Forum opposes Industrial Development Corporation (IDC) formation

The Zambia Association of Manufacturers (ZAM), the Zambia Chamber of Commerce and Industry (ZACCI) as well as the Jesuit Centre for Theological Reflection (JCTR) expressed fear that the IDC would hijack most of the businesses in the country.
They said this at the public discussion forum, organised by Economic Association of Zambia (EAZ) on Wednesday evening, on the formation of the IDC by the Government.
ZAM president Bright Chunga said the IDC would impact on the growth of the private sector, saying it would get most of the businesses which were currently being enjoyed by the private sector.
He said the establishment of the IDC would have an effect on the development of the private sector because of its governance concerns.
Mr Chunga said the Government should have thoroughly consulted before coming up with the IDC, adding that most of the State Owned Enterprises (SOEs) had not performed well since independence.
ZACCI president Geoffrey Sakulanda said there was no need for the Government to establish the IDC, adding that the country had enough development vehicles like the Development Bank of Zambia (DBZ), Zambia Development Agency (ZDA) and the Citizen Economic Empowerment Commission (CEEC).
“The IDC will confuse the economic environment in that the Government will be formulating policies to protect SOEs which the IDC will have stakes in and in the process the private sector will shrink ,” Mr Sakulanda argued.
JCTR programme officer Andrew Simpasa asked how the IDC would contribute to industrialisation when the existing SOEs had allegedly failed.
Mr Simpasa said lack of policy interconnectivity was impacting on the economy, saying the IDC should not be a standalone policy but that it should be implemented in collaboration with other policies.
University of Zambia senior lecturer Chiselebwe Ng’andwe said the Government needed to provide an enabling environment for the private sector rather than involving itself in business.
Dr Ng’andwe urged the Government to consult widely before coming up with any policy document.