BREAKFAST MEETING ON IMPLICATIONS OF FINANCIAL CRIMES ON POVERTY AND INEQUALITY

The Zambia Tax Platform (ZTP) will be hosting a breakfast meeting focusing on the implications of Financial Crimes on Poverty and Inequality in Zambia. ZTP is a multi-stakeholder group that provides critical analysis on Zambia’s tax policy and administration and promotes sustained advocacy on improving public finance management, enhancing fiscal justice and efficiency in the use of public resources.

ZTP notes that a strong financial system is key for development in any country. Over the years however, financial crimes including those bordering on illicit financial flows and suspected proceeds of crime have continued to be cited in many reports as deterrents of economic prosperity for Zambia. In the last Financial Intelligence Centre (FIC) trends report, it was revealed that 101 suspicious transition were analyzed and reported by the centre. There was also a significant increase in the value of suspicious cash withdrawals (from ZMW3 million to ZMW25 million) and deposits (from ZMW103 million to ZMW534 million) from 2018 to 2019 respectively.

Fighting financial crimes is not an easy task especially in light of financial constraints and inadequate skills to tackle the problems. Nonetheless, the observed trends undoubtedly affect everyone and the economy as a whole. There is thus need to continue sensitizing people on the adverse effects that financial crimes bring.

Date

Apr 15 2021

Expired!

Time

8:00 am - 10:00 pm

Organizer

Zambia Tax Platform

Email

info@zambiataxplatform.com

ZTP Facebook Feed

Zambia Tax Platform- ZTP

1 week ago

IMPROVING FOREIGN DIRECT INVESTMENT FOR SUSTAINABLE ECONOMIC DEVELOPMENT IN ZAMBIAZambia, like many African countries, seeks to attract Foreign Direct Investments (FDI) to stimulate economic growth, create jobs, and reduce poverty. The past five years have seen an upward trend in FDI inflows, but this trend has been erratic, with significant fluctuations in investment levels. In 2020, the country recorded its highest FDI value at US$ 5.84 billion, while in 2019, FDI values were at their lowest at US$ 0.49 billion but rebounded in 2022 to US$5.24 billion (Zambia Development Agency).Notwithstanding the fluctuating pattern of FDI inflows in the previous five years, the government acknowledges the importance of FDI and has been implementing policies aimed at improving the investment climate in the country. In pursuit of this objective, the enactment of the Investment, Trade and Business Development Act No. 18 of 2022 aims to enhance market access and promote investor participation. Additionally, economic reforms such as the stabilization of the power utility (ZESCO) and agricultural input subsidy reforms are anticipated to stimulate industrial output and boost productivity.In terms of FDI distribution, the energy sector has consistently attracted the highest FDI inflows since 2018, followed by manufacturing, which experienced a sharp decline in 2021 due to the COVID-19 induced global downturn. The mining sector has had fluctuating FDI, but it experienced a significant increase in 2022 due to higher copper prices and further investments from existing mining companies. However, the transport sector has experienced the lowest FDI inflows, although it holds potential for growth through infrastructure development and logistics. Finally, in the period under review, the agriculture sector has consistently received FDI and offers significant potential for impact investment in sustainable farming, value addition, and supply chain development (ZIICS 2022).Private Equity Funds (PEF) represent the single most significant investor type in Zambia, followed by Development Finance Institutions (DFIs). Other investor types include Venture Capitalists (VCs), Foundations, and Investment Banks. The majority of investors are from Europe and the rest of Africa, suggesting that these funds are not 'Zambia only' funds. They have interests in other countries within Africa, and Zambia must compete for a share of the available capital. Overwhelmingly, 75% of investors source their funding from Europe.Nevertheless, Zambia has endeavored to establish a stable economic climate through impact investments, aiming to enhance access to clean energy and implement policies that foster gender equality. The country has also introduced initiatives to bolster climate resilience. Despite these efforts, obstacles persist, including substantial informal sector employment, inadequate coverage of social protection programs, gender-based violence, and susceptibility to climate change. Additional investments in healthcare, social security, and economic recovery are imperative to advance sustainable development and alleviate poverty in Zambia.In conclusion, Zambia has made some progress in attracting FDI, but more needs to be done to make the country more attractive to investors. Alongside the promotion of a conducive business climate through consistent incentives and policy frameworks, blended finance which strategically combines public and private financing, can be leveraged as a useful tool in increasing FDI in Zambia to support sustainable development projects that can further drive economic growth and job creation. With a robust ecosystem, blended finance can also play a critical role in supporting local businesses in Zambia by providing access to finance, technical assistance, and market linkages to help small and medium-sized enterprises (SMEs) grow and become more competitive. ByEllen MakinishiPrivate Sector Enhancement (PSE) Specialist Zambia Tax Platform- ZTPEmail: pse@zambiataxplatform.comWebsite: www.zambiataxplatform.comAddress: Plot 3823 Manda Hill Road, Olympia, Lusaka, Zambia. ...

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