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©2015 | UNLOCKING ZAMBIA’S POTENTIAL

ALINESS MUMBA - HEAD OF RESEARCH & ANALYSISJ U N E 2 0 1 5

EFFECTIVE MANAGEMENT AND GOVERNANCE OF PUBLIC RESOURCES

P O L I C Y M O N I T O R I N G A N D R E S E A R C H C E N T R E

http://pmrczambia.com/legislationatyourfingertips/

Unlocking Zambia’s Potential

http://pmrczambia.com/

OPENING REMARKS

ABOUT PMRC

PMRC STATED AIM• Producing high quality, relevant and timely public policy analysis, delivery monitoring and reform proposals.• Promoting and encouraging informed public debate on critical social and economic policy issues critical to

national development.

The Policy Monitoring and Research Centre (PMRC) is a public policy research think tank whose vision is “Unlocking Zambia’s Potential”.

To deliver its mandate, PMRC works with, and leverages from the programmatic, information, communication and outreach networks of various institutions and organisations. These include governmental, civil society and citizen groups. This approach of collaboration has enhanced PMRC’s relevance to national development through awareness of public policy.





GOOD GOVERNANCE

GOOD GOVERNANCE

PMRC also carries out various Corporate social responsibility (CSR) activities. The organization identifies schools that need improved learning environments. We then partner with companies such as PLASCON and take part in painting activities in order to create a

conducive-learning environment for pupils.

CHALLENGE: n Lack of access to information on policy and legislation;

n Poor information management systems;

n Lack of appropriate engagement channels for ordinary citizens to interact in policy processes continue to pose challenges for good governance interventions in the country.

PMRC’S WORK ON GOOD GOVERNANCE IS UNDERPINNED BY:

n Transparency, n Accountability n Monitoring of efficient and effective use of resources n Strategic partnerships n Access to and management of information n xAwareness creation and learning





THE BROADER PERSPECTIVE – PMRC OPERATIONAL STRATEGY


Our 2015 strategic focus is based on assessments of the development commitments set by the government. Specifically, this is in reference to the Revised Sixth National Development Plan (SNDP) as well as the 2015 National Budget. To ensure that PMRC

is timely and remains relevant, we also conduct analysis and provide our opinions on selected legislation released such as statutory instruments and policies. The main focus for the year 2015 is outreach and impact in the communities, by analyzing and simplifying data to the citizenry on government policy and what it means to them.

SNDP

Defence ZMW 3.25 Billion

7.0%

Housing andCommunity Ammenities

ZMW 798.71 Million1.7%

Social ProtectionZMW 1.26 Billion

2.7%

Public Service Pension FundZMW 805.00 Million 1.7%

Social Cash TransferZMW 180.00 Million 0.4%

O/W GRZ ContributionZMW 150.00 Million 0.3%

Food Security PackZMW 50.00 Million

0.1%

Rural Electrification FundZMW 70.71 Million

0.2%

Sovereign Wealth FundZMW 100.00 Million

0.2%

Farmer Input SupportProgrammeZMW 1.08 Billion 2.3%

Empowerment FundsZMW 123.70 Million

0.3%

Strategic Food ReserveZMW 992.90 Million2.1%

Agricultural E-Voucher SystemZMW 254.90 Million

0.5%

ZESCO Power RehabilitationsZMW 600.00 Million1.3%

Livestock Disease Controland Aquaculture Development


Roads InfrastructureZMW 5.63 Billion

12.1%

O/W GRZ ContributionZMW 3.22 Billion 6.9%

School InfrastructureZMW 1.07 Billion 2.3%

Research and Development EquipmentZMW 28.50 Million 0.1%

University InfrastructureZMW 650.00 Million 1.4%

BursariesZMW 200.20 Million

0.4%

Trades Training Institutes ZMW 79.60 Million

0.2%

School Feeding ProgrammeZMW 32.00 Million

0.1%

Teacher Recruitmentand Establishment OperationsZMW 6.41 Billion 13.7%

THE 2015NATIONAL BUDGET

ZMW 46.7 BILLION

Constitution Making ProcessZMW 29.26 Million

0.1%

External Debt InterestZMW 2.39 Billion 5.1%Public A�airs and Summit

ZMW 68.86 Million 0.1%

Local GovernmentEqualisation FundZMW 586.76 Million 1.3%

Compensation and AwardsZMW 100.00 Million

0.2%

Constituency Development FundZMW 210.00 Million

0.5%

New Province / District Infrastructure DevelopmentZMW 500.00 Million 1.1%

Domestic Debt InterestZMW 2.90 Billion6.2%

Water Supplyand Sanitation

ZMW 540.99 1.2%

EducationZMW 9.43 Billion

20.2%

General PublicServices

ZMW 12.04 Billion25.8%

Drugs and Medical SuppliesZMW 753.52 Million 1.6%

Medical Infrastructure and EquipmentZMW 268.24 Million 0.6%

Health ZMW 4.46 Billion

9.6%

Sub categoryBudget amountPercentage of National Budget

SECTORBudget Amount

Percentage ofNational Budget

KEY

Environmental ProtectionZMW 174.96 Million

0.4%

Recreation, Cultureand Religion


Public Order and SafetyZMW 2.18 Billion

4.7%

Economic A�airs ZMW 12.75 Billion

27.3%

National Budget

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STRATEGIC OBJECTIVE STRATEGIC APPROACH

To influence policy direction towards growth and poverty reduction

Production of high quality policy research evidence with submission of evidence based policy reform proposals

To become a source of quality data relevant for stakeholders in areas of social and economic development

Strategic knowledge and evidence brokerage to enhance decision making establish strategic partnerships

To create public awareness on policy and stimulate public policy debate

Facilitation of multi- stakeholder dialogue platforms at district, provincial and national level. Productions and dissemination of targeted research outputs through innovative media platforms.


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STAKEHOLDER COLLABORATIONS

STAKEHOLDER COLLABORATIONS & RESEARCH

RESEARCH

PRESENTATIONS

ENGAGEMENTS

Some of the notable stakeholder engagements and collaborations that we have undertaken include:-

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n Auditor General’s Office n Collaborations with Ministry of Tourism – for

tourism research n Collaborations with Ministry of Agriculture,

National Farmers Union n Engagement meetings with Economic

Association of Zambia (EAZ) n Participation in The World Vision International

Forum on Advocacy n Consultative meetings with Zambia Association

of manufacturers

n Research field trip to Luapula Province on the fish ban

n Research field trip to Chongwe District on Agriculture

n Research field trip to Lusaka South and East Multi Facility Economic Zones (MFEZ)

n Parastatals presentations to various institutions

n Presentations to Parliament on the SI 63 – retirement age





SELECTED RESEARCH PRODUCED

SELECTED RESEARCH PRODUCED

1. The 2015 National Budget Analysis and accompanying infographic

2. The Electricity tariffs policy brief

3. The Auditor General Report research series ( Analysis, briefing document, Constituency Development Fund and Parastatals)

4. The Water Resources in Zambia Background Note

5. Policy Analysis of Statutory Instrument number 63 on retirement age

6. The Fisheries research report (focusing on the fish ban)

7. The Fuel Procurement in Zambia Infographic

8. The Tax Morale Background Note

9. The Tax incentives Policy brief

10. The Tourism Research Series

PMRC AUDITOR GENERAL REPORT ANALYSIS

Unlocking Zambia's Potential

www.pmrczambia.org | facebook.com | youtube: pmrczambia | twitter: @pmrczambia | linkedin.com

ENABLING EFFECTIVE MANAGEMENT OF PUBLIC RESOURCES

ACCOUNTABILITY

TRANSPARENCY

AUDITOR GENERAL

PUBLIC RESOURCE

NATIONAL DEVELOPMENT

MISAPPLICATIONMISAPPLICATION

MISAPPLICATION

EXPENDITURERETURNS NATIONAL ASSEMBLY

MISAPPLICATION

PUBLIC RESOURCE

PUBLIC AWARENESS

EXPENDITURERETURNS

AUDITOR GENERAL

PUBLIC RESOURCE

PUBLIC RESOURCE

PUBLIC ACCOUNTSCOMMITTEE

POOR PROCUREMENT

POOR PROCUREMENT

NATIONAL ASSEMBLY

TRANSPARENCY

TRANSPARENCY

TRANSPARENCY

ACCOUNTABILITY

ACCOUNTABILITY

ACCOUNTABILITYMISAPPLICATION

PUBLIC ACCOUNTS COMMITTEE

UNRETIRED IMPREST

TRANSPARENCY

TRANSPARENCY

IMPREST

IMPREST

IMPREST

IMPREST

UNRETIRED IMPREST


PUBLIC AWARENESS

UNVOUCHED EXPENDITURE

NATIONALDEVELOPMENT

ACCOUNTABILITY

ACCOUNTABILITY

NATIONALDEVELOPMENT

PUBLIC RESOURCES

EXPENDITURE

RETURNS

ACCOUNTABILITYDEVELOPMENT

ACCOUNTABILITY

TRANSPARENCY

AUDITOR GENERAL

PUBLIC RESOURCE



MISAPPLICATION


MISAPPLICATION

PUBLIC RESOURCE

PUBLIC AWARENESS

EXPENDITURERETURNS

AUDITOR GENERAL

PUBLIC RESOURCE

PUBLIC RESOURCE


POOR PROCUREMENT

POOR PROCUREMENT

NATIONAL ASSEMBLY

TRANSPARENCY

TRANSPARENCY

TRANSPARENCY

ACCOUNTABILITY

ACCOUNTABILITY



UNRETIRED IMPREST

TRANSPARENCY

TRANSPARENCY

IMPREST

IMPREST

IMPREST

IMPREST

UNRETIRED IMPREST


PUBLIC AWARENESS


NATIONALDEVELOPMENT

ACCOUNTABILITY

ACCOUNTABILITY

NATIONALDEVELOPMENT

PUBLIC RESOURCES

EXPENDITURE

RETURNS


ACCOUNTABILITY

TRANSPARENCY

AUDITOR GENERAL

PUBLIC RESOURCE



MISAPPLICATION


MISAPPLICATION

PUBLIC RESOURCE

PUBLIC AWARENESS

EXPENDITURERETURNS

AUDITOR GENERAL

PUBLIC RESOURCE

PUBLIC RESOURCE


POOR PROCUREMENT

POOR PROCUREMENT

NATIONAL ASSEMBLY

TRANSPARENCY

TRANSPARENCY

TRANSPARENCY

ACCOUNTABILITY

ACCOUNTABILITY



UNRETIRED IMPREST

TRANSPARENCY

TRANSPARENCY

IMPREST

IMPREST

IMPREST

IMPREST

UNRETIRED IMPREST


PUBLIC AWARENESS


NATIONALDEVELOPMENT

ACCOUNTABILITY

ACCOUNTABILITY

NATIONALDEVELOPMENT

PUBLIC RESOURCES

EXPENDITURE

RETURNS


ACCOUNTABILITY

TRANSPARENCY

AUDITOR GENERAL

PUBLIC RESOURCE



MISAPPLICATION


MISAPPLICATION

PUBLIC RESOURCE

PUBLIC AWARENESS

EXPENDITURERETURNS

AUDITOR GENERAL

PUBLIC RESOURCE

PUBLIC RESOURCE


POOR PROCUREMENT

POOR PROCUREMENT

NATIONAL ASSEMBLY

TRANSPARENCY

TRANSPARENCY

TRANSPARENCY

ACCOUNTABILITY

ACCOUNTABILITY



UNRETIRED IMPREST

TRANSPARENCY

TRANSPARENCY

IMPREST

IMPREST

IMPREST

IMPREST

UNRETIRED IMPREST


PUBLIC AWARENESS


NATIONALDEVELOPMENT

ACCOUNTABILITY

ACCOUNTABILITY

NATIONALDEVELOPMENT

PUBLIC RESOURCES

EXPENDITURE

RETURNS


ACCOUNTABILITY

TRANSPARENCY

AUDITOR GENERAL

PUBLIC RESOURCE



MISAPPLICATION


MISAPPLICATION

PUBLIC RESOURCE

PUBLIC AWARENESS

EXPENDITURERETURNS

AUDITOR GENERAL

PUBLIC RESOURCE

PUBLIC RESOURCE


POOR PROCUREMENT

POOR PROCUREMENT

NATIONAL ASSEMBLY

TRANSPARENCY

TRANSPARENCY

TRANSPARENCY

ACCOUNTABILITY

ACCOUNTABILITY



UNRETIRED IMPREST

TRANSPARENCY

TRANSPARENCY

IMPREST

IMPREST

IMPREST

IMPREST

UNRETIRED IMPREST


PUBLIC AWARENESS


NATIONALDEVELOPMENT

ACCOUNTABILITY

ACCOUNTABILITY

NATIONALDEVELOPMENT

PUBLIC RESOURCES

EXPENDITURE

RETURNS


POLICY MONITORING AND RESEARCH CENTRE

1Efficient Water Resource Management for Sustainable Social and Economic Development | BACKGROUND NOTE DECEMBER 2014

PMRC WATER RESOURCES SERIESEFFICIENT WATER RESOURCE MANAGEMENT FOR SUSTAINABLE

SOCIAL AND ECONOMIC DEVELOPMENT

PMRC CONSTITUENCY DEVELOPMENT FUND (CDF) POLICY ANALYSIS

Unlocking Zambia's Potential

www.pmrczambia.org | facebook.com | youtube: pmrczambia | twitter: @pmrczambia | linkedin.com

WORKING TOWARDS A MORE EFFECTIVE DECENTRALISED SYSTEM OF NATIONAL DEVELOPMENT

CONSTITUENCY

COMMUNITY

DISTRICT

NATI

ONA

L CONSTITUENCY

COMMUNITY

DISTRICT

NATI

ONA

L CONSTITUENCY

COMMUNITY

DISTRICT

NATI

ONA

L CONSTITUENCY

COMMUNITY

DISTRICT

NATI

ONA

L CONSTITUENCY

COMMUNITY

DISTRICT

NATI

ONA

LPOLICY MONITORING AND RESEARCH CENTRE

©2013 Prepared by PMRC Monitoring and Evaluation [email protected] | www.pmrczambia.org

Defence ZMW 3,247.21 7.0%

Public Order and SafetyZMW 2,180.02 4.7%

Environmental ProtectionZMW 174.96 0.4%

Housing andCommunity Ammenities

ZMW 798.71 1.7%

Recreation, Cultureand Religion

ZMW 323.62 0.7%

Social ProtectionZMW 1,257.80 2.7%

Public Service Pension FundZMW 805.00 1.7%

Social Cash TransferZMW 180.00 0.4%

O/W GRZ ContributionZMW 150.00 0.3%

Food Security PackZMW 50.00 0.1%

Rural Electrification FundZMW 70.71 0.2%

Sovereign Wealth FundZMW 100.00 0.2%

Farmer Input SupportProgrammeZMW 1,083.17 2.3%

Empowerment FundsZMW 123.70 0.3%

Strategic Food ReserveZMW 992.90 2.1%

Agricultural E-Voucher SystemZMW 254.90 0.5%

ZESCO Power RehabilitationsZMW 600.00 1.3%

Livestock Disease Controland Aquaculture Development

ZMW 307.00 0.7%

Roads InfrastructureZMW 5,626.51 12.1%

O/W GRZContribution

ZMW 3,226.34 6.9%

Economic A�airs ZMW 12,746.64 27.3%

School InfrastructureZMW 1,069.53 2.3%

Research and Development EquipmentZMW 28.50 0.1%

University InfrastructureZMW 650.00 1.4%

BursariesZMW 200.20 0.4%

Trades Training Institutes ZMW 79.60 0.2%

School Feeding ProgrammeZMW 32.00 0.1%

Teacher Recruitmentand Establishment Operations

ZMW 6,414.66 13.7%EducationZMW 9,433.33 20.2%

THE 2015NATIONAL BUDGET

ZMW 46.6 BILLION Drugs and Medical SuppliesZMW 753.52 1.6%

Medical Infrastructure and EquipmentZMW 268.24 0.6%

University InfrastructureZMW 650.00 1.4%

Health ZMW 4,464.09 9.6%

Constitution Making ProcessZMW 29.26 0.1%

External Debt InterestZMW 2,391.68 5.1%

Public A�airs and SummitZMW 68.86 0.1%

Local GovernmentEqualisation FundZMW 586.76 1.3%

Compensation and AwardsZMW 100.00 0.2%

Constituency Development FundZMW 210.00 0.5%

New Province / District Infrastructure DevelopmentZMW 500.00 1.1%

DomesticDebt Interest

ZMW 2,896.16 6.2%

General PublicServices

ZMW 12,040.18 25.8%

Water Supplyand Sanitation

ZMW 540.99 1.2%

• Achieve a real GDP growth of above 7%• Achieve end year inflation of no more than 7%• Increase international reserves to at least 4

months of import cover• Raise domestic revenue collections to at least

18.5% of GDP• Limit domestic borrowing to no more than 2%

of GDP• Accelerate economic diversification and

continue to create decent jobs especially for the youth

• Accelerate implementation of health, education, water and sanitation sector interventions

GENERAL PUBLIC SERVICESZMW 12 Billion allocated of which ZMW 5.1 Billion (44%) is to service domestic and external debt obligations

ECONOMIC AFFAIRSZMW 12.7 Billion allocated of which ZMW 5.6 Billion (44%) is allocated for road infrastructure, including the Link Zambia 8000 and Pave Zambia 2000 projects

EDUCATIONZMW 9.4 Billion allocated of which 68% is for the recruitment of 5000 teachers and sustaining existing establishments and ZMW 1.1 Billion (11%) for early childhood, primary and secondary education infrastructure development

HEALTHZMW 4.5 Billion allocated of which ZMW 52.2 Million is allocated for the recruitment of over 2000 health personnelHousing and Community AmenitiesZMW 799 Million allocated of which ZMW 541 Million (68%) is allocated for the rehabilitation and construction of water supply and sanitation infrastructure

PUBLIC ORDER AND SAFETYZMW 2.2 Billion allocated for tasks involving the modernisation of security wings, staff recruitment and rehabilitation of prison infrastructure

SOCIAL PROTECTIONZMW 1.2 Billion allocated of which 64% is for the Public Service Pension Fund

REVENUEExpected revenue of ZMW 47.9 Billion of which 67% should be funded by tax revenue.

TAXRevision of mining fiscal regime to include mineral royalty taxes of 8% for underground mining and 20% for open cast mining, corporate income tax of 30% on income earned from tolling, and 30% corporate income tax on income earned from processing of purchased mineral ore or concentratesRemoval of 5% customs duty on aviation fuel to stimulate the aviation industry and create a Zambian regional air traffic hub

Macro-Economic Objectives for 2015

Highlights of the 2015 Budget

Economic Affairs

General Public

Services

Education Health Defence Public Order and

Safety

Social Protection

Housing & Community Amenities

Recreation Culture,Religion

Environmental Protection

0

3000

6000

9000

12000

15000

2012201320142015

Billi

on (K

wac

ha)

The 2012, 2013, 2014 and 2015 Budget Comparisons by

Allocation

FUNCTIONS AND SUB-FUNCTIONS

BUDGET PERCENTAGE INCREASE

FUNCTION 2012-2013 2013-2014 2014-2015

Economic Affairs 10% 34% 7%

General Public Services 2% 27% 12%

Education 16% 53% 10%

Health 41% 16% 6%

Defence 23% 35% 18%

Public Order and Safety 32% 57% 3%

Social Protection 36% 33% 6%

Housing and Community Amenities 186% -34% 21%

Recreation, Culture, Religion 84% 18% 8%

Environmental Protection 133% 123% 6%

Total 16% 33% 9%

The aim of the PMRC 2015 National Budget Infographic is to simplify The Budget in an easy to understand infographic towards encouraging and facilitating debate and discussion. The PMRC Infographic illustrates the key allocations that have been planned under the budget functions and sub-functions. The infographic further compares the 2012, 2013, 2014 and 2015 allocation trends, providing a clear understanding of how Government has been allocating and prioritising funds and projects.

©2014 Prepared by PMRC Monitoring and Evaluation [email protected] | www.pmrczambia.org

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CORPORATE SOCIAL RESPONSIBILITY

CORPORATE SOCIAL RESPONSIBILITY

PMRC also carries out various Corporate social responsibility (CSR) activities. The organization identifies schools that need improved learning

environments. We then partner with companies such as PLASCON and take part in painting activities in

order to create a conducive-learning environment for pupils.

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UNIVERSITY HANDOVER

PMRC further shares the research and analysis with various higher institutions of learning. The signature

university handover events are a platform where PMRC outputs such as, policy analysis, Policy Briefs and

Background Notes and infographics are shared with students.

UNIVERSITY HANDOVER

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MONITORING GOVERNMENT DELIVERY

As a means to monitor government delivery, PMRC later this year intends to conduct a countrywide survey “ Pulse Survey” assessing government delivery based

on the development commitments. To ensure that this survey is a success, PMRC will seek to collaborate with

stakeholders on various stages of the project. This will later culminate into a report providing a status of

government delivery in Zambia.

PULSE SURVEY REPORT 1

PULSE SURVEY REPORT

PULSE SURVEY REPORT

MONITORING GOVERNMENT DELIVERY

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PMRC AS A RESOURCE TO GOVERNEMNT

PMRC AS A RESOURCE TO GOVERNEMNT

PMRC’s work has been making notable impact on both the government and the citizenry at large. Our Monitoring and Evaluation (M&E) department tracks progress on our various recommendations made to government and assesses the impact of the government programmes to the citizenry as well. We do receive feedback and correspondence on how much our work is useful for the policy makers, planners,

academicians and indeed general public.

Republic of Zambia

8





PMRC NOTABLE CONTRIBUTION

Some of the notable contributions PMRC has made include:-

PMRC RECOMMENDATIONS STATUS

Advocating for cost reflective Electricity tariffs Government implementing cost reflective tariffs (upward adjustment on commercial and a 2 year hike ban on residential)

PMRC proposing reform to wildlife and tourism Government has made changes to the tourism legislation and the abolition on ZAWA

PMRC proposing for a harmonized development framework Government has harmonized development plans with the write up of the Revised- Sixth National Development Plan

PMRC calling for a Diaspora Engagement policy The ministry of foreign Affairs is in the process of drafting the Diaspora engagement policy

PMRC calling for a renewable energy policy The ministry of mines, energy and water development is in progress.

PMRC NOTABLE CONTRIBUTION

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CONCLUSION

CONCLUSION

n Reflects the importance of different stakeholders in promoting open and accountable institutions in order advance the national development agenda

n Evidence corroborates some of the experiences and findings of the different stakeholders present here today

n Use this evidence as a basis for developing responsive policy and operational solutions to the challenges highlighted.

n Through research analysis, communication and action, PMRC seeks to improve governance of national resources and ultimately contribute to sustainable national development and poverty reduction

Plot No. 32 Sable Road, corner Bishop and Sable Roads, Kabulonga, Lusaka, Zambia, Private Bag KL 10Tel: +260 211 268 385 | +260 979 015 660

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Unlocking Zambia's Potential Response to this presentation can be sent to: [email protected]