If the first six indispensable actions are to produce the transformation Zambia urgently needs, the next Government must confront another fundamental constraint facing indigenous Micro, Small and Medium Enterprises (i-MSMEs): Zambians cannot build productive enterprises on unproductive infrastructure. The seventh (7) indispensable action is therefore for the next GRZ to deliberately build a National Productive Infrastructure System-NPIS for i-MSMEs.
In this article we continue with the idea that Zambian i-MSMEs have need of productive infrastructure namely proximity to value chains, aids to trade, digital connectivity and efficient route to market.
This must go beyond roads and bridges. Zambia needs infrastructure designed not merely to facilitate movement, but to facilitate production. From Infrastructure for People to Infrastructure for Production
Infrastructure Must Follow the Value Chain Infrastructure planning must also become much more deliberate. It makes little economic sense to construct a processing facility without ensuring access to raw materials. It makes little sense to produce agricultural products without storage and transport. It makes little sense to manufacture goods without distribution channels and it makes little sense to train thousands of technical graduates without creating productive enterprises capable of employing their skills.
Infrastructure must therefore be planned around complete value chains: from farm to processor. From processor to manufacturer. From manufacturer to distributor. From distributor to consumer. This is how infrastructure becomes an instrument of industrial policy.
Digital infrastructure is now Productive Infrastructure The next GRZ must also recognise that broadband connectivity is no longer a luxury. For the modern i-MSME, the internet is increasingly a factory, marketplace, accounting system, advertising platform, research library and connection to international customers. Every indigenous enterprise should be able to access affordable and reliable digital infrastructure.
Consequently, GRZ must therefore continue to accelerate: digital identity, payments, affordable broadband, e-commerce, cloud accounting, procurement and taxation. In this area of digitalisation, as an African country, Zambia must be commended for having embarked on and continued on the path of smart Zambia!
The objective should be to make it possible for a small enterprise in Chipata, Mongu, Kasama or Livingstone participate in the national and eventually global digital economy.
A Zambian i-MSMEs entrepreneur should not have to be physically located in Lusaka to access opportunity for thriving!
Connect Production to Markets Infrastructure must ultimately connect businesses to customers. This means strengthening roads, rail, border facilities, markets, logistics systems and distribution networks in ways that specifically reduce the cost of doing business for i-MSMEs.
The GRZ must therefore pursue a “cost-to-market” approach to infrastructure planning. Every major infrastructure investment should be assessed partly according to how it reduces the cost of production, movement and market access for indigenous businesses.
Local Infrastructure, not just indigenous businesses GRZ itself is one of the largest infrastructure investors in the country. The construction of roads, schools, hospitals, housing, markets, water systems and public facilities should therefore become an opportunity to build the capacity of indigenous contractors, manufacturers, suppliers and service providers.
Wherever possible, infrastructure projects should deliberately incorporate indigenous enterprise participation, local materials, local skills and local supply chains. This creates a multiplier effect i.e. GRZ spends once on infrastructure but can generate multiple rounds of economic activity through indigenous businesses.
Conclusion The need for i-MSMEs in Zambia to thrive is no longer an option to be pursued half-heartedly by the new GRZ. For that thriving to finally happen productive infrastructure is a must. That infrastructure must be i-MSMEs-sensitive. That sensitivity is the point of the sub article VNc#2627a with this particular sub-article VNc#2627b emphasizing the need for infrastructure that is nearest to target value chains, digitalization, markets as well as locally enabling infrastructure by GRZ which in turn helps build indigenous business ecosystems!
Ndakubotelani kapati, ndasumpuka! ___________________________________________________________________________ The Author can be reached on +260 955 746 997 or via email at vpmn69@gmail.com
