THE private sector plays an integral part in any national development. The success of any plan in relation to national development depends on the involvement of the private sector to supplement Government's effort.
In the recently launched Sixth National Development Plan (SNDP), Government has committed itself to facilitating the partnership with the private sector in all areas of economic development and social service delivery for the benefit of the general populace.
The SNDP will guide Zambia's development process for the next five years starting this year. President Rupiah Banda called on the private sector to remain a dependable partner in the country's development process.
The SNDP succeeds the Fifth National Development Plan (FNDP) aimed at achieving the aspirations of the Vision 2030 of becoming a prosperous middle income nation by 2030.
While the FNDP, which ran from 2006 to 2010, set pace for improving economic infrastructure and investing in human development, the SNDP will build on the economic gains of the FNDP in the process of attaining the Vision 2030.
In his address, President Banda said the private sector is expected to participate in the five-year economic blueprint whose implementation will cost about K132 trillion (about $27.5 billion).
He also appealed to all the stakeholders, both local and international, to work with Government in implementing the SNDP.
"Today marks a time of renewal and recommitment to our national vision of being a middle-income country by 2030. We have created a framework to achieve sustained economic growth and reduce poverty - measures which will help to improve the standard of living for all Zambians.
We will continue to focus on investing in infrastructure, road, rail and air transportation, education skills, health and water and sanitation.
The private sector remains crucial to Zambia's development and we will continue our work to provide a climate that encourages investment and partnership," President Banda said.
President Banda also urged co-operating partners and other stakeholders to quickly fit into the new development plan and come up with workable ideas.
The private sector plays an important role on supplementing Government's efforts in improving the lives of the citizens.
Public Sector Development Association (PSDA) president Yusuf Dodia says the recognisition of the private sector in the SNDP is vital for its success.
Mr Dodia says the private sector is the major drive of any country's economic growth because of their presence in the four pillars of the economy namely mining, manufacturing, tourism and agriculture.
He says it is important that Government and the private sector work together to explore the country's potential in economic growth.
"The private sector is the main drive of the economy in any country because they are the pillars in manufacturing, agriculture, mining and tourism. Talk of the many lodges, mining companies and any other huge investment that we have in the country, almost all of them are being run by the private sector. So, the private sector is an important drive in economic growth," Mr Dodia says.
He has commended the government for choosing to work closely with the private sector in achieving the projections in the SNDP.
The SNDP policy clearly stipulates in accordance with modern concept, the concept of private sector development, that Government alone can not afford the huge responsibility of delivering quality service to the general populace.
Due to proactive fiscal policies since 1998 when the privatisation policy was put in place, Zambia has achieved rapid and quite stable growth in economic development, but the economy has become mainly investment-oriented.
However, the most important aspect of the SNDP is the projection to reduce extreme poverty levels from 37 percent to 29 percent by the year 2015.
Although growth rates have been climbing steadily in recent years, reaching 6.3 percent last year, the country still has potential to go beyond the percentage and the rankings from World Bank and International Monetary Fund.
The International Monetary Fund predicts that Zambia will be one of the top 10 fastest growing economies for the period 2011 to 2015 and ranked Zambia at number 15 last year.
One cannot deny the fact that, through the concept of private sector development as envisaged in modern concept, any country that incorporates the concept in its agenda for national development can succeed.
One area where private sector intervention could really make a difference is boosting the productivity in the four pillar sectors (mining, manufacturing, agriculture and tourism) of economic growth as projected in the SNDP.
Zambia does not just need growth per-se, but specifically growth in labour-intensive sectors that leads to job creation and wage improvement. This link is vital because the fastest exit from poverty is through employment and higher salaries.
The private sector has played a major role in the evolution of the economy, particularly in the sectors like mining, manufacturing, agriculture and tourism.
The World Bank also recently named Zambia as a top ten improver for doing business with the IMF naming Zambia as number 15.
It is widely accepted that the private sector is needed and better suited for sustaining rapid growth.
And the Zambian experience shows that growth is the most powerful weapon in the fight against poverty. This growth is only possible with the involvement of the private sector.
Growth creates jobs that use labour, the main asset of the poor. As growth proceeds, private sector employment becomes the major source of economic support for the majority of workers and their families.
Thus, improving labour market operations is an important element of strategies to promote pro-poor growth and reduce poverty.
It also helps allocate a country human capital resource to their most productive uses, enhancing general economic welfare, and encouraging further growth and development. Well-designed labour market policies like the projections in the SNDP help societies make growth more equitable by smoothing income fluctuations and broadening access to human capital development and employment opportunities.
However, it is also important to recognise the linkages across factor markets. Thus, an integrated approach to the removal of distortions in different factor markets is essential for sustained success in the fight against poverty.
Growth in the economy also increases the tax base that enables government, acting on good governance principles, to finance labour market programmes and provide basic social services. Health and education services, in particular, give the poor a better chance to increase their productivity and earning capacity and with increased private sector involvement in these two sectors, poverty reduction is possible.
Private sector involvement in all sectors of the economy is crucial and the benefits are worthwhile to both the government and the general population.
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