expenditures are projected to increase from 4.8 percent o f GDP in2006 to 6.2 percent o f GDP by 2010. On average, the FNDP capital expenditures shall be scaled up to an annual average o f about 7.0 percent o f GDP over the Plan period as compared to 6.1 percent in the baseline scenario. Current expenditures are also projected to rise to an average of 18.4 percent o f GDP in the FNDP period, compared to about 17.68 percent inthe baseline. This reflects the commitments to scale up expenditures in health and education, which are mostly o f a recurrent nature such as wages and salaries for teachers, nurses and doctors. Additionally, Zambia has a constitutional review process underway, which will also require substantial resources. A census of population and housing is also expected to be undertaken in 2010. This would result inhigher average current expenditures over the period. 37.3.3 Cost Estimatesfor Core Programmes In terms of the coverage of the core FNDP cost estimates, these essentially exclude the general administration, running expenses and personnel related expenditures in the implementing sectors. However, for health and education, personnel-related costs have been included as core FNDP programmes as they are critical in the delivery o f services in the two sectors. The core FNDP cost estimates also exclude very large capital programmes, which are expected to be financed through private capital flows, although they appear intheir respective sector chapters. These include projects in the energy sector such as the development o f the Kafue Gorge Lower power station at an estimated cost o f U S $600 million and the Kariba North Bank at a cost of U S $300 million. These are expected to be financed through Private Public Partnershipsor wholly private capital. Others include the rail infrastructure projects that are plannedinthe InfiastructureChapter. Fifth National Development Plan 2006-2010 354 Table 37.2: Key FNDP Fiscal Targets and Assumptions (in Yoof GDP), 2006-2010 Inabsolute terms, total core expenditure is estimated K 38,645.4 billion (or US $9.4 billion) see Table 37.3 below. Table 37.3: Core FNDP Costs GrandTotal % of % of us$ Yo of Sector GRZ GRZ Donor Donor KBillions Billions Total ter and Sanrtatlon HlVlAlDS Cordinabon Source: Ministryof Finance andNational Planning 37.3.4 Financing and ResourceGap As stated above, the requirement to implement the FNDP programmes will result in an expansion in total public expenditure to an annual average of 25.0 percent from 23.8 percent in the baseline. In Fifth National Development Plan 2006-2010 355 absolute terms, total public expenditure will rise from K59,367.39 billion inthe baseline to K62,623.82 billion in the FNDP. The extra K2,982 billion represents the additional resources over and above the baseline projections that are needed to undertake public expenditure during the Plan period (see Table 37.4). Table: 37.4: Summary Expenditureand Financing FNDP Commitments Sector Requirement GRZ Donor/ Total GAP Defence 4,379 33 4,379 33 - 4,37933 HlVlAlDSCordinahon iaa 32 i o 71 17761 iaa 32 Environment 277 a 37 24 231 14 268 37 (9 43) Gender 39 27 39 27 39 27 Subtotal 55287.45 41,107.01 11,198.35 52,305.36 1 (2982.09) Constitutional and Statutory Expenditure 5,193.44 5,193.44 - 5,193.44 FifthNational Development Plan 2006-2010 356 Due to a marginal rise in domestic revenues, the resource gap will mainly be financed from external sources. Thus, a significant part of the resource gap o f K2,982 billion will have to be met from external grants and loans. donor commitments (see figure 37.1). Table 37.5 presents the broad sectoral allocations for all the sectors during the 2006-2010 FNDP period. External loans are projected to average 1.0 percent o f GDP, or U S $160 million per annum. This is inclusive o f already existing loans to be disbursed over the Plan period. New borrowing is expected to be in the region of US $50 to 60 millionper annum,mostly from the World Bank and the ADB. Fiaure 37.1 :ExternalAid Proiections:2006-2010 External Aid Projections for the FNDP I 8 o I __ FNDP __ Baseline - 2006 2007 2008 2009 2010 Year The FNDP provides the broad policy thrust and expenditure objectives. The FNDP has defined the parameters and the resource envelope. The MTEF which is a three-year planning instrument will annually specify the programmes and resources available to be applied inthe identifiedpriority projects depending on economic circumstances and donor inflows. Fifth National Development Plan 2006-2010 357 - 2 c C B - c C h a c c - - c C P ? .- C - - c C - - C C - - r `E C - - C C F a C C F .- r C a a C C a a C c F .. `E C 2 a C c - - 0 2 hl \o 0 0 hl f: E 3 -E9 i 2 Institutional Framework for FNDP Implementation, Monitoring and Evaluation 38.I Introduction The institutional framework within which a plani s implemented ultimately determines the prospects o f its success. Given the institutional and human resource capacity limitations that are documented in the different chapters o f this Plan, the Government has decided to include institutional reforms and capacity strengthening among its strategic goals during the 2006 to 2010 period. Human resource capacity building and capacity retention will be part o f the institutional capacity strengthening. The Government i s equally cognisant o f the fact that without the required competent, experienced, and motivated human resource that would drive institutions and systems forward, no amount o f planning effort would be rewarded with positive change. Thus, the value o f this Plan will be judged by the extent to which the Government system, inpartnership with its stakeholders, is ingood stead to implement it. To the extent that institutional reorganisation and capacity building depend on human resources, addressing the existing human resource capacity gaps through training and retention o f professionals in the right positions (within the context o fthe Public Service Reform Programme) shall receive the highestpriority during the implementation o f the FNDP. This chapter is divided into two parts, the first part discuses the implementation and institutional mechanisms while the second part deals with the framework and systems for monitoring and evaluation. The key elements o f the proposed framework are the institutional arrangements and the indicator systemwhich is built around data collection, analysis and use. 38.2ImplementationFramework The Government has decided to return to national development planningas a means o f effectively and efficiently allocating and managing scarce national resources. In this regard, National Development Plans shall be developed covering five-year time segments. In order to institutionalise this process, the following actions shall be undertaken: a) The Government shall review the existing regulatory and legislative systems for planning and budgeting with a view to secure congruency between the two processes and ensure that the state systems, procedures and structures are in tune with the decision to use planningas an overarching tool to address the challenges o f wealth creation and poverty reduction. In this respect, the Government shall review such pieces o f legislation as the Constitution (Part 10 on Finance); and the Public Finance Act 2004 (including the supporting `Financial Regulations') that give powers to the Executive to provide management, supervision, control and direction o f all matters relating to the financial affairs o f the Government. To the extent that the existing laws and regulations (that were designed to backstop the `market-led' approach to development) focus more on budgeting and Jinancial management, the issues that relate more explicitly and directly to planning (e.g. institutions, processes, reporting, etc.) have remained ambiguous. The Government shall, therefore, attend to this during the first few years o f the FNDP in order to give the legal and regulatory framework to the institutions andprocesses for planning; b) The role o f Parliament in both the planning and budgeting processes shall also be reviewed and clearly spelt out. The Constitution gives Parliament the legal authority necessary to provide oversight o fpublic financial management. To the extent that national development plans shall form the basis o f financial resource allocations, and that Parliament is empowered by the Constitution to monitor budget execution by the Executive, the role o f this legislative arm o f the State at both the planning and budgeting levels shall be explicitly defined and streamlined. Indeed, it is the Government's plan to strengthen the role o f Parliament so that its responsibilities go beyond the budget approval process to include closer monitoring o f national development plans. Inthis regard, the capacity o f the Ministry o f Finance and National Planning shall be strengthened to enable it provide reliable and timely reports on bothbudget and Plan execution; and Fifth National Development Plan 2006 -2010 365 c) Cabinet Office through the Policy Analysis and Coordination (PAC) unit will work closely with the Ministryof Finance andNationalPlanninginmonitoringpolicy andprogramme implementation of the FNDP. Inthelightofthe above, the FNDP shallbeZambia's development planningandresourceprogramming tool over the 2006 to 2010 period. A process o f developing a national development plan every five years will continue to enlist the input o f stakeholders at all levels from planning and implementation to monitoring and evaluation. It is important to recognise that the FNDP is not independent o f other public planning instruments and processes such as the National Vision 2030, Medium Term Expenditure Framework (MTEF), and the annual national budget. In this respect, the annual budget will be the primary instrument for implementing the plan. While the FNDP provides the overall framework and specific programmes within the context o f the projected resource envelope, it is important that the annual work plans for respective sectors actually guide specific interventions. The work plans will be developed at levels o f implementation and will be based on the provisions o f the FNDP. They will guide actual implementation while the FNDP only presents strategic goals and objectives as well as indicative activities. All the activities that shall be implemented annually shall focus on the realisation o f one or more o f the FNDP's objectives during the 2006-2010 period. As a general guide, annual work plans will provide the following details: a) Sector objectives/targets; b) Programme andits strategic objective(s); c) activities covering the FNDPperiod (2006 to 2010); d) Sub-activities, giving yearly activities to be identifiedby each level o fimplementation; e) Budget, including sources o f financing; f ) Timeline for the specific year; g) Annualtargets; and h) Implementationmodality. Inthe context of the above, the FNDP has identified only broadprogrammes for each sector/component while the preparation o f details regarding activities under those programmes is left to the competence of each sectorhinistry as guided by the annual work plans and national budget prepared by MFNP and approved by Parliament. Interms of institutional linkages, the flow of the FNDP informationbetween community and national level structures will be multi-directional, from community to national level and vice-versa. The overall coordination o f the implementation o f the FNDP will rest with MFNP with the full participation of line ministries, other government institutions, civil society, and cooperating partners. The Planning and Economic Management Department (PEMD) in MFNP will be the focal point for the FNDP coordination, monitoring, and evaluation. The coordination aspect will also include harmonisation o f external financing for the FNDP programmes and other technical assistance. A t this level, the input o f the Economic and Technical Cooperation Department in MFNP shall be required. PEMD shall assume a strategic position in the cultivation o f the Government's declared policy o f partnerships with other stakeholders inboth the implementation and monitoring o f the FNDP performance. In the context of the described mechanism above, the implementation of the FNDP will be operationalised through the MediumExpenditure Term Framework and the annual work plans, which are supported by the annual Activity Based Budgets (ABB). In ensuring that central government and lower-level structures are accountable to each other, the process o f refocusing priorities shall follow a complementary and consultative top-down and bottom-up process. At the level o f top-down process, the Plan will be reviewed annually taking into account Vision 2030. The annual reviews will provide an informed basis for a more focused fiscal allocation o f resources for annual and medium-term implementation. Inthis respect, the top-down process will involve the following specific activities: a) review o f macroeconomic, fiscal frameworks and sector performance as an input into the macroeconomic projections for the medium-term development objectives; b) preparation o f macroeconomic framework, including projections of GDP and total resources both domestic and donor; c) Budget guidelines are prepared to provide specific steps andbudgeting information to ministries, provinces, districts and spending agencies (MPSAs) to guide preparation o f MTEF and annual Budget; Fifth National Development Plan 2006-2010 366 d) indicative macroeconomic framework andbudget ceilings are presented to Cabinet for discussion and approval; e) Macro Framework and Budget priorities are then presented in form of a Green Paper to the Parliamentary Committee and civil society for comments; f) finalisation o f Budget Framework Paper and annual Estimates are done by MFNP; g) approval by Cabinet andpresentation to Parliament byNovember o f each year; h) the MFNP updates macroeconomic framework and consolidates ministry budget framework papers into national budget framework paper, based on outcome o f budget hearings and comments from the ParliamentaryEstimates Committee; and i) Budget framework papers approved by Cabinet along-with final ceilings for each year o f the MTEF. The bottom-up process, in turn, will start with the preparation o f the budget framework papers, which review objectives, outputs and activities, including critical assessment o f priorities o f MPSAs in line with the FNDP sector chapters and inconsultation with DDCCs and the PDCCs. Specific activities of the bottom-up process during the FNDP shall include the following: a) Ministry, Provinces and Spending Agencies (MPSAs) will prepare budget framework papers (BFPs), including sector goals and outcomes, ministry policy frameworks, objectives, programmes, outputs and activities; b) MPSAs will cost activities for the three-year period andprioritise to fit within ceilings; c) MPSAs will identifyissues that need to be resolvedby Cabinet before approval of the budget; d) Budget hearings will be held to discuss BFPs with the DDCC and PDCCs; and e) MPSAs finalise annual Budget and forward estimates based on final ceilings. Table 38.1 shows the roles o f different institutions (at the national, provincial and district levels) inthe implementation o fthe FNDP. Table 38.1: InstitutionalRolesand Responsibilities for the FNDP Implementationand Monitoring I I Implementing Advisory RoleslResponsibiIities Institutions ....... Institutions National National Parliament will discuss policy decisions for legislature that will support Assembly Development Co- implementation. Cabinet ordinating Cabinet will provide leadership and decide on new policy directions and Cabinet Office Committee .. -.,,,.I .............. _.I.___._ priorities for national developmentinterventions. Ministry of (NDCC) - To be Cabinet Office will provide supervisory functions in policy development and Finance and established implementation. National Umbrella MFNF' will develop the overall implementation targets and indicators and Planning Organizations monitor the implementation process. Private sector and Research The sector ministries will formulate sectoralpolicies, programmes andprojects Sector Institutions ... The National Development Coordinating Committee (NDCC) will be chaired Ministries and SAGs by the Secretary to the Cabinet and will be responsible for making policy other spending ... Special interest recommendations to Cabinet. The NDCC will also oversee overall monitoring Agencies groups and evaluation ofprogrammesin the FNDP Committees Thematic SAGs will provide professional and technical advice Committees Special interest groupswill participate in the releant SAGs. The research institutions will add value to the process through the research findings and recommendationsfor policy development. The private sector will be a key partner in the implementation o f the FNDP. They will be representedin SAGs, PDCCs,and DDCCs. Thematic Committees wi!l~e_.c.reate_~.,to-~ea!,-~~~~ecific issues. Provincial Level Fifth National Development Plan 2006 -2010 367 Special interest groups will provide advice to Government and private sector. Provincial Special interest They will be represented on PDCCs. Administration groups The Provincial Administration will co-ordinate implementation and monitoring Provincial Sector PDCC and evaluating o f programmes through the Provincial Development Co- Departments ordinating Committee (PDCC) chaired by the Provincial Permanent Secretary. PDCC will scrutinise and harmonise development plans from districts and monitor their implementation through sub-committees such as the Provincial M&Esub-committee. PDCC will advise on the consistency o f plan implementation with National Priorities. Note: These roles and responsibilities will be further refined as implementation o f the decentralisation policy progresses.. District Level ~ _I- District Special interest Implementation, monitoring and evaluation o f programmes will be CO- Commissioner groups coordinated by the District Development Co-ordinating Committee (DDCC) 's office DDCC chaired by the District Commissioner. District DDCC will scrutinise development plans from departmental submissions and Councils monitor their implementation through sub-committees representing each sector. DDCC will advise on the consistency o f plan implementation with Provincial J and NationalPriorities and present the plans to the Council. . The District Council will approve all the district plans and guide their implementation. Note: These roles and responsibilities will be further refined as implementation o f the decentralisation policy progresses. Community Level II_I___._____-. - I_..-.___-....-- Ward Development _I_ Local_____.._..I_.._-__ participation should be co-coordinated at ward level by the ward Committees: development committee (WDC), Resident Development Committees (RDCs) Resident and Area Development Committees (ADCs). These committees will participate development in the implementation and monitoring of district plans by ensuring that the Committees implementation is consistent with their local needs and priorities. Their Traditional participation will be through the District Development Co-coordinating Authorities or Committees (DDCC) and District Councils. Establishments The flow o f information between community level and national level will be two-way, i.e. from community to national and vice-versa and horizontally through consultative forums. Figure 38.1 shows the different levels through which both implementation and monitoring information shall flow during the FNDP. Figure 38.1: InstitutionalArrangement and Information Flow Deconcenlrated Source: Ministry of FinanceandNational Planning Notwithstanding the above, the Government recognises that system-wide capacity building is by itself insufficient. The Government notes that unless the wider environment (inthis case the rules, norms, Fifth National Development Plan 2006-2010 368 values, andpay structures o f the public sector as a whole) is changed, `capacity' is unlikelyto be built - and retained. Thus, improvement of the wider institutional environment shall constitute one o f the central themes o f the FNDP. This will entail institutional change at the macrohational level in the Government's effort to do away with the long-standing culture o f centralised decision-making. The decentralisation policy is particularly relevant at this level and the Government shall make every effort to adhere to the decentralisation implementation plan. Inthe light ofthe above, the Government intends to pursuethe following strategies inits effort to putin place effective institutional and implementation mechanisms: a) To prevent the proliferation o f conditions imposed by individual donors on the Government, cooperatingpartners shall limit their support within the commonly agreed F'NDP framework; b) The Government shall strengthen its policy-relevant management information systems so as to secure data integrity in planning, budgeting, and financial reporting. Through the Public Expenditure Management and Financial Accountability (PEMFA), the Government shall take advantage o f existing advances in information communication and technology solutions, focusing on hardware and software acquisition; skills enhancement through training; and communications infkastructure improvement; c) The Government expects its cooperating partners to programme grants over a multi-year timeframe and concurrently make multi-year funding commitments to enable the MFNP to better plan its medium-termmacroeconomic and fiscal projections inthe context of MTEF.The Government will ensure that the timing o f cooperating partners' financial commitments and disbursements as well as their review processes are, as much as possible, aligned with Zambia's budget cycles. This will reduce transaction costs; allow allocative efficiency in macro sector-level spending; increase predictability o f aid flows; enhance the effectiveness o f sector management; improve monitoring and evaluation; and strengthen financial accountability; d) The Government will ensure that the procedures andtimetables for all approvedprogrammes under each sector are synchronizedwith the monitoring and annual reviews o f the FNDP so that progress reports at these levels feed into the Plan's overall performance assessment. The need to dovetail the sectoral activities into the FNDP calendar and indicators is essential given the fact that the input from ministries, districts and provinces brings together government, donors, and other stakeholders under consultative frameworks that seek agreement on indicators to be monitored for the entire FNDP; and, e) To the extent that the speed o f the FNDP implementation shall be dependent on resource availability (both human and financial), the actual phasing o f interventions shall be defined yearly inannual work Plans. , The decentralisation o f functions to the provincial and district levels shall receive top priority during the implementation o f the FNDP. Ministerial, provincial and district planning units will be linked to the MFNP and it is expected that monitoring o f programmes and activities will commence at these units. The process o f planning will eventually be decentralised to the provincial and district level in the context o f the decentralisation policy. Provincial budgets will be prepared on the basis o f the annual work plans. The preparation o f district and provincial work plans will draw on the participation o f key stakeholders, including the private sector, NGOs, and civil society. Implementation o f the FNDP 2006 to 2010 will be viewed inthe context o f the current decentralisation policy, which is important in strengthening institutions at the central level through to the lower level. This is particularly vital now when the current decentralisation approach involves devolution o f government functions so that national developmental objectives are achieved through an improved, expanded and sustainable governance system where central government, local authorities and communities would become mutually accountable during implementation. In the spirit of real partnership and information sharing, the Government, through the MFNP, shall firstly, orient all government officials and other stakeholders (including NGOs, CBOs, FBOs, the private sector, etc.) to the contents and process o f the FNDP. Secondly, the Plan shall be disseminated Fifth National Development Plan 2006 -2010 369 to local and external stakeholders, defiing its main components/targets, and enlisting support for those targets. The finctional relationships o f different stakeholders shall be further redefmed and the modalities o f cooperation agreed upon through consultative processes. The magnitude o f the challenges identified in this Plan mean that its implementation has to be a product o f collective action and collaboration between the Government and all stakeholders. The FNDP implementation, supervisory, and monitoring structure will be developed in a manner that would provide guidance in a) strategy direction; b) activities coordination; c) implementation sequencing; d) monitoring o f implementation; ande) periodic impact assessments. The existing departments insectoral ministries shall constitute the FNDP's main implementation organs and the current committees under the various sectors, supplemented by SAGS, shall be realigned to the targeted goals, programmes and objectives o f the Plan. In this respect, by integrating the FNDP implementation into the existing government structures, only very few committees/forums may be established, e.g. those that aspire to bring cooperating partners and other stakeholders closer to the Government at the level of implementation and monitoring the FNDP activities. Coordination/consultativemechanisms between the Government and donors are to be re-defined inthe context o f the aid policy and strategy for Zambia. Inthe context ofthe above, concerted efforts shall bemade duringthe implementation o fthe FNDP to buildthe requisite capacities, guided by the following principles: Efficient planning and application o fresources during the FNDPperiod; Integration o f government budget resources and donor resources within a mutually-agreed programme o f activities as defined inthis Plan and guided by the National Vision and MDGs; Financing and managing the FNDP through a sector-wide approach (SWAP) and, where admissible, direct budget support, focusing, in the initial stage, on the adoption o f common accounting, monitoring, and reporting systems that are designed to meet the requirements o f all stakeholders; Emphasising good governance in the implementation o f the Plan, focusing on efficiency, transparency, andrealism inthe design and implementation o f annual work plans, Strengthening o f links between sector expenditure programmes/activities and the MTEF; Fostering a sense o f cooperation and partnership with all stakeholders through regular consultation andreporting while firmly maintaining control and leadership within MFNP, Developing and/or strengthening mechanisms for measuring the F'NDP performance through strong monitoring mechanisms with clear performance indicators. This will entail the establishment of monitoring and evaluation systems that ensure timely interventions during FNDP implementation as well as providing informationon programme performance; Recognition o f the importance o f consensus on national development policy, reform activities, and objectives between the Government, cooperating partnersidonors and other stakeholders through, inter alia, formal and informal consultation to ensure that there is common understanding on both theprocessesandinstruments ofthe FNDP implementation; Strengthening the FNDP coordination finction o f MFNP through the enhancement o f the capacity o f the PEMD and other related departments inthe Ministry; Enhancing the planningand monitoring capacity o f line ministries and government-aided statutory bodies in order to secure the requisite competencies for effectively managing their respective components o fthe FNDP; and Recognition o f decentralisation as an important way o f enlisting the interest and participation o f other local stakeholders. 38.3 Monitoring, Evaluationand Reporting Framework 38.3.1 Principles This section presents guidelines on the development o f monitoring and evaluation instruments as well as the agreed indicators which will be applied inthe monitoringo fthe FNDP. Effective monitoring and evaluation o f the activities o f the FNDP are critical functions o f delivery. Firstly, these processeswill provide essential data and insights for drawing lessons, priority setting and informed review o f the FNDP implementation processes. Secondly, they will offer the assurance that resources, including donor funds, are used for agreed purposes. Financial monitoring, inparticular, will track the fmancial informationldata that relate to the Plan's resources with a view to maintaining an Fifth National Development Plan 2006-2010 370 account o f how and where these are applied. Good quality financial monitoring is critical to the effective implementation o f the FNDP and to accountability in the use o f resources. Equally noteworthy, the integrity o f the Government's financial monitoring and reporting has a bearing on the degree to which stakeholders may have faith inthe system before they can consider providing increased support for the FNDP, in general, and the mode o f that support (e.g. project, SWAP, direct budget support), inparticular. The role o f the Office o f the Auditor General, therefore, becomes an important one in the FNDP financial monitoring system and its strengthening shall be among the priority goals duringthe Planperiod. The FNDP will be a results-based Plan that focuses on agreed targets and results. The Plan incorporates a system to monitor inputs, outputs, outcomes, and impacts so that resources can be strategically managed and progress tracked. This process helps to distinguish the FNDP monitoring from traditional project monitoring. In this regard, the indicators here refer to the whole country, as opposed to a specifically targeted project area. The monitoring system will feed information back into the processes o f governing and decision-making, making it a vital public management tool. Thus, the monitoring systems will give information on the implementation status o f the FNDP policies and programmes at any given time relative to the agreed targets. The evaluation system, on the other hand, will determine the degree to which the set targets and expected outcomesiimpact are being realised. Thus, evaluation will complement monitoring in that, when signals from the monitoring processes suggest that the Plan is going off-track, the evaluation function will help to point out the causes and suggest corrective measures. Against the above background, the Government shall work towards strengthening the reporting and monitoring systems ina way that would allow it to fully capture the total public expenditure behaviour under the FNDP. To expedite this process, MFNP shall work towards ensuring that sector ministries submit their progress reports on time by demandmg timely submissions and by progressively moving away fiom manual to computer-based automated recording. The streamlining o f budget classifications (particularly between recurrent and capital expenditure) will also improve the integrity o f consolidated data. In order to improve upon the reporting and monitoring functions during the FNDP period, the following shall constitute the Government's approach: a) Inmonitoring the FNDP performance, the Government and other stakeholders will use the key performance indicators for the various programmes. This will entail the tracking o f changes inthe overall sectoral performance, focusing more on the impact o f interventions. Where there is genuine need for the introduction o f additional monitoring and/or accountability indicators, these will be added only with the approval o fMFNP; b) Monitoring systems will be applied using key performance indicators during the FNDP implementation period; c) Reporting requirements at sector levels will feed into the overall FNDP reporting system where their timing will be synchronizedwith key planningcycles; d) When supporting the Plan, cooperating partners shall rely on the Government's financial reporting and monitoring system; and e) The impact monitoring system will be strengthened, focusing on (a) the improvement o f relevant data collection; (b) the timeliness and quality o f processing, analysis and publication/dissemination;and (c) the utilisation o f impact monitoring results inpolicy-making andresource allocation. Once monitoring and evaluation systems are defined within the national framework, the fundamental building blocks o f the sector monitoring and evaluation systems will include the generation o f baseline data; identification o f indicators; setting o f targets; data collection on identified indicators; data analysis; and, finally, reporting and data use. 38.3.2 Indicatorsfor the FNDP Monitoring 38.3.2.I Key Performance Indicators To enable regular and quality reporting, key performance indicators have been identified for each sector. These are limited to between 4 to 6 indicators per sector. These indicators will help to focus efforts and resources for evaluating sector performance. The report on the indicators will form a major input into the annual, mid-tern, and end-of-Plan progress reports. The underlining factor in selecting Fifth National Development Plan 2006-2010 371 the indicators was the logical linkages to the overall sector goal and objectives. The following assumptions were used inselecting the key performance indicators: a) There exists readily available quality data on the indicator and that the data source for the indicator canbe clearly identified inthe sector; b) The data is collectedregularly; c) The indicator is related to realistic performance criteria; d) The data is relevant to users interms o fits timeliness, adequacy, relevance, and accessibility; e) Data collection processes are affordable and cost-effective; f) Itmustbepossible to disaggregate data onthe indicator indesirable classifications; and g) Output indicators can be selected with a view to predicting longer-term outcomes and impact with reasonable reliability. 38.3.2.2 Poverty Indicators The performance of the FNDP as a whole in terms o f its impact on poverty and the welfare of the population shall be measured using specific poverty indicators. This will be done at mid-term (after two and half years) and at the end of the life o f the FNDP (in 2010). To do this, data on certain poverty indicators shall be collected. These will be based on the survey programme o f CSO. The major indicators for assessingthese are identified as follows: Populationlivingbelow the poverty line (poverty Life Expectancy at Birth; Headcount); Adult Literacy Rate; Share of poorest quintile innationalconsumption; StuntingPrevalence; Populationwith access to clean and safe water; Wasting Prevalence; Households with access to sanitary means o f Annual real GDP Growth excreta disposals; Realper capita GDP (inUS Dollars); Maternal Mortality Rate; Consumer Price Index; Child (Under Five) Mortality Rate; Average Commercial Bank Lending Rates; Infant Mortality Rate; Employment; H I V Prevalence Rate; Populationgrowth. The key performance indicators for the main sectorsicomponents o f the FNDP are shown inTable 38.2. ile38.2: Key performance indicatorsforthe FNDP Baseline Target Value - Sector Key Performance Indicators Value 2005 2010 1 Macro- Domestic borrowing as YOof GDP <0.5% economics Stock of domestic suppliers debt as % o f GDP 19.0% Annual broadmonev sumlv Budgetary releases for key sectors as a ratio o f their allocation (a) 1.11 (a) Health (b) 1.16 (b)Education (c) .95 (c) Energy (d) .98 (d) Agriculture (e) -- (e) Infrastructure (0Water and Sanitation 0 . 4 1 Domestic tax revenue as a % of GDP 17.3% V A T reimbursementstaking less than 30 days in (a) 29% (a) >95% (a) Proportiono f claims submitted (number o f @) 91.5% @) >98% claimants) (b)Volume of claims submitted (ZK) Debt Service to Export Ratio 6.8% Number o f Ministries and Provinces operating 0 48 the IFMIS system Per cent o fheads whose total actual 73% >95% expenditures is between 95 percent and 105 percent o f the total funding Fifth National Development Plan 2006-2010 372 Baseline Target Value Sector Key Performance Indicators Value 2005 Variance betweenoriginal budget and primary 18.5% budgeted expenditure acrossbudget heads Agriculture Growth rate inthe agriculture sector 2.8% Contribution o fAgriculture to GDP 18 - 20% 7 Contribution o fAgriculture to foreign exchange 8.9% 20% earnings Proportiono f the population assessed as food 84% <95% secure Reductioninnumber o f districts that are food 45 districts >5 districts insecure - Mining Number o f large scale miningcompanies 8 contributing to the improvement o f social welfare o f the communities Number o f small scale mines inproduction 67 120 Value o freceipts generatedby small-scale 30 65 mining indollar equivalent Annual growth rate o f the mining sector 2.8% 14.5% Number o flocal manufacturingcompanies 1 10 processingminerals into finished products Proportion o f mining companies (both large and 35% 85% small scale) complying with environmental regulations Communication Telephone lines per 1,000 people 0.1 2 & Meteorology 1,080,526 (total) Number o fdistricts connected to fibre optic 7 cables Number o f subscribers accessing daily, weekly I and seasonalweather forecasts Increase access to ICT services Environment 11 Total annual Greenhouses Emissions inCoz 1 107,737.3 150,832 and Natural equivalent Resources Rate of domestic waste generationper capita (in 1 0.2 tons per annum) % increase of amount o f domestic waste ending 15% 85% up indumps J % reduction inthe rate o f infestation o f 30% invasive alien species (Mimosa Pigra) Rate o f deforestations (Number o fHAs per 850,000 700,000 annum cut down) i Extent o fprotectedforest areas (ha) 44.6 million Envroachment inwildlife protection area 7 Total elephant population (number) 24,000 Infrastructure Number o f kilometres o froads rehabilitated and Transport (a) PavedRoads targets provided (b)UnpavedRoads Number o fkilometres o froads maintained (a) paved (a) + (b) 3398 targets provided (b) unpaved _ _ Number o f vehicles on theroad Number o froad accidents per year 1 Number o fpontoons operational i Number o fpassengerstransported onRailways __- 1,173,399 Volume o f Cargo Transported on Railways 1,755,899 Number o fPassengersmoved on flights (a) domestic / internal and (a) 124,684 1,500,000 (total) (b) Internationaland Regional (b) 550,241 Fifth National Development Plan 2006 -2010 373 Baseline Target Value Sector Key PerformanceIndicators Value 2005 2010 Volume o f cargo transported on flights 14,301 15,000 Number o fpassengerstransported on inland 9,63 1 15,000 waterways Volume o f cargo transported oninland 57,255 100,000 waterways Tourism Number o f Tourist Arrivals 515,000 736,450 (2004) Direct Tourism earnings (US $ millions) 174 304 Employment levels inTourism (Number 19,650 30,404 people) Manufacturing Direct Foreign Investment inmanufacturing $20 million 15% increase and Industry Growth rate o fmanufacturingGDP 5.1% 7.5% Employment Levels inmanufacturingsector 54,000 15% increase Newproducts entering the market that are certified Commerce& Volume o f trade Trade (a) merchandise exports (a) $2,095m (b)merchandise imports (b) $2,068111 Value o f export earnings coming from non traditional exports in (a) (a) regional markets (b) (b) EuropeanMarket (c) (c) NorthAmerican Market (4 (d) Other (e) $538111 (e) Total Energy Alternative Energy Source consumption(Tonne 897,594 992,344 o f Oil Equivalent) % o fPopulationflH) with access to electricity (%I 20% (estimate) Consumption o f Petroleum products (Tomes) <500,000 mt Pa Science and Number o fR and Dprofessionals Receiving 161 308 Technology further training Number o f R and Dunits Rehabilitated 40 173 Number o fR and Dunits Developed 0 287 Number o ftechnologies developed by R and D 74 215 8 53 technologies Land % o fland mass o f country coveredby updated 40% o ftotal 60% o f total administrative maps. land mass land mass already updated Per cent o f cadastral diagrams produced within %ofeligible Zambians withaccess to land Per cent o f land applications processed within the ameed time frame Per cent of title deeds processedwithinthe agreedtime - I I % o feligible peopleinZambiawith Titled Land Educationand Net Enrolment ratio (a) 94.77% (a) 97.3% Skills (a) Grades 1-7 (b) 23.5% (b)48.5% Development (b) Grades 8-9 (c) 21.32% (c) 32.6% (c) Grades 10- 12 Completion Rate (a) 80.93% (a) 90.0% (a) Completion Rate at Grade 7 (b)42.73% OJ) 65.4% (b) CompletionRate at Grade 9 (c) 17.55% (cj 29.6% (c) CompletionRate at Grade 12 Pupil Teacher Ratio (a) 80.3 (a) 60.1 (a) Grades 1-4 (b) 37.5 (b)41.1 (b) Grades5 -7 (c) 32.5 (c) 36.8 (c) Grades 8 - 9 (d)21.7 (d) 27.6 FifthNationalDevelopment Plan 2006-2010 374 Baseline Erget Value Sector Key Performance Indicators Value 2005 2010 (d) Grades 10- 12 Teacher Qualification (a) 98% (a) 100% (a) Grades 1-7 (b) 98% (b) 100% (b) Grades 8-9 (c) 31.4% (c) 50% (c) Grades 10- 12 Gender Panty Index (a) 0.96 (a) 0.98 (a) Grades 1- 7 (b) 0.95 (b) 0.97 (b) Grades 1-9 (c) 0.81 (c) 0.82 (c) Grades 1- 12 __ District Performance Index 14 Health Percentageo fdeliveries assistedby midwives, 43% 60% nurses, doctors or Clinical Officers Percentageo f fully immunized children under 50% 70% one year o f age in20 worst performing districts Malaria case fatality rate among children below 24 I 1,000 15 11,000 five years Utilisation rate o f PHC facilities 0.48 0.8 ___ % M o Hreleasesto district level 55% 65% 15 Water Supply Volume o ftreated water produced (m3)by and Sanitation commercial utilities Newly installedwater points in (a) Pen-urbanareas (b)Rural areas (c) Total Number o fnew appropriate sanitary facilities provided in (a) Pen-urban areas (b)Rural areas Populationwith adequate sanitary facilities (as YOo f total population) in (a) 10% (2000) (a) Pen-urban areas (b)4% (2000) (b)Rural areas (c) (c) Total Populationwith access to safe water (as % o f total population) in (a) (a) Pen-urban areas (b)44% (2005) (b)(a) 60% (b)Rural areas (c) 37% (2000) (c) ___ (c) Total 16 Housing Number of low cost housing units constructed 100 ineach o f 72 districts (7,200) Number o fMedium Cost Housing units constructed Value of rents accruing to the local authorities from leasing (a) Low Cost (b)MediumCost (c) HighCost Housing Proportion o fpopulation inunplanned urban settlements who have access to clean and safe water Proportion o fpopulation inunplanned urban settlements who have access to safe means o f sanitation 17 Social Number o fH H s receiving (a) fertiliser and (b) 700,000 72,000 per ~ Protection fertiliser and seed annum Number o finformal sector workers on social 50.000 50,000 securitv scheme Number o fHHon cash transfer schemes 200,000 168,000 .~ Number o f street children reintegrated with 25,000 5,000 families and communities Prouortiono f cases o f Fifth National Development Plan 2006-2010 375 Baseline Target Value Sector Key Performance Indicators Value 2005 2010 (a) Sexual and Gender BasedViolence (b)Propertygrabbing Rtmortedthat are Drosecuted Total expenditure on social protection as a YOo f the total budgetary allocations to sector ina calendar year Youth and Child No. o f children and youth equippedwith 7,500 Development relevant skills (cumulative) No. o f youths receiving training insmall scale 1,000 4,000 business (cumulative) No. o f young inventors supported 0 3,600 (cumulative) No. o fchildren and youth trained inleadership 1,000 4,000 skills (cumulative) Number o fbirthcertificates issued 0 (disaggregated by gender and district) Number o f sports administrators, coaches and 1,000 9,000 community facilitators trained (cumulative) Number of child and youth development 300 3,000 workers trained (cumulative) Employment Formal Sector Employment Rate 19% and Labour Number o f days lost through industrial disputes 18,351 12,085 Number o f individuals coveredby social 618,455 934,388 security schemes Number o f labour inspections taken ina year (a) (a) 550 (a) 8,640 Labour Inspections (b) Factory Inspections (b) 1,068 (b) 1,950 Number o f industrial accidents inayear 787 350 Productivity Improvement Indices (a) Labour Productivity (a) 195 (b) Labour Cost Competitiveness (b) 116 (c) Capital Productivity (c) 140 (d)Profitability (d) 160 Central Percentage o f Administration (a) government ministries (a) 100% (Public Sector (b)Provincial Administration (b) 100% Management) (c) District Administration (c) 100% (d)Local Authorities (d) 100% with staffing complements appropriateto their agreedmandates Proportiono f government employees whose 100% salaries is described as being "Performance Based" Number of (a) ministries (b) localauthorities with a Service Deliverv Charter Proportiono f (a) central agenciesand (b) Provinces where Payroll Management and Establishment Control (PMEC) i s operational Number o f employees inthe Public Service receiving ARVs Proportion o fkey decisionmakingpositions in 12% 30% the civil service that are occupied by women Local N o o f devolved functions undertakenby the 0 22 Government Local Authority and YOannual increase indirect transfers to local Decentralisation authorities Number of valuationroles updated on an annual 22 19pa basis Value o frevenues accruing to local authorities Fifth National Development Plan 2006 -2010 376 3ase1ine Sector Key Performance Indicators Jalue 2005 from rate collection N o o f Housing Units constructedby Local 63 1,440 pa Authorities Information Number of provincial centres able to publish 9 (all) Services** newspapers locally Number o f districts able to receive ZNBC TV 24 73 (all) and Radio signal Number o f district centres linked to the sector 10 73 (all) wide network Number o f community media organisations in operation Number o f media friendly laws implemented-- Foreign Numberofvisas issued by ForeignMissions Relations Numberofforeign investors inZambia who's initial point o fcontact was a foreign mission Number of General agreements o f cooperation signed and implemented Number o fMissions instrategic regions 29 35 Level o ftechnical assistance(financial and in kind) accrued to Zambia as a direct initiative o f Missions Defence** NumberofHousingUnits / Quarters 3,230 rehabilitated (Cumulative) Number o fHousing Units / Quarters developed 2,719 (Cumulative) Agricultural Productiono f SpecifiedProducts Proportiono f those identified as needing 100% training who receive the identified training (Cumulative) Kilometres o f Road Constructed 100 (Cumulative) Law and Order (a) 98,709 Annual ~ Annual percentage increase inreported offences to (a) Zambia Police (c) 10,000 @) Drug Enforcement Commission Societies (c) Registrar o f Societies (d) Immigration (e) National Registration Annual percentage increase inthe number o f Annual arrests made as a result of reported offences to (a) 57,384 increase o f 2 per (a) Zambia Police @) 2,768 cent @) Immigration (c) 2,679 (c) DEC (430 (dl National Reeistration Annual percentage increase inthe number o f Annual arrests that result inprosecution (a) 38,858 increase of2 per ~ (a) Zambia Police (b) 1,323 (b)Immigration (c) 2,665 (c) DEC (418 (d)National Registration Annual percentage increase o f the number of Annual prosecutedcases resulting ina successful (a) 28,580 increase o f 2 per verdict @) 1,058 (a) Zambia Police (c) 1,389 @) Immigration (dl 3 (c) DEC (d) National Reeistration Staff Ratio to appropnate populabon (a) Zambia Police to total population (a) 1:700 (a) 1500 @) Imrmgration Officers to PI (b) 1:lO (b) 1:l (c) DEC officers to population (c) 1:27,186 - JldRegistrar ofsocieties to Societies Fifth National Development Plan 2006 - 2010 377 Baseline Target Value Sector Key Performance Indicators Value 2005 2010 (e) National Registrationto total population (e) 1:20,000 (e) 1:18,000 (f) Civil Servants to National Archives (f) 1 :10,000 (f) 1 :5,000 (8) Prison Staff to prison in-mates (h)(g)1:2,000 1:9 (8) 1:4 (h)Commissionfor Refugees to refugees (h) Prevalence o fHIV and AIDS amongst Prison Current total Inmates number = 2.755 Proportiono f Staff inkey MPSAs who are women (a) (a) Zambia Police (b) (b) Immigration (c) (c) DEC (d)20.4% - (d) Prisons 26 Governance Average time taken to dispose o fcases 100% (criminal and civil) at each stage o fthe administrationo fjustice process. Backlog o f cases. 10% Remandkonvict ratio. -- 25% Number o f verifiable interactions between MP's 100 125 and their constituencies/citizens or civil society oreanisations Proportionbetweenhumanrights cases reported 100% and investigated Proportiono f recommendations from the Public 100% accounts committee basedon OAG reports that have timely and adequate action taken by responsible government institution Proportiono f Registered Voters comparedto TBD 80% eligible 27 HIV and AIDS Number tested for HIVat VCT and receiving 150,000 500,000 ~ the test results (cumulative) Number o fHIV+pregnant women receiving a 50,000 complete course o f ARV prophylaxis (cumulative) Number ofpersons withadvanced HIV (a) 12,656 250,000 infection on ART (a) men (b) women (c) total (b) 17,456 (cj 30,112 Number o fworkplaces, including line 628 ministries, with developed workplace policies and programmes for HIV and AIDS Amount o f funds spent on HIV and AIDS inthe past 12months 28 Gender 2 5 ~ % Declarations and conventions domesticated % o fwomen with titled land 5% 30% % Women indecisionmaking positions (incivil 12% 30% service) Ratio o fboys to girls at (a) Primary (a) (b) Secondary (b) (c) Tertiary (c) levels of education Percentagereductioninnumber of cases o f 100%=2520 gender violence cases Number o f sectors with gender disaggregated 1 8 data bases 29 % Stunting(0 -59 months) 47% 37% ~ Food and Nutrition YOUnderweight (0 -59 months) 23% 13% Prevalence Vitamin A Deficiency (659 54% (2003) 44% months) Prevalence iron Deficiency (6- 59 months) 52% (2003) 42% Proportion o fwomen attending ante-natal classes who are malnourished. Disaggregated by (a) rural and (b) urban Fifth National Development Plan 2006 -2010 378 38.3.2.3 Process Indicators The FNDP monitoring system shall also take into consideration a number o f key process indicators. These relate specifically to the monitoring o f the processesthat are related to the implementation o f the Plan at both the macro and sectoral levels. These indicators are closely linked to the performance assessmentframework (PAF) that is developed inthe context o fdirect budget support. 38.3.3 Sources of Data Collection o f data on indicators will involve establishing baseline data sources, location and accessibility o f the data. Data collection will be a systematic, regular, and ongoing process. Four principal sources o f data have been identified for use inmonitoring and evaluating the FNDP. These are censuses; surveys; the regular information systems o f the various line ministries; participatory (or qualitative) exercises; and regular informationon inputs and expenditures will be provided through the IFMIS system.These are briefly described below. a) Censuses: the Census is conducted once every 10 years as a major source of baseline information for most socio-economic indicators. The latest census o fpopulation and housing was conducted in2000 and the next census will be in 2010. During the FNDP period, the country will also embark on Economic Census inorder to update and establish baseline indicators; b) During the FNDP period CSO will carry out a number of surveys which will provide data and informationfor monitoring and evaluation such as: ----- Priority surveys; Living conditions monitoring surveys; Indicator surveys; Surveys on demography, labour, sexual behaviour etc.; and Regular information gathering for CPI, industrial production andprice indices. c) Routine Information Systems of Sector Ministries: The administrative information systems o f the various line ministries will be a rich source of data that will be used inmonitoring and evaluation. These systems shall produce regular information at all levels (input, output, outcome and impact) that will regularly be used for monitoring and evaluationpurposes; d) Participatory Monitoring: The monitoring system will be open to the participation of different actors at various levels. Inparticular, it will look for synergies with the independent monitoring o f the FNDP, utilising qualitative data and participatory approaches that will developed by organisations. While acknowledging the desire for civil society to remain independent, the Government will continue to invite their participation inappropriate forums; and e) Input and Expenditure Data: The monitoring and evaluation system will be linked to other public reformprogrammes and initiatives, such as MTEF and the IFMIS component o f PEMFA. IFMIS, in particular, will be key in supporting input and output monitoring at all levels. This component will also contribute to the generation o fbaseline data for performance-based monitoring and evaluation. 38.3.4 DataAnalysis Data collected will be processed and interpreted into information for action by decision-makers, planners, and researchers. The overall objective of this component will be to strengthen the capacity of data producers to provide timely information on poverty and social conditions and the capacity o f the MFNP to facilitate the use o f this information for policy making. The analysis function will be operationalised through the study fund and the annual poverty conferences. The study fund will be dedicated to funding applied policy researches commissioned by respective sector ministries either as priority studies or those focused on answering specific policy questions. The poverty conferences, based, as far as practical, on CSO's existing data sets, will give an overview o f the poverty situation in the country from the Government. There are four levels of reporting identified for the FNDP, each producing a different type o f report, targeted at a specific institution. Table 38.3 provides an overview o f this. (use arrows to convey the information on the table)?? FifthNational Development Plan 2006 -2010 379 Table 38.3: Le! s of Reporting for the NDP Monitoring and E iation System Reporting ReportType Basidcriteriafor Responsible RecipientInstitutions Frequency of Level Reporting Institutions Reporting National Input Compliance/ Accountant- Implementing Monthly/ Level Tracking and efficiency on General's Office Agencies Quarterly Implementa- quarterly cash flow Budget Office CentralGovt. tion projections and MPSAs, (Secretary to the output targets Cooperating Treasury, Cabinet partners Office) Parliament National, Progress Compliance and Districts Districts Quarterly and Provincial, Report effectiveness on Provinces Provinces Bi-Annually and District outputs and Sectors Sectors outcomes MoFNP MoFNP (PEMD - M&EUnit) 0 Cabinet National, Annual Effectiveness o f cso MFNP Annually Provincial, Evaluation interventions at MPSAs .. Cabinet and District outcome and 0 PEMD-Mand impact level EUnit, Officeofthe Auditor-General National Mid-Term Effectiveness, cso MFNP Once (after Evaluation relevance, and 0 MPSAs Cabinet three years) sustainability o f P E M D - M a n d interventions at EUnit outcomes and impact level Input Tracking and Implementation Reports: the Monitoring and Evaluation unit of MFNP will facilitate the collection o f the reports &om Budget Office, Accountant-General's Office and cooperating partners. This information will be sent to the districts, provinces, and sectors. This will ensure a systematic, timely, and continuous flow o f data and other information for monitoring. Input tracking of resources will be done at this level. For the second o f these, Progress Reports, communities with capacity to generate progress reports will submit these to the district for consolidation into district progress reports. District officials will collect information from communities with insufficient capacity to do this. In addition, districts will produce quarterlyhemi-annual reports based on the key performance indicators. The provinces will consolidate the district reports for discussion in the PDCC, while the sectors will generate sector progress reports for discussion in SAGS. The contents o f these reports will highlight the planned outputs and outcomeshnpact for each activity as they relate to inputs. The report will also cover the extent to which the planned targets have been achieved and provide reasonsfor the achievement or failure. Annual Evaluation Reports will be a consolidation of all the quarterly and semi-annual progress reports. This report will analyse indetail the reasons for achieving or not achieving specific annual targets based on the key performance indicators. This report will explain, where possible, the impact o f the interventions, and identify areas for further investigation. It will incorporate lessons learnt from implementation o f the intervention as defined inthe FNDP, providing an input into the decision-making process at policy level. Mid-Term Evaluation Reports will be produced after two andhalfyears o f the FNDP implementation. I t will assessthe progress made towards achieving the five-year targets, andwill analyse the impact of the Plan on economic growth and poverty reduction, based on the identified sectoral key performance indicators. It will consider questions o f efficiency, relevance, effectiveness, and sustainability o f the various interventions at sector level as defined inthe FNDP. Lastly, there will be the End-of-Plan Evaluation that shall assess the overall performance o f the Plan and identify lessons learnt that shall be expected to inform hture planning and implementation processes. FifthNational Development Plan 2006-2010 380 38.3.5 Data Use Once data has beenanalysed and reports produced, the next essential stage o f the monitoring system is the use o f the reports. Table 38.4 identifies the major users and potential uses o f each o f the type o f reports identified. Tab 38.4: Users and Uses ( lata at Various levels of e FNDP Monitoring Systen Institutional Level Type of Report Responsibilities Users Main Use of Data National Level Inputtracking . Compilation and . Parliament, . Policy and decision- - . making 9 .. I Central and analysis o f Cabinet, Central Ministries Implementation administrative and Ministries Resource allocation (Cabinet Report socio-economic Sector Ministries, Fiscal Management; Office, Biannual data Provinces and National Planning and MOW) Progress Report = Generation o f Economic cso 'Annual Spending . baseline socio- Agencies Management; ... .. Accountant- Evaluation economic data Sector Advisory 9 Accountability and General Mid-Tern Compilation and Groups Transparency; Budget Evaluation analysis o f NGOs Research Office financial data FBOs Monitoring and Sector Compilation and Academia Evaluation . Ministries analysis o fbudget Cooperating information partners Generation and -. Civil society analysis o f administrative and socio- economic data, including .. .... indicators for outcomes Provincial . Input tracking Generation and Line Departments Policy dissemination Level and analysis o f Provincial Budgeting (Regional) Implementation administrative and Development Planning Report socio-economic Coordinating Programme/project . 9 Biannual data, including Committees management ... Progress Report indicators for Spending = Research Annual outcomes Agencies Monitoring and Evaluation NGOs evaluation FBOs Academia Cooperating partners Civilsociety DistrictLevel . 9 Inputtracking Generation and LineDepartments Budgeting (District and analysis o f . District Planning (project .. Administration Implementation administrative and Development identification, and Local Report socio- economic Coordinating investmentplanning, Authorities) Biannual data, including Committees situation analysis) .. Progress Report indicators for Spending 9 Programme,/project Annual outcomes Agencies management .. Evaluation 9 NGOs Research FBOs Monitoring and Academia evaluation Cooperating . partners Civilsociety Community . Input tracking CBOs Informeddecision- Level .. 9 Generation o f and qualitative data making on (CBOs and Implementation development activities . Traditional Report within community . Rulers) Biannual = Service demand Progress Report Needs identification; Annual 9Advice onlocal Evaluation resource requirements 38.3.6 Monitoringand Evaluation InstitutionalFramework The institutional framework for the F'NDP monitoring can be broken up into two broad groupings. At one level is the technical arm, and the other the consultative arm. The MFNPwill be responsible for the FifthNational Development Plan 2006-2010 381 coordination, supervision, and management o f all elements o f the monitoring system, including the consultative bodies, the consolidation andproduction o freports, and the coordination of analytical work undertaken. The CSO will be the key institution in the provision o f statistical data. I t will also have an important role inensuring that dataprovidedby various sectors conforms to agreed standards. At the centre of the technical arm of the monitoring and evaluation institutional framework for the FNDP monitoring is MFNP. A t sectoral level, the line ministries will be the major providers of information on monitoring and evaluation. In terms o f coordination, the institutional framework will include the existing horizontal coordination and advisory bodies such as the NDCC, PDCC, and DDCC, as well as the SAGs. In addition to this is the Inter-Ministerial Technical Committee (IMTC) whose purpose will be to spearhead the monitoring and evaluation activities o f their respective sector ministries. 38.3.7 The FNDP Monitoringat Lower Levels The monitoring and evaluation system will work in a decentralised environment where the objective i s to develop and institutionalise an appropriate system that will facilitate effective implementation of national development programmes at local level. Therefore, the monitoring and evaluation system at this level will play an important role inensuring that communities are capable by buildingtheir capacity to be able to collect, analyse, and report on the performance o f agreed key indicators. At district and sub-district levels, the monitoring system will be open to the participation o f relevant stakeholders. In particular, it is expected that these actors will provide synergies inmonitoring and evaluating the FNDP utilising qualitative data and participatory approaches. Civil society organisations, through their participation, will share their fmdings which will feed into the Government information systems. Civil society participation will be enlisted through their membership in such coordination and advisory fora as SAGs, PDCCs, DDCCs and the annual poverty conferences. 38.3.8 Monitoringand EvaluationWork Plan The process o f monitoring the FNDP will be continuous and involve many complementary activities from stakeholders in addition to what sector ministries will have to put inplace to facilitate the process o f monitoring and evaluation. Given the weak monitoring and evaluation background, one of the major activities shall be to build capacity in these institutions. Having put inplace the institutional framework and identified indicators for monitoring and evaluation, the rest o f the process will primarily rely on a strong and reliable data generation and processing system, with regular support from the coordinating institution (MFNP). The work planandtimeframe are presented inTables 38.5 and 38.6 respectively. Table 38.5:Work Plan and Actii iesfor Monitoringthe FNDP ResDonsible Activity Strategies - Institutions 1. Capacity BuildinginM & E (particular Facilitating: MFNP -(PEMD, A- emphasis ondata generation, processing, a) Technicalbackstopping G, CSO, CCSD) identification o findicators and reporting) b)Training workshops 9Training institutions c) Short courses d)Consultancy 2. Development o f detailed sector M & E Consultations with stakeholders on 9MoFNP (PEMD) . frameworks the M&E framework for sector 9Line Ministries ministries 3. Spot Monitoring Fieldvisits to selected projects in MoFNP(PEMD) provinces for verification - Line Ministries 4. Annual Evaluation Analytical consolidated report o f (members o f the sector progress reports IMTC) 5. SAG Conference SAG Stakeholder Meeting to discuss sector performance on PRPS All stakeholders 6. Annual Poverty Conference Review and update country poverty situationthrough assessment o f reports from various stakeholders 7. Poverty Monitoring and Analysis Priority Studies 8. Small-scale focused studies CSO, M&E, Sectors and 9. Mid-Term Evaluationo f the FNDP Conduct mid-term evaluationo f consultants the FNDP 10. Final Evaluationo f the FNDP Conduct final evaluationo f the FifthNational Development Plan 2006-2010 382 ____- Formal Sector employment 1. Training of sector Mimtn Fifth National Development Plan 2006 -2010 383