2024 BUDGET ADDRESS BY HONOURABLE DR.

SITUMBEKO MUSOKOTWANE,
MP, MINISTER OF FINANCE AND NATIONAL PLANNING, DELIVERED
TO THE NATIONAL ASSEMBLY
 2024 BUDGET ADDRESS BY HONOURABLE DR. SITUMBEKO
MUSOKOTWANE, MP, MINISTER OF FINANCE AND
NATIONAL PLANNING, DELIVERED TO THE NATIONAL
ASSEMBLY ON FRIDAY, 29TH SEPTEMBER, 2023

1. Madam Speaker, I beg to move And, notwithstanding periods of

that the House do now resolve into instability, the exchange rate of the
Committee of Supply on the Estimates Kwacha is relatively more stable now
of Revenue and Expenditure for the than before. Of particular significance
period 1st January, 2024 to 31st is that the strategic equity partner for
December, 2024 presented to the Konkola Copper Mines has now been
National Assembly on Friday, 29th selected while that for Mopani Copper
September, 2023. This is pursuant to Mines is imminent. Once this process is
Article 202 of the Constitution of concluded, the Copperbelt Province,
Zambia (Amendment) Act, 2016. and indeed the country at large, will
soon come back to life.
2. Madam, I am a bearer of a
message from His Excellency, Mr. 5. Madam Speaker, in the social
Hakainde Hichilema, President of the sector, we have provided free
Republic of Zambia, recommending education, recruited more public
favourable consideration of the motion workers, scaled-up social protection,
that I now lay on the Table. enhanced Constituency Development
Fund, and devolved some functions to
3. Madam Speaker, this is the third Local Authorities.
Budget that the New Dawn
Administration is presenting to this 6. Madam, ordinarily, these
House. Since coming into office just should be achievements over an entire
two years ago, our Administration has 5-year term. But this has happened in
achieved excellent progress in changing just 2 years!
the social and economic landscape of
our country. 7. Madam Speaker, during the
official opening of the Third Session of
4. Madam, on the economic front, the Thirteenth National Assembly,
Zambia’s external debt is now under President Hichilema emphasised on the
control following the debt restructuring need to build on the social economic
agreement reached earlier this year. The gains I have just outlined. His vision is
rate of increase in prices of consumer to see a better Zambia where the
goods or inflation, which we found at livelihoods of our people are improved.
24 percent, has reduced to 12 percent. The 2024 Budget and those that will

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follow do just that: to create conditions macroeconomic situation in 2023. At
for stronger and sustained economic the global level, economic growth is
expansion and job creation. expected to slow down to 3.0 percent in
2023 from 3.5 percent recorded in
8. Madam, the focus of the 2024 2022. Sustained tightening of monetary
Budget is, therefore, to promote policy in advanced economies, adverse
economic growth through enhanced effects of climate change, and the
private sector investment, increase impact of the prolonged Russia-
production and productivity, and Ukraine war are largely responsible for
improve public service delivery. It is in the subdued economic growth.
this context that the theme for the 2024
Budget is ‘‘Unlocking Economic 11. Madam, the consequence of the
Potential”. Through this Budget, weak global economy is that during the
therefore, the Government makes a first nine months of 2023, commodity
commitment to provide the policy prices trended downwards. Copper
framework, resources and incentives to prices declined to an average of US
unlock the economic potential of our $8,589 per metric tonne from US
country. $9,084 during the same period in 2022.
Crude oil prices also reduced to an
9. Madam Speaker, my Address average of US $82.8 per barrel from US
this afternoon is structured in four parts. $104.6.
Part I covers macroeconomic
developments in 2023. Part II outlines Domestic Economic Developments
macroeconomic objectives and policies
for the 2024 Fiscal Year. Part III Economic Growth
provides estimates of revenue and
12. Madam Speaker, our economy
expenditure along with borrowing
is projected to grow by 2.7 percent in
requirements for 2024. In Part IV, I
2023 compared to 5.2 percent in 2022.
conclude my Address.
The slowdown is mainly attributed to
Part I reduced production in the mining sector
on account of operational challenges
MACROECONOMIC OVERVIEW and flooding in some of the major
FOR 2023 mines.

Global Economic Developments 13. Madam, notwithstanding the

slowdown in growth this year,
10. Madam Speaker, as a way of prospects in the medium-term are
starting, let me briefly review the positive with the resolution of

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challenges in the mining sector. Growth favourable and broadly in line with the
is, therefore, expected to pick-up in projection. Total expenditure for the
2024 and over the medium-term. year is projected at K157.5 billion, 5.8
percent below the K167.3 billion which
Inflation this House approved. Notable expenses
include social cash transfer,
14. Madam Speaker, inflation has
dismantling of arrears, infrastructure
edged upwards to 12.0 percent in
development, and the Constituency
September 2023 from 9.9 percent in
Development Fund.
December 2022. This has largely been
driven by increases in prices of maize 18. Madam, with respect to
grain and meat products as well as the revenues and grants, these are projected
depreciation of the Kwacha against the at K119.1 billion, 5 percent above the
United States dollar. target of K113.3 billion. Revenue
collections are projected to be above
15. Madam, the Kwacha
target while borrowing, at K31.1
depreciated by 10.9 percent against the
billion, will be lower than the target of
US dollar to K20.05 per US dollar
K40.9 billion.
between January and August this year.
The depreciation of the Kwacha was 19. Madam Speaker, arising from
mainly on account of strong demand the expenditure, revenue and financing
while inflows, especially from the outturn, the fiscal deficit is projected at
mining sector, reduced. 5.8 percent of GDP, which will be
below the target of 7.7 percent. The
16. Madam Speaker, in response to
lower budget deficit outturn is
the recent rise in inflation, the Bank of
reflective of Government’s
Zambia has raised the policy rate by
commitment to fiscal discipline.
100 basis points to 10.0 percent. In
addition, to address volatility in the 20. Madam, I am happy and proud
exchange rate as well as safeguard the to report that in the two years that this
stability of the foreign exchange Administration has been in office, fiscal
market, the statutory reserve ratio was discipline has been very high. As I just
increased by 250 basis points to 11.5 reported, revenues and expenditures are
percent in February 2023. nearly spot on as authorised by this
august House. Moreover, deviations on
Budget Performance
expenditures seen in many years before,
17. Madam Speaker, budget hardly exist while critical areas like
performance in 2023 has been

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education, health, and CDF are fully corresponding period in 2022. The
funded as appropriated by this House. slowdown was due to reduced
borrowing by Government. Growth in
Debt Position lending to the private sector remained
steady at 15.0 percent.
21. Madam Speaker, the central
Government external debt stock, 25. Madam, the overall financial
excluding publicly guaranteed external performance and condition of the
debt, as at end-June 2023 increased banking sector remains satisfactory.
marginally by 0.8 percent to US $14.07 The capital position was adequate and
billion from US $13.96 billion at end- earnings performance was strong. Asset
December 2022. The increase was quality was satisfactory, reflected in a
largely on account of disbursements by lower non-performing loans ratio of 4.4
multilateral creditors. Total publicly percent at end-August 2023, below the
guaranteed external debt, however, 10.0 percent prudential benchmark.
declined by 1.9 percent to US $1.43
billion at end-June 2023 from US $1.45 26. Madam Speaker, the
billion at end-December 2022. performance of the non-bank financial
institutions was also satisfactory. The
22. Madam, the stock of Treasury capital position earnings performance,
bills and Government bonds stood at liquidity management and sensitivity to
K213.9 billion as at end-June 2023 market risk remained satisfactory.
from K210.0 billion as at end- Asset quality was rated fair with the
December 2022, representing an ratio of non-performing loans
increase of 1.9 percent. improving to 12.1 percent at end-June
2023 from 13.0 percent at end-June
23. Madam Speaker, the stock of
2022, but remained above the
domestic arrears marginally increased
prudential limit of 10.0 percent.
by 0.2 percent to K77.8 billion as at
end-June 2023 from K77.6 billion as at 27. Madam, emerging financial
end-December 2022. technologies and digitalization has
brought immense benefits to the
Financial Sector Performance
financial sector such as ease of
24. Madam Speaker, growth in accessing financial services. For
lending by the banking sector slowed instance, in the first half of the year, the
down to 6.4 percent in the first seven value of mobile payments grew by 38.0
months of 2023 compared to a growth percent to K199.5 billion while the
of 11.9 percent recorded in the

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volume of transactions grew by 7.1 Part II
percent to 976.4 million.
MACROECONOMIC
28. Madam Speaker, with increased OBJECTIVES
usage of digital financial services, there
is increasing threat of cyberattacks, 31. Madam Speaker, to unlock
which may compromise the stability of Zambia’s economic potential, we must
the sector. To mitigate this threat and address the constraints facing the
preserve the integrity of the financial economy, especially in the mining,
sector, the Bank of Zambia issued the energy, manufacturing and agriculture
Cyber and Information Risk sectors. These include low production
Management Guidelines to the and productivity, low diversification
financial service and payment systems and industrialisation, low private sector
providers in May this year. investment, low access to affordable
finance and low citizen participation.
External Sector Performance
32. Madam, the Eighth National
29. Madam Speaker, in the first half Development Plan sets out strategies to
of 2023, the merchandise trade surplus address these bottlenecks and to take
narrowed to US $200 million from US the country to a higher growth position.
$1.7 billion during the same period in In this regard, Government will pursue
2022. This outturn was due to higher the following macroeconomic
imports while exports declined. Imports objectives in 2024:
rose by 23.0 percent to US $5.2 billion
driven by capital and consumer goods. a) Attain a real GDP growth rate
In contrast, export earnings declined by of at least 4.8 percent;
11.6 percent to US $5.3 billion. This b) Reduce inflation to the 6-8
was largely due to reduced copper percent medium-term target
export earnings on account of lower band;
export volumes and prices. c) Maintain international
reserves above 3.0 months of
30. Madam, as at end-August 2023, import cover;
gross international reserves amounted d) Increase domestic revenue to
to US $2.9 billion, representing 3.2 at least 22.0 percent of GDP;
months of import cover. e) Reduce the fiscal deficit to 4.8
percent of GDP; and

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 f) Limit domestic borrowing to productivity in the major sectors of the
no more than 2.5 percent of economy.
GDP.
36. Madam, let me now present the
POLICIES FOR 2024 key interventions that will support
economic transformation and job
33. Madam Speaker, the creation.
development strategy for the country as
outlined in the Eighth National Agriculture, Livestock and Fisheries
Development Plan is premised on the
following key thematic areas: 37. Madam Speaker, over the past
years, crop and livestock production
a) Economic Transformation and has generally been below potential.
Job Creation; This has been due to a number of
b) Human and Social factors such as adverse effects of
Development; climate change, high cost of inputs,
c) Environmental Sustainability; unaffordable finance, inadequate
and irrigation and other agricultural support
d) Good Governance infrastructure, poor livestock and crop
Environment. management practices, as well as
inadequate mechanisation.
34. Madam, I will now present the
specific policies in these four strategic 38. Madam, according to the
development areas. 2022/2023 Crop Forecast Survey, the
country produced 3.2 million metric
A. ECONOMIC tonnes of maize. This means that the
TRANSFORMATION AND country produced enough food for
JOB CREATION itself. Notwithstanding this
performance, several of our
35. Madam Speaker, the New
neighbouring countries experienced
Dawn Administration has made
inadequate harvest. Demand for maize
progress in stabilising the economy
from the region has, therefore, led to
over the last two years. This gives us a
higher maize grain prices and
basis upon which we can achieve
subsequently escalation in mealie meal
higher, sustainable and more inclusive
prices.
growth. Notwithstanding the gains
made, we have a number of challenges, 39. Madam Speaker, traders from
particularly low production and countries with maize shortages started
buying maize from Zambia even when

6
it was still green in the fields and they 42. Madam, we are implementing
offered our farmers high prices. Higher measures to lower the cost of producing
maize prices for our farmers is of course maize. Key among these is the cost of
good for them. For many years, our fertiliser, which has come down to US
farmers have been crying for better $865 per metric tonne from about US
prices. Many of them sold their maize $1,200 in the last season. Another
across borders or abandoned growing of measure Government is implementing
maize and shifted to soya beans for is to come to an understanding with
better returns. The recently released millers for them to reduce the cost of
data on poverty shows that people mealie meal if they buy maize from
engaged in farming are among those stocks held by the Food Reserve
where the incidence of poverty is Agency. For millers using the Food
higher. Improved prices for their maize Reserve Agency maize, there is no
will help to reduce their poverty. justification whatsoever for their mealie
meal to be as high as what we see
40. Madam, under the sometimes. Finally, Food Reserve
circumstances, Government had no Agency will be releasing stocks of
option but to raise the buying price of maize for community purchases so that
maize or else face a situation where citizens can have a choice of milling
most of the maize grown in Zambia their maize using cheap methods like
would be exported by traders into the hammer mills.
region, thereby causing even higher
shortages. Better prices for maize, 43. Madam Speaker, in my last
induced by higher regional demand, Address, I indicated that the
however, present an opportunity for our Comprehensive Agriculture
farmers to expand production, increase Transformation Support Programme
household income, reduce poverty, and would be developed to improve
earn the country the much-needed production. I am happy to report that
foreign exchange. good progress has been made and the
Programme will be launched before the
41. Madam Speaker, Government end of this year. The Programme will
recognises that some of our citizens include extension service support,
have been hit hard by the rise in mealie access to finance, irrigation
meal prices. To mitigate the escalation development, support to value addition
in prices of mealie meal, Government is as well as storage and logistics.
implementing a number of measures to
boost supply and stabilise the price. 44. Madam, Government is
developing farm blocks, which are

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areas where high technology research programmes, agricultural
agriculture will be deployed to produce insurance, as well as early warning
large stocks for domestic consumption systems.
and for processing into agro-export
goods. It is from the farm blocks where 47. Madam Speaker, in the
technology-based farming can produce livestock sub-sector, Government will
large stocks competitively and be able unlock potential by improving animal
to export to the world at large. health, animal identification and
traceability as well as livestock
45. Madam Speaker, to increase breeding programmes. The disease
accessibility within farm blocks, surveillance and response system will
Government will, in 2024, construct be enhanced as regional veterinary
300 kilometres of roads in Nansanga, laboratories in Chipata, Choma, Isoka,
Luena and Shikabeta farm blocks. In Kasama, Mongu, Ndola and Solwezi
the same vein, Government will also become operational. In addition, the
embark on the construction of 10 Central Veterinary Research Institute
bridges to enhance connectivity in the will be rehabilitated.
farm blocks. In addition, 200
kilometres of powerlines will be 48. Madam, animal identification
constructed in Luena, Luswishi and and traceability are critical to livestock
Shikabeta farm blocks to facilitate the trade, disease control and prevention of
installation of power to farms. Further, stock theft. To enhance animal
more investments will be made in identification and traceability,
irrigation infrastructure to reduce Government has developed an online
dependence on rain-fed agriculture and system which is being piloted in
to ensure farmers are able to plant Central, Lusaka, Northwestern,
throughout the year. The ground plans Southern, and Western Provinces. The
for all these interventions have been system will enable the public to
completed. register, search and identify animals.
The platform will be linked to a Short
46. Madam, to adapt to the adverse Messaging System for ease of access by
effects of climate change and build animal owners. So far, 68,518 livestock
resilience, Government will continue farmers with 411,108 cattle have been
implementing smart agricultural captured. It is envisaged that the cattle
technologies in collaboration with population of approximately 5 million
Cooperating Partners. These include will be captured under this system by
conservation agriculture, water December 2024.
harvesting, adaptive research, on-farm

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49. Madam Speaker, to strengthen already established. This will increase
legal reforms on animal identification fingerling production to 433.4 million
and traceability, Government will bring in 2024 from the current 302.0 million.
to this House the Animal Identification
and Traceability Bill in this session. 53. Madam Speaker, Government
will also promote sustainable capture
50. Madam, Government is fisheries through enforcement of
implementing a community-based fishing ban and enhanced surveillance
livestock breeding programme through of our water bodies. The interventions
a pass-on scheme to support livestock under aqua and capture fisheries are
farmers with high quality breeding aimed at reducing the national fish
stock. So far, 225,000 livestock have deficit to 52,000 metric tonnes in 2024
been distributed to 36,000 households from 74,000 in 2023.
countrywide. In 2024, a total of 12,000
livestock farmers will benefit under this 54. Madam, to unlock the potential
programme. of the agriculture sector and seize
export opportunities while ensuring
51. Madam Speaker, to increase domestic food security, Government,
livestock carrying capacity and build working in collaboration with
climate resilience, Government will Cooperating Partners, will establish an
continue implementing forage and agriculture credit window. This will
pasture production. As at end-June this support small scale farmers, emergent
year, more than 19,000 hectares of farmers, and public service workers
degraded rangelands was over-sown, with affordable financing to procure
out of the target of 30,000, bringing the inputs, equipment and irrigation
total over-sown rangeland to 99,000 systems, among others.
hectares. This has improved livestock
nutrition and assured all year-round Tourism
availability of pasture and fodder.
55. Madam Speaker, last year,
52. Madam, to enhance production Government announced a unilateral
and productivity in the fisheries sub- waiver of tourist visa requirements for
sector, Government is promoting the citizens from selected countries which
establishment of fish hatcheries. In has resulted in a boost of tourist
2024, Government will establish 3 arrivals. In the first half of 2023,
hatcheries in 3 aquaculture parks in international tourist arrivals increased
Kasempa, Mushindamo and Samfya by 22.0 percent to 605,650 tourists from
Districts in addition to the 18 hatcheries

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496,456 recorded in the corresponding the source of the Zambezi river. I am
period in 2022. happy to report that we have now
secured US $100 million under the
56. Madam, the sector has Green, Resilient and Transformational
recovered as evidenced by increased Tourism Development Project. These
room occupancy rates. In the first half resources will help to improve
of 2023, the room occupancy rate accessibility and diversity of tourism
averaged 70 percent compared to 40 product offerings to attract more
percent during the same period in 2022. tourists and increase length of stay.
Similarly, the length of stay by tourists Other developments will include the
increased to an average of 4 days in improvement of air and road
2023 from 3 days in 2022. connectivity to south west tourism
circuit of Liuwa, Sioma-Ngwezi,
57. Madam Speaker, visits to
Livingstone, Lower Zambezi, and
national parks, waterfalls and heritage
Kafue National Parks.
sites increased by 34.3 percent to
213,528 in the first half of the year 60. Madam, to support
compared to 159,003 over the same diversification of tourism products,
period last year. This increase was Government will undertake reforms to
partly attributed to a rise in domestic enhance wildlife conservation and
tourism. Other factors that have helped management. Government will also
to boost tourist arrivals are the hosting promote sustainable tourism
of local and international meetings and development to include tourism
enhanced tourism marketing. products such as cultural tourism,
avitourism, health tourism and sports
58. Madam, to accurately determine
tourism. In addition, Government will
trade in tourism services, Government
continue to support the hosting of
will establish a tourism satellite account
meetings, conferences, exhibitions and
to measure the contribution of tourism
incentive travel.
to the economy. This will help with
policy formulation and inform Mining
decision-making.
61. Madam Speaker, in the first half
59. Madam Speaker, last year, I of 2023, production of copper, emeralds
promised to secure resources from and manganese declined mainly due to
Cooperating Partners to develop operational challenges. This was
tourism facilitation infrastructure at compounded by flooding and low ore
Kasaba Bay, Liuwa National Park, and grades at some major mines.

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62. Madam, with the envisaged results. This is because mining
resolution of challenges at Mopani and companies must first evaluate the
Konkola Copper Mines as well as the investment climate in the country, then
possible coming on board of new begin to explore or hunt for the
mines, the mining sector is expected to minerals, and then make the
boost production in 2024. This will investments in the mines. As of now,
support our goal of achieving the 3 Madam Speaker, the change in the tax
million metric tonnes of copper policies that we made is without any
production per annum by 2032. doubt working. It has induced a lot of
interest and people are busy doing
63. Madam Speaker, the attractive explorations. On the basis of the
tax policy regime is already yielding information we have, some spectacular
benefits. This is evidenced by the announcements of really big mines will
increase in committed investments in be made at an appropriate time.
the sector to US $3.4 billion in 2023
from US $1.7 billion in 2022. First 66. Madam, to attract targeted
Quantum Minerals has since investment and accelerate mineral
commenced commercial production of exploration projects around the
nickel in Kalumbila District. country, Government will undertake a
Approximately 35,000 metric tonnes of high resolution countrywide
nickel is expected to be produced per geophysical survey. In 2024,
annum. The Mine is poised to be the Government will carry out aerial
largest producer of nickel in Africa and surveys in Copperbelt, Lusaka,
will strategically position the country in Northwestern, Southern, and Western
the global transition to clean energy. Provinces as well as parts of Central
Province. Accurate geological
64. Madam, let me address the information is fundamental to the
concerns raised by some sections of achievement of the 3 million metric
society that despite the favourable tax tonnes of copper production target by
regime given to the mining sector, 2032.
copper production has reduced. The
reduction is not related to taxation, but 67. Madam Speaker, Government
rather to operational challenges at some has declared all minerals as strategic for
mines. the country’s economic prosperity. In
this regard, Government will enhance
65. Madam Speaker, it must be the exploration, exploitation and trade
appreciated that investment in the of these mineral resources. So far,
mining sector takes time to yield preliminary geological surveys for

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lithium in Mapatizya and sugilite in vehicle batteries, renewable energy in
Chembe have been conducted. wind and solar, pharmaceutical, and
electric motorcycle assembly. This
68. Madam, to enhance regulatory makes investment prospects over the
oversight in the mining sector, medium term very bright. We are
Government will bring a Bill in this positive that a number of these
session to operationalise the Minerals investments will be actualized and
Regulation Commission. The thousands of jobs will be created.
Commission will address, among
others, issues pertaining to production 71. Madam Speaker, following the
reporting, mineral content analysis, recent visit by the President to China,
illegal mining and illicit trade of further interest has been generated.
minerals. Areas of interest include the assembly
of mobile phones, assembly of electric
Manufacturing motorcycles, and manufacture of
pharmaceutical products and copper
69. Madam Speaker, the
cables. Since the return of the President
manufacturing sector has continued to
from China, delegations of Chinese
record steady progress, evidenced by
investors have already started arriving
the 4.7 percent growth rate in 2022.
in the country to advance these projects.
Indeed, manufacturing is a sector where
we have seen excellent developments. 72. Madam, adding value to our raw
Here are a few examples. Firstly, a few materials remains a critical catalyst to
years ago, Zambia was fully dependant grow our economy and create jobs.
on imported fertiliser. Through a new Priority will be on food and beverages,
investment, the country will not just be wood and wood products, leather and
self-sufficient, but will be a net exporter leather products, metallic and non-
of fertiliser. Secondly, Zambia used to metallic minerals, textiles, and
be totally dependent on imported pharmaceutical products.
ceramic products. Today, we are
exporting these products. 73. Madam Speaker, notable
progress has been made in the
70. Madam, the Zambia establishment of Multi-Facility
Development Agency has this year Economic Zones or simply called
received firm indications for new MFEZs. For instance, the Lusaka South
investments amounting to over US $5.0 MFEZ has a total of 52 investors with
billion. The areas of interest have been total investment commitment of US
across sectors but mostly in electric $864.5 million. Of these, 22 companies

12
are currently operating with total • Firstly, the land rates levied by
investment of US $541.4 million and Local Authorities will be
12,558 jobs have been created while 30 harmonised and reduced. There
companies are in the construction phase has been the mistaken belief
with a total investment, so far, of US that Councils can earn a lot of
$323.1 million and are expected to money by overcharging on
generate an additional 7,274 jobs. rates. In reality, they have failed
to earn the rates because
74. Madam, I am happy that our investors look for cheaper
local entrepreneurs are responding to alternative locations;
the incentives that we are providing in
the MFEZs. Out of 30 companies in the • Secondly, the Employment
construction phase, 23 are local. Code Act, 2019 is a ‘job killer’
Similarly, out of 22 companies in the because it imposes onerous
operational phase, 7 are local. financial obligations and
conditions on employers. These
75. Madam Speaker, we must provisions will be reviewed
continue to draw upon and learn from generally, but especially so
the experiences of countries that have inside the MFEZs where we
successfully employed special must aim to drastically reduce
economic zones to attract more the burden they impose on
investment. As we all know, most of employers. Further, a pay
these countries were poorer than policy to workers based on
Zambia at independence. Today, they agreed principles of more pay
are far ahead and one of the tools that for higher productivity will be
propelled them to wealth are special allowed; and
economic zones like our MFEZs.
• Thirdly, immigration and work
76. Madam, whereas the current tax
permit requirements have been
incentives in the MFEZs are acceptable,
onerous. It takes too long to
the zones still suffer from other
have these permits issued and
inadequacies which reduce their
because of that, corruption has
attractiveness. To address the
been perpetuated. In the
weaknesses, the following measures
MFEZs, therefore, there will be
will be introduced by the end of first
changes. The proposal is that in
quarter 2024:
the MFEZs, an enterprise will
automatically be granted a
quota for expatriate employees,

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 at whatever level, whose ratio incentives so that the private sector can
will be based on the total develop them.
number of jobs created. The
higher the number of jobs Small and Medium Enterprise
created, the higher the number Development
of expatriates allowed and vice-
80. Madam Speaker, access to
versa. Security clearance on
affordable finance continues to be a
proposed individual expatriates
constraint to SME growth. To address
will continue to apply.
this, Government is providing funds to
77. Madam Speaker, for years, we targeted groups through a number of
have held onto a mistaken belief that the empowerment programmes such as
stricter a country is in permitting Citizens Economic Empowerment
expatriate employees, the higher the Commission, Women Empowerment,
number of jobs for local people. Constituency Development Fund, and
Experience from all over the world in the Youth Empowerment. For instance,
actual fact points to the very opposite as at end-August 2023, the Citizens
result. Economic Empowerment Commission
disbursed K660 million to over 77,000
78. Madam, by easing conditions in beneficiaries who included marketeers,
the MFEZs to the best practice in the persons living with disabilities,
world, our country will in effect cooperatives, women and the youth.
conduct a live experiment inside
secluded areas without exposing the 81. Madam, to further facilitate
whole country to such conditions. If, as access to affordable loans by SMEs,
we hope, the liberal conditions in the Government has increased the
MFEZs prove more effective in allocation to the Zambia Credit
attracting investments and expand job Guarantee Scheme. The Bank of
creation, then we shall in later phases Zambia, leveraging on private sector
work towards applying the liberal participation, will complement the
approach to the rest of the country. existing Scheme by rolling out another
credit guarantee scheme in 2024.
79. Madam Speaker, it is
Government’s desire that more MFEZs 82. Madam Speaker, to accelerate
are established for faster micro, small and medium enterprise
industrialisation. Since Government development, Government has been
does not have the money to finance the constructing industrial yards. To this
MFEZs, we shall merely provide fiscal end, four were commissioned in

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Chipata, Kasama, Mansa, and Mongu 85. Madam Speaker, Government
earlier this year. An additional three are has now developed regulations to
earmarked for commissioning in Kitwe, enable players in the sector to have third
Lusaka, and Ndola before the end of party access to the TAZAMA Pipeline.
this year. In 2024, Government will This will enhance competition among
construct industrial yards in Chinsali, the suppliers, which will ultimately
Choma, and Kabwe. The setting up of benefit consumers. I call upon the
industrial yards will also create private sector to take advantage of the
employment opportunities especially open access and participate in the
for the women and youth. supply of petroleum products. Further,
I call upon the private sector to invest in
Energy a new pipeline to increase the volume
of fuel that can be imported through the
83. Madam Speaker, energy is a
pipeline.
critical enabler of economic
development as it cuts across various 86. Madam, I hear of some citizens
socioeconomic activities. In this regard, calling for the re-introduction of
Government will continue to subsidies on fuel. If adopted, this of
implement reforms that promote course means that we must cut
efficiency and growth in the sector. expenditure elsewhere. In practical
terms, it may mean abandoning the
84. Madam, to mitigate the high
policy of free education, or failing to
cost of transporting petroleum
hire teachers or doing away with CDF.
products, Government converted
I don’t believe that such choices would
TAZAMA Pipeline from a petroleum
be wise.
feedstock to a low sulphur diesel
carrier. As a result, the pump price of 87. Madam Speaker, to enhance
diesel reduced to below that of petrol in growth of the electricity sub-sector,
April 2023. Had we not done the Government is implementing measures
conversion of the pipeline, diesel pump to increase electricity generation
prices would, right now, be higher by as capacity which currently stands at
much as 19 percent. I am aware that fuel 3,790 megawatts. This will be done
prices are high presently, but this has to through the provision of incentives to
do with the rise in the price of the attract investment in power generation,
commodity where we buy it from and which I will announce later in my
the depreciation of the exchange rate. Address. Government is also promoting
the use of alternative renewable energy

15
sources to make the energy sector more policies which include the lifting of visa
resilient. requirements in key tourist markets as
well as opening of new routes such as
88. Madam, to increase access to Lusaka–Maputo and Lusaka–Cape
clean, reliable and affordable energy in Town. On the domestic front, traffic has
rural areas, Government will continue recovered and exceeded the pre-Covid-
to support the Rural Electrification 19 level by 33 percent.
Programme. Government, through the
Rural Electrification Authority, 91. Madam Speaker, our country is
embarked on 62 Grid-Tied vast and, therefore, requires huge sums
Electrification Projects and 19 Solar of money to build and maintain roads.
Mini-Grid Projects in 2023. Works on Unfortunately, we don’t have the
these Projects have since commenced money for all the roads at once, more so
and once completed, access to given the debt left behind by the
electricity in the rural areas will be previous Administration. This means
improved. that our room for borrowing is highly
limited. Nevertheless, the New Dawn
Transport and Logistics Administration has used its ingenuity to
utilise the Public Private Partnership
89. Madam Speaker, the transport
mode of financing. In this regard, I am
sector is vital for unlocking the
happy to report that the upgrading of the
economic potential and the smooth
Lusaka-Ndola road to a dual
running of the economy. The
carriageway has commenced. The
development, maintenance and
Project will include the rehabilitation of
rehabilitation of our transport networks,
Masangano-Fisenge-Luanshya roads.
therefore, remain key in our economic
transformation and job creation agenda. 92. Madam, to further demonstrate
the commitment of the New Dawn
90. Madam, the aviation sector in
Administration to the PPP mode of
Zambia has seen remarkable recovery
financing, I am glad to report to this
following the ravaging effects of the
august House that the rehabilitation of
Covid-19 pandemic on global air
the Chingola-Kasumbalesa road started
transportation. As at end-August 2023,
this year. The works have since reached
about 1.3 million passengers were
70 percent and will be completed before
recorded, a recovery of 106 percent
the end of this year. Everyone who has
from the pre-Covid-19 period at end-
been on the Chingola-Kasumbalesa
August 2019. Growth in the sector has
road has been impressed with its quality
been spurred by clear Government

16
and yet its cost per kilometre is nearly the roads which are of no commercial
half of what was previously being paid. interest to the private sector.

93. Madam Speaker, under the PPP 96. Madam, Government will
mode, the concession agreement for the continue with the construction and
Lumwana-Kambimba road has been rehabilitation of rural roads through the
signed. This road will connect Improved Rural Connectivity Project.
Lumwana with Kolwezi in Democratic The Project targets to construct,
Republic of the Congo. The concession maintain and rehabilitate 4,300
agreement for Katete-Chanida road will kilometres of feeder roads across the
be signed in October this year. In country. So far, 1,700 kilometres of
addition, negotiations for the Ndola- feeder roads have been rehabilitated
Sakania-Mufulira and Mufulira- and routine maintenance is being
Mokambo roads will be concluded undertaken. A total of 500 kilometres of
before the end of October this year. To feeder roads will be rehabilitated in
complement the roads linking with 2024 under the Improved Rural
Democratic Republic of the Congo, Connectivity Project.
Government will also construct and
upgrade border infrastructure at 97. Madam Speaker, a further 700
Sakania, Mokambo, and Kipushi under kilometres of feeder roads will be
PPP. With all these PPP interventions, constructed by the Zambia National
Zambia will have more connecting Service and the Ministry of Local
points with Democratic Republic of the Government and Rural Development in
Congo and thereby easing congestion at 2024.
Kasumbalesa border.
98. Madam, through the
94. Madam, in 2024, for the very Constituency Development Fund, I am
first time, we will implement at least 5 happy to note that a number of
PPPs in the road sector in one year. constituencies have acquired road
construction equipment. With this
95. Madam Speaker, not every road equipment, we expect an additional
can be financed through PPP because 1,000 kilometres of feeder roads to be
investors prefer roads where there is rehabilitated in 2024. Madam, CDF is a
heavy traffic to enable them recoup game changer in many respects,
their investments. This including rural roads.
notwithstanding, PPP remains very
useful for us, as the limited resources of 99. Madam Speaker, taking into
Government can then be deployed to account all the works being undertaken

17
in the different programmes, the total remains a priority for Government. This
stretch of feeder roads under year, upgrading and rehabilitation of
construction will be an unprecedented Kasama Airport has been completed. In
2,200 kilometres in one year. Going 2024, Government will commence the
forward, and with the procurement of construction of airports at Kasaba Bay,
equipment by most of the Chinsali and Choma.
constituencies, impassable roads,
especially in rural areas, should be a Information and Communication
thing of the past. Technology

100. Madam, apart from feeder 104. Madam Speaker, to digitalise

roads, Government will also the economy, Government remains
rehabilitate and upgrade trunk and committed to providing universal
district roads. These will include access to internet and mobile
Chipata-Lundazi, Mansa-Nchelenge, connectivity. In this regard,
Monze-Niko, Mpika-Chinsali and Government is this year constructing
Tateyoyo-Katunda roads. 139 communication towers to increase
the network coverage to 92 percent
101. Madam Speaker, the New from 78 percent in 2020. In 2024, an
Dawn Administration is indeed a additional 169 towers will be
working Government. constructed.

102. Madam, to reduce clearance 105. Madam, in collaboration with

time at our borders, Government will the private sector, Government will
implement electronic data exchange for leverage on the use of a mix of
customs and make pre-clearance of technologies such as satellite and fibre
goods mandatory as well as introduce a connectivity to reach the unserved and
Single Payment Point to collect underserved areas. Further, Digital
statutory fees on behalf of other border Transformation Centres will be
agencies. In line with our desire to established in rural areas.
reduce clearance time, operating hours
at Katima Mulilo Border Post were 106. Madam Speaker, to improve the
extended to 24-hours in August this business environment, promote
year. seamless access to public services and
enhance public service delivery,
103. Madam Speaker, in the air Government has been migrating public
transport subsector, the construction services to an online platform called
and upgrading of airport infrastructure ZamPortal which can be accessed on

18
www.zamportal.gov.zm. This is part of 110. Madam Speaker, to increase
the Government Service Bus and access to online Government services,
Payment Gateway. Services that can be especially in rural areas, Government
accessed through this platform include will encourage local entrepreneurs and
payment for motor vehicle road tax and institutions such as schools and clinics
company registration. to provide access to online public
services to the local communities at a
107. Madam, Government has fee. This will create income generating
identified at least 1,500 services that and employment opportunities for local
need to be migrated to the ZamPortal. communities.
So far, 280 services are being offered
online. Government will, in 2024, 111. Madam, to increase access to
increase the number of services on the digital services, investment will
ZamPortal to 382. continue in connectivity up to the last
mile. To achieve this, Government will
108. Madam Speaker, the use of the leverage on the extensive national
ZamPortal has reduced transaction coverage of fibre networks to reach the
costs and queues in accessing public unserved and underserved districts.
services as well as minimised revenue
leakages. In addition, the Portal has Science, Technology and Innovation
assisted to cut down on the
bureaucracy, improved transparency 112. Madam Speaker, to strengthen
and accountability thereby reducing scientific and industrial research and
opportunities for corruption when enhance technology transfer and
accessing public services. adoption, Government will create an
enabling environment to promote
109. Madam, the migration of public collaboration among academic
services, which began in 2020, has so institutions, innovation hubs and
far recorded over 1.6 million research institutions to produce
transactions valued at approximately commercially viable products relevant
K2.0 billion. Nonetheless, the uptake to our economic transformation agenda.
remains low. To increase the The measures will include the
consumption of online services, construction and rehabilitation of
Government will enhance sensitisation, infrastructure, provision of equipment,
train public officers and increase and recruitment of more researchers at
internet access in the unserved and the National Institute for Scientific and
underserved areas. Industrial Research. In addition, 5
innovation hubs will be constructed as

19
well as construction of centres of completed in 2025. Government targets
excellence at the University of Zambia to construct an additional 202
and Copperbelt University. secondary schools. Of these, 82 are
under construction and will be
113. Madam, Government will also completed in 2024 while construction
operationalize the National Ground of the remaining 120 secondary schools
Receiving Station in Chibombo will commence in 2024.
District. The Station will be able to
download centralised raw remote 115. Madam, in addition to the
sensing earth observation satellite data construction of schools, Government
that will be used by different has been increasing the capacity of
stakeholders. This will reduce the existing schools through the
current expenditure incurred by construction of classrooms. As at end-
different stakeholders in procuring August 2023, a total of 3,132
duplicate spatial data from other classrooms were built under the CDF.
countries. This technology will enable
the use of artificial intelligence and will 116. Madam Speaker, access to
be useful in the application of precision online educational services is mainly
agriculture, mineral exploration, and along the line of rail. Leveraging on the
natural resource management. extensive national coverage of fibre
networks, Government will roll out the
B. HUMAN AND SOCIAL e-learning management system aimed
DEVELOPMENT at ensuring easy access to online
teaching and learning materials across
Education and Skills Development the country. In addition, Government is
collaborating with Cooperating
114. Madam Speaker, Government
Partners to improve internet
will continue to increase access to
connectivity in rural schools.
quality education through infrastructure
development. Over the last decade, 117. Madam, to improve the quality
Government commenced the of education, Government has
construction of 115 secondary schools continued to recruit teachers and
whose construction had stalled. During provide teaching and learning
the past two years, Government has materials. When I presented the 2023
been allocating money to complete Budget to this House last year, we
them. We have since completed 69 promised to employ more teachers. I am
schools while the remaining 46 are still glad to report that the process for hiring
under construction and will be 4,500 teachers has begun. That is not

20
even the end Madam Speaker. In 2024, areas because the number of building
another 4,200 teachers and 1,200 non- jobs is on the rise. It was in anticipation
teaching staff will be recruited. of this shortage that we urged youths to
step forward to be trained in building
118. Madam Speaker, Government skills. After they have been trained, the
has shown its commitment to the youths will undergo apprenticeship
education sector through these large until they have enough skills to be
expenditures. Government wishes to awarded contracts in their own rights.
caution our district education Youths! This facility is yours and it is
management staff to enforce good still underutilised!
behaviour and discipline in schools. In
particular, the practice of teachers Health
shunning rural places must end.
122. Madam Speaker, Government
119. Madam, to improve the learning will continue to prioritise the provision
environment, we committed that no of quality health care services. This will
learner should sit on the floor. Progress be achieved through the development of
has been made in the procurement of infrastructure, recruitment of health
school desks. As at end-August 2023, personnel as well as provision of
over 442,000 desks had been procured medicines and medical supplies.
mostly using CDF. Our target is to
procure 1 million desks. All these desks 123. Madam, to improve health
are being manufactured by our local infrastructure, Government has
entrepreneurs in the respective completed the construction of 12 mini-
communities, thereby creating jobs and hospitals out of the planned 16 this
increasing income for our people. year. This brings the total number of
completed mini-hospitals under Phase I
120. Madam Speaker, Government to 111 out of the target of 115. The
will continue to prioritise the provision remaining 4 mini-hospitals in
of quality and relevant vocational skills Lufwanyama, Lusaka, Mpongwe, and
by equipping training centres with Mufumbwe Districts will be completed
modern equipment. This will align in 2024. In addition, Government has
skills of TEVET graduates to industry this year constructed 62 maternity
requirements. annexes, of which 19 were financed
from the Constituency Development
121. Madam, through enhanced CDF Fund. In 2024, Government will
provision, skilled builders have become construct 30 maternity annexes.
relatively scarce especially in rural Further, the construction of 135 mini-

21
hospitals under Phase II will commence health personnel will be recruited in
across the country. 2024.

124. Madam Speaker, Government 127. Madam, to increase access to

acknowledges that the supply of cancer treatment locally, Government
essential medicines and medical will, in 2024, commence the
supplies has been inadequate. Let me construction of cancer treatment centres
assure the general public that we are in Livingstone and Ndola. This will
working on ensuring that essential decongest the Cancer Diseases Hospital
medicines and medical supplies are in Lusaka and reduce the cost of
available in our health facilities. To this sending cancer patients abroad.
end, we have adopted a hybrid supply Further, Government will upgrade
chain system that relies on both the radiotherapy equipment and
health centre kit and bulk source supply infrastructure at the Cancer Diseases
systems. We have secured 42,000 Hospital to improve the quality of
health centre kits expected to last until service.
mid-2024. To ensure a stable supply,
Government has commenced the 128. Madam Speaker, to strengthen
procurement of the next batch. Under the health care management
the bulk source supply system, the first information system, Government will
batch is expected before the end of this scale up the implementation of the
year. Electronic Health Record System to
3,000 health facilities in the next three
125. Madam, Government is years from the current 600. The System
collaborating with stakeholders to will facilitate quick access to health
establish a Local Pharmaceuticals records wherever and whenever they
Manufacturing Strategy. This will are required by health personnel. In
promote domestic production of addition, the System will reduce the
pharmaceuticals and enhance the transaction costs associated with
resilience of the supply chain in the manual processing and provide critical
country and contribute to job creation. information for planning and resource
allocation.
126. Madam Speaker, the
recruitment of 3,000 health personnel Water and Sanitation
has commenced and is expected to be
completed by the end of this year. This 129. Madam Speaker, as at end-June
fulfils the promise I made in my 2023 2023, a total of 634 boreholes equipped
Budget Address. An additional 4,000 with hand pumps were constructed. We

22
expect over 1,000 boreholes to be utility companies in Chipata, Kalulushi,
completed by the end of this year. Kitwe, Lusaka, Mongu and Sesheke.
These are distributed across the country
and will benefit more than 52,000 133. Madam Speaker, in line with the
households. Further, 130 piped water directive by His Excellency, Mr.
schemes were constructed, benefiting Hakainde Hichilema, President of the
more than 13,000 households. Republic of Zambia, Government will,
in 2024, construct 168 waterborne
130. Madam, to accelerate access to sanitation facilities in public places and
clean and safe water supply, institutions across the country.
Government will, in 2024, construct
1,374 boreholes and rehabilitate 1,270 134. Madam, to harness water
boreholes across the country. This will resources and ensure national water
benefit 92,000 households. security, Government, this year,
commenced the construction of 16
131. Madam Speaker, to improve multi-purpose dams mostly in water
water supply and sanitation services, stressed prone areas. The dams are in
Government has been implementing the Central, Eastern, Luapula, Northern,
Integrated Small Towns Project in Northwestern, and Southern Provinces.
Luapula, Muchinga, Northern and It is estimated that 15.7 million cubic
Western Provinces. The Project is meters of water will be harvested,
scheduled to be completed in 2024 and benefitting over 22,000 households and
will benefit over 193,000 households. I approximately 1.7 million livestock. In
am happy to report that the Kafulafuta 2024, Government will commence the
Water Supply Systems Project, construction of 38 dams across the
benefiting over 1 million people, will be country.
completed by the end of this year.
Steady progress is also being made on 135. Madam Speaker, to enhance
the Kazungula Water Supply and and prolong the lifespan of the existing
Sanitation Project while works will dams, Government is rehabilitating 6
commence this year on the Nkana dams in Central, Eastern, Muchinga,
Water Supply and Sanitation Project Northern, and Western Provinces. In
under Phase II. 2024, six more dams will be
rehabilitated in Eastern, and Southern
132. Madam, to provide adequate Provinces. Government will also
sanitation services, 6,000 households continue to maintain dams across the
will be connected to sewer networks. country as well as implement
The connections are being done by

23
programmes aimed at restoring and from 1,027,000 in 2022. With regard to
protecting water sources. the Food Security Pack Programme, the
number of beneficiary households has
Social Protection increased to 242,000 from 241,000 in
2022.
136. Madam Speaker, the New
Dawn Administration is a caring 139. Madam, to alleviate immediate
Government. Over the past two years, challenges faced by the most
we have demonstrated our commitment vulnerable, Government will, in 2024,
to social protection. We will continue to increase the allocation under the Public
support the poor and vulnerable Welfare Assistance Scheme to cater for
through various social protection 40,000 beneficiaries from the current
programmes. Social cash transfers are 16,000.
timely. We have reduced the waiting
time for payment of pension benefits. 140. Madam Speaker, the Girls’
As promised, we have implemented the Education and Women’s
partial withdrawal of pension benefits Empowerment and Livelihoods Project
under the National Pension Scheme provides livelihood support for women
Authority. and access to secondary education for
girls in extremely poor households.
137. Madam, in my last Address to There are currently 116,891
this august House, I promised to reduce beneficiaries in 76 districts. The Project
the waiting period for pensioners under targets to cover 129,400 beneficiaries in
the Local Authorities Superannuation 81 districts by April 2024.
Fund. I am happy to report that
Government has cleared all pensioners C. ENVIRONMENTAL
from 2017 to 2021. This has SUSTAINABILITY
significantly reduced the waiting period
to 1 year from 5 years. By the end of 141. Madam Speaker, to adequately
2024, the Fund is expected to be current prepare and respond timely to adverse
on the payment of pension benefits. weather conditions, Government will
expand the coverage and enhance early
138. Madam Speaker, as a warning systems. So far, 86 automatic
commitment towards uplifting the weather stations have been installed and
livelihoods of the poor and vulnerable, an additional 34 will be installed by the
Government increased the number of end of this year. In 2024, Government
beneficiary households on Social Cash will install 50 automatic weather
Transfer to 1,100,998 by end-June 2023 stations.

24
142. Madam, climate related risks 145. Madam, to further enhance
also pose increasing threats to the good governance practices in the
stability of the financial system. In delivery of public services,
2024, Government will enhance the Government is promoting the
legal and regulatory framework to integration of risk management in the
support green finance and entrench public sector. This is in line with the
environmentally friendly practices in requirements of the Public Finance
the financial sector. Management Act, 2018.

143. Madam Speaker, to address 146. Madam Speaker, the New

rigidities in processing the Dawn Administration will continue to
environmental impact assessment, undertake legal, structural and policy
Government will review specific reforms to support growth and
provisions in the law to shorten the time development. The reforms relate to
taken to issue the Decision Letter. This fiscal policy, domestic resource
will ensure that decisions on complete mobilisation, debt management,
applications are made within the decentralization, public private
specified timeframe, beyond which it partnerships and public investment
will be deemed to have been approved. management, among others.
This will accelerate the actualisation of
investment in the country. Fiscal Policy

D. GOOD GOVERNANCE 147. Madam Speaker, the

ENVIRONMENT overarching fiscal objective in 2024
will be to reduce the budget deficit, on
144. Madam Speaker, to strengthen cash basis, to 4.8 percent of GDP from
oversight in the use of public resources the projected outturn of 5.8 percent in
and enhance transparency and 2023. This will be achieved mainly
accountability, Government undertook through efficiency gains in domestic
a Governance Diagnostic Assessment resource mobilisation efforts and will
and published the report in December result in revenue collection of at least
last year. The Assessment identified 22.0 percent of GDP while
governance weaknesses and corruption expenditures will be contained within
vulnerabilities and recommended sustainable levels. Government will
measures to address them. Government continue to rationalise expenditure with
will ensure that these recommendations priority placed on areas that will spur
are implemented. economic growth such as infrastructure
development, CDF, and dismantling of

25
domestic arrears. To cushion the system which will enable the Zambia
vulnerable people in our communities, Revenue Authority to have real time
we will continue implementing social access to business transactions. The
protection programmes. system will prevent the use of fake
invoices in VAT refund claims and
148. Madam, to enhance fiscal ensure that only qualifying entities
transparency and budget credibility, claim deductions. With this system in
Government will produce a Fiscal Risk place, all those who issue fake invoices
Statement on an annual basis. The or evade taxes, your days are numbered,
Statement will provide an assessment and when caught, you are on your own.
of risks related to the budget and a
framework for managing them in the 152. Madam Speaker, the growing
short to medium-term. digital economy presents an
opportunity for Zambia to further
149. Madam Speaker, Government expand the tax base and collect more
will ensure that tax and non-tax policies revenue from non-resident suppliers.
remain stable and predictable. In Government will, therefore, put in place
addition, various incentives will be a legal framework and strategies to
streamlined, systems digitalised and implement taxation of the Cross-Border
administrative capacities for revenue Electronic Services.
collection enhanced. All these efforts
are aimed at maximizing revenue 153. Madam, Government will also
collection while promoting investment. review global developments in digital
services' taxation for income tax
Domestic Resource Mobilisation purposes. Further, to pursue efficient
international taxation and combat tax
150. Madam Speaker, revenue
evasion, Zambia will join the Global
mobilisation will continue to be
Forum on Tax Transparency and
anchored on sealing revenue leakages
Exchange of Information for tax
and improving service delivery in tax
purposes. This Forum will facilitate the
administration. Government will
exchange of tax information among 140
enhance compliance by implementing
jurisdictions, ensuring transparency and
tax administrative interventions by
combating illicit financial flows.
leveraging on technology and changing
the operating model for the Zambia 154. Madam Speaker, to consolidate
Revenue Authority. provisions relating to tax
administration, Government will, in
151. Madam, Government will
2024, commence consultation to
implement the electronic invoicing

26
introduce a unified Tax Administration 157. Madam Speaker, as part of our
Act. This Act will, among others, debt management strategy,
enable the harmonisation of tax Government remains committed to
treatment across different tax types and contracting only concessional loans in
ease tax administration. Further, the medium-term.
Government will, in 2024, amend the
Zambia Revenue Authority Act to 158. Madam, high interest rates
introduce a whistleblower reward. This continue to characterise the
will enable the reward of Government securities market thereby
whistleblowers who disclose increasing the cost on the Treasury. To
information leading to the recovery of address this, Government is
tax. progressively reducing the size of the
fiscal deficit. In addition, the E-bond
Debt Management trading platform has been extended to
include retail investors to promote
155. Madam Speaker, to restore debt competition, improve liquidity, and
sustainability, Government has been enhance price discovery in the
undertaking an external debt secondary market for Government
restructuring exercise with official securities. Further, Government
creditors under the G20 Common remains committed to issuing
Framework. Following the agreement Government securities through
in principle that was reached in June auctions and avoid private placements.
this year with the official creditors, a
Memorandum of Understanding will be Decentralization
executed between the parties. To ensure
that the interests of all parties are 159. Madam Speaker, to redress
covered, the technical aspects of the socio-economic inequalities,
MoU are still being refined. We are Government will ensure that
confident that the MoU will be finalised decentralisation by devolution is fully
and executed before the end of this implemented in the medium-term. In
year. this regard, all the eight functions in
Phase I have been devolved to Local
156. Madam, Government has also Authorities with 34,963 civil servants
continued to engage commercial attached. Matching financial resources
creditors, including Eurobond holders, for the devolved functions will be
to seek a debt treatment comparable to allocated to the Local Authorities in
what has been agreed with the official 2024. To facilitate the devolution of
creditors. additional functions in 2025 under

27
Phase II, preparatory work will 163. Madam Speaker, the public will
commence in 2024. continue to participate in defining their
development needs.
160. Madam, to ensure that the
capacities of the Local Authorities are 164. Madam, Government will also
strengthened, Government is review the Constituency Development
implementing the Zambia Devolution Fund Act, 2018 and the Public
Support Programme. The Programme Procurement Act, 2020 to further
focuses on fiscal decentralization and strengthen citizen participation and
financial management, local area streamline procurement processes.
planning and budgeting, governance,
and human resource management of the Population and Development
Local Authorities.
165. Madam Speaker, to integrate
161. Madam Speaker, to ensure population variables in our
efficient utilisation of CDF, development planning, Government
Government has delegated the authority will continue undertaking subnational
to approve projects to the Provincial analysis and carrying capacity
Administration from the Ministry of assessment for all districts. The
Local Government and Rural subnational analysis will establish
Development. To improve operational poverty levels and living conditions of
efficiency, Government has also our people at constituency level. This
delegated treasury authority to will help design targeted interventions
Principal Officers in Local Authorities to reduce poverty and inequality.
to vary committed funds within the
166. Madam, Government will
component for community projects.
conduct carrying capacity assessment
162. Madam, with the increased for each district and constituency to
allocation towards CDF, all establish their ability to deliver public
constituencies will be required to services effectively and efficiently. The
facilitate the provision of water assessment will also help allocate
reticulation and sanitation systems in resources based on the needs of each
public amenities. In addition, provision district.
of desks in public schools will continue
167. Madam Speaker, according to
to be prioritised.
the Living Conditions Monitoring
Survey conducted in 2022, the poverty
rate increased to 60 percent from 54.4
percent in 2015. Consistent with

28
strategies in the Eighth National Monetary Policy
Development Plan, Government is
undertaking various interventions to 170. Madam Speaker, when there is
unlock the potential of the economy, a rapid increase in the general price of
raise economic growth and increase goods and services, what we refer to as
household income. This is the surest inflation, it is those with low incomes
way of addressing poverty on a who are affected the most. Further, high
sustainable basis. inflation disrupts business planning,
raises the cost of finance, and
Integrated National Registration undermines the provision of credit and
Information System the promotion of investment.

168. Madam Speaker, our national 171. Madam, it is for this reason that
identity documents are manual and, the Bank of Zambia’s primary objective
therefore, prone to abuse. In this regard, will remain to work towards bringing
Government is promoting the use of inflation to within the 6-8 percent target
biometric identity through the range. The Bank will use all the tools at
Integrated National Registration its disposal, with the monetary policy
Information System, simply called rate as the key instrument.
INRIS. This System will assign a
unique national identification number 172. Madam Speaker, as they do so,
at birth as opposed to when a citizen we do recognize that some aspects of
attains the age of 16. It will also inflation, such as the increase in food
eliminate the current incidences of prices we have experienced and that I
duplicate NRCs and the need to provide have already alluded to earlier, are not
photocopies of the identity cards easily addressed with the tools at the
whenever one wants to access services central bank’s disposal. This requires
such as registration for a sim card and an increase in the supply of food
opening of a bank account. products.

169. Madam, the system will also, Financial Sector Policy

eliminate costly silo approaches to the
173. Madam Speaker, following the
delivery of public services and improve
issuance of the commencement order
the optimisation of administration of
for the Bank of Zambia Act, 2022, the
various systems. Most importantly, the
Financial Stability Committee will
biometric identity will mitigate the use
become operational in 2024. The
of NRCs for fraudulent transactions.
Committee will, among others,
formulate macroprudential policies to

29
achieve and maintain financial system number of people who are financially
stability. included. The policies I have outlined to
expand the network of mobile towers
174. Madam, to ensure that the and access to satellite technology will
financial sector effectively contributes increase network coverage and,
to growth and economic development, therefore, facilitate greater inclusion.
the Banking and Financial Services
Act, 2017 will be reviewed in 2024. 178. Madam Speaker, a second key
constraint to financial inclusion is
175. Madam Speaker, the cost of financial literacy. The Bank of Zambia
borrowing remains high. With the will continue to sensitize the public
economic reforms we have undertaken through its “Go Cashless” Awareness
since coming into office, including the Campaign. More broadly, Government
significant reduction in the budget will, before the end of this year, launch
deficit, we expect yield rates on the second National Financial Inclusion
Government securities to fall. Lower Strategy. The Strategy will cover the
Government borrowing also means that period 2024 to 2028 and has the goal of
there is more money available for the ensuring universal access to and usage
private sector to borrow. Government, of a broad range of financial services.
therefore, also expects commercial
banks to play their part by lowering External Sector Policy
interest rates.
179. Madam Speaker, Government
Financial Inclusion will continue to maintain a flexible
exchange rate regime. In this regard,
176. Madam Speaker, financial Government will cushion the economy
inclusion is an important tool in against external shocks by
empowering all Zambians to fully accumulating adequate international
participate in economic development. reserves and providing necessary
We have made good progress in market support. To increase foreign
improving financial inclusion and the exchange earnings, Government will
rapid expansion in the use of mobile promote export-led industrialisation
money has played a leading role. and attract foreign direct investment.

177. Madam, given that the growth 180. Madam, to promote exports,
in the use of mobile money is an Government is supporting value
important channel for financial addition and integrated value chains in
inclusion, improving internet priority sectors that include agriculture,
connectivity is critical in increasing the

30
tourism, mining and manufacturing. Bank of Zambia will continue to
The strategies include scaling up trade undertake extensive consultations with
missions to expose exporters to all stakeholders prior to
international markets, improving the implementation.
quality of products, encouraging
partnerships and joint ventures, Part III
enhancing identification of new export
THE 2024 BUDGET
products, and developing export
readiness of enterprises. 182. Madam Speaker, Government
proposes to spend K177.9 billion or
181. Madam Speaker, Government
27.8 percent of GDP. To support this
remains committed to enhancing the
expenditure, K141.1 billion or 22.0
quality of balance of payments statistics
percent of GDP will be domestic
and strengthening the Anti-Money
revenue, K3.4 billion or 0.6 percent of
Laundering/Combating Financing of
GDP is grants from Cooperating
Terrorism regime through the full
Partners, and K33.3 billion or 5.2
implementation of the Electronic
percent of GDP is financing.
Balance of Payment Monitoring
Accounting for amortisation of K2.5
System. To this end, the Bank of
billion or 0.4 percent of GDP, net
Zambia has developed an Export
financing translates into a fiscal deficit,
Proceeds Tracking Framework that will
on cash basis, of K30.8 billion or 4.8
require all exporters to route export
percent of GDP.
earnings through an account held at a
bank domiciled in Zambia while 183. Madam, I now present details of
retaining full rights and control to use the proposed expenditure, revenue and
the funds as they deem fit. the attendant borrowing for the 2024
Implementation of the Framework will Budget.
commence on 1st January, 2024. The

31
 2024 EXPENDITURE BY FUNCTIONS OF GOVERNMENT

2024 BUDGET ALLOCATIONS BY FUNCTIONS OF GOVERNMENT

2024 BUDGET SHARE OF
FUNCTION
K BUDGET
General Public Services 58,929,609,925 33.1%
O/w Domestic Debt 32,905,550,262
External Debt (Interest and Principal) 6,011,715,419
Dismantling of Arrears 6,864,198,983
Local Government Equalization Fund 1,449,071,480
Compensation Fund 703,300,000
Defence 9,922,469,354 5.6%
Public Order and Safety 6,755,876,279 3.8%
O/w Integrated National Registration Information System (INRIS) 250,000,000
Economic Affairs 39,755,488,379 22.3%
O/w Agriculture, Fisheries & Livestock Interventions 13,826,019,474
O/w Farmer Input Support 8,561,421,253
Strategic Food Reserve 1,680,000,000
Farm block Development, Irrigation & Extension Services 598,376,550
Animal Disease Control 498,822,748
Road Infrastructure 8,337,221,909
Constituency Development Fund 3,836,252,641
O/w Community Projects 2,880,420,612
Youth & Women Empowerment Funds 955,832,029
Tourism Sub-Sector 769,496,627
Provincial Aerodromes Infrastructure 700,721,345
Empowerment Funds for SMEs 391,900,075
Credit Guarantee Scheme 386,000,000
Geological Mapping 160,000,000
Public Sector Credit Facility 150,000,000
Environmental Protection 1,450,767,798 0.8%
Housing and Community Amenities 2,651,214,182 1.5%
O/w Water Supply & Sanitation 1,948,869,116
O/w Construction and rehabilitation of dams 443,487,003
Health 20,906,443,693 11.8%
O/w Drugs and Medical Supplies 4,951,092,795
Health Infrastructure 1,394,734,394
O/w Construction of Mini Hospitals 239,836,842
Electronic Health Records System 120,000,000
Recreation, Culture and Religion 493,427,816 0.3%
Education 27,354,806,191 15.4%
O/w School Grants 1,863,034,004
School & University Infrastructure 1,584,812,163
Higher Education Scholarship Board 1,234,472,290
Constituency Development Fund 942,907,506
O/w Secondary Schools & Skills Development Bursaries 942,907,506
Equipping of TEVET Institutions 70,000,000
Social Protection 9,671,765,277 5.4%
O/w Social Cash Transfer 4,118,237,220
Public Service Pension Fund 3,872,921,174
Food Security Pack 1,260,855,784
Local Authorities Superannuation Fund 400,000,000
TOTAL 177,891,868,893 100.0%
Note: The Table highlights only some of the notable expenditure items under each of the function categories.

32
General Public Services function are in line with our priorities
espoused in the Eighth National
184. Madam Speaker, the allocation Development Plan.
to General Public Services amounts to
K58.9 billion or 33.1 percent of the 187. Madam, of the allocated funds
budget. Of this, K32.9 billion will be to the Economic Function, K8.3 billion
used to service domestic debt while is for the construction, rehabilitation
K6.0 billion is for external debt. I have and maintenance of roads, including
also allocated K703.3 million to the feeder roads across the country. This is
Compensation Fund. an increase of 59.6 percent from K5.2
billion in 2023.
185. Madam, to promote efficient,
effective and equitable public service 188. Madam Speaker, I have
delivery across districts, I have allocated K13.8 billion for the
allocated K1.4 billion to the Local implementation of programmes under
Government Equalisation Fund which the agriculture, fisheries and livestock
will be turned into a recurrent grant, sector. Of this amount, K8.6 billion is
starting in 2024. This will, among for the Farmer Input Support
others, support the remuneration of Programme to cover over 1 million
councillors and give Local Authorities beneficiaries. About 77 percent of the
more power to make decisions. This is beneficiaries will receive support
in recognition of the fact that projects through the e-voucher system.
that were previously being Government has also allocated K1.7
implemented through the Local billion for the maintenance of strategic
Government Equalisation Fund will food reserves.
now be covered under CDF. I have also
allocated K6.9 billion for dismantling 189. Madam Speaker, the
of arrears to unlock the much-needed completion of the development of the
liquidity in the market. identified farm blocks will be a game
changer to boosting agricultural
Economic Affairs production and productivity. In this
regard, I have allocated K598.4 million
186. Madam Speaker, Government towards the Nansanga, Luena, Luswishi
proposes to spend K39.8 billion or 22.3 and Shikabeta farm blocks. This
percent of the total budget to support amount will go towards the
economic sectors and unlock the construction of at least 300 kilometres
growth potential of our country. The of roads and 10 bridges as well as
substantial resources allocated to this

33
electrification and irrigation the Citizens Economic Empowerment
development. Commission. This is in addition to other
empowerment funds under CDF,
190. Madam, I have increased the Gender Division, and the Ministries of
allocation to the Zambia Credit Community Development and Social
Guarantee Scheme to K386.0 million Services, and Youth, Sport and Arts.
from K150.0 million this year. Of this
amount, K186.0 million is for the 195. Madam Speaker, to improve air
establishment of a financing and credit transport and to ensure that Zambia
window for small scale farmers, public becomes a regional hub for air
service workers, and emergent farmers. connectivity, I propose to spend K700.7
million on Provincial Aerodromes. The
191. Madam Speaker, I have allocation is earmarked for the
allocated K498.8 million towards the rehabilitation and upgrade of Mansa,
procurement of vaccines, animal health Mbala, Mongu, and Solwezi Airports
extension services, surveillance, animal and the development of Chinsali,
identification and put into operation Choma, and Kasaba Bay Airports.
regional veterinary laboratories.
196. Madam, I have allocated
192. Madam, to promote K769.5 million to the tourism sector for
diversification in the mining sector, I the development of tourism
propose to spend K160.0 million on infrastructure, marketing, wildlife
geological mapping to support management, and development of
exploration and investments. tourism products, among others.

193. Madam Speaker, to ensure that 197. Madam Speaker, to improve

more resources are directly provided to access to affordable loans for public
communities for local development, servants, I have allocated K150.0
including basic services such as clean million to the Public Service
and safe water, maternity wings, and Microfinance Company. The amount
school desks, I propose to increase the will go towards the recapitalization of
allocation to CDF to K4.8 billion. With the institution to provide affordable
this increase, each constituency will loans and other innovative financial
receive K30.6 million from the current solutions to public service workers
K28.3 million. across the country.
194. Madam, to promote
entrepreneurship among our people, I
propose to allocate K391.9 million to

34
Education staff. The recruitment of teachers will
not only reduce the backlog of
198. Madam Speaker, to lay a firm unemployed teachers but also improve
foundation for our children to develop the teacher-pupil ratio.
into productive and innovative citizens,
I propose to spend K27.4 billion or 15.4 203. Madam, I propose to increase
percent of the budget on the Education the allocation to the Higher Education
Function. Loans and Scholarship Board to K1.2
billion. This will increase the number of
199. Madam, of the allocated funds, students benefiting from the Loan
I propose to spend K1.9 billion on Scheme.
grants to schools in line with our free
education policy. In addition, I propose Health
to increase the allocation to the School
Feeding Programme to K111.7 million 204. Madam Speaker, to support the
from K39.4 million to increase delivery of health services, I propose to
coverage and improve the quality of allocate K20.9 billion or 11.8 percent of
meals. This provision is very important the budget. Of this amount, K5.0 billion
for next year, in particular, and is part is for the procurement of medicines and
of the response measure to the escalated medical supplies.
food prices.
205. Madam, to increase access to
200. Madam Speaker, to continue healthcare for our citizens, I propose to
with the program of completing allocate K1.4 billion towards health
abandoned secondary schools, I infrastructure development across the
propose to spend K338.3 million. country. Of this amount, K239.8
million will go towards the completion
201. Madam, I propose an allocation of the remaining 4 mini-hospitals in
of K70.0 million for equipping TEVET Phase I, and the commencement of the
training centres with modern equipment construction of 135 mini-hospitals
to enable them provide quality and under Phase II of the Project.
relevant vocational skills.
206. Madam Speaker, to improve
202. Madam Speaker, to improve quality of healthcare, I propose to
service delivery in the education sector, allocate K344.1 million for the
I propose to allocate K356.1 million for recruitment of 4,000 health personnel.
the recruitment of 5,400 personnel. Of
this, 4,200 will be teachers while the 207. Madam, to strengthen the health
balance of 1,200 will be non-teaching care management information system, I

35
propose to allocate K120.0 million will also be used to rehabilitate prison
towards the scaling up of the Electronic infrastructure as well as complete the
Health Record System with support construction and rehabilitation of police
from Cooperating Partners. stations and posts.

Housing and Community Amenities Social Protection

208. Madam Speaker, I propose to 212. Madam Speaker, to uplift the

spend K2.7 billion on housing and living standards of vulnerable
community amenities. Zambians, I propose to allocate K9.7
billion for social protection related
209. Madam, I have allocated expenditures. Of this amount, K4.1
K443.5 million for the construction of billion is for the Social Cash Transfer
28 dams and rehabilitation of 6 dams. Programme.
This is in line with Government’s
commitment to promote irrigation 213. Madam, for our pensioners, I
development for sustainable agriculture propose to increase the allocation to the
production and enhanced productivity. Public Service Pension Fund to K3.9
billion from K2.4 billion. I have also
210. Madam Speaker, to improve increased the allocation to the Local
and ensure our citizens have clean and Authorities Superannuation Fund to
safe water, I have allocated K126.7 K400.0 million from K300.0 million.
million for the construction of 1,374 The increase in the allocations is aimed
boreholes. I have further provided at reducing the waiting time for pension
K38.5 million for the rehabilitation of payment.
1,270 non-functional boreholes in peri-
urban and rural areas. This is Environmental Protection
complimentary to the works being done
under CDF. 214. Madam Speaker, I propose to
spend K1.5 billion towards
Public Order and Safety environmental protection. The funds
will be used to implement various
211. Madam Speaker, I have programmes and projects to protect the
allocated K6.8 billion towards the environment and build resilience
Public Order and Safety Function. Of against the effects of climate change.
this allocation, K250.0 million will be
for the implementation of the Integrated
National Registration Information
System. The allocation to the function

36
Other Functions the proposed expenditure. This amount
will comprise K141.1 billion in
215. Madam Speaker, I propose to domestic revenue of which K114.5
allocate K10.4 billion to the functions billion will be tax revenue while K26.5
of Defence as well as Recreation, billion will be non-tax revenue. Grants
Culture and Religion. from Cooperating Partners will be K3.4
billion.
REVENUE ESTIMATES AND
MEASURES 217. Madam, K33.3 billion will be
financed through debt in accordance
Resource Envelope for the 2024
with the Annual Borrowing Plan. Of
Budget
this amount, K16.3 billion will be
216. Madam Speaker, Government domestic and K17.0 billion external
intends to raise K177.9 billion to meet financing.

37
 2024 RESOURCE ENVELOPE

Share of Share of
Amount (ZMW) Budget GDP
TOTAL DOMESTIC REVENUE, GRANTS AND
FINANCING 177,891,868,893 100% 27.8%

I. Total Domestic Revenue and Grants 144,548,825,519 81% 22.6%

II. Domestic Revenue 141,113,730,377 79% 22.0%

Tax Revenue 114,578,995,181 64% 17.9%

a. Income Tax 61,322,017,941 34% 9.6%

Company Tax 25,680,487,986

Pay As You earn (PAYE) 23,714,783,839

Withholding Tax and Other Revenues 11,926,746,116

b. Value Added Tax (VAT) 36,361,861,216 20% 5.7%

c. Customs and Excise Duties 16,774,266,904 9% 2.6%

Customs Duties 8,481,448,663

Excise Duties 8,292,818,241

d. Export Duties 120,849,119 0% 0.0%

Non-Tax Revenue 26,534,735,196 15% 4.1%

o/w Mineral Royalty 10,004,179,542

Total User fees, fines and Charges 12,413,810,640

Interest from On-lending/Dividends 3,359,109,959

Skills Development Levy 268,248,591

Insurance Premium Levy 253,259,592

Motor Vehicle Fees 209,511,287

Tourism Levy 26,615,586

III. Grants 3,435,095,142 2% 0.6%

IV. Total Financing 33,343,043,374 19% 5.2%

Domestic Financing 16,328,755,585

Foreign Financing 17,014,287,789

o/w Programme Loans 7,671,674,398

Project Loans 9,342,613,391

38
218. Madam Speaker, there has been this regard, I propose to revise the Pay
an understandable concern on the tax As You Earn by increasing the exempt
burden especially given the rise in the threshold to K5,100 from K4,800 and
cost of living. Even in the midst of tight reducing the top rate to 37.0 percent
fiscal space, it is imperative that we from 37.5 percent. The following is the
provide some relief to the worker. In proposed Pay As You Earn regime:

Current Regime Proposed Regime

Income Band Income Band
Tax Rate Tax Rate
(K, per month) (K, per month)
K0 – K4800 0% K0 – K5100 0%
K4,801 – K6,800 20% K5,101 – K7,100 20%
K6,801 – K8,900 30% K7,101 – K9,200 30%
Above K8,900 37.5% Above K9,200 37%

219. Madam, to promote investment customs duty was suspended in the

in power generation, I propose to 2023 Budget. The relief on customs
increase the period in which a business duty will be for a period of 3 years.
can claim a refund on VAT incurred on
eligible goods before the 222. Madam Speaker, to promote
commencement of commercial local investment in the manufacturing
operations to 7 years from the current 4 sector, I propose the following
years for hydroelectricity generation. measures:
This is to allow for sufficient time for
a) Extend the 2 percent local
the investment to materialise.
content allowance on income
220. Madam Speaker, to promote earned from value addition to
geothermal energy, I propose to remove sorghum and millet. This is in
customs duty on machinery, equipment addition to other products that
and other goods designed for are already benefiting from this
geothermal energy activities. incentive namely, cassava,
mango, pineapple, and tomato;
221. Madam, to spur growth in the b) Increase company income tax
media and film industry, I propose to relief to 20 percent from 14.2
expand the list of selected media, film percent of the taxable profits for
and music equipment for which

39
 the first five years of operation b) Provide a 5-year tax holiday on
for businesses in rural areas; profit from ginning of cotton;
c) Provide for the allowance of and
losses of up to 1 percent on cut c) Provide a 10-year tax holiday
rug (shredded tobacco) in the on profit made from spinning
production of cigarettes; of cotton and weaving of
d) Remove customs duty on thread.
importation of motorcycles and
tricycles imported in complete 224. Madam Speaker, to improve
knock down form for railway operations, I propose to remove
companies that assemble and customs duty on the importation of
source at least 5 percent inputs rolling stock, namely, wagons and
locally; locomotives.
e) Introduce, remove and increase
225. Madam, to continue promoting
Selected Goods Surtax on some
the usage of clean energy as well as
products;
supporting the green economy and
f) Increase the customs duty rate
climate change mitigation, I propose
to 25 percent from 15 percent on
the following measures:
electrical panels; and
g) Reduce excise duty rate by 50 a) Remove customs duty on
percent on locally produced electric motor cycles, electric
clear beer for small and medium vehicles, electric buses, electric
manufacturers that produce less trucks, and attendant
than 500,000 litres per annum. accessories such as charging
This measure will be reviewed systems; and
after three years subject to b) Reduce excise duty to 25
performance-based parameters. percent from 30 percent on
hybrid vehicles designed for
223. Madam, as part of our drive to
the transportation of persons.
unlock economic potential,
Government will provide incentives to 226. Madam Speaker, to promote the
revitalise industry value chains. For a development of Multi-Facility
start, I propose the following incentives Economic Zones, I propose the
for the cotton value chain: following measures:
a) Provide a 5-year tax holiday on a) Extend the accelerated
profit for local producers of depreciation up to 100 percent
cotton seed; in respect of any new

40
 implement, plant or machinery products to K400 per mille
to developers of Multi-Facility from K361 per mille;
Economic Zones; and c) Introduce excise duty at 5
b) Provide for the extension of the percent on specific solid fuels
validity period for the customs made from coal; and
duty incentives accessible by a d) Change the excise duty
developer of a Multi-Facility valuation method for spirits,
Economic Zone for 5 years liqueurs, and other spirituous
upon fulfilment of the beverages to be determined on
conditions as may be the basis of market price and
prescribed. not the value of inputs at
importation.
227. Madam, to promote oil and gas
exploration, I propose to remove 230. Madam Speaker, to ensure that
customs duty on machinery, equipment everyone contributes something,
and other goods designed for petroleum however small, to the provision of
exploration. public services, I propose to introduce a
levy of between 8 ngwee and K1.80 on
228. Madam Speaker, contrary to the transaction value for person-to-
assertions that incentives are only person mobile money transfers. The
meant to benefit foreign investors, I following is the proposed fee structure:
wish to categorically state that all the
incentives that Government provides, Proposed
Amount range (K)
including the ones that I have Levy (K)
announced today, are available to both Between 1 to 150 0.08
local and foreign investors without Above 150 to 300 0.10
exception. Above 300 to 500 0.20
Above 500 to 1,000 0.50
229. Madam, to enhance domestic
Above 1,000 to 3,000 0.80
revenue mobilization, I propose the
following measures: Above 3,000 to 5,000 1.00
Above 5,000 to 10,000 1.50
a) Increase specific excise duty on Above 10,000 1.80
non-alcoholic beverages to 60
ngwee per litre from 30 ngwee
per litre;
b) Increase specific excise duty
for tobacco and tobacco

41
Non-Tax Revenue Measures Part IV

231. Madam Speaker, I propose to: CONCLUSION

a) Introduce a fee of K3,750 for 235. Madam Speaker, the journey to

DNA testing under the economic transformation we embarked
National Forensic Science and on in 2021 requires us to unlock the
Biometrics Department; potential of our country and build
b) Increase the license fee for resilience through inclusiveness and
commercial Kapenta operators partnerships. This calls for hard work,
to K4,000.00 from K3,333.00 perseverance and discipline to achieve
last revised in 2011; and our shared vision.
c) Increase toll tariffs for heavy
duty trucks with 4 axle and 236. Madam, we are alive to the
above by K100 and abnormal challenges confronting us especially the
load vehicles by K300. high cost of living. Your Government is
working towards addressing the high
232. Madam, in summary the net mealie meal and fuel prices. We are
effect of the revenue measures I have also revamping the economy to create
proposed is a gain of K721 million. employment opportunities for our
people.
233. Madam Speaker, all the
measures outlined will take effect on 1st 237. Madam Speaker, the journey to
January, 2024. a better Zambia is a collective one. It
requires active participation of all
House Keeping Measures citizens. Together, we can overcome
the challenges we face today. Together,
234. Madam Speaker, to update,
we can build the Zambia we want.
strengthen and remove ambiguities in
Together, we shall benefit from our
certain provisions of the tax laws and
wealth and prosperity. And together, we
make tax administration more effective,
will march towards our Vision 2030 of
I propose to amend the Income Tax Act,
becoming a prosperous middle-income
the Customs and Excise Act and the
nation.
Value Added Tax Act, among others.
238. Madam, the Budget I have
presented today is a clear demonstration
of our commitment to unlocking the
economy, uplifting the livelihoods of
our people and providing a conducive

42
environment for private sector
participation. We have made strides in
restructuring our external debt and in
restoring fiscal discipline. We have
increased the allocation to
infrastructure development. We have
provided incentives to the private
sector.

239. Madam Speaker, as if this is not

enough, we have continued the
recruitment of teachers and health
workers. We have strengthened social
protection. We have reduced the
waiting period for pension payments to
three months from over three years. We
are developing farm blocks. We have
resolved challenges at KCM and
Mopani Mine and are attracting more
investments in the mining sector.

240. Madam, we have yet again

increased the allocation to CDF. We are
indeed a Government of works, not
mere words!

241. Madam Speaker, I beg to move.

43