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Republic of Zambia

2012 ANNUAL PROGRESS REPORT

SIXTH NATIONAL DEVELOPMENT

PLAN

© 2013 Ministry of Finance

For comments and contributions please contact: Monitoring and Evaluation Department

Ministry of Finance P.O. Box 50062

Lusaka

Tel: +260 211 250886 Email: m&[email protected] Internet: www.mofnp.gov.zm

2012 Annual Progress Report | Sixth National Development Plan

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FOREWORD The 2012 Sixth National Development Plan (SNDP) Annual Progress Report (APR) is the second in the series of upcoming SNDP Annual Progress Reports. It is a collaborative effort of various Government Ministries, Provinces and Spending Agencies (MPSAs) who come together each year, to review progress of implementation of development programmes and projects outlined in the National Development Plan. For 2012, the assessment of progress has been reported in three related documents. These are; the 2012 Annual Progress Report, Analytical Report and a compilation of sector and provincial chapters. The 2012 Annual Progress Report has, therefore, attempted to relate sector performance to national development objectives. The report has assessed progress based on output and outcome level indicators in an attempt to provide a national picture on the progress the country is making towards achieving the three overarching SNDP objectives of infrastructure development, rural development and human development. To achieve the above, a mapping of Key Performance Indicators (KPIs) was undertaken as they relate to objectives of the SNDP. The assessment of Key Performance Indicators (KPIs) provides a rudimentary picture as to whether sector performance was contributing to the attainment of Plan objectives. A total of 128 KPIs were identified as key to measuring performance in 2012 and out of this number 109 indicators with information were assessed while 19 indicators could not be assessed due to lack of data. Of the 109 assessed indicators, 51 met the targets while 58 did not meet the targets. The lack of data for the indicators that could not be assessed was attributed mainly to inadequate Management Information System in a number of sectors. Over the years, the need to fulfil national reporting requirements in the Annual Progress Report has usually led to excessive streamlining of sector/provincial chapters to ensure that the report was manageable in size. This process has in most instances denied the readership detailed documentation of performance. To address this trend, a compilation of sector and provincial chapters has been documented and provided on CD for detailed reference. The Analytical Report has provided a detailed perspective on selected sector performance. Finally, the Sector Advisory Groups (SAGs) remain essential institutions and mechanisms for close collaboration among Government, the Private Sector, the Cooperating Partners and Civil Society Organisations. Through these institutions, Government receives valuable input that assists in progress tracking and instituting timely remedial measures. These institutions need to meet as required and ensure that their respective sectors are on course in meeting set targets.

Fredson K. Yamba SECRETARY TO THE TREASURY

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TABLE OF CONTENTS

FOREWORD --------------------------------------------------------------------------------------------------------------------------- i

TABLE OF CONTENTS ----------------------------------------------------------------------------------------------------------- iii

TABLES -------------------------------------------------------------------------------------------------------------------------------- vii

FIGURES ----------------------------------------------------------------------------------------------------------------------------- viii

ACRONYMS -------------------------------------------------------------------------------------------------------------------------- ix

EXECUTIVE SUMMARY --------------------------------------------------------------------------------------------------------------- xiii

INTRODUCTION ---------------------------------------------------------------------------------------------------------------------------- 1

1.1. INTRODUCTION------------------------------------------------------------------------------------------------------------------ 3

1.1.1. BACKGROUND -------------------------------------------------------------------------------------------------------- 3

1.1.2. SNDP OBJECTIVES AND STRATEGIES----------------------------------------------------------------------- 4

1.1.2.1. Infrastructure Development ---------------------------------------------------------------------------------- 4

1.1.2.2. Rural Development --------------------------------------------------------------------------------------------- 5

1.1.2.3. Human Development------------------------------------------------------------------------------------------- 5

1.1.3. PREPARING THE 2012 ANNUAL PROGRESS REPORT ------------------------------------------------- 5

1.1.4. SUMMARY OF PROGRESS MADE–STATUS OF KEY PERFORMANCE INDICATORS -------- 6

OBJECTIVE 1: ------------------------------------------------------------------------------------------------------------------------------- 9

TO ACCELERATE INFRASTRUCTURE DEVELOPMENT, ECONOMIC GROWTH AND DIVERSIFICATION - 9

2.1. MACROECONOMIC PERFORMANCE AND STRUCTURAL REFORMS ----------------------------- 11 2.1.1. OVERVIEW OF MACROECONOMIC PERFORMANCE ------------------------------------------ 11 2.1.2. GDP GROWTH RATE -------------------------------------------------------------------------------------- 12

2.1.2.1. Agriculture, Livestock And Fisheries-------------------------------------------------------------- 12 2.1.2.2. Mining ---------------------------------------------------------------------------------------------------- 13 2.1.2.3. Tourism -------------------------------------------------------------------------------------------------- 14 2.1.2.4. Manufacturing ------------------------------------------------------------------------------------------ 14 2.1.2.5. Commerce And Trade-------------------------------------------------------------------------------- 14

2.1.3. TRENDS IN INFLATION ----------------------------------------------------------------------------------- 15 2.1.4. DOMESTIC REVENUE AND EXPENDITURE ------------------------------------------------------- 15

2.1.4.1. Overall Budget Deficit -------------------------------------------------------------------------------- 17 2.1.5. AVERAGE WEIGHTED LENDING RATES ----------------------------------------------------------- 17 2.1.6. POVERTY STATUS ----------------------------------------------------------------------------------------- 17 2.1.7. EXCHANGE RATE ------------------------------------------------------------------------------------------ 18

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2.1.8. EXTERNAL DEBT ------------------------------------------------------------------------------------------- 18 2.1.9. DOMESTIC DEBT SOCK ---------------------------------------------------------------------------------- 19 2.1.10. OUTPUT INDICATORS ------------------------------------------------------------------------------------ 19 2.1.11. DEVELOPMENTS IN STRUCTURAL REFORMS --------------------------------------------------- 21 2.1.12. SUMMARY AND POLICY RECOMMENDATIONS -------------------------------------------------- 23

2.2 INFRASTRUCTURE DEVELOPMENT -------------------------------------------------------------------------- 27 2.2.1. OVERVIEW OF INFRASTRUCTURE DEVELOPMENT PERFORMANCE ------------------- 27 2.2.2. TRANSPORT ------------------------------------------------------------------------------------------------- 28

2.2.2.1. Road Transport Infrastructure ---------------------------------------------------------------------- 28 2.2.2.2. Railways ------------------------------------------------------------------------------------------------- 29 2.2.2.3. Air Transport -------------------------------------------------------------------------------------------- 29

2.2.3. ENERGY ------------------------------------------------------------------------------------------------------- 30 2.2.3.1. Electricity Generation Plants ----------------------------------------------------------------------- 30 2.2.3.2. Rehabilitation Of Power Stations ------------------------------------------------------------------ 30 2.2.3.3. Generation Projects----------------------------------------------------------------------------------- 31 2.2.3.4. Strategic Petroleum Reserves --------------------------------------------------------------------- 32 2.2.3.5. Rural Electrification ----------------------------------------------------------------------------------- 33 2.2.3.6. Renewable Energy And Alternative Energy Development ---------------------------------- 33

2.2.4. INFORMATION COMMUNICATION TECHNOLOGY ---------------------------------------------- 33 2.2.4.1. Digital Migration --------------------------------------------------------------------------------------- 34 2.2.4.2. Infrastructure Development ------------------------------------------------------------------------- 34 2.2.4.3. E-Government ----------------------------------------------------------------------------------------- 34

2.2.5. WATER AND SANITATION ------------------------------------------------------------------------------- 35 2.2.5.1. Status Of Indicators For Water Resources Infrastructure Development ----------------- 35 2.2.5.2. Infrastructural Developments In Other Sectors ------------------------------------------------ 37

2.2.6. KEY PERFORMANCE INDICATORS ------------------------------------------------------------------ 39 2.2.7. SUMMARY AND RECOMMENDATIONS ------------------------------------------------------------- 40

OBJECTIVE 2: ------------------------------------------------------------------------------------------------------------------------- 43

TO PROMOTE RURAL INVESTMENT AND ACCELERATE POVERTY REDUCTION -------------------------- 43

3.1 RURAL DEVELOPMENT ---------------------------------------------------------------------------------------------------- 45

3.1.1. OVERVIEW OF PERFORMANCE ON RURAL DEVELOPMENT -------------------------------------- 45

3.1.2. PERFORMANCE OF TARGETED RURAL DEVELOPMENT PROGRAMMES -------------------- 45

3.1.2.1. Infrastructure Development -------------------------------------------------------------------------------- 45

3.1.2.2. Rural Electrification ------------------------------------------------------------------------------------------- 46

3.1.2.3. Rural Water Health And Sanitation Development ---------------------------------------------------- 48

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3.1.2.4. Agriculture ------------------------------------------------------------------------------------------------------- 49

3.1.2.5. Tourism ---------------------------------------------------------------------------------------------------------- 50

3.1.2.6. Natural Resources -------------------------------------------------------------------------------------------- 51

3.1.3. IMPLEMENTING THE SNDP AT REGIONAL LEVEL ----------------------------------------------------- 52

3.1.4. SUMMARY AND RECOMMENDATIONS --------------------------------------------------------------------- 52

OBJECTIVE 3: ----------------------------------------------------------------------------------------------------------------------------- 55

TO ENHANCE HUMAN DEVELOPMENT ----------------------------------------------------------------------------------------- 55

4.1 HUMAN DEVELOPMENT --------------------------------------------------------------------------------------------------------- 57

4.1.1. OVERVIEW ------------------------------------------------------------------------------------------------------------ 57

4.1.2. HEALTH ---------------------------------------------------------------------------------------------------------------- 58

4.1.2.1. Primary Health Care Services ----------------------------------------------------------------------------- 58

4.1.2.2. Human Resource Development and Management -------------------------------------------------- 60

4.1.2.3. Availability of Drugs at Health Centres and Hospitals ----------------------------------------------- 61

4.1.2.4. Establishment of a Social Health Insurance Fund --------------------------------------------------- 61

4.1.3. KEY PERFORMANCE INDICATORS -------------------------------------------------------------------------- 61

4.1.4. HIV and AIDS --------------------------------------------------------------------------------------------------------- 61

4.1.4.1. Access to PMTCT --------------------------------------------------------------------------------------------- 62

4.1.4.2. Access to and use of VCT services ---------------------------------------------------------------------- 62

4.1.4.3. Access to Social Support Services for OVCs and People Living AIDs ------------------------- 62

4.1.6. EDUCATION AND SKILLS DEVELOPMENT ---------------------------------------------------------------- 63

4.1.6.1. Net Enrolment Rate (NER) --------------------------------------------------------------------------------- 63

4.1.6.2. Completion Rate ---------------------------------------------------------------------------------------------- 64

4.1.6.3. Pupil Teacher Ratio ------------------------------------------------------------------------------------------ 65

4.1.6.4. Lecturer Student Ratio --------------------------------------------------------------------------------------- 66

4.1.6.5. Gender Parity Index ------------------------------------------------------------------------------------------ 66


4.1.7.1. Key Policies and Reforms ---------------------------------------------------------------------------------- 67

4.1.8. CHILD, YOUTH AND SPORTS DEVELOPMENT ---------------------------------------------------------- 67

4.1.8.1. Number of Youths Trained in Life and Vocational Skills-------------------------------------------- 68


4.1.10. NUTRITION ------------------------------------------------------------------------------------------------------------ 68

4.1.10.1. Nutritional Services ----------------------------------------------------------------------------------------- 68

4.1.11. DISABILITY AND DEVELOPMENT ----------------------------------------------------------------------------- 69


4.1.13. SOCIAL PROTECTION -------------------------------------------------------------------------------------------- 70

4.1.13.1. Social Assistance to Incapacitated Households ---------------------------------------------------- 70


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4.1.15. DISASTER RISK MANAGEMENT ------------------------------------------------------------------------------ 71

4.1.15.1. Disaster Management Mainstreaming ----------------------------------------------------------------- 72

4.1.15.2. Disaster Risk Management Capacity Strengthening ---------------------------------------------- 73


4.1.17. GOVERNANCE ------------------------------------------------------------------------------------------------------- 74


4.1.19. GENDER --------------------------------------------------------------------------------------------------------------- 76

4.1.19.1.1. Status of Gender Mainstreaming Indicators ------------------------------------------------------- 77

4.1.19.2. Status of Women Empowerment Indicators---------------------------------------------------------- 78


4.1.21. ENVIRONMENT ------------------------------------------------------------------------------------------------------ 79

4.1.22. LOCAL GOVERNMENT AND DECENTRALISATION ----------------------------------------------------- 80

4.1.22.1. Status of Indicators ----------------------------------------------------------------------------------------- 80


4.1.24. SUMMARY AND RECOMMENDATIONS --------------------------------------------------------------------- 81

4.1.24.1. Health ----------------------------------------------------------------------------------------------------------- 82

4.1.24.2. Education and Skills ---------------------------------------------------------------------------------------- 82

4.1.24.3. Child, Youth and Sports Development ---------------------------------------------------------------- 82

4.1.24.4. Nutrition -------------------------------------------------------------------------------------------------------- 83

4.1.24.5. Social Protection--------------------------------------------------------------------------------------------- 83

4.1.24.6. Disaster Risk Management ------------------------------------------------------------------------------- 83

4.1.24.7. Governance --------------------------------------------------------------------------------------------------- 83

4.1.24.8. Gender --------------------------------------------------------------------------------------------------------- 83

LINKING THE 2012 BUDGET --------------------------------------------------------------------------------------------------------- 85

TO THE SNDP ----------------------------------------------------------------------------------------------------------------------------- 85

5.1 OVERVIEW ---------------------------------------------------------------------------------------------------------------------------- 87

5.1.1. THE BUDGET PREPARATION PROCESS ------------------------------------------------------------------ 87

5.1.2. THE MACROECONOMIC FRAMEWORK OF THE 2012 BUDGET AND THE SNDP ------------ 87

5.1.3. FUNCTIONAL SPENDING PRIORITIES AND ALLOCATIONS ---------------------------------------- 88

5.1.4. ALIGNMENT OF 2012 SPENDING PRIORITIES WITHIN THE SNDP FRAMEWORK ---------- 89

5.1.4.1. Actual Releases of GRZ Resources --------------------------------------------------------------------- 89

5.1.4.2. Actual Releases of Co-operating Partner’s Resources --------------------------------------------- 90

5.1.5. POLICY RECOMMENDATIONS --------------------------------------------------------------------------------- 91

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TABLES Table 1 Summary of Progress Made on Key Performance Indicators, 2012 -------------------------------------- 7 Table 2 Key Performance Indicators, Mining, 2012 --------------------------------------------------------------------- 13 Table 3 Key Performance Indicators: Manufacturing, 2012 ----------------------------------------------------------- 14 Table 4 Key Performance Indicators: Commerce and Trade, 2012 ------------------------------------------------- 15 Table 5 Revenues and Expenditure (K’ billion)--------------------------------------------------------------------------- 16 Table 6 Progress on Macroeconomic Key Performance Indicators ------------------------------------------------- 18 Table 7 Macroeconomic Output Indicators -------------------------------------------------------------------------------- 20 Table 8 Ten Components of the PFM Reform Strategy ---------------------------------------------------------------- 21 Table 9 Road Subsector Performance, 2012 ----------------------------------------------------------------------------- 29 Table 10 Key Performance Indicators: Infrastructure Development, 2012 ---------------------------------------- 40 Table 11 Rural Roads, 2012 -------------------------------------------------------------------------------------------------- 46 Table 12 Rural Water and Sanitation Development, 2012 ------------------------------------------------------------ 49 Table 13 Resettlement Schemes Development, 2012 ----------------------------------------------------------------- 50 Table 14 Natural Resource Development Performance, 2012 ------------------------------------------------------- 51 Table 15 Key Performance Indicators: Health, 2012 ------------------------------------------------------------------- 61 Table 16 Key Performance Indicators: HIV and AIDS, 2012 --------------------------------------------------------- 62 Table 17 Key Performance Indicators: Education and Skills Sector, 2012 ---------------------------------------- 67 Table 18 Key Performance Indicators: Child, Youth and Sports Development----------------------------------- 68 Table 19 Key Performance Indicator: Disability Sector, 2012 -------------------------------------------------------- 69 Table 20 Key Performance Indicators: Social Protection, 2012 ------------------------------------------------------ 71 Table 21 Key Performance Indicators: Disaster Risk Management, 2012 ---------------------------------------- 74 Table 22 Key Performance Indicators: Governance, 2012 ------------------------------------------------------------ 76 Table 23 Key Performance Indicators: Gender, 2012 ------------------------------------------------------------------ 78 Table 24 Key Performance indicators: Environment, 2012------------------------------------------------------------ 79 Table 25 Macroeconomic Frame work of the SNDP and the 2012 Budget Statement ------------------------- 88 Table 26 Expenditure by Function of Government, 2010- 2012 ----------------------------------------------------- 88 Table 27 SNDP Planned Expenditures by Thematic Area and Source of Funding, 2012 (K’billion) -------- 89 Table 28 Approved and Actual Releases (K’ billion) by GRZ in 2012 ---------------------------------------------- 89 Table 29 Approved and Actual Releases (K’billion) by Co-operating Partners in 2012 ------------------------ 90

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FIGURES Figure 1 Summary of Key Performance Indicator Assessed, 2012 -------------------------------------------------- 7 Figure 2 Revenue and Expenditure as percentage of GDP ----------------------------------------------------------- 16 Figure 3 Expenditure by Category as a Percentage of GDP---------------------------------------------------------- 17 Figure 4 External Debt stock, 2011-2012 (US$ million) ---------------------------------------------------------------- 19 Figure 5 Education Infrastructure Programme Performance, 2012 ------------------------------------------------- 47 Figure 6 Rural Health Infrastructure Development Performance, 2012 -------------------------------------------- 48 Figure 7 Budget and Releases by GRZ in 2012 ------------------------------------------------------------------------- 90 Figure 8 Budget and Releases (K’billion) by Co-operating Partners in 2012 ------------------------------------- 91

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ACRONYMS ACC Anti-Corruption Commission AIDS Acquired Immune Deficiency Syndrome ALR Average Lending Rate APRM African Peer Review Mechanism ARVs Anti-Retro Virals AU African Union BDF Business Development Fund CBNRM Community Based Natural Resource Management CBU Copperbelt University CCM Country Coordination Mechanism CCC Communication Cooperation and Coordination CDF Constituency Development Fund CEDAW Convention on the Elimination of all forms of Discrimination Against Women CEEC Citizens Economic Empowerment Commission CHAZ Churches Health Association of Zambia CLTs Community Led Total Sanitation CP Cooperating Partners CRN Core Road Network CSO Central Statistical Office CWACS Community Welfare Assistance Committees DDCCs District Development Coordinating Committees DIP Decentralisation Implementation Plan DMMU Disaster Management and Mitigation Unit DPOs Disability Peoples’ Organisation DPOs Disabled People’s Organisation DPP Director of Public Prosecution ECCDE Early Childhood Care, Development and Education ENRMMP Environment and Natural Resource Management and Mainstreaming Programme EPPCA Environmental Protection and Pollution Control Act EPI Export Propensity Index FISP Farmer Input Support Programme FNDP Fifth National Development Plan FRA Food Reserve Agency FSDP Financial Sector Development Programme FSP Food Security Pack GBV Gender Based Violence GCDD Gender and Child Development Division GDP Gross Domestic Product GPI Gender Parity Index GRZ Government of the Republic of Zambia GFATM Global Fund to Fight AIDS, Tuberculosis and Malaria HRC Human Rights Commission HTTI Hotel and Tourism Training Institute IDD Iodine Deficiency Disorders IDP Integrated Development Plan IFMIS Integrated Financial Management Information System IPPAs Investment Promotion and Protection Agreement JCA Judicial Complaints Authority KPI Key Performance Indicator LBTC Lusaka Business and Technical College LCMS Living Conditions Monitoring Survey M&E Monitoring and Evaluation MCDSS Ministry of Community Development and Social Services

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MCTI Ministry of Commerce, Trade and Industry MDGs Millennium Development Goals MFEZ Multi-Facility Economic Zone MOE Ministry of Education MOF Ministry of Finance and National Planning MOH Ministry of Health MOU Memorandum of Understanding MPSAs Ministries, Provinces, and other Spending Agencies MSME Micro, Small and Medium Enterprises MSYCD Ministry of Sport, Youth and Child Development MTEF Medium Term Expenditure Framework NACL National Airport Corporation Limited NARF National AIDS Reporting Format NASF National Aids Strategic Framework NER Net Enrolment Ratio NFNC National Food and Nutrition Commission NRFA National Road Fund Agency NRIS National Registration Information System NSTC National Science and Technology Council NTD National Trust for the Disabled NTE Non-Traditional Exports NVRC National Vocational Rehabilitation Centre OVP Office of Vice the President PBD Parliamentary Business Division PDCCs Provincial Development Coordinating Committees PFM Public Financial Management PMTCT Prevention of Mother To Child Transmission PPCA Police Public Complaints Authority PWAS Public Welfare Assistance Scheme PWDs People with Disabilities RDA Road Development Agency SADC Southern Africa Development Community SAG Sector Advisory Group SCT Social Cash Transfer SNDP Sixth National Development Plan SRF Strategic Research Fund SWAp Sector Wide Approach TAAP Tourism Area Action Plan TDI Trade Dependent Index TEVET Technical Education, Vocational and Entrepreneurship Training TSA Treasury Single Account UNCRPD United Nations Convention on the Rights of People with Disabilities UNWTO United Nations World Tourism Organisation UNZA University of Zambia VSU Victim Support Unit WALBR Weighted Average Lending Base Rate WRMD Water Resource Management and Development WSS Water Supply and Sanitation ZAPD Zambia Agency for People with Disabilities ZASTI Zambia Air Service Training Institute ZDA Zambia Development Agency ZDHS Zambia Demographic Health Survey ZEMA Zambia Environmental Management Agency ZESCO Zambia Electricity Supply Corporation ZICTA Zambia Information Communication Technology Authority ZNAN Zambia National AIDS Network

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ZNLCCB Zambia National Library and Cultural Centre for the Blind ZPPA Zambia Public Procurement Authority ZRA Zambia Revenue Authority


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EXECUTIVE SUMMARY

OVERVIEW OF PERFORMANCE IN 2012

The 2012 Annual Progress Report (APR) provides an assessment of the implementation of policies and

strategies outlined in the Sixth National Development Plan (SNDP) 2011-2015, for the year 2012.

Previous APRs have reported on SNDP implementation progress anchored mainly on sector

performance. Correlations between sector performance and national development objectives were not

clearly demonstrated. This report goes further and seeks to establish correlations between sector

performances and desired national development outcomes. In order to establish this correlation between

sector performance and national development objectives, this report focuses on assessing progress

based on outcome and in some cases, output level indicators. In this way, the 2012 APR provides a

national picture on the progress the country is making towards achieving the three overarching SNDP

objectives: 1) to accelerate infrastructure development, economic growth and diversification; 2) to

promote rural investment and accelerate poverty reduction; and 3) to enhance human development.

A combination of both output and outcome level indicators are used to analyse performance as it relates

to the annual targets identified in the SNDP. To assess performance in 2012, a total of 128 Key

Performance Indicators (KPIs) were considered out of which 109 indicators with information were

assessed and 19 indicators where data was not available were not assessed. Of the assessed indicators,

51 indicators representing 40 percent met the targets while 45 percent did not meet the target. The

overall progress made in 2012 based on the assessment of the indicators was, therefore, unsatisfactory.

With the exception of the rural development thematic area where no KPIs were tracked, the poorest

performance was recorded in the area of human development where the percentage of KPIs that

achieved their targets was estimated at 33 percent. The macroeconomic and priority growth sector

thematic area recorded the highest number of indicators that met their targets at about 56 percent. For

the infrastructure development thematic area, the indicators that met their targets were at 41 percent.

PROGRESS ON OBJECTIVE 1: ECONOMIC GROWTH, DIVERSIFICATION AND INFRASTRUCTURE

DEVELOPMENT

Macroeconomic performance and structural reforms

Macroeconomic performance during the year under review was largely favourable. The real GDP growth

was estimated at 7.3 percent, significantly higher than the 6.6 percent recorded in 2011, and slightly

higher than the 7.0 percent projected in the 2012 Budget Estimates. The real GDP growth rate of 7.3

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percent in 2012 was higher than the SNDP target of 6 percent. The main drivers of growth were

agriculture, construction, wholesale and retail trade, manufacturing, transport, and Information

Communication Technology (ICT).

The mining sector continued to play a significant role albeit recording negative growth at 13.2 percent

compared to negative growth of 5.2 percent in 2011. There are five indicators to measure annual

performance of the Mining sector. On the evidence of performance against key indicators, the mining

sector met three out of five annual KPI targets, representing a 60 percent success rate. Employment in

the Sector increased from 58,672 in 2011 to 65,876 in 2012, thereby achieving the annual target of

52,300. The proportion of mining companies complying with statutory safety, health and environmental

regulations increased from 75 percent in 2011 to 85 thereby meeting the annual target of 80 percent in

2012. However, overall copper production decreased from 819,574 in 2011 to 785,641 in 2012 and did

not meet the target by 20,384. In terms of mines in production; the number of small scale mining license

holders decreased from 111 in 2011 to 108 in 2012 while the target was 120. The number of large scale

mining license holders decreased from 15 in 2011 to 11 in 2012 and failed to meet the target by one. The

number of mineral processing facilities increased from 22 in 2011 to 25 in 2012 surpassing the annual

target by three.

The overall performance of the agriculture, livestock and fisheries sector in 2012 was favourable. Of the

five KPIs for assessing sector performance, three indicators were met representing a 60 percent success

rate. This favourable performance was due to good performance of the crop and livestock sub-sectors. In

an effort to ensure that crop diversification away from maize production is enhanced, the sector

concentrated on the production and marketing of other important cash crops such as cotton, soya beans,

groundnuts, rice and sorghum. This resulted in the sector recording an upward trend in the area planted

and output for most of these crops.

During the review period, the performance of the tourism sector was generally unsatisfactory. Of the

seven KPIs for assessing performance, only two were met representing a success rate of 29 percent.

Three KPIs were not met while two could not be assessed due to lack of data. The annual direct tourism

earnings increased from US$216 million in 2011 to US$240 million in 2012 but fell below the 2012 target

of US$260 million. In terms of employment levels, the sector employed 44,292 in 2012 from 31,900 in

2011 against a target of 31,000. However, international tourist arrivals were below target due to among

other things the adverse effects of the Euro-Zone financial crisis as well as the classification of the

country as a Low Risk Yellow Fever Destination.

The performance of the manufacturing sector was robust. The sector met all the four KPI targets,

representing a 100 percent success rate. The contribution of the manufacturing sector to GDP was


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recorded at 8.1 percent in 2012 with a sector growth rate of 8.8 percent - against an annual target of 3.5

percent. This growth was mainly attributed to the food, beverage and tobacco, fabricated metal products

and the non-metallic mineral products sub-sectors. The major challenge faced by the sector continued to

be the high cost of production which made most local industries uncompetitive against similar imported

products. The Commerce and Trade sector met three out of the four KPI targets, representing a 75

percent success rate.

One of the key anchors of the macroeconomic stability policy under the SNDP is reduction of inflation and

sustaining it at a single digit over the medium term. In 2012, average annual Inflation continued in single

digits at 6.6 percent. This represented a 2.1 percentage points reduction from the 2011 level of 8.7

percent. The outturn was within the SNDP target of 7.0 percent.

Significant progress in structural reforms was also recorded. Structural reforms in 2012 continued in the

areas of Public Financial Management (PFM), Private Sector Development (PSD), Public Service

Reforms, Decentralization, labour reforms and Financial Sector Development (FSDP).

Overall, macroeconomic and growth performance was consistent with SNDP targets in 2012. On

aggregate, 56 percent of annual KPIs in this thematic area were met. This performance need to be

consistent and sustained for a longer period of time to positively impact the high poverty levels.

Infrastructure development

In the area of transport infrastructure development, road programmes underperformed in 2012, achieving

at most 37 percent of the targeted kilometres for construction, maintenance and rehabilitation. The rail

and maritime sub-sectors were characterized by inertia. In the area of air transport, airport upgrading

works were undertaken as planned which led to an increase in the total number of passengers moved

from 1,228,871 in 2011 to 1,362,113 in 2012, on both local and international flights. This outcome

surpassed the annual KPI target of moving 970,000 passengers on both domestic and international

flights.

Developments in energy infrastructure were concentrated on electricity generation, transmission line

development and increasing the storage capacity for petroleum reserves. In terms of improvements in

electricity generation, no additional electricity generation capacity was added to the existing system. KPI

data to ascertain progress made towards achieving the set target on the percentage of households with

access to electricity was unavailable. However, the performance in the development of infrastructure for

Strategic Petroleum Reserves was favourable. The annual KPI to cumulatively raise additional Petroleum

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Storage infrastructure capacity by 13.1 from 84.5 million litres in 2011 to 97.6 million litres in 2012 was

met.

In the area of ICT, infrastructure development continued to expand with six districts being connected to

the fibre optic cable network against an annual target of five. This made it possible for the KPI target to

increase the number of internet subscribers per 1,000 people to 2.0 surpassing the 1.9 target for 2012.

The performance of the Water and Sanitation sector was also remarkable with four out of five KPIs met,

representing 80 percent success rate.

Overall, progress towards the achievement of all KPI targets under infrastructure development was

unsatisfactory in 2012. Only 41 percent of the annual KPI targets were successfully met. The bulk of the

KPIs (59 percent) were either not met or had insufficient data to determine actual progress made.

PROGRESS ON OBJECTIVE 2: PROMOTE RURAL INVESTMENT AND ACCELERATE POVERTY REDUCTION

The second overarching objective of the SNDP is to promote rural investment and accelerate poverty

reduction. In order to reduce the high poverty levels in the rural areas and promote rural development, the

Plan focuses on stimulating agriculture productivity and promotion of agro-businesses, improving the

provision of basic services such as water and sanitation, health, education and skills development. In

addition, investments in key economic infrastructure such as feeder roads, water canals, tourist access

roads and electricity access were planned. A major programme is the continued implementation of the

Rural Finance Programme and rapid roll-out of ICT services in rural areas to support the expansion and

increased use of financial services. Further, rural industrialization is being pursued in an effort to increase

employment opportunities in rural areas.

Overall, the performance of the rural development programme in 2012 was unsatisfactory. The thrust for

stimulating agricultural productivity, for instance, received scanty attention across most provincial

administrations as was the promotion of agro-business. On the other hand, targeted rural development

programmes (Resettlement Scheme Development, Rural Roads Development, Natural Resources

Plantation and, Rural Electrification) all underperformed. The rural roads development programme, for

instance, only recorded a 36 percent success rate against set targets. Implementing agencies in the

provinces attributed this poor performance to the late release of funds and the long tendering processes.

Such bottlenecks will need to be redressed. In part, this urges for accelerating the implementation of

fiscal decentralization and ensuring that there are clear linkages between planned activities and

implementation. Most fundamentally, there appeared to be lack of a coordinated approach to rural

development.


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PROGRESS ON OBJECTIVE 3: ENHANCE HUMAN DEVELOPMENT

Assessment of performance towards improvements in human development focused on the following

sectors: Health, HIV and AIDS, Education and Skills Development, Child, Youth and Sports Development,

Nutrition, Disability and Development, Disaster Risk Management, Social Protection, Governance,

Gender, Environment, and Local Government and Decentralisation.

In Health, the sector’s strategic focus was to provide equitable access to quality health services. Three

out of five annual KPI targets in this regard were met, representing a 60 percent success rate. One KPI in

the Sector was not assessed due to non-availability of data. In the HIV/AIDS sector, intervention

programmes focused on prevention, treatment, care and support. Three out of five KPIs were met,

representing a 60 percent success rate. One KPI was not assessed due to non-availability of data. In the

Education and Skills Development Sector, efforts to expand access to high school and tertiary education

alongside improving the quality of education at all levels continued in 2012. Eight out of sixteen (16) KPIs

were met, representing a success rate of 50 percent. The Child, Youth and Sports Development sector

performed relatively better in 2012, achieving three out four of its KPI targets. This represented a 75

percent success rate. Assessment of the Nutrition sector’s performance was hampered by non-availability

of data on the KPIs while the Disability and Development sector did not achieve any of its three KPI

targets in 2012.

The Social Protection sector focused on the implementation of measures to promote human development

and dignity through the provision of skills, financial assistance, agricultural inputs and access to services

to low capacity and incapacitated households and other vulnerable persons. Two out of eight of its annual

KPI targets were met, representing a 25 percent success rate. The Disaster Risk Management Sector

focused on implementing programmes for disaster management mainstreaming and capacity building in

order to reduce the socio-economic impact of disasters. Five out of nine KPI targets were met,

representing a 55 percent success rate. Two KPIs were not assessed due to unavailability of data.

The performance of the Governance Sector was unsatisfactory in 2012. The Sector only achieved one

out of thirteen (13) KPI targets in 2012, representing 7 percent success rate. Two indicators were not

assessed due to non-availability of data. The Gender sector achieved a 25 percent success rate; meeting

only one out of four KPI targets during the year under review.

Overall, out of seventy-nine (79) KPI targets across all human development chapters, only 26 KPI targets

were met in 2012, representing an aggregate success rate of 33 percent. The bulk (67 percent) was

either not met (52 percent) or had inadequate data (15 percent) to assess actual progress made. On the

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balance, performance towards improvements in human development in 2012 was generally

unsatisfactory.

CONCLUSION AND RECOMMENDATIONS

The conclusion the APR 2012 makes is that overall progress made in 2012 was unsatisfactory. A total

number of 128 KPIs were mapped to assess performance in 2012 out of which 109 indicators with

information were assessed and 19 had no data. Of the assessed, 51 indicators representing 40 percent

met the targets while 58 indicators representing 45 percent did not meet the target. Overall,

macroeconomic and priority growth sector performance was consistent with SNDP targets. However,

aggregate performance on infrastructure development was on the low side, thereby dampening the

overall contribution towards achieving the first SNDP overarching objective of accelerating infrastructure

development, economic growth and diversification. On the other hand, performances on rural

development and human development that relate to the second and third overarching SNDP objectives,

respectively, were all unsatisfactory. On the whole, while economic growth was sustained in 2012,

poverty levels remained high. Against the backdrop of favourable economic performance and modest

progress on poverty reduction, the following recommendations are made:

I. Growth and Diversification

(a) Macroeconomic policies and structural reforms

§ Expedite the finalization of the economic census to take care of

developments that have taken place in the economy for the rebasing of

national accounts. Furthermore, the results of the economic census are

urgently needed for other key processes included in SNDP, such as widening

the tax base through better inclusion of the small and medium enterprises

into the tax net, or for defining the key sectors and regions to be addressed

in delivering services for the private sector;

§ Expedite the implementation of decentralization for improved service delivery

for the citizens and their inclusive participation in development programmes;

§ Continue comprehensive tax reforms so as to broaden the tax base further

by improving tax administration and compliance as well as amending the

existing tax policies;

§ Expedite the process of formulating the planning and budgeting policy and

respective legislation to guide the processes for coherent planning,

budgeting, implementation and M&E of developmental programmes; and


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§ Rationalize resource allocation and utilization in line with national priorities

identified in the national development plans.

(b) Mining

§ The Ministry’s revenue generation should be enhanced and a percentage be

allocated for its operations to supplement the inadequate funding from the

Treasury; and

§ The capacity of the Ministry of Mines and other Government institutions need

to be enhanced to allow them conduct regular inspections and ensure that

the mining companies comply with all the relevant laws.

(c) Manufacturing; Commerce and Trade

§ Provide adequate financing and timely disbursement of funds on SNDP

programmes;

§ Improve institutional arrangements for effective implementation and review of

SNDP programmes;

§ Develop an effective monitoring and evaluation mechanism; and

§ Institute mechanisms to accelerate regional integration initiatives in the area

of trade facilitation and business environment.

(d) Agriculture

§ Releases of funds should correspond to the timings in the plan to allow for

adequate time for tender processes and timely implementation of activities

within the year; and

§ Make improvements in the area of staffing levels, capacity building, camp

houses, Farmer Training Centres, marketing and other infrastructure.

II. Infrastructure development

§ Develop mechanisms that will guarantee that rural areas derive the maximum benefit

from the rural electrification programme;

§ Establish a robust M&E system to capture pertinent information to measure

infrastructure development performance;

xx

§ Strengthen inter-institution collaboration so that the Sector institutions dealing with

road infrastructure development can coordinate and share information on a routine

basis and effectively work together as one;

§ Review the SNDP ICT sector chapter and realign it with emerging technological

developments and performance measurements that would be consistent with those

adopted by the new Government;

§ Adopt a phased implementation and incremental approach to infrastructure

development with quick wins that should demonstrate what can be achieved by

taking a holistic government approach;

§ Speed up the process of migrating from Analogue Terrestrial Television to Digital

Terrestrial Television;

§ Revise the procurement procedures including the restrictive procurement

authorization threshold given to RDA in order to prevent delays on the awarding of

road contracts; and

§ Incorporate recent infrastructural development projects (e.g. Link Zambia 8000, Pave

Zambia 2000, upgrading of airports) into the core SNDP programmes.

III. Rural Development

§ Accelerate the implementation of fiscal decentralisation and devolution of powers and

functions to enable provinces have adequate resources for programme

implementation according to local priorities;

§ Enhance linkages between the National Development Plan, Medium Term

Expenditure Framework and the annual budgets;

§ Increase financing for SNDP programmes at regional level;

§ Fund projects within the first 6 months of the year so that the remaining period could

be utilised on implementation;

§ Address the shortage of staff in Provincial Planning Units in order to meet the

challenge of increasing responsibilities for the units;

§ Establish M&E units in the Provinces where they are lacking; and

§ Harmonize the roles played by Provincial Development Coordination Committee and

the Budget Committee with regard to budgeting for the SNDP programmes.


xxi

IV. Human Development

(a) Health

§ Increase training output in medical schools, Chainama College of health sciences,

and nursing schools in order to have the right skills-mix at health care service

delivery level;

§ Develop an integrated referral system at all levels of service delivery that is well

linked to physical infrastructure (transport, storage and communication facilities); and

§ Expedite implementation of Social Health Insurance Scheme.

(b) Education and Skills

§ Construct staff houses, especially in rural areas to improve staffing levels;

§ Provide management skills to school managers; and

§ Harmonise SNDP priorities and those of the new administration, including a re-

alignment of sector output indicators.

(c) Child, Youth and Sports Development

§ Treasury should provide ceilings to Sectors that are realistic for the achievement of

SNDP programmes;

§ Strengthen the coordination mechanism for the youth and sport sector, and develop

and implement a National Youth Mainstream Strategy/Policy;

§ Streamline tendering and accounting procedures and systems to facilitate the timely

and speedy implementation of programmes;

§ Establish a database and website on the youth and sport programmes in order to

promote stakeholder access to information; and

§ Develop a monitoring and evaluation tool to track progress.

(d) Nutrition

§ Review the legislative framework to enable harmonised and formalised institutional

frameworks at national, provincial and district levels; and

§ Ministry of Health and the NFNC should jointly review the NFNC Act of 1967 to align

it to current demands for a multidimensional response to nutrition in Zambia.

xxii

(e) Social Protection

§ Regularly monitor cash transfers to ensure that beneficiaries receive them on time;

and

§ Broaden the scope of the annual review to include various schemes that form the

Zambia Social Protection Expansion Programme.

(f) Disaster Risk Management

§ Streamline funding and expenditure towards disaster risk reduction activities;

§ Strengthen collaboration with key line Ministries to ensure that they become more

aware of their roles in disaster risk reduction; and

§ Fully mainstream disaster risk reduction programmes in the sectors by dedicating

budget lines to these programmes.

(g) Governance

§ Periodically monitor the performance of Governance initiatives to inform government

interventions;

§ Institutionalize the concept of Communication Cooperation and Coordination (CCC)

and replicate them to all districts and

§ Mainstream the APRM activities under the National Program of Action in the activities

of concerned institutions.

(h) Gender

§ Establish fast track Courts to deal with cases of GBV;

§ Extend GBV sensitisation programmes to the rural areas where most incidents go

unreported;

§ Translate the Simplified Version of the Anti GBV Act into local languages in order to

reach out to those that do not understand English;

§ Implement a Quota System to compel political parties to adopt women candidates;

and

§ Domesticate Gender protocols that have been ratified.

1

INTRODUCTION


3

1.1. INTRODUCTION

1.1.1. BACKGROUND

The 2012 Annual Progress Report (APR) provides an assessment of the implementation of policies and

strategies outlined in the Sixth National Development Plan (SNDP), 2011-2015, for the year 2012. It is the

second assessment of the progress of programme implementation contained in the SNDP, and the

seventh in the series of APRs prepared since 2006.

The SNDP is anchored on the continued pursuit of macroeconomic stability and poverty reduction under

the theme “Sustained Economic Growth and Poverty Reduction”. Within this theme, the Plan’s strategic

focus is on Infrastructure and Human Development. In this regard, the SNDP focuses on policies,

strategies and programmes meant to contribute significantly to addressing the challenges of realising

Broad-Based Pro-Poor Growth, Employment Creation and Human Development, supported by strategic

investments in human capital and physical and technological infrastructure. The underlying motivation is

to accelerate employment creation and human development for shared growth.

Previous APRs have reported on SNDP implementation progress anchored mainly on sector

performance. Correlations between sector performance and national development objectives were not

clearly demonstrated. This report goes further and seeks to establish correlations between sector

performances and desired national development outcomes. In order to enable this rendering, the

packaging of the report has been changed. Unlike previous APRs, this report focuses on assessing

progress based on output and outcome level indicators. In this way, the 2012 APR provides a national

picture on the progress the country is making towards achieving the three overarching SNDP objectives

of infrastructure development, rural development and human development and highlights areas that need

improving.

Altogether, the report has five chapters. Chapter one introduces the report and gives an overview of

performance in 2012. Chapter two offers an assessment of progress made towards achieving the first

SNDP overarching objective of accelerating infrastructure development, economic growth and

diversification. Chapter three assesses progress made towards achieving the second SNDP overarching

objective of promoting rural investment and accelerating poverty reduction. Chapter four reviews progress

made towards achieving the third SNDP overarching objective of enhancing human development. A

measured assessment of budget performance is provided in Chapter five. At the end of each chapter,

recommendations for addressing the shortcomings identified in the monitoring of progress are presented.

4

1.1.2. SNDP OBJECTIVES AND STRATEGIES

The SNDP seeks to attain the following overarching objectives:

1. To accelerate infrastructure development, economic growth and diversification;

2. To promote rural investment and accelerate poverty reduction; and

3. To enhance human development.

Pursuant to the above objectives, the Plan focuses on policies, strategies, and programmes that should

contribute significantly to addressing the challenges of realising Broad Based Pro-Poor Growth,

Employment Creation and Human Development as outlined in the Vision 2030. Further, to achieve the

MDG target of halving extreme poverty level of 59 percent (1991) to 29 percent by 2015, and to rapidly

create gainful and decent employment, economic growth has to exceed 6 percent per annum and must

be more pro-poor in structure.

The strategic focus of the SNDP is, therefore, to address the constraints of infrastructure and human

development. The SNDP also entrenches cross-cutting issues of Governance, HIV and AIDS, Gender,

Disability, Nutrition, Environment and Disaster Risk Management.

1.1.2.1. Infrastructure Development

Poor and inadequate infrastructure remains the major constraint to economic development

and poverty reduction in Zambia. A sustained commitment to infrastructure development is

the main focus in the SNDP. While Government is committed to continued investment in

infrastructure in health, education and skills development, the focus is in the following areas:

1. Transport to cover roads, bridges, air, water, rail and border infrastructure;

2. ICT to cover backbone infrastructure, digitalization, next generation networks and

centres of excellence;

3. Energy to cover power generation, transmission, distribution and alternative

technology; and

4. Water supply and sanitation to cover reticulation systems, dams, pipelines and

boreholes.

In light of the importance of trade and regional integration in economic growth, rehabilitation

of road links under various regional corridors, such as the North-South and Nacala Corridors

are to be implemented with the support of Cooperating Partners and in collaboration with


5

neighbouring countries. This would be supplemented by major improvements of border posts,

including those at Nakonde, Kasumbalesa and Kazungula.

Government also committed to enhancement of Public Private Partnerships (PPPs) to

augment its efforts in economic and social development in areas such as construction,

rehabilitation and maintenance of infrastructure and effective delivery of social services.

1.1.2.2. Rural Development

In order to reduce the high poverty levels in the rural areas and promote rural development,

the Plan’s focus is on stimulating agriculture productivity and promotion of agro-businesses,

improving the provision of basic services such as water and sanitation, health, education and

skills development. In addition, investments in key economic infrastructure such as feeder

roads, water canals, tourist access roads and electricity access are to be undertaken. In this

regard, the major programme is the continued implementation of the Rural Finance

Programme and rapid roll-out of ICT services in rural areas to support the expansion and

increased use of financial services. Further, rural industrialisation is to be pursued in an effort

to increase employment opportunities in rural areas.

1.1.2.3. Human Development

In view of the low quality of human capital, the focus of the SNDP in this area is on skills

development, improving labour productivity, increasing access to health and higher and

tertiary education, and facilitating the distribution of skilled labour within and across sectors

throughout the country.

1.1.3. PREPARING THE 2012 ANNUAL PROGRESS REPORT

For 2012, the assessment of progress has been reported in three (3) related documents. These are; the

2012 Annual Progress Report, Analytical Report and a compilation of sector and provincial chapters.

1.1.3.1. The Process

The process of preparing the Annual Progress Report (APR) has been designed to be

participatory, involving MPSAs, Sector Advisory Groups (SAGs) and Provincial Development

Coordinating Committees (PDCCs). Consistent with the policy formulation and implementation

process, the involvement of MPSAs in the preparation of the APR is essential to guarantee

6

ownership of the report, as well as ensuring that the report reflects the actual progress of

implementation of the SNDP at sector level. It is expected (and a common practice) that the

sectors, provinces and districts make use of the advisory role of the responsible SAGs and

PDCCs before submitting the data and information to Ministry of Finance to be included in the

report.

The process involved collecting submissions and sectoral annual progress reports from MPSAs

using an agreed set of guidelines. Before data collection commenced, templates were developed

to ensure that data collected was consistent and covered all relevant areas. A series of meetings

were held with MPSAs to review and discuss sector submissions to ensure completeness and

consistency in reporting. As in the previous years, these meetings are also used to enhance

awareness for Monitoring and Evaluation (M&E) and capacity to report accordingly.

1.1.3.2. Data Collection Challenges

Consistent with previous reports, availability of up-to-date and accurate data posed a challenge to

the preparation of the 2012 APR. Most of the problems encountered in previous reports still

persist in the current reporting period mainly due to insufficient capacity and inappropriate or

lacking Management Information Systems (MIS) to generate the necessary data. The challenges

encountered during the data collection process in 2012 included:

§ late submission of sector chapters which further delayed the process of completing

the report;

§ non receipt and/or poor quality of reports from key sectors affected the complete

analysis of programme performance; and

§ Only a few sectors discussed the progress reports within their SAGs/PDCC which

resulted in the production of shallow reports. This undermined the principle of

participation as espoused by the SAG/PDCC concept.

1.1.4. SUMMARY OF PROGRESS MADE–STATUS OF KEY PERFORMANCE INDICATORS

Assessment of progress of implementation of the SNDP, 2011-2015 is based on the analysis of key

performance indicator achievement, as well as progress made in implementing key reforms. In situations

where indicators fail to achieve their targets, assessment of underlying reforms (in the thematic area

chapters1) provides additional information for holistic assessment of progress in respect of that policy

1 Refer to compilation of sector and provincial chapters report


7

objective. Two typologies of indicator achievements are used. “Target met” is used when the indicator

achieved its target, while “Target not met” is used when the indicator did not achieve the set target.

A total number of 128 KPIs were mapped to assess performance in 2012 out of which 109 indicators with

information were assessed and 19 had no data. Of the assessed, 51 indicators representing 40 percent

met the targets while 58 percent did not meet the target. The figure below shows the summary of KPIs

assessed.

Figure 1 Summary of Key Performance Indicator Assessed, 2012

Source: Ministry of Finance

The overall progress made in 2012 based on the assessment of the indicators was unsatisfactory. With

the exception of the rural development thematic area where no KPIs were tracked, the poorest

performance was recorded in the area of human development where the percentage of Key Performance

Indicators that achieved their targets was estimated at 33 percent. The macroeconomic and priority

growth sector thematic area recorded the highest achievement of 56 percent of indicators. The success

rate for infrastructure development was 41 percent. Summary of progress is presented in Table 1.

Table 1 Summary of Progress Made on Key Performance Indicators, 2012 Objective Target

Met Target

Not Met No Data Total # Indicators

Tracked % of

Targets Met Macroeconomic /Growth Sector 18 12 2 32 56 Infrastructure Development 7 5 5 17 41 Rural Development - - - - - Human Development 26 41 12 79 33

53%

47%

Target Met Target Not Met

9

OBJECTIVE 1: TO ACCELERATE INFRASTRUCTURE

DEVELOPMENT, ECONOMIC GROWTH AND DIVERSIFICATION


11

2.1. MACROECONOMIC PERFORMANCE AND

STRUCTURAL REFORMS

2.1.1. OVERVIEW OF MACROECONOMIC PERFORMANCE

This section deals with the assessment of macroeconomic performance and structural reforms for

sustained economic growth and diversification. The assessment focuses on reviewing the status of

macroeconomic policies, structural reforms and growth sector performance in relation to Key

Performance Indicators (KPIs) in these areas. Assessment of sector performance is restricted to the

SNDP priority growth sectors of agriculture, livestock and fisheries, mining, tourism, manufacturing and

commerce and trade.

During the review period, macroeconomic performance was largely favourable. Macroeconomic stability

was achieved which contributed significantly to strong economic growth performance. The main drivers of

growth were agriculture, construction, wholesale and retail trade, manufacturing, transport and

communication. The overall growth of the agriculture, livestock and fisheries sector was favourable for the

period 2012 due to good performance of the crop and livestock sub-sectors. The mining sector continued

to play a significant role albeit recording negative growth in 2012. The performance of the tourism sector

was generally unsatisfactory and the sector experienced a 5.0 percent drop in international tourist

arrivals. The contribution of the manufacturing sector to Gross Domestic Product (GDP) was recorded at

8.1 percent in 2012 with a sector growth rate of 8.8 percent. This growth was mainly attributed to the

food, beverage and tobacco, fabricated metal products and the non-metallic mineral products sub-

sectors.

Overall, progress against KPIs at macroeconomic and priority growth sector level was favourable. From a

total number of thirty two (32) KPIs tracked on this thematic area, eighteen (18) met their annual targets,

representing a success rate of 56 percent. Twelve (12) KPIs, representing 38 percent did not meet their

annual targets. Higher performance against annual KPIs came from the manufacturing sector with 100

percent success rate followed by Commence (75 percent) and Mining (60 percent) and Agriculture (60

percent). The macroeconomic policies and structural reforms area had a success rate of 43 percent.

Sustained economic growth was achieved in 2012. However, the pace of progress on poverty reduction

lagged behind.

12

2.1.2. GDP GROWTH RATE

The real GDP growth rate for 2012 remained on the positive path. It was estimated at 7.3 percent,

significantly higher than the 6.6 percent recorded in 2011, and slightly higher than the 7.0 percent

projected in the 2012 Budget Estimates. The real GDP growth rate of 7.3 percent in 2012 was above the

SNDP target of 6 percent. The main drivers of growth were agriculture, construction, wholesale and retail

trade, manufacturing, transport, and Information Communication Technology (ICT). The mining sector

continued to play a significant role albeit recording negative growth at 13.2 percent compared to negative

growth of 5.2 percent in 2011. The declined performance was attributed to economic dynamics in the

international market, arising from the Euro zone crisis.

2.1.2.1. Agriculture, Livestock And Fisheries

The agriculture sector has five KPIs to assess performance of which three indicators were

met representing a 60 percent success rate. In terms of performance, the sector targeted to

bring a total area of 3000 hectares under irrigation during 2012. However, only 944 hectares

were brought under irrigation, representing a success rate of 31 percent. The main reason

advanced for under performance was inadequate allocation of resources and late releases of

funds.

With regard to the KPI on percentage change in livestock population for cattle the outturn was

18.6 percent against the target of 15 percent; for pigs the outturn was 180 percent against the

target of 10 percent, for goats the outturn was 46 percent against the target of 10 percent and

for sheep the outturn was 4 percent against the target of 5 percent. All KPI targets were met

except for sheep. The increase in cattle stock was attributed to increased vaccinations

through the use of livestock service centres. Restocking programmes also played a

significant part in raising the numbers in livestock. The pig population grew by 180 percent

due to a high number of emerging pig farmers especially in peri-urban areas countrywide.

Furthermore, there were less disease outbreaks and reduced disease incidences due to the

control of movement of livestock and road check points. The increase in goat stocks was also

due to the construction of livestock service centres that have helped in the multiplication of

the goats. Progress on sheep underperformed because sheep rearing is not very pronounced

in the country.

The KPI on change in Fish Production under Aqua-Culture whose target was to increase fish

production by 20 percent was met as fish production increased by 60 percent. The increase


13

was partly due to the increase in production and supply of fingerlings by the fisheries

department.

The KPI on the incidence of major livestock disease outbreaks targeted to reduce the

incidence of Foot and Mouth Disease (FMD), contagious bovine pleuropneumonia (CBPP),

and East Coast Fever (ECF) by 1.5 percent. The actual prevalence rates in 2012 were 14

percent for FMD, 0.28 percent for ECF and 1 percent for CBPP. Thus, under this indicator, as

in 2011, targets for actual prevalence rates for CBPP and ECF were met while the target on

FMD was not met.

2.1.2.2. Mining

There are five KPIs to measure annual performance of the Mining sector. On the evidence of

performance against key indicators, the Mining sector met three out of five annual KPI

targets, representing a 60 percent success rate (See Table 2).

Table 2 Key Performance Indicators: Mining, 2012 Key Indicator Definition/Calculation Baseline

2009 Annual Targets Assessment

Target Actual Employment generated Total number of persons employed

in the sector each year 46,706 52,300 65,876 Met

Proportion of mining companies complying with statutory safety, health and environmental regulation

Percentage of mining companies complying with environmental regulations

65 80 85 Met

Level of Copper production Volume of output from copper mining per annum (tonnes)

661,178 806,025 785,641* Not Met

Mines in production Small-scale

Number of mining license holders in production

100 120 108 Not Met

Large-scale 11 12 11 Not Met Number of mineral processing facilities Number of facilities to process

mineral ores (e.g. refineries, smelters)

22 22 25 Met

*These are provisional and subject to change as more information is obtained from Small Scale Miners

Overall, employment in the Sector increased from 58,672 in 2011 to 65,876 in 2012, thereby

achieving the annual target of 52,300. The proportion of mining companies complying with

statutory safety, health and environmental regulations increased from 75 in 2011 to 85 in

2012. The target of 80 was met. However, overall Copper production decreased from

819,574 in 2011 to 785,641 in 2012 and did not meet the target by 20,384. In terms of Mines

in production; the number of small scale mining license holders decreased from 111 in 2011

to 108 in 2012 while the target was 120; the number of large scale mining license holders

decreased from 15 in 2011 to 11 in 2012 and failed to meet the target by one. The number of

Mineral processing facilities increased from 22 in 2011 to 25 in 2012 surpassing the annual

target by three.

14

2.1.2.3. Tourism

During the review period, the performance of the tourism sector was generally unsatisfactory.

Of the seven KPIs for assessing performance, only two were met representing a success rate

of 29 percent. Three KPIs were not met while two could not be assessed due to lack of data.

The annual direct tourism earnings increased from US$216 million in 2011 to US$240 million

in 2012 but fell below the 2012 target of US$260 million. In terms of employment levels, the

sector employed 44,292 in 2012 from 31,900 in 2011 and against the SNDP target of 31,000.

However, international tourist arrivals were below target due to among other things the

adverse effects of the Euro-Zone financial crisis as well as the classification of the country as

a Low Risk Yellow Fever Destination.

During the same period there was a notable increase in accommodation for the hospitality

industry from 1,000 establishments in 2010 to 1,120 in 2012 while the bed spaces decreased

from 22,500 bed spaces in 2011 to 22,300 in 2012 although this was above the SNDP target

of 22,150 for 2012. Of the 1,120 establishments, only 360 were registered as at September

2012. Increased demand largely explained the increase in accommodation establishments.

With regards to arts and culture, the number of arts and cultural practitioners accessing arts

and cultural infrastructure increased from a baseline of 500 in 2009 to 730 in 2012 and was

below the annual 2012 target of 750.

2.1.2.4. Manufacturing

The performance of the manufacturing sector was robust. The sector met all the four KPI

targets, representing a 100 percent success rate (See Table 3).

Table 3 Key Performance Indicators: Manufacturing, 2012 Indicator 2009 2012 Assessment

Baseline Target Actual % Share in Total Exports 2.0 2.5 4.9 Target Met Manufacturing Value Added @ Current Prices (K 1.4 1.7 9201.6 Target Met Manufacturing Annual Growth rate (% Change) @ Constant 1994 Prices 2.5 3.4 11.2 Target Met Share of Total Employment (%) 3.2 3.3 6.0 Target Met

2.1.2.5. Commerce And Trade

The Commerce and Trade sector met three out of the four KPI targets, representing a 75

percent success rate (See Table 4).


15

Table 4 Key Performance Indicators: Commerce and Trade, 2012 Indicator 2009 2012 Assessment

Baseline Target Actual Trade Dependence Index1 62.7 63.5 84.2 Target met Share of NTEs to total Exports (%) 23 26.0 30.7 Target met Import Penetration Index 30.6 29.0 41.9 Target not met Export Propensity Index 33.2 36.0 43.4 Target met

2.1.3. TRENDS IN INFLATION

One of the key anchors of the macroeconomic stability policy under the SNDP is reduction of inflation and

sustaining it at a single digit over the medium term. In 2012, average annual Inflation continued in single

digit at 6.6 percent. This represented a 2.1 percentage point reduction from the 2011 level of 8.7 percent.

The outturn was within the SNDP target of 7.0 percent. This outturn was attributed to an increase in food

inflation and pass-through effects of the exchange rate depreciation during the fourth quarter of the year.

The rise in food inflation was on account of low seasonal supply of food stuff such as vegetables, beef

products and fish. This was compounded by high prices of maize and maize products, arising from the

relatively high demand for the commodity in deficit regional markets, thus putting pressure on domestic

maize meal prices.

2.1.4. DOMESTIC REVENUE AND EXPENDITURE

Total revenues were estimated at K23,016.4 billion in 2012. Domestic revenues were K22, 254.1 billion

and constituted 97.0 percent while the balance was external financing. As a percentage of GDP, domestic

revenues were at 19.8 percent and was above the SNDP target of 18 percent. The high domestic

revenue collections, notwithstanding, were below the 2011 outturn of 23.8 percent. The outturn was

premised on the good performance of non-tax revenue and company tax collection which stood at 82.6

percent and 30.5 percent respectively. Grants marginally increased, while Domestic VAT collection

declined by 171 percent due to higher refunds (See Figure 2).

16

Figure 2 Revenue and Expenditure as percentage of GDP


Total revenue collections at K23,016.4 billion were above budget projection although were below SNDP

target of K25,903.0 billion by 12.5 percent (See Table 5). This was mainly on account of lower than

projected grants receipts which were over 300 percent below SNDP target. Domestic financing at

K1,549.5 billion was 24.4 percent above the SNDP target.

Table 5 Revenues and Expenditure SNDP Target Budget Projection Outturn Preliminary % variance between outturn and SNDP

target Total Revenues 25,903.00 21794.6 23,016.40 -12.5 Domestic Revenues 17,285.00 19,900.00 22,254.10 22.3 Tax revenue 16,675.00 19,192.00 20,719.00 19.5 Non-tax Revenue 610 708.3 1,293.00 52.8 Grants 2,557.00 1,893.90 610.7 -318.7 Domestic financing 1,163.00 1,324.20 1,549.50 24.9 Expenditure 25,903.00 26,339.60 25,819.50 -0.3 Source: Ministry of Finance

Expenditure as a percentage of GDP was 23.3 percent which was 3.1 percentage points below the SNDP

target and only 0.4 percentage points below the budget projection. Total expenditure in absolute terms at

K25, 296.3 billion, was below the SNDP and budget targets by 0.03 percent and 1.6 percent, respectively.

This was explained by lower than programmed expenditure on assets (See Figure 3).

0

5

10

15

20

25

30

Total Revenues DomesticRevenues

Tax revenue Non-taxRevenue

Grants Domesticfinancing

Expenditure

2018 18

0.52.64

1.2

26.4

19.617.9 17.3

0.61.7 1.4

23.7

20.4 19.818.7

1.2 0.5 1.2

23.3

SNDP Target Budget Projection Outturn Preiliminary


17

Figure 3 Expenditure by Category as Percentage of GDP


2.1.4.1. Overall Budget Deficit

The country recorded a budget deficit of 1.8 percent of GDP against the planned budget

deficit of 4.3 percent of GDP. Thus, budget performance in 2012 was satisfactory.

2.1.5. AVERAGE WEIGHTED LENDING RATES

The macroeconomic objective in relation to this indicator was to reduce commercial bank lending rates. In

2012, commercial bank nominal interest rates declined towards the end of the year, with Average Lending

Rate (ALR) decreasing to 16.1 percent from 23.6 percent as at end-December 2011. The Average

Savings Rate (ASR), however, for amounts above K100,000 and the 30-day deposit rate for amounts

exceeding K20 million remained unchanged at 4.3 percent and 5.3 percent, respectively. The movements

in the lending rates were aided by the introduction of the policy rate in an effort to reduce interest.

2.1.6. POVERTY STATUS

According to the 2010 Living Conditions Monitoring Survey (LCMS) overall poverty was at 60.2 percent

with rural poverty marginally declining from 80.3 percent to 77.9 percent while extreme poverty remained

at 42 percent. This was despite the favourable and sustained macroeconomic environment. This can be

explained by lack of linkages between macroeconomic and microeconomic fundamentals.

The table below shows the progress on macroeconomic key performance indicators in 2012.

0

5

10

15

20

25

30

Expenditure Expenses $ liabilities Assets

26.4

15.9

10.5

23.7

19.1

3.8

23.3

16.3

7.07

SNDP Target Budget Projection Outturn Preliminary

18

Table 6 Progress on Macroeconomic Key Performance Indicators Key Performance Indicators

Baseline FNDP 2006-2010 Average

2011 outturn

2012 Target

2012 outturn

2013 2014 2015 2011-2015 average

Assessment

Macroeconomics Gross Domestic Product growth rate %

6.5 6.6 6> 7.3 6> 7> 7> 7> Met

Average annual inflation %

9.9 8.7 7 6.6 6 5 5 5 Met

Domestic Revenue as % of GDP

17.5 20.6 18> 19.8 18> 20> 20> 20> Met

Average weighted lending rates

26.9 16.6 16.1 <15

Poverty Headcount Poverty (2006 LCMS)

62.8 60.2

60.5 2015: <38

Extreme Poverty (2006LCMS)

42.7 42.3 42.3 2015: <29

Rural Poverty (2006 LCMS)

80.3 77.9 77.9 2015: <50

2.1.7. EXCHANGE RATE

In the foreign exchange market, the Kwacha depreciated against the US dollar and Pound Sterling in

2012, largely on account of increased demand for foreign exchange for the purchase of petroleum

products by the energy sector and demand for purchase of inputs for the agriculture sector. In addition,

increased risk aversion by foreign investors towards emerging market assets emanating from the

persistent euro-zone debt crisis, had an adverse effect on the domestic currency’s exchange rate.

However, the Kwacha appreciated against the euro which was under pressure on the back of the

unresolved euro-zone debt crisis, and the rand, which tracked the euro. During the review period, both

supply and demand for foreign exchange increased.

2.1.8. EXTERNAL DEBT

In 2012 preliminary indications were that Gross External Debt at the end of 2012 was US$3,179.8 million

compared with US$1,980.1 million recorded in 2011. The increase in the debt stock was mainly as a

result of increase in net disbursement on existing portfolio and the proceeds of the Eurobond amount to

US$750.0 million from the international capital. The increase in debt stock was mainly due to the need to

increase resources for infrastructure development in the roads, rail and energy sectors. Despite the

increase in external debt stock, debt remained within the sustainable levels.


19

Figure 4 External Debt stock, 2011-2012 (US$ million)


Debt Servicing (i.e. amortization and interest payments) for 2012 amounted to US$326.3 million

compared with US$124.9 million in 2011. This leap was mainly explained by the repayment on “formula

one roads” and payment for principle falling due on commercial loans.

2.1.9. DOMESTIC DEBT SOCK

The country’s Domestic Debt Stock rose from K14,175.02 billion at the end of December 2011 to

K15,072.84 billion by the end of 2012. The rise in domestic debt was explained by the increase in stock of

government securities which stood at K14,357. 69 billion compared with K13,122.41 billion in 2011.

2.1.10. OUTPUT INDICATORS

The macroeconomic output indicators are in four areas namely; Macroeconomic Stability, Budget

Execution, Public Financial Management and Rural Development (See Table 7). All output indicators

under macroeconomic stability performed well and were either above or in line with the period target.

0

500

1000

1500

2000

2500

3000

3500

Multilateral Bilateral Suppliers credit Commercial Total Govt External Debt

1280

.7

250.

7 448.

7

1980

.1

1382

.8

239

565.

8

992.

2 3179

.8

2011 2012

20

Table 7 Macroeconomic Output Indicators Programmes Output Indicators Indicator Definition Baseline FNDP

2006-2010 Average

2011 Actual

2012 target

2012 Actual

2013 2014 2015 2011-2015

Mac

roec

onom

ic s

tabi

lity

i Domestic borrowing as % of GDP Government borrowing on the domestic market 1.8 2.4 1.2 1.1 <1 <1 ii Public debt as % of GDP Public Debt is defined as sum of total external and domestic debt.

24.8 10.18 14.7 <27 <27

iii Domestic revenue as % of GDP Domestic revenues comprises of taxes (Income taxes, Value added taxes, duties) and non-taxes revenues. The ratio measures the ability of the country to generate its own revenues from domestic resources

17.5 20.6 >18 19.8 >18 >19 >20 >20 a) Tax revenue as a %

GDP 16.7 20.2 >18 18.7 >18 >19 >20 >20

b) Non-tax revenue as a % of GDP

0.9 0.7 >0.5 1.2 >0.5 >0.5 >0.5 >0.5

iv Formal sector employment as a % of Labour force

Defined as a ratio of formal employment as percent of total labour force. Total labour force is defined as total population that is available to be engaged in any kind of labour activity.

43.1 (2010 LCMS) 10* >15

v Public wages bill as % GDP Ratio measures Government expenditure on wages & salaries of the civil service as proportion of GDP 7.8 7.9 <8 <8 <8 <8 <8

Budg

et E

xecu

tion

i. Budgetary releases as % of Budget allocation Budget releases refers to the actual resources made available for budget implementation. Budget allocation is referred to as annual planned resources for implementation of programmes.

89.5

100 100 100 100 100

ii Budgetary releases for NDP priority sectors as a ratio of their allocation

An annual NDP allocation refers to annual budget allocation to development plans. Budget releases is defined as actual resources made available for the implementation of the programme. This indicator assesses the efficiency of budget execution as regards to planned programmes

a) Health 0.87 =1 =1 =1 =1 =1 b) Education 0.82 =1 =1 =1 =1 =1 c) Energy 2.71 =1 =1 =1 =1 =1 d) Agriculture 2.84 =1 =1 =1 =1 =1 (e) Infrastructure* 0.03 =1 =1 =1 =1 =1 f) Water and Sanitation 1.60 =1 =1 =1 =1 =1 h) Tourism and Natural Resources 1.13 =1 =1 =1 =1 =1 iii Number of MPSAs submitting monthly report

not later than 15 days after month-end. the rational of the indicators is to ensure accurate data is used for preparation of in-year budget execution report and will allow for easy monitoring of resource use.

48

Publ

ic F

inan

cial

M

anag

emen

t

i Number of Ministries and Provinces operating the IFMIS system

Number of MPSAs on IFMIS system 15 8 28 48

ii Percent of heads whose total actual expenditures is between 95% and 105% of the total funding

Actual expenditure are reported expenditures by MPSAs and does not include imprest, advances which are in suspense or below the line accounts(PAF definition)

100 100 40* 100 100 100 100

iii Number of MPSA’s with enhanced commitment control system

This implies # of MPSAs with CCS that covers all types of payments, comprehensive commitment & cash plans

0 36 23

iv number of MPSAs operating under TSA

Rura

l Dev

elop

men

t

i Budgetary releases to key rural development programmes as a ratio of their budget allocation

This is a ratio of actual releases from budget office against budget allocation as per yellow book.

a) Rural water and supply 1 b) Rural Electrification 1 1 1 c) Feeder Roads 1 ii number of new areas accessing telecom

services

iii number of operational rural community based financial institutions under RFP

4 4

*Note: Infrastructure figures cover only transport; the formal sector as % of total labour is based on 2008 labour force survey, % heads whose expenditure is between 95 % and 105 % for 2012 is preliminary


21

2.1.11. DEVELOPMENTS IN STRUCTURAL REFORMS

Structural reforms in 2012 continued in the areas of Public Financial Management (PFM), Private Sector

Development (PSD), Public Service Reforms, Decentralization, labour reforms and Financial Sector

Development (FSDP).

Strengthening the system of Public Financial Management (PFM) in Zambia is an important pre-requisite

for achieving the targets enshrined in the SNDP and subsequent development plans. The design of a

good PFM leads to attainment of economic development, poverty reduction and improved service

delivery. In a bid to improve PFM, a new comprehensive public financial management reform strategy

was developed and approved by the Cabinet for a three year period (2013-2015). The strategy comprises

ten components that have been identified as requiring urgent attention. All the ten components consist of

already on-going reform processes and specify key programmes, activities and steps planned for the

coming three years (See Table 8).

Table 8 Ten Components of the PFM Reform Strategy Name of Component Lead Institution/Department C1 Integrated planning and budgeting NPD, BO (Ministry of Finance) C2 Debt management IDM (Ministry of Finance) C3 Government Investments IDM (Ministry of Finance) C4 Domestic Revenues ZRA, BO C5 Fiscal decentralization BO, MLGH (Decentralization Secretariat) C6 IFMIS and Cash Management IFMIS Project / Accountant General (Ministry of Finance) C7 Public Procurement Zambia Public Procurement Authority, Zambia Institute of Purchasing and Supplies C8 Enhanced Internal Audit and Control Controller of Internal Audit (Ministry of Finance) C9 Monitoring and Evaluation M&E Department (Ministry of Finance) C10 Restructuring of Ministry of Finance HRA Department (Ministry of Finance) Source: Ministry of Finance

In the reform area of Integrated Planning and Budgeting, a comprehensive policy for planning and

budgeting with a greater results orientation was drafted at the end of the year 2012. The consultations on

its contents, guiding principles and core objectives will commence in 2013. In the reform area of domestic

revenues, more attention was given to the small and medium taxpayer segment, especially small and

medium enterprises (SMEs), and regional exchange initiated on the same. First steps were also taken in

conducting a tax review in order to define the measures needed in improving the tax system; expanding

the tax base and improving efficiency and equity. Based on a comprehensive tax incentive assessment,

some changes in this regard were introduced in the 2013 budget. Also, the revenue sharing

arrangements were improved between the central and local levels. In the area of Monitoring and

Evaluation, the Ministry of Finance and Cabinet Office initiated the process to establish and strengthen

the Government-wide M&E system, including an introduction of a standardised monthly monitoring

template.

22

2012 was the second and final year of the second extension of the Public Expenditure Management and Financial Accountability (PEMFA) programme, which originally commenced in 2005. The

progress on the further roll-out of the Integrated Financial Management Information System (IFMIS),

procurement reforms, enhancing the Internal Audit & Control System as well as selected improvements in

the tax administration was mixed and rather unsatisfactory. Some positive developments were:

§ The IFMIS was rolled out to a total of 28 sites during 2012, but only nine new sites became

operational. Focus was placed on the preparation of the ICT infrastructure and user training

for sites to become operational in 2013. The IFMIS ICT Security policy was developed. In

addition to salaries, grants and debt service, capital expenditure was being processed

through Treasury Single Account (TSA) in 2012.

§ With regard to the Internal Audit and Control systems, an institutional and functional review of

the Internal Audit Department was undertaken. The assessment of the impact of audit

committees in MPSAs started and all activities under the training plan were completed.

Training was conducted in specialized audits such as Forensic Audit, Risk Based Audit and

Performance Audits.

§ Zambia Public Procurement Authority (ZPPA) completed the development of the Standard

Bidding Documents (SBDs) in 2012. Under the Public Procurement Reform, the ultimate

objective is to transform ZPPA into an oversight and regulatory organization for all public

procurement entities. Significant progress was made regarding the planned training

measures in Procurement Audit and training of Procurement Unit staff in Goods, Works and

Services were completed. Further, public information campaigns to sensitize ZPPA staff on

laws and regulations were undertaken.

§ At ZRA, the Project management Function was institutionalized and all the planned activities

to support Research and Planning were completed. The construction of the Kasama

Advice/cash office was completed and substantial progress was achieved in enhancing ICT

solutions in tax administration.

However, the majority of the planned activities under PEMFA for 2012 could not be implemented while

those implemented were significantly delayed. This was attributed to the generally slow procurement

processes and re-advertisement of tenders due to procurement problems. Concerning the development

and finalization of the new and first ever PFM Reform Strategy for Zambia, its official launch and

publication were moved into the year 2013 causing delays in the acquisition of external funding for some

of its core activities.

Under the Private Sector Development Programme (PSD), the informational E-registry or database for

businesses was set up which was aimed to remove bottlenecks in business licensing and registration. In


23

addition, the single business levy was revised while One-Stop-Shops were launched in Lusaka and

Livingstone. As a consequence, it now takes only 24 hours to complete business registration. Further, the

number of steps in the process of registering the businesses reduced from four to three.

Activities undertaken under the Financial Sector Development Plan (FSDP) included the official launch of

the National Strategy on Financial Education for Zambia. The primary objective of the strategy was to

empower Zambians with the knowledge, understanding, skills, motivation and confidence to help them

secure positive financial outcomes for themselves and their families. In addition, the FSDP Phase II,

which ran from 2010-2012, was extended for a further two years up to December 2014.

Progress on the Public Sector Reforms was commendable. Progress was recorded on three out of four

programmes. Systems audits were being undertaken each month aimed at updating the payroll and

initiating corrective action for controlling officers where necessary. The percentage of action taken

(measured by the corrective action by controlling officers against identified deviations on the payroll), was

registered at 70 percent.

With regard to decentralization, Government in 2012 initiated revenue sharing mechanisms to assist local

councils to dismantle their debts and outstanding contractual and statutory obligations. This was in a bid

to create additional hubs for bringing Government and development closer to the people and ensuring full

participation of the people in the design and implementation of their governance and development

programmes.

2.1.12. SUMMARY AND POLICY RECOMMENDATIONS

Macroeconomic performance during the year under review was largely favourable. Significant progress in

structural reforms was also recorded. Macroeconomic stability was achieved which contributed

significantly to strong economic growth performance. The main drivers of growth were agriculture,

construction, wholesale and retail trade, manufacturing, transport and communication. The overall growth

of the agriculture, livestock and fisheries sector was favourable for the period 2012 due to good

performance of the crop and livestock sub-sectors. In an effort to ensure that crop diversification away

from maize production was enhanced, the sector concentrated on the production and marketing of other

important cash crops such as cotton, soya beans, groundnuts, rice and sorghum. This resulted in the

sector recording an upward trend in the area planted for most of these crops. Despite these gains, the

contribution of the agricultural sector to job creation and reducing poverty amongst the small scale

farmers remained low.

24

The mining sector continued to play a significant role albeit recording negative growth in 2012. This

negative growth was attributed to low product demand in the international market arising from the 2012

Eurozone crisis. The performance of the mining sector in terms of its contribution to the SNDP’s growth

objective was, therefore, modest. This must generate concern especially that the Sector has in the recent

past enjoyed steady growth and production output. But it also points to the need for a more intensified

approach to economic diversification and mineral processing for value-addition within the national

economy. Altogether, a thrust towards diversification will enable a more sustained growth process that

would not be perennially subject to copper market dynamics in the international market while value-

addition will boost domestic industry and ensure a multiplier effect on the national economy.

The performance of the tourism sector in 2012 was unsatisfactory. The sector experienced a 5.0 percent

drop in international tourist arrivals. The decrease may be attributed to Zambia being classified as a Low

Risk Yellow Fever Destination as well as the Euro-Zone financial crisis over the past few years. However,

the average direct tourism earnings increased from US$216 million in 2011 to US$240 million in 2012 but

fell below the 2012 target. In terms of employment levels, the sector employed 44,292 in 2012 from

20,000 in 2011 against a target of 31,000. The sector’s contribution to the overarching SNDP objective of

growth was moderate.

The contribution of the manufacturing sector to GDP was recorded at 8.1 percent in 2012 with a sector

growth rate of 8.8 percent - against an annual target of 3.5 percent. This growth was mainly attributed to

the food, beverage and tobacco, fabricated metal products and the non-metallic mineral products sub-

sectors. The sector’s contribution to the overarching SNDP objective of growth was, therefore, substantial

and provides a basis for optimism that the sector can be a reliable base for sustained growth and poverty

reduction. The major challenge faced by the sector continued to be the high cost of production which

made products from most local industries uncompetitive against similar imported products.

Overall, progress against KPIs at macroeconomic and priority growth sector level was favourable. From a

total number of thirty two (32) KPIs tracked, 18 met their annual targets, representing a success rate of 56

percent. Twelve KPIs, representing 38 percent did not meet their annual targets. Higher performance

against annual KPIs came from the manufacturing sector with 100 percent success rate followed by

Commence (75 percent) and Mining (60 percent) and Agriculture (60 percent). The macroeconomic

policies and structural reforms area had a success rate of 43 percent. However, the impact of this

performance on poverty was marginal. On the whole, poverty levels remained high. This scenario

provides the justification for concerted efforts in dealing with human development.

Against the backdrop of favourable economic performance and modest progress on poverty reduction

and job creation, the following recommendations are made:


25

2.1.12.1. Macroeconomics and Structural Reforms

§ Expedite the finalization of the economic census to accommodate

developments that have taken place in the economy for the rebasing of

national accounts. Furthermore, the results of the economic census are

urgently needed for other key processes included in SNDP, like widening the

tax base through better inclusion of the small and medium enterprises into

the tax net, or for defining the key sectors and regions to be addressed in

delivering services for the private sector;

§ Expedite the implementation of decentralization for improved service delivery

for the citizens and their inclusive participation in development programmes;

§ Continue comprehensive tax reforms so as to broaden the tax base further

and improving tax administration and compliance as well as amending the

existing tax policies;

§ Expedite the process of formulating the planning and budgeting policy and

respective legislation to guide the processes for coherent planning,

budgeting, implementation and M&E of developmental programmes; and

§ Rationalize resource allocation and utilization in line with national priorities

identified in the national development plans.

2.1.12.1.1. Mining

§ The Ministry’s revenue generation should be enhanced and a

percentage to be allocated for its operations to supplement the

inadequate funding from the Treasury; and

§ The capacity of the Ministry of Mines and other Government

institutions need to be enhanced to allow them conduct regular

inspections and ensure that the mining companies comply with all

the relevant laws.

2.1.12.1.2. Manufacturing; Commerce and Trade

§ Provide adequate financing and timely disbursement of funds on

SNDP programmes;

§ Improve institutional arrangements for effective implementation and

review of SNDP programmes;

§ Develop an effective monitoring and evaluation mechanism; and

26

§ Institute mechanisms to accelerate regional integration initiatives in

the area of trade facilitation and business environment.

2.1.12.1.3. Agriculture

§ Releases of funds should correspond to the timings in the plan to

allow for more time for tender processes and timely implementation

of activities within the year; and

§ Make improvements in the area of staffing levels, capacity building,

camp houses, Farmer Training Centres, marketing and other

infrastructure.


27

2.2 INFRASTRUCTURE DEVELOPMENT

2.2.1. OVERVIEW OF INFRASTRUCTURE DEVELOPMENT PERFORMANCE

The SNDP recognises that poor and inadequate infrastructure remain the major constraints to economic

development and poverty reduction. As such, a sustained commitment to infrastructure development is

the main focus of the Plan. While investment in infrastructure in health and education forms part of the

overall thrust for infrastructure development, the four main areas of focus in the SNDP are: 1) Transport,

2) Energy; 3) ICT, and 4) Water Supply and Sanitation.

This section deals with the assessment of performance towards improvements in infrastructure

developments in 2012. Chapters assessed include the four priority infrastructural development sectors of

Transport, Energy, ICT, and Water Supply and Sanitation plus selected sectors that have targeted

infrastructural development projects in the SNDP. A combination of both output and outcome level

indicators are used to analyse performance as it relates to the annual targets identified in the SNDP.

In the area of transport infrastructure development, road programmes underperformed in 2012, achieving

at most 37 percent of the targeted kilometres for construction, maintenance and rehabilitation. The rail

and maritime sub-sectors were characterized by inertia. In the area of air transport, airport upgrading

works were undertaken as planned which led to an increase in the total number of passengers moved on

both local and international flights from 1,228,871 in 2011 to 1,362,113 in 2012. This outcome surpassed

the annual KPI of moving 970,000 passengers on both domestic and international flights.

Developments in energy infrastructure were concentrated on electricity generation, transmission line

development and increasing the storage capacity for petroleum reserves. In terms of performance, no

additional electricity generation capacity was added to the existing grid. KPI data to ascertain progress

made towards achieving the set target on the percentage of households with access to electricity was

unavailable. However, the performance of developments in infrastructure for Strategic Petroleum

Reserves was favourable in 2012. The annual KPI to accumulatively raise additional Petroleum Storage

infrastructure capacity from 84.5 million litres in 2011 to 97.6 million litres in 2012 was met.

In the area of ICT, infrastructure development continued to expand with six districts being connected to

the fibre optic cable network against an annual target of five. This made it possible for the KPI target to

increase the number of internet subscribers per 1,000 people to 1.9 to be achieved.

28

The performance of the Water and Sanitation sector was remarkable with four out of five KPIs met,

representing 80 percent success rate.

However, overall progress towards the achievement of all KPI targets under infrastructure development

was not successful in 2012. Only 41 percent of the annual KPI targets were successfully met. The bulk of

the KPIs 59 were either not met or had insufficient data to determine actual progress made. Performance

of infrastructure development in 2012 was, therefore, unsatisfactory. Detailed evidence of this

performance is provided in the remainder of this chapter.

2.2.2. TRANSPORT

Transport plays an important role in the economy of Zambia. It facilitates the haulage of goods,

movement of people and the general integration of the rural and urban economies. The modes of

transport assessed within the sector are road, rail and air. Key programmes outlined under the SNDP with

respect to transportation are: public road transport infrastructure development and management; railway

transport infrastructure development and rehabilitation; airport and aerodrome infrastructure

improvement; and maritime and inland waterways infrastructure development and rehabilitation (the

maritime and inland water ways subsector was not assessed). To monitor progress in the implementation

of these programmes, the following four output indicators were used:

§ Proportion of roads maintained/rehabilitated;

§ Proportion of railways maintained/rehabilitated;

§ Number of airports upgraded/rehabilitated; and

§ Total air freight and passengers.

2.2.2.1. Road Transport Infrastructure

During 2012, the roads infrastructure development programme underperformed. Only,

4,432.6 kilometres (37 percent) was maintained against an annual target of 12,109.0

kilometres for the paved road network. For periodic and routine maintenance of unpaved road

network, only 4,354.3 kilometres (29 percent) was achieved against an annual target of

15,188.4 kilometres. Performance on rehabilitation of both paved and unpaved road networks

was even lower, achieving 108.4 kilometres (14 percent) against an annual target of 790.33

kilometres for paved road network and 168.5 kilometres (8 percent) against an annual target

of 2,176.6 kilometres for the unpaved road networks, respectively (See Tables 9).


29

Table 9 Road Subsector Performance, 2012 No. Intervention Target (km) Actual Km Percent Achieved (%) 1 Rehabilitation Paved (Km) 790.33 108.4 14 2 Maintenance (Paved Periodic and Routine) 12,109.0 4,432.6 37 3 Rehabilitation Unpaved (Km) 2,176.6 168.5 8 4 Maintenance Unpaved (Periodic and Routine) 15,188.4 4,354.3 29 Source: Road Development Agency

The low levels of achievements on rehabilitation, especially of the paved network, were

attributed largely to low contractor capacity, scarcity of bitumen and aggregate material for

road construction. The fast tracked rehabilitation programme for the urban roads also

destabilized the normal procurement process for other road sector annual work plan projects.

This ultimately stalled the progression of works on most road projects. The biased tilt towards

major upgrading works as opposed to maintenance activities on the unpaved network also

contributed to low levels of achievement on the maintenance of unpaved roads.

2.2.2.2. Railways

The performance of the rail transport for the year 2012 was characterized by inertia. The

following rehabilitation works were planned: 30km of the Mulobezi railway line, 200 km of the

TAZARA track, 240 km on the Railway System of Zambia main and inter-mine tracks and;

construction of 40 km of the Chingola-Solwezi railway track, 4km of the Njanji commuter track

in Lusaka and the Nseluka-Mpulungu railway track under a Public Private Partnership

arrangement. None of these planned interventions were undertaken. A major development,

however, was the termination of the contract with the Railway Systems of Zambia by the

Government of the Republic of Zambia and the reassignment of the operations to the Zambia

Railways Limited.

2.2.2.3. Air Transport

In the area of air transport infrastructure, works to upgrade the Kenneth Kaunda International

Airport were undertaken as planned and were underway by the end of the year. This planned

activity was complimented by additional works involving the construction of International

Terminal Building at Harry Mwaanga Nkumbula International Airport, rehabilitation of Simon

Mwansa Kapwepwe International Airport and rehabilitation of Mfuwe International Airport.

The total number of air traffic in 2012 showed an upward improvement for both domestic and

international routes. Domestic aircraft movements increased by 3.8 percent, rising from

46,075 in 2011 to 47,878 in 2012. The total number of domestic passengers also showed an

increase of 9.2 percent, rising from 224,810 in 2011 to 247,562 in 2012. International aircraft

movements increased by 8.5 percent, from 27,100 in 2011 to 33,655 in 2012. Total number

of international passengers also showed an increase of about 10 percent, rising from

30

1,004,061 in 2011 to 1,114,551 in 2012. The increasing trend in passengers and aircraft

traffic was attributed to airport upgrading that increased the respective airport capacities.

2.2.3. ENERGY

The main role of the Energy sector in the SNDP is to expand infrastructure for electricity generation,

transmission and cost-effective supply of fuel. In addition, the sector is to continue exploring alternative

sources of energy for sustainable development. In this regard, the main programmes for the energy

sector under the SNDP are: electricity generation and transmission line development, petroleum supply

and management, renewable energy, alternative energy and biomass, and energy efficiency and

management.

To effectively monitor the performance of the sector, the following output indicators were adopted in 2012:

§ Number of additional electricity generation plants constructed/up-rated;

§ Number of additional rural electrification project packages completed;

§ Additional volumes of storage capacity for Strategic Petroleum Reserves constructed; and

§ Number of additional renewable and alternative energy mini-hydro power plants constructed.

2.2.3.1. Electricity Generation Plants

The programme to construct additional electricity plants involves nine (11) main projects

comprising rehabilitation and generating of power plants. In 2012, significant progress could

only be noted on five of the 11 projects. The status of implementation of the nine projects

during the year under review was as follows:

2.2.3.2. Rehabilitation Of Power Stations

(a) Kafue Gorge Power Rehabilitation (990 MW)

During the period under review, rehabilitation works continued and works on

implementation was at 98 percent. The only works that remained were the

installation of snags.


31

(b) Kariba North Bank Power Rehabilitation (720 MW)

Funding for Addendum No.7 amounting to USD2,174, 948 was prepared to cover

attendance at site to witness guarantee tests for Units 1 and 2 and to procure

some equipment. By December 2012, works on the plant were in progress and

were at 98 percent completion.

2.2.3.3. Generation Projects

(a) Construction of Ndola Heavy Fuel Plant

Works on the construction of a 1X50 MW Ndola Heavy Fuel Oil (HFO) continued

to expand in 2012. As at 31st December 2012, the plant was at 70 percent

completion.

(b) Kafue Gorge Lower (750 MW)

Works at the Kafue Gorge Lower Power Plant which is meant to generate 750

MW continued in 2012. An Environmental Impact Assessment (EIA) and

Geotechnical investigations were done and completed.

(c) Kariba Up-rate Electricity Generators

Works at the Kariba North Bank Power Plant meant to up-rate the generators

continued to expand in 2012. On overall, by 31st December 2012,

implementation of the project was at 69 percent and expected to be completed

by 2013.

(d) Construction of a 400 MW Maamba Coal Fired Power Plant

During the year under review, construction works on the Maamba (400MW) Coal

Fired Plant commenced after the granting of the Environmental Impact

Assessment approval by Zambia Environmental Management Agency (ZEMA) in

2012. In addition, a Power Purchase Agreement between ZESCO & the Maamba

Coal Fire Company was signed.

32

(e) Construction of Itezhi Tezhi Hydro Power Station Project

Works on the construction of the 120MW Itezhi Tezhi Hydro Power Station

continued during the year under review. Progress focused on the construction of

24 workers’ houses, an office block, a substation (5MVa) and a water treatment

plant in readiness for the actual construction of the plant.

(f) Extension of Lusiwasi Lower Scheme to 86 MW

Preparatory works were undertaken on this project in 2012 which included the

review of the feasibility study, preparation of tender documents, completion and

approval of an Environmental Impact Assessment and the revision of technical

specifications for power evacuation at 330kV.

(g) Construction of Kabompo Gorge Hydropower Project (40MW)

During the period under review, the project remained at preparatory stage with

works restricted to pre-construction activities such as access roads and bridges,

construction camps and site offices.

(h) Up-rate Lunzua Scheme Hydro Power Station (14.8 MW)

This project is expected to produce 14.8 MW. However, no construction works

were undertaken during the year under review. Progress was restricted to site

investigations and consultancy works.

(i) Extension of Hydropower project

This project involves an extension of the Kariba North Bank to generate an

additional 360 MW at an estimated cost of US$420 million. Construction works

continued to expand during the year under review reaching 69 percent progress

rate towards completion.

2.2.3.4. Strategic Petroleum Reserves

With regard to development of infrastructure for Strategic Petroleum Reserves, the annual

target for 2012 was to construct an additional 13.1 million litres of storage capacity. This


33

target was exceeded. There was 100 percent completion of the 25 million litre Lusaka Depot

and a progression rate of 60 percent to completion of the 6.5 million litre Mpika Depot.

2.2.3.5. Rural Electrification

Under the rural electrification project, the annual target was to implement 11 electrification

project packages. During the year under review, a total of 33 grid extension projects were

implemented as follows: two carry overs from 2010; ten carry overs from 2011 and twenty

one new projects for 2012. All carry over projects from 2010 and 2011 were completed.

Projects scheduled for 2012 were still being implemented. Overall, Solar Photovoltaic (PV)

systems were installed in 10 schools, 14 rural health centers, 7 chiefs’ palaces and four

markets.

2.2.3.6. Renewable Energy And Alternative Energy Development

Under this project, the annual target was to construct a 1X1 MW Bio mass Gasification

Electricity Generation Plant in Kaputa. This was not implemented as it was overtaken by

events. The 1MW biomass gasifier was going to be constructed in Ndola rural and

implemented by the Copperbelt Energy Company (CEC). However, the Shiwang’andu Mini

Hydro (1 MW) which should have commenced in 2011 only took off during the year under

review. This is a 1 MW power plant being implemented in Chinsali District, Northern Province

under the GRZ/UNIDO Renewable Energy Based Electricity Generation for Isolated Minigrids

in Zambia project.

2.2.4. INFORMATION COMMUNICATION TECHNOLOGY

Information and Communications Technology (ICT) infrastructure plays a vital role in the socio-economic

development of a country. For this reason, the SNDP has placed emphasis on the development of ICT to

cover backbone infrastructure, digitalization, next generation networks and centres of excellence.

To effectively monitor the performance of the Sector on infrastructure development in 2012, the following

indicators specified in the SNDP were adopted:

§ Number of analogue transmitters replaced with digital transmitters;

§ Number of districts connected to optic fibre cables;

§ Number of internet subscribers per 1,000 people; and

§ Online Government services provided in five public institutions.

34

2.2.4.1. Digital Migration

In 2012, the programme was to upgrade transmitters from analogue to digital throughout the

country. This was in line with the SNDP objective of establishing Digital Terrestrial Television

Migration (DTTM) infrastructure and also in order to meet the deadlines set by the

International Telecommunications Union (ITU) for all countries to migrate to digital terrestrial

transmission by 17th June, 2015. During the review period, however, no analogue transmitter

was replaced with digital transmitters even though the annual target was to replace 12.


During the period under review, ZESCO completed the implementation of Phase II of optic

fibre at a total cost of USD$ 60 million which involved both expansion and an upgrade of

phase I of the network. Under Phase II, ZESCO expanded to the northern and eastern parts

of Zambia as targeted and also extended the optic fibre network from Kazungula to Senanga

and Mongu in the Western Parts of the country. During the same period, CEC Liquid

Telecoms planned and completed to lay 610 km of underground fibre cable between

Chirundu and Kasumbalesa as part of its national backbone infrastructure. Overall the target

of connecting 5 districts to fibre optic cables was met since a total of 6 districts were

connected in 2012.

2.2.4.3. E-Government

During the year under review, 80 percent of the work towards the formulation of the e-

Government Strategic and Implementation Plan was done against a target of 100 percent. In

addition, the architecture and specifications of the Government Wide Area Network and the

National Data Centre were developed and completed. Further, works on the development of

the Government Web Portal commenced and were at 85 percent completion against a target

of 100 percent. The sector also continued to prioritize the implementation of e-Government

applications such as the Zambia Integrated Lands Information Management System,

Electronic Zambia Transport Information Systems (ZamTIS), and the Integrated National

Registration Information Systems (INRIS). As end of 2012, the e-government priority

programmes were at Contract award stage.

In terms of performance against KPIs the target under the SNDP of 1.9 internet subscribers

per 1000 inhabitants was surpassed. The sector achieved 2.0 internet subscribers per 1000

inhabitants mainly on account of an increased number of internet service subscribers due to

the upsurge as a result of an increase in the use of mobile internet and increased GSM


35

coverage area. In addition, the target on the number of mobile subscribers per 100

inhabitants was achieved due to increased demand for communication services and

increased GSM coverage area. The number of online e-services (G2G, G2B, G2C, & B2C2)

exceeded the target by 5 while the target on TV subscribers per 100 inhabitants was also

met.

2.2.5. WATER AND SANITATION

The strategic focus of the sector is to provide water and sanitation infrastructure and develop skills to

ensure effective water resource management and the efficient provision of reliable and safe water and

sanitation service. The performance of the Water and Sanitation sector was remarkable in the year under

review. Five Key Performance Indicators were used to measure annual performance out of which only

one was not met representing 80 percent success rate.

2.2.5.1. Status Of Indicators For Water Resources Infrastructure Development

Infrastructure development projects in the sector were undertaken through the Water

Resources Management and Development Programme. The following indicators were

adopted for monitoring water resources infrastructure development in 2012:

§ Number of dams and weirs constructed;

§ Number of dams/weirs rehabilitated;

§ Number of boreholes sunk for health and strategic institutions;

§ Number of bore sunk for drought and Cholera prone areas;

§ Number of boreholes sunk for Trachoma Control; and

§ Number of hydrological stations rehabilitated.

(a) Construction of Dams

Eight (8) dams were planned for construction in 2012: Nakonde II (Northern Province),

Kankuko (Copperbelt Province), Ganikoongo (Southern Province), Jikulamenda (Lusaka

Province), Mujimanzovu (North Western Province), Milindu II (Luena Farm Block in

Luapula Province), Funzwe (Lusaka Province) and Gologozyia in (Southern Province).

No dam was constructed as funds were received in the fourth quarter of 2012,

representing a zero percent success rate. Besides, only five dams (Milindu II, Kankunko,

2 G2G: Government To Government, G2B: Government To Businesses, G2C: Government To Communities, B2C: Business To Communities

36

Ganikoongo, Funzwe and Mujimanzovu) were funded and works were to commence in

2013.

(b) Rehabilitation of Dams

Under rehabilitation, 60 dams out of the planned 67 were funded for rehabilitation and

works were completed as at December, 31st, 2012, representing 89 percent success

rate.

(c) Borehole Construction for Strategic Institutions

During 2012, a total of 23 of the planned 70 boreholes were drilled, representing about 33

percent success rate. These were as follows: Luapula Province (05), Central Province

(02), Western Province (06), Copperbelt Province (02), Lusaka Province (04) and North-

Western Provinces (04).

(d) Borehole construction for Drought and Cholera Prone areas

Under the ground water resources for drought/cholera prone areas and emergencies

programme, 13 boreholes out of the planned 50 were drilled in Lusaka (07), Western (02)

and Northern (04) provinces. This represented 26 percent success rate.

(e) Construction of Monitoring Boreholes and Trachoma Control

Under the ADRA-Zambia Project, 17 out of the targeted 30 boreholes were drilled in

trachoma affected provinces for purposes of trachoma control, representing about 57

percent success rate. Of these boreholes, two were constructed in North–Western

province while 15 were drilled in Southern Province.

(f) Number of Hydrometric Stations Constructed and Rehabilitated

A total of 130 hydrometric stations were earmarked for rehabilitation in 2012. However,

only 71 were rehabilitated and maintained countrywide with Southern and Northern

Provinces having all hydrometric stations rehabilitated. This represented about 57

percent success rate.


37

2.2.5.2. Infrastructural Developments In Other Sectors

(a) Health

In the area of health infrastructure, a total of 31 District Health hospitals as well as one

General Hospital were under construction in 2012. The upgrading of UTH also

commenced with a consultant engaged to develop the design for the upgrade.

(b) Education and Skills development

In infrastructure development, three universities were earmarked for construction. These

included: Chalimbana, Palabana and Lubwa Mission. The contract for the construction of

Chalimbana University was signed while tenders for the construction of Palabana and

Lubwa Universities were evaluated by the end of 2012.

Phase 1 involving construction of 44 secondary schools was completed while

construction of 39 additional secondary schools continued and were at various levels of

completion. Works for the construction of additional 35 secondary schools were

advertised.

(c) Child, Youth and Sports Development

During the period under review, three stadia were rehabilitated: one in Mongu in Western

Province which was at 75 percent completion, David Kaunda Stadium in Eastern

Province which was at 90 percent completion, and in Kasama, Northern Province which

was at 40 percent completion. The annual target of rehabilitating at least two stadia was,

therefore, exceeded.

The rehabilitation of NASDEC which was scheduled to commence in 2011 was

undertaken and completed in 2012. However, additional rehabilitation works outside the

SNDP were done towards the preparations of hosting of the Southern Africa

Confederation Sports Association (SCSA) Zone IV Under 20 Youth Games. These

included: University of Zambia hostels, Nkoloma Stadium, and Olympic Youth

Development Centre where an Olympic Swimming Pool was constructed.

The Sector did not manage to construct any Youth Resource Centres as planned. This

was mainly attributed to the delay by the Buildings Department in the production of

Standard Building Plans, Bills of Quantity and Bidding Documents and delays in the

38

procurement processes. However, contracts for construction of Youth Resource Centres

were awarded towards the end of the year. A major constraint encountered in the

implementation of the the infrastructure development programme was limitation in

budgetary allocation. For instance, the sector had planned to rehabilitate Kaole Stadium

in Luapula and the Luanshya Sports Complex on the Copperbelt but could not undertake

the works due to unavailability of funding.

(d) Agriculture, Livelihoods and Fisheries

The main infrastructural development projects undertaken in this sector during the year

under review were irrigation development and construction of fish development

infrastructure. Irrigation development in 2012 targeted the construction and rehabilitation

of Irrigation schemes, dams and weirs and was measured by Land (Ha) brought under

Irrigation. Five (5) out of ten (10) Irrigation schemes and three (3) out of six (6) Dams

which were targeted for construction and rehabilitation were completed in the period

under review. The five Irrigation Schemes are Sikwenya and Munyeke (Kalomo),

Chibalashi (Mansa), Chebelele and Isubilo (Mwense), Kanyunya (Lundazi) and Nzenga

(Sinazongwe). Dams and weirs that were completed are Chasato (Chama), Murundu

(Mufulira) and Kabangwa (Mumbwa). Overall, 944 ha out of the annual target of 3,000 ha

representing only 31 percent of the target for 2012 was brought under irrigation.

On fish development infrastructure, two fish seed production centres were targeted for

construction during the year under review at Chipata and Katete. These works were

undertaken with only minor works remaining to be completed. Further, works on

construction of storage and freezing facilities at landing sites were completed at Itezhi-

tezhi, but were still on-going for Sinazongwe and Mpongwe. The annual target to

construct six landing bases in 2012 was therefore not met. Overall, the KPI target to

achieve at least 20 percent increase in annual fish production under aquaculture was not

achieved.

(e) Science, Technology and Innovation

Infrastructure development under the Science and Technology sector focused on

rehabilitation and development of equipment for research and development. During the

period under review, the target was to construct one Research and Development Unit

and to rehabilitate two existing ones. The construction works were undertaken at NISIR

Chilanga and was at 80 percent completion rate. In addition, rehabilitation works were


39

undertaken on the Laboratory, Workshop and Greenhouse at NISIR in Kitwe and were

completed.

(f) Natural Resources

Infrastructure development programmes targeted for implementation during the period

under review in this Sector were the construction of six 1x5 District Office blocks of which

two were constructed in Kazungula and Nyimba representing a 40 percent success rate.

Only one of two Office Blocks at Sub District level was constructed in Masese, Sesheke.

No works were undertaken with regard to construction of houses at campsites and

refurbishment of honey and bee wax processing plants as planned in 2012.

(g) Governance

In the area of Governance, infrastructure development targeted the construction of

additional infrastructure for justice institutions. In this regard, construction of 95 Local

Courts, three subordinate courts as well as one small claims court were completed during

the year under review and the construction of a five storey office block for the Ministry of

Justice continued. The target for 2012 was to construct 45 local courts, four subordinate

courts and an office block for the Ministry of Justice. Therefore, the sector was on track

with the implementation of SNDP projects, although in terms of KPIs none of the annual

targets were met.

(h) Additional (non SNDP) Infrastructure Development programmes

The link Zambia 8000 and the Pave Zambia 2000 programmes were launched during the

year under review to complement existing SNDP programmes. These were aimed at

transforming Zambia from a landlocked to a land-linked country as well as to accelerate

the creation of employment on a national scale. A total of 8,201 kilometres is to be

implemented over a period of five years under the Link Zambia 8000 while the Pave

Zambia 2000 is to develop 2,000 kilometres of township roads countrywide. Progress on

these programmes was underway during the review period.

2.2.6. KEY PERFORMANCE INDICATORS

Seventeen (17) Key Performance Indicators for infrastructure development across the four sectors of

focus in the SNDP were monitored in 2012 (See Table 10). Of the 17 KPIs, seven were met during the

40

year under review, representing 41 percent. The other ten indicators were either not met or there was

insufficient data to determine progress made during the year under review. A further disaggregation

shows that within this category, five indicators (50 percent) reported not meeting the annual target while

five (5) indicators (50 percent) had insufficient data to assess progress made.

Table 10 Key Performance Indicators: Infrastructure Development, 2012 Sector KPI 2012 Assessment

Target Actual Transport Number of passengers moved on air flights 970,000 1,362,113 Met

Volume of cargo transported on flights 5,500,00 No data No data Energy Additional electricity generation capacity (Mw) 360 0 Not met

Additional petroleum storage capacity ( Million litres) 97.6 97.6 met Amount of strategic stock procured in number of stock days 10 No data No data Amount of electricity generated from renewable energy (Mw) 5 0 Not met Quantity of Bio Ethanol consumed ( % of national fuel) 5 0 Not met Quantity of Bio diesel consumed (% of national fuel) 2 0 Not met Household with access to electricity (%) 34.7 No data No data Rural population access to Electricity (%) 7.5 No data No data

ICT Number of Internet Subscribers per 1000 people 1.9 2.0 Met Number of Digital transmitters installed 12 0 Not met

Water and Sanitation Proportion of rural population with access to safe water supply (%) 65 65 met Proportion of rural population with access to adequate sanitation (%) 48 48 met Proportion of urban population with access to safe water supply (%) 76 80 met Proportion of urban population with access to adequate sanitation (%) 48 55 met Vulnerability assessment and risk plan completed 1 No data No data

The bottom line is clear: progress towards the achievement of KPIs under infrastructure development was

not successful. Only 41 percent of the annual KPI targets were successfully met. The bulk of the KPIs (59

percent) were either not met or there was insufficient data to determine actual progress made. This must

generate concern for at least two reasons. The first is that the rate of progress made on infrastructural

development in 2012 cannot provide a satisfactory basis for optimism and hope that the SNDP’s first

overarching objective to accelerate infrastructure development will be met by 2015. Second, it does

appear that not all data required to effectively assess performance made on KPIs related to infrastructure

development was being collected. This could either be due to inadequate capacities to collect the data

required and/or lack of clear correlations between the set performance indicators and the objective reality

of what was happening at the sector level.

2.2.7. SUMMARY AND RECOMMENDATIONS

The assessment indicates that performance on infrastructural development in 2012 was less than

satisfactory. The overall success rate in the achievement of infrastructural development KPIs in 2012 was

41 percent, with the bulk (59 percent) of KPIs not met. At the output level, the performance varied across

the sectors but overall progress towards the achievement of annual output indicators was equally low

across all the infrastructural development sectors. The Energy sector, for instance, registered no progress

on all electricity generation output indicators. The transport sector recorded a 37 percent success rate on

road construction, maintenance and rehabilitation output indicators. The ICT sector achieved a 50 percent


41

success rate on digital migration and fibre optic cable network output indicators. Water and Sanitation,

whose performance was exceptionally better had 80 percent success rate. On the balance of evidence, it

is the case that performance of infrastructure development in 2012 was generally not successful.

In order to improve the performance of infrastructure development and thus achieve the SNDP

overarching objective of accelerating infrastructural development, the following recommendations are

made:

1. Develop mechanisms that will guarantee that rural areas derive the maximum benefit from the

rural electrification programme;

2. Establish a robust M&E system to capture pertinent information to measure infrastructure

development performance;

3. Strengthen inter-institution collaboration so that the Sector institutions dealing with road

infrastructure development can coordinate and share information on a routine basis and

effectively work together as one;

4. Review the SNDP ICT sector chapter and realign it with emerging technological developments

and performance measurements that would be consistent with those adopted by the new

Government;

5. Adopt a phased implementation and an incremental approach with quick wins that should

demonstrate what can be achieved by taking a holistic government approach;

6. Speed up the process of migrating from Analogue Terrestrial Television to Digital Terrestrial

Television;

7. Revise the procurement procedures including the restrictive procurement authorization threshold

given to RDA in order to prevent delays on the awarding of road contracts; and

8. Incorporate recent infrastructural development projects (e.g. Link Zambia 8000, Pave Zambia

2000, upgrading of airports) into the core SNDP programmes.

43

OBJECTIVE 2: TO PROMOTE RURAL INVESTMENT AND

ACCELERATE POVERTY REDUCTION


45

3.1 RURAL DEVELOPMENT

3.1.1. OVERVIEW OF PERFORMANCE ON RURAL DEVELOPMENT

A key objective of the SNDP is to promote rural development and accelerate poverty reduction. In order

to reduce the high poverty levels in the rural areas and promote rural development, the Plan focuses on

stimulating agriculture productivity and promotion of agro-businesses, improving the provision of basic

services such as water and sanitation, health, education and skills development. In addition, investments

in key economic infrastructure such as feeder roads, water canals, tourist access roads and electricity

access are to be undertaken. In this regard, the major programmes include continued implementation of

the Rural Finance Programme and rapid roll-out of ICT services in rural areas to support the expansion

and increased use of financial services. Further, rural industrialization is to be pursued in an effort to

increase employment opportunities in rural areas.

This chapter assesses progress made in 2012 with respect to programmes aimed at rural development. It

builds on the 10 provincial chapters that report the SNDP implementation progress at regional level and

focuses on key rural development programmes implemented by the provincial administration offices.

Overall, the performance of the rural development programme in 2012 was unsatisfactory. The thrust for

stimulating agricultural productivity, for instance, received scanty attention across most provincial

administrations as was the promotion of agro-business. On the other hand, targeted rural development

programmes (Resettlement Scheme Development, Rural Roads Development, and Natural Resources

Plantation) all underperformed. The rural roads development programme, for instance, only recorded a 36

percent success rate against set targets. The main challenge appears to be lack of a coordinated

approach to rural development. An assessment of the performance of targeted rural development

programmes is provided in the following sections.

3.1.2. PERFORMANCE OF TARGETED RURAL DEVELOPMENT PROGRAMMES


(a) Feeder Roads

The major activity undertaken under the rural road infrastructure was the

establishment and rehabilitation of feeder roads by the Rural Roads Units across

all provinces. A total of 1,371.3 against a target of 3,791.1 kilometres of feeder

46

roads were graded, representing 36.1 percent success rate. This was rather on

the low side, dropping from 57 percent registered in 2011. This poor performance

was more pronounced in the Copperbelt, Eastern and North-Western provinces

were less than 35 percent of the targeted kilometers of rural roads were graded

during the year under review. The main reason advanced for poor performance

of feeder road works was late release of funds and the long tendering

procedures. Table 11 summarises progress made on the grading of feeder roads

in 2012.

Table 11 Rural Roads, 2012 Province Kilometres Graded Assessment

Target Actual Central 365.3 233.3 Not met Copperbelt 804 97 Not met Eastern 885.5 145 Not met Luapula 48 50 met Lusaka - 368 - Muchinga 42.1 42.1 Met Northern 366 178 Not met North-Western 527.7 173 Not met Southern 591 361.9 Not met Western 161.5 91 Not met Grand Total 3,791.1 1,371.3 Not met Source: Rural Roads Unit, Regional Chapter Submissions

3.1.2.2. Rural Electrification

Under the rural electrification project, the annual target was to implement 11

electrification project packages. However, the composition of electrification

packages as a unit of measurement to assess performance was unclear.

Nevertheless, during the year under review, a total of 33 grid extension projects

were implemented as follows: two carry-overs from 2010; ten carry overs from

2011 and twenty one new projects for 2012. All carry over projects from 2010

and 2011 were completed. Projects scheduled for 2012 were still being

implemented. Overall, Solar Photovoltaic (PV) systems were installed in 10

schools, 14 rural health centers, 7 chiefs’ palaces and four markets.

(a) Rural Education Infrastructure Development

The thrust of the education and skills development programme for rural

development is to establish, rehabilitate and upgrade education facilities. In this

regard, emphasis is placed on school infrastructure. During the year under

review, construction of one basic school was completed in Lusaka Province’s

Chongwe area (Mukamambo II) while eight basic schools were rehabilitated


47

nation-wide (Figure 5). The high school category fared relatively better with the

construction of five high schools completed. Another five were rehabilitated

during the review period. Seven classroom blocks were also constructed country-

wide during the review period while only two teacher’s houses were constructed

country-wide. Evidently, the pace of school infrastructure development meant to

accelerate rural development performed rather poorly in 2012. Part of the

explanation is that most educational projects are implemented by the line Ministry

concerned and that, therefore, provincial administration only compliments

broader efforts of the Ministry of Education. However, the lack of notable

progress in rural school infrastructure development raises troubling questions as

to the prioritization of rural school infrastructure development in the prioritization

lists of the provincial administrations nation-wide. A more coordinated approach

between the national and local levels may be of the essence. Otherwise,

evidence from the report indicates that school infrastructure projects in remote

areas have not been given enough priority. This situation, if unchecked, may

work to undermine the objective of improving accessibility of rural communities to

educational opportunities.

Figure 5 Education Infrastructure Programme Performance, 2012

(b) Rural Health Infrastructure Development

The thrust of the rural health infrastructure development strategy is to provide

sustainable infrastructure conducive for the delivery of quality health services and

ensuring the availability of medical equipment in health care facilities. During the

year under review, most provinces except Copperbelt, Eastern and Luapula

0

1

2

3

4

5

6

7

8

9

Num

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f Rur

al S

choo

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ehab

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Basic Schools Constructed

Basic Schools Rehabilitated

High schools Constructed

High schools rehabilitated

Classrooms Constructed

Classrooms Rehabilitated

48

undertook some health related infrastructure development projects with major

works concentrated on rural hospital support facilities, health centre construction

and rehabilitation. In this regard, 12 hospital support facilities were constructed,

27 health centres were constructed and 5 rehabilitated while 7 medical staff

houses were constructed (See Figure 6).

Figure 6 Rural Health Infrastructure Development Performance, 2012

3.1.2.3. Rural Water Health And Sanitation Development

Under the Water and Sanitation sector, the major activities undertaken were

borehole construction and rehabilitation. In this regard, 132 boreholes nation-

wide were constructed in 2012 compared to 75 in 2011. In addition, 168

boreholes were rehabilitated in 2012 compared to 50 in 2011. However, only 9

dams were rehabilitated in 2012 compared to 10 dams in 2011 (See Table 12).

Thus, borehole construction and rehabilitation recorded marked improvement

during the year under review.

0

5

10

15

20

25

30

Num

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f Rur

al H

ealth

Fac

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ouse

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ehab

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Hospital Support Facilities Constructed

Health Centre Constructed

Health Centre rehabilitated

Medical Staff House Constructed


49

Table 12 Rural Water and Sanitation Development, 2012 Dam Construction Dam Rehabilitation Borehole Construction Borehole Rehabilitation Province Target Achieved Target Achieved Target Achieved Target Achieved Central Copperbelt 2 2 15 15 30 0 Eastern 1 1 7 Luapula 1 1 70 5 Lusaka 4 101 Muchinga Northern 10 3 132 North-Western 2 31 Southern Western 6 5 Grand Total 2 2 6 9 95 132 30 168 Source: Ministry of Energy and Water Development and Provinces, Regional Chapter Submission

3.1.2.4. Agriculture

(a) Livestock and Fisheries Development

This programme focussed on the procurement and distribution of cattle and

goats to small-scale farmers, mainly in Central and Western provinces. A total of

112 heifers were bought and distributed to 28 small-scale farmer groups in 14

constituencies in Central province. Further, within Central Province, 366 goats

were procured and distributed to 27 small scale farmers in 13 rural

constituencies. In Western province, 6 Borans were procured and distributed in

Mongu district. Lusaka Province engaged in fish farming under the Fish Out-

Grower Scheme programme. This programme reduced dependence on fish from

the main rivers which were increasingly being depleted of fish species. In terms

of livestock development, farmers were assisted with livestock multiplication skills

especially for quality and improved breeds of goats in all the districts.

In terms of infrastructure development, a dormitory block at Kasaka Fish Training

Centre was completed. Further, three fish freezing and marketing facilities were

constructed in Sinazongwe, Itezhi tezhi and Mazabuka districts in Southern

Province.

(b) Resettlement Schemes Development

Under this programme, the major activities were farm plot demarcation and

allocation and infrastructure development in land resettlement scheme areas. All

the provinces except Luapula, Lusaka, Muchinga, North-Western and Western

50

provinces reported resettlement scheme development activities as shown in

Table 13.

Table 13 Resettlement Schemes Development, 2012 Province Activity Undertaken Central § Borehole sitting, drilling and equipping at Katanino Resettlement Scheme in Kapiri Mposhi District and

§ construction of a 1 x 3 classroom block at Kampumbu Resettlement Scheme in Serenje District Copperbelt § 4km Road formation at Miengwe Resettlement Scheme in Masaiti;

§ 4Km Road formation at Maposa Resettlement Scheme in Luanshya; 10Km road stamped in Block D of Kambilombilo Resettlement Scheme.

§ Drilling of four (4) boreholes (three in Kambilombilo and one in Lukanga North Resettlement Scheme). § Nine boreholes repaired; two (2) in Kambilombilo, one (1) in Chifulube, two (2) in Kakolo and four (4) in

Lukanga North. The construction of a Health Post at Lukanga North Resettlement Scheme in Mpongwe was completed. Overall, a total of 146 plots were demarcated at Kambilombilo Resettlement Scheme in Lufwanyama District

Eastern § One staff house constructed at Ukwimi Resettlement scheme. § Five boreholes drilled in Kaozi Resettlement Scheme. § A 1x3 class room block constructed at Mtilizi Resettlement Scheme

Northern § Plot demarcations and subdivisions done in Chamfubu in Mungwi districts. § A total number of 60 plots subdivided in Chamfubu Resettment Scheme. § An access road constructed in Chamfubu Resettlement Scheme using labour based methods. A total of

10 km was cleared and formed Southern § A total of 534 prospective settlers were allocated plots on the average of 20 hectares.

§ Clearing and stamping of a total of 65km of internal roads in Chikanta, Kasiya and Masasabi Resettlement Schemes.

3.1.2.5. Tourism

During the year under review, the development of tourism for rural development focused on

infrastructure development, opening up of new areas for tourism, investment promotion and

marketing, product diversification, enforcement of standards and provision of quality services.

As a way of promoting cultural tourism, construction of one cultural village was on-going in

each of the following provinces: Central, Northern, North-Western, and Southern. In central

province, constructions of Traditional Cultural Centres were on-going in Chibombo and

Mkushi. In addition, the construction of a wall fence at Broken Hill Cultural site was underway.

In Eastern province, the construction of the Chipata Cultural Village was also underway.

In Northern Province, the construction of phase two of a Cultural Village at Mwera Rocks in

Kasama was in progress. Whereas phase one of the project involved construction of a

change room, phase two was the construction of terraces with 80 percent of the works

completed during the year under review. In North-Western province, the construction of arts

and cultural infrastructure at Kifubwa Provincial Cultural Village in Solwezi commenced and

the works were scheduled to be completed in 2015. In Southern province, works on the

construction of Maramba Cultural village for the purpose of creating a venue for the

production and marketing of Cultural goods and services were underway. Once completed

the Maramba Cultural village will comprise a Multi- purpose theatre, Out Door performance


51

stage, Bar and Restaurant, Art Gallery and Chalets. The Province also facilitated

programmes of visual Arts, performing Arts, Traditional Dancing and Film Industries. Further,

the Province organized, through the Provincial Arts Associations; 10 Arts Exhibitions, 11

theatre festivals and held sensitization workshops to producers and dealers of crafts at

Mukuni Park, Victoria Falls, Mukuni village, Choma and Siavonga.

3.1.2.6. Natural Resources

In the Natural Resources sector, promotion of sustainable use of natural resources and

facilitation of alternative livelihoods was enhanced to spur rural development in all the

provinces except Lusaka and Muchinga provinces. This was done through the scaling up of

raising tree seedlings for reforestation and plantings and promotion of bee-keeping activities

(See Table 14).

Table 14 Natural Resource Development Performance, 2012 Province Activity Undertaken Central § 9 hectares of Eucalyptus were planted at Serenje District plantation

§ 79 hectares of plantation areas weeded and slashed § 18280 m of firebreak cleared

Copperbelt § Two (2) biodiversity management plans prepared, § Forestry boundaries in Kalulushi and Chililabombwe Districts opened up § Squatters at Katanino in Masaiti evicted § Four (4) beekeeping trainings conducted § Four (4) communities sensitised on Forestry Affairs and Services § 30Km of forestry areas cleared

Eastern § Expansion and electrification of Msipazi Forest Plantation; § Expansion and electrification of Masupe Forest Plantation in Chipata district; § expansion of Chimtengo Forest Plantation, § Promotion of Bee Keeping in 8 districts

Northern § Clearing a stretch of 12.34 km out of the targeted 20.4 km at Lumbo Local forest in Kasama; § Raising a total number of 190, 000 seedlings out of the targeted 250 000 § Planting 10 hectares of trees against a target of 150 hectares. § Training of bee keeping groups in Mbala, Mungwi and Luwingu Districts.

Luapula § 93 km of Forestry boundary clearing done § Planted 4 ha of degraded Areas § Conducted 7 awareness meetings on environmental matters § Conducted 80 squatter evictions § Conducted 115 blitz Patrols § Trained 255 beekeepers § Produce 14 tons Honey § Establishment 6 Small village nursery § Raised 120,000 Assorted seedlings § Cleared all forest boundaries § Replanted 14.5 ha of forest § Weeded 152 ha of Plantation § Cleared all rubber plantation boundaries § Raised 8,000 Rubber seedlings

North-Western

§ A total of 30 beekeeping groups were trained spread as follows: Mwinilunga, 3; Ikeleng2; Kasempa, 2; Mufumbwe, 2; Zambezi, 2; and Chavuma, 12.

Southern § Raised over 290,000 tree seedlings of various species. § cleared and maintained 32.2km and 15km of boundary in ILA National Forest and Siamambo regional

plantations, respectively Western § 25 hectares were planted with seedlings in Mongu Lubosi area

§ 38,000 seedlings were distributed to schools and communities in Sesheke, Lukulu,Senanga and Kalabo districts

52

3.1.3. IMPLEMENTING THE SNDP AT REGIONAL LEVEL

In terms of SNDP implementation, Provincial Administration continued to exercise its oversight role in

programme implementation. The SNDP provided a guide and directed rural development as it related to

poverty reduction. Some sectors, however, could not fully commit to supporting the implementation of

SNDP programmes at the regional level. This was mainly attributed to a feeling that their inputs into the

SNDP as regards their priority activities were not fully addressed. Main challenges affecting the

implementation of rural development programmes of the SNDP at regional level included:

a) Implementation of large and multi-phased projects continued to be challenging for the Provinces

due to inadequate Provincial Budget allocation and the costs associated with undertaking projects

with a multi-year time span.

b) There were weak linkages between the SNDP, MTEF, annual budgets and ministerial strategic

plans. Many sectors in the provinces formulated budgets without linking them to the programmes

outlined in the SNDP.

c) The Provincial Administration could not comprehensively account for the performance of

developmental programmes/projects in the province that were funded directly to de-concentrated

structures of sector ministries.

d) The low ceilings continued to be a big hindrance to rural development in the Provinces. The

limited ceilings made it very difficult to meaningfully implement various programmes in the

province.

e) The late release of funds made it very difficult to implement and complete programs within the

required time frame.


The performance of rural development activities during the year under review was, at best, unsatisfactory.

While the SNDP has a number of strategies and programmes aimed at promoting rural development,

there appears to be lack of a coordinated approach to maximize impacts. Overall, the performance of

most rural development-oriented programmes was on the low side to have meaningful impact on rural

development and poverty alleviation. One major programme in this regard is the rural roads infrastructure

development that underperformed during the year under review - recording a 36 percent success rate

against set targets. Implementing agencies attribute this poor performance to the late release of funds

and the long tendering processes. Such bottlenecks will need to be redressed. In part, this urges for

accelerating the implementation of fiscal decentralization and ensuring that there are clear linkages

between planned activities and what gets to be implemented. The bottom line is clear; there can be no


53

meaningful national development in Zambia without addressing the challenge of rural development and

thus rural poverty.

The following recommendations are therefore made:

1. Accelerate the implementation of fiscal decentralisation and devolution of powers and functions to

enable provinces have adequate resources for programme implementation according to local

priorities;

2. Enhance linkages between the National Development Plan, Medium Term Expenditure

Framework and the annual budgets;

3. Increase financing for SNDP programmes at regional level;

4. Fund projects within the first 6 months of the year so that the remaining period could be utilised

on implementation;

5. Address the shortage of staff in Provincial Planning Units in order to meet the challenge of

increasing responsibilities for the units;

6. Establish M&E units in the Provinces that do not yet have them; and

7. Harmonize the roles played by Provincial Development Coordination Committee and the Budget

Committee with regard to budgeting for the SNDP programmes.

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OBJECTIVE 3: TO ENHANCE HUMAN DEVELOPMENT


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4.1 HUMAN DEVELOPMENT

4.1.1. OVERVIEW

This chapter deals with the assessment of performance towards improvements in human development.

Sectors assessed included Health, HIV and AIDS, Education and Skills Development, Child, Youth and

Sports Development, Nutrition, Disability and Development, Disaster Risk Management, Social

Protection, Governance, Gender, Environment, and Local Government and Decentralisation. A

combination of both output and outcome level indicators are used to analyse performance as it relates to

the targets identified across all human development related chapters in the SNDP.

In the Health sector, the strategic focus was to provide equitable access to quality health services. Three

out of five annual KPI targets in this regard were met, representing an 60 percent success rate. One KPI

was not accessed due to non-availability of data. In the HIV/AIDS sector, intervention programmes

focused on prevention, treatment, care and support. Three out of five KPIs were met, representing a 60

percent success rate. One KPI was not accessed due to non-availability of data. In the Education and

Skills Development Sector, efforts to expand access to high school and tertiary education alongside

improving the quality of education at all levels continued in 2012. Eight out of sixteen (16) KPIs were met,

representing a success rate of 50 percent. The Child, Youth and Sports Development sector performed

relatively better in 2012, achieving three out four of its KPI targets. This represented a 75 percent success

rate. Assessment of the Nutrition sector’s performance was hampered by non-availability of data on the

KPIs while the Disability and Development sector did not achieve any of its three KPI targets in 2012.

The Social Protection sector focused on the implementation of measures to promote human development

and dignity through the provision of skills, financial assistance, agricultural inputs and access to services

to low capacity and incapacitated households and other vulnerable persons. Two out of eight of its annual

KPI targets were met, representing a 25 percent success rate. The Disaster Risk Management Sector

focused on implementing programmes for disaster management mainstreaming and capacity building in

order to reduce the socio-economic impact of disasters. Five out of nine KPI targets were met,

representing a 55 percent success rate. Two KPIs were not assessed due to unavailability of data.

The Governance Sector focused on infrastructure development in 2012. Performance of the Governance

sector at the output level is dealt with under the Infrastructure Development Chapter. At the outcome

level, however, the performance of the Sector was unsatisfactory. The Sector only achieved one out of 13

KPI targets in 2012, representing 7 percent success rate. Two indicators were not assessed due to non-

58

availability of data. The Gender sector achieved a 25 percent success rate, meeting only one out of four

KPI targets during the year under review.

Overall, out of seventy-nine (79) KPI targets across all human development chapters, only 26 KPI targets

were met in 2012, representing an aggregate success rate of about 33 percent. The bulk (67 percent)

was either not met (52 percent) or there was inadequate data (15 percent) to assess actual progress

made. On the balance of this evidence, performance towards improvements in human development in

2012 was generally not successful. Detailed evidence of this performance is provided in the remainder of

this chapter.

4.1.2. HEALTH

The overall objective of the interventions outlined in the SNDP under health is to improve the health

status of the population in order to contribute to Zambia’s human development by 2015. To achieve this,

implementation of programmes continued to be focused, among others, on: primary health care services,

improvement in the availability and distribution of qualified health-care workers, improvement in the

availability and access to essential drugs and the enhancement of the drug logistics management system.

Other interventions focused on improvements in infrastructure and medical equipment and accessories,

and implementation of a social health insurance scheme.

4.1.2.1. Primary Health Care Services

The key indicators adopted to track progress made in improving access to quality primary

health care services included:

§ Supervised deliveries;

§ Antenatal care attendance;

§ Immunization coverage;

§ Child mortality;

§ Incidence of malaria

§ Number of people aged 15-49 counselled, tested and receiving treatment for

HIV/AIDS, and

§ TB case detection and cure rates.

An assessment of progress made on each of these indicators is as follows:-


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(a) Supervised Deliveries

The percentage of institutional deliveries rose sharply from 45.1 percent in 2011

to 49.4 percent in 2012. However, this was short of the 2012 SNDP annual target

of 52 percent. Antenatal coverage declined to 85.9 percent from 88.3 percent in

2011, whilst the average antenatal visits increased to 2.75 in 2012 from 2.73

recorded in 2011.

(b) Immunisation Coverage

Immunisation is a key intervention for improving child health and reducing child

mortality (MDG 5).The percentage of fully immunized children increased from

89.6 percent in 2011 to 90 percent in 2012. This was consistent with the SNDP

annual target of fully immunization coverage of at least 80 percent in each

district. Child and Infant Mortality rates were estimated at 119 per 1,000 live

births respectively. The high rates were largely attributed to neonatal

complications, malaria, pneumonia, anaemia, malnutrition, poor maternal health

and high prevalence of HIV/AIDS. Furthermore, only 20 percent of mothers

attended post-natal care after two weeks, thereby compromising opportunities for

child survival.

(c) Incidence of Malaria

The incidence of malaria declined marginally from 343 per 1,000 population in

2011 to 341 per 1,000 population in 2012. The SNDP annual target of 152 cases

per 1,000 population was not attained. Incidentally, Malaria remained the leading

cause of morbidity and mortality during the year under review. Furthermore, the

total diagnosis attributed to malaria increased to 4,718,300 cases in 2012 from

4,186,235 cases in 2011. Notwithstanding, the target on malaria case fatality rate

was achieved.

(d) Access to and Use of VCT Services and ART

The number of people testing for HIV and receiving their test results increased

from 1,772,043 clients in 2011 to 2,138,961 in 2012. However, this was below

the target of 2,643,413 clients for 2012. Similarly, the number of adults and

children with advanced HIV infection receiving antiretroviral therapy increased

from the baseline figure of 344,407 in 2010 to 480,925 in 2012. The increase in

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number of people accessing treatment was partly attributed to the new WHO

Guidelines for ART commencement passed in 2010 and enhanced VCT activities

amongst others. A total of 534 public and private facilities (429 static and 105

mobile facilities) provided ART and VCT services respectively, countrywide.

(e) TB Detection and Cure Rates

A cure success rate of 88 percent was achieved among smear positive patients

notified during the year under review. This exceeded the SNDP annual target of

a cure rate of 85 percent. The defaulter plus transfer rates of 3 percent and a

failure rate below 1 percent were also recorded. The overall TB case detection

rate stood at 337 per 100,000 population. Over 61 percent of TB notified patients

in 2012 knew their HIV status as compared to 84 percent in 2011; out of the

61percent cases who were HIV infected, 60 percent received ART (as compared

to 53 percent on ART in 2011).

4.1.2.2. Human Resource Development and Management

Two indicators were adopted to track progress in human resource development and

management: 1) percentage increase in training output of health-care workers, 2) percentage

increase in the number of health centres with at least one qualified health-care worker.

(a) Training output of Health Workers

The sector trained 2,402 health workers in 2012 as compared to 2,168 in 2011.

This represents an increase in training output of about 11 percent. However, this

was below the SNDP annual target of increasing the health worker training

output by at least 35 percent.

(b) Number of Health Centres with at least one Qualified Health Worker

Data on the number of health centres with at least one qualified health workers

was not available. Thus, progress towards the achievement of this indicator was

not assessed.


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4.1.2.3. Availability of Drugs at Health Centres and Hospitals

Drug availability at health facilities increased to 80 percent in 2012 from 77 percent in 2011.

This however, was below the annual SNDP target of maintaining drug availability at 100

percent.

4.1.2.4. Establishment of a Social Health Insurance Fund

The establishment of a Social Health Insurance Fund was not achieved in 2012. While this

was not achieved, the Sector made good progress in finalizing the actuarial assessment

report for establishing a social health insurance fund. A report on how the social health

insurance would be designed was also finalised. A Draft National Social Health Insurance Bill

was also prepared for consideration by the Ministry of Justice.


There are five Key Performance Indicators for the Health sector. Three out of these five annual KPI

targets were met in 2012, representing 60 percent success rate (See Table 15). One KPI in the Sector

was not accessed due to non-availability of data while the other was not met. Evidently, the contribution

of the Health sector towards improvements in human development was good in 2012.

Table 15 Key Performance Indicators: Health, 2012 SNDP Objective Key Indicators Baseline Annual Targets

2011 Annual Targets

2012 Overall Target

2015 Assessment

Human Development

2010 Planned Actual Planned Actual Institutional Deliveries 45 48 45.4 48 52 55 Not Met Fully Immunised Children (%) 69 80 72 80 92 80 Met Malaria Case fatality rate among children >5 yrs (per 1000)

24 41 27.8 41 25 41 Met

Utilisation Rates of PHC facilities

1.0-3.0 1.35 1.35 - No data

MoH releases to District Level (% of Total)

15 14 21 15 21 15 Met

Note: The utilization for 1.0 is target for rural areas while 3.0 is the target for urban areas

4.1.4. HIV and AIDS

The HIV epidemic presents major challenges to the achievement of desired human development

aspirations of the SNDP. In order to track progress made towards improvements in human development

by the HIV/AIDS sector, the following indicators were tracked: 1) Access to PMTCT services, 2) Access to

and use of VCT services, 3) Mitigation, and 4) Coordination and Management.

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4.1.4.1. Access to PMTCT

Access to PMTCT services improved tremendously in 2012 compared to previous years.

Male involvement in prevention of Mother to Child Transmission was intensified and rapidly

scaled up across the country.

4.1.4.2. Access to and use of VCT services

As reported under the health sector, the number of people testing for HIV and receiving their

test results increased from the baseline figure of 1,327,995 clients in 2010 and 1,772,043

clients in 2011 to 2,138,961 in 2012. However, this was below the target of 2,643,413 clients

for 2012. Similarly, the number of adults and children with advanced HIV infection receiving

antiretroviral therapy increased from the baseline figure of 344,407 in 2010 to 480,925 in

2012.

4.1.4.3. Access to Social Support Services for OVCs and People Living AIDs

The number of orphans and vulnerable children receiving social support increased from

75,469 in 2011 to 281,274 in 2012, representing about 273 percent. The number of

chronically ill patients in Community Home Based Care (CHBC) reduced from 80,483 at the

beginning of 2012 to 59,019 by September 2012. This reduction was attributed to improved

and enhanced access to treatment, care and support programmes.

4.1.5. KEY PERFORMANCE INDICATORS IN THE SNDP

Three out of five KPI targets were met, representing a 60 percent success rate. One KPI was not

accessed due to non-availability of data (See Table 16).

Table 16 Key Performance Indicators: HIV and AIDS, 2012 Key Performance Indicator (KPI) Baseline 2012 Assessment

2010 Target Actual KPI 1: Number of clients tested for HIV at VCT and receiving test results

1,327,995/6,822,332 (20%)

2,643,413/7,167,607 (37%)

2,138,961/7,167,607 (30%)

Not Met

KPI 2: Number of HIV+ pregnant women receiving a complete course of ARVs

76,893/96,073 (80%)

66,415/83,598 (79%)

84,351/83,598 (101%) Met

KPI 3: Number of people with HIV and AIDS who receive ARVs

344,407/503,284 (68%)

398,692/469,050 (85%)

480,925/469,050 (103%)

Met

KPI 4: Number of children who have HIV and AIDS receiving ARVs

25,388/115,820 (22%)

28,595/39,429 (72%)

34,084/39,429 (86%) Met

KPI 5: Number of organisations with comprehensive workplace and community response strategies to HIV and AIDS (CS, Public and Private Sector, informal Sector)

500 540 - No data

Source: Spectrum Preliminary data 2012


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4.1.6. EDUCATION AND SKILLS DEVELOPMENT

The strategic focus of the Education and Skills Development sector is on expanding access to high

school and tertiary education and on improving the quality of education at all levels. This section

assesses progress in the Sector towards the attainment of the SNDP’s human development objective.

This was monitored by annual indicator achievements against targets for 2012. The key indicators

adopted are:

§ Net Enrolment Rate (NER) (%);

§ Completion Rate (%);

§ Pupil Teacher Ratio;

§ Lecturer Student Ratio; and

§ Gender Parity Index.

4.1.6.1. Net Enrolment Rate (NER)

(a) Grades 1-7

The number of pupils enrolled in primary schools increased by 3.27 percent to

3,137,128 in the year under review from 3,034,429 in 2011. Girl’s enrolment

stood at 1,569,497 or 49.9 percent of the total enrolment at the primary level. The

targeted annual NER of 97 percent was achieved. However, the target for the

indicator on early childhood education was not met because implementation of

the programme was in its formative stages and as a result the sector was

finalising policy and curriculum frameworks.

(b) Grades 8-9

Enrolments at junior secondary school level (Grade 8-9) increased by 14.42

percent to 456,284 from 444,469 learners in 2011. The enrolment of girls at this

level stood at 216,290 or 47.4 percent of the total number of learners. The

targeted NER for 2012 at this level was 38 percent. The outturn was 36.9

percent. The target was, therefore, not met.

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(c) Grades 10-12

Enrolments at senior secondary school level (Grades 10-12) increased by 12.54

percent to 287,719 learners from 251,632 in 2011. There were 128,242 female

learners reported in senior secondary schools accounting for 44.5 percent of the

total enrolment at this level. The NER for the review period was 24.8 percent

against an annual target of 24 percent. This target was met in 2012.

(d) Tertiary Enrolment against the Population

The number of students enrolled in TEVET institutions increased by 1 percent to

33,569 in the year under review from 33,233 in 2011. The business studies

programme constituted the largest share of enrolments followed by the crafts

programmes while the Aviation constituted the smallest. The annual target to

enrol 42,000 students was not met largely because of limited capacity in the

subsector to absorb additional students.

4.1.6.2. Completion Rate

(a) Grade 7

The completion rate for primary school level (Grade 7) reduced from 100 percent

in 2011 to 95 percent in 2012, thereby missing the annual target of 96 percent.

Such reductions were expected because after several years of implementation of

the policy of tuition free education at this level, the system was beginning to clear

out the backlog of over aged children and the completion rate was now much

more reflective of net enrolments.

(b) Grade 9

The completion rate for junior secondary school level (Grade 9) increased to 64.3

percent in 2012 from 61.9 percent in 2011 against a target of 59 percent. The

target was met.

(c) Grade 12

The completion rate at senior secondary school level (Grade 12) increased to

27.6 percent from 26.8 percent in 2011. The annual target of 27 percent was


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met. However, the completion rate at secondary education level continued to be

unsatisfactory and this was largely attributed to high dropout rates caused by

early marriages, pregnancies and financial constraints.

In general, the sector performed impressively in terms of completion rates due to

the various intervention measures, including the tuition free primary education,

bursaries for vulnerable learners and expansion of infrastructure.

4.1.6.3. Pupil Teacher Ratio

(a) Grade 1-4

The Pupil-Teacher Ratio for Grades 1-4 improved to 43.2 pupils per teacher in

2012 from 68.3 in 2011, thereby exceeding the annual target of 52.

(b) Grade 5-7

The Pupil Teacher Ratio for Grades 5-7 reduced to 35.2 in 2012 from 37.2 in

2011. The annual target of achieving a PTR of 46 at this level was exceeded.

(c) Grade 8-9

At junior secondary school level, the Pupil Teacher Ratio (PTR) in the year under

review reduced to 32.3 from 36.8 of the previous year and the annual target of 32

was achieved.

(d) Grade 10-12

At senior secondary school level, the PTR reduced to 21.8 in 2012 from 25.3 in

2011, thereby exceeding the annual target of 25.

The PTR targets were met at all levels. The improvement in PTRs at all levels

was as a result of the recruitment and deployment of new teachers to all levels of

the education system.

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4.1.6.4. Lecturer Student Ratio

The Lecturer Student Ratio was 39 for the review period against an annual target of 32. The

target was not met due to inadequate numbers of adequately qualified personnel.

4.1.6.5. Gender Parity Index

(a) Grade 1-7

The Gender Parity Index (GPI) for Grade1-7 was 0.99 in 2012, thereby missing

the annual target of 1. However, this GPI was above the Sub Saharan African

regional average of 0.91.

(b) Grade 1-9

GPI at junior secondary level stood at 0.90 implying that there were 90 female

learners for every 100 male learners enrolled at this level. The annual target of

0.98 was not met.

(c) Grade 10-12

At senior secondary level, GPI stood at 0.80 implying that for every 100 male

learners there were 80 females and, the target of 0.89 was not met.

While the primary education subsector was edging towards gender parity,

disparities in favour of males persisted at both junior and secondary school

levels. Consequently, all targets for GPI were not met at all levels. This was as a

result of higher dropout rates among female learners and lower participation as

results of deeply ingrained negative cultural stereotypes against female

education.


There are 16 Key Performance Indicators used to measure annual performance of the Education and

Skills sector. During the year under review, only half (8) of these were met, representing a 50 percent

success rate (See Table 17).


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Table 17 Key Performance Indicators: Education and Skills Sector, 2012 Key Indicator Definitions/ Calculations Baseline

2009 2012 Assessment

Target Actual % of grade 1 entrants with pre-school (ECE) experience

Proportion of Grade 1 entrants with pre-school (ECE) experience

15.1% 17.0% 15.1% Target not met

TEVET enrolments The number of learners enrolled in TEVET institutions 33,000 42,000 33,569 Target not met Net Enrolment Rate (NER) Grade 1-7

Enrolment of the official age-group for a given level of education expressed as a percentage of the corresponding population3

103.6% 97.0% 97.1% Target met

Net Enrolment Rate (NER) Grade 8-9

30.1%% 38.0% 36.9% Target not met

Net Enrolment Rate (NER) Grade 10-12

27 24.0% 24.8% Target met

Completion Rate Grade 7 The quotient of number of learners in a given grade (minus repeaters) & the official age population for that grade, multiplied by 100

91.70 96.0% 95 % Narrowly missed

Completion Rate Grade 9 51.98 59.0% 64.3 % Target met Completion Rate Grade 12 19.47 27.0% 27.6 % Target met Pupil/teacher Ratio Grades 1-4

Average number of students per teacher at a specific level of education in a given school year

57.2 52 43.2 Target met

Pupil/teacher Ratio Grades 5-7

52.1 46 35.2 Target met


28.2 32 32 Target met


24.9 25 21.8 Target met

Student/Lecturer Ratio Average number of students per lecturer at a specific level of basic skills and TEVET in a given academic year

40 32 39 Target not yet achieved

Gender Parity Index Grade 1-7

Enrolment of girls divided by the enrolment of boys 0.99 1.00 0.99 Target not met


0.97 0.98 0.97 Target not met


0.87 0.89 0.80 Target not met

Source: Ministry of Education, Science, Vocational Training and Early Education

4.1.7.1. Key Policies and Reforms

A key organizational development during the year under review was the transformation of the

structure of the education system from 9 years of basic education, 3 years of high school

education and an average of 4 years of tertiary or professional education (9-3-4) back to 7

years of primary education, 5 years of secondary education and average of 4 years of tertiary

or professional education (7-5-4) in line with the new administration’s aspirations. Other

developments were the finalisation of the operational framework of the SNDP: the National

Implementation Framework (NIF III) and the removal of grade 9 examination fees.

4.1.8. CHILD, YOUTH AND SPORTS DEVELOPMENT

The Child, Youth and Sports Development sector is recognised as being critical for the attainment of the

SNDP’s overarching goal of human development. Under the SNDP, the Sector had two major

programmes: 1) infrastructure development, and 2) skills development. Assessment of Infrastructure

development has been dealt with in a separate chapter dedicated to the review of infrastructure 3 NER cannot exceed 100%, but due to the mismatch between CSO projections and the actual head counts conducted in schools.

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developments in 2012. This section presents an assessment of the progress made in achieving

improvements in human development through the skills development programme. The key indicator

adopted to track progress in this area was the number of youths trained in various life and vocational

skills.

4.1.8.1. Number of Youths Trained in Life and Vocational Skills

During the period under review a total of 3,620 youths graduated with various life and

vocational training skills. The annual target to graduate 3,000 youths was therefore met.


The Child, Youth and Sports Development sector performed relatively better in 2012, achieving three (3)

out four (4) of its KPI targets. This represented a 75 percent success rate. The number of people actively

participating in sport superseded the annual target as was the number of awareness campaigns

conducted on youth rights. The number of youths trained in life and vocational skills also superseded the

annual target. The only KPI not met related to the number of youth business incubators established.

Table 18 Key Performance Indicators: Child, Youth and Sports Development Key Indicators 2012 2012 Assessment

Target Actual Number of people actively participating in sport 3,000 4,799 Met Number of awareness campaigns conducted on youth rights 24 50 Met Number of Youths Trained in life and vocational skills 3,000 3,620 Met Number of Youth Business Incubators established 1 0 Not Met

4.1.10. NUTRITION

The SNDP recognizes that good nutrition underpins progress in human development and that it

consequently contributes to productivity and overall socio-economic development. During the SNDP

period, therefore, the Sector’s focus was on guiding and expanding the scope of implementation of, and

monitoring the nutrition related interventions under various sectors. This section reviews the Sector’s

progress in 2012 in terms of achieving nutritional service provision.

4.1.10.1. Nutritional Services

The Sector’s activities in 2012 concentrated on the provision of quality nutritional services

through evidence based information on the quality and safety of local and imported food and

food products, supporting expansion of the school feeding programme and other school

nutritional services and undertaking efforts aimed at enhancing effective utilisation of food

during ART treatment. Altogether, these strategic interventions were consistent with the


69

overarching SNDP objective of human development. However, the Sector did not collect data

to assess progress made against annual KPIs specified in the SNDP. These KPIs relate to

prevalence of underweight, prevalence of stunting, and coverage of use of adequately

iodized salt.

4.1.11. DISABILITY AND DEVELOPMENT

The Plan’s focus is to accelerate the mainstreaming of disability issues in national development in order

to improve the lives of people with disabilities. During 2012, the Sector, through the Zambia Agency for

Persons with Disabilities (ZAPD) collaborated with key institutions and achieved the following:

§ One hundred and seventy (170) Clients were given functional assistive devices such as

wheelchairs and clutches;

§ A total of 6,499 documents were transcribed into Braille by the Zambia National Library and

Cultural Centre for the Blind (ZNLCCB) for access by the visually impaired;

§ Provision of grants and micro-credit to three PWD groups through the National Trust Fund for

the Disabled (NTD) and CEEC amounting to K87 million;

§ Supported 37 groups of Women with Disabilities with grants amounting to K433 million

through the Ministry of Community Development, Mother and Child Health (MCDMCH); and

§ A census of people with disabilities, capturing a total of 843 persons in Lusaka.


The sector had three KPIs to report on, but none of the targets were met. This was partly on account of

the inability of other sectors to mainstream disability in their programmes.

Table 19 Key Performance Indicator: Disability Sector, 2012 Key Indicators Definition Baseline


Target Actual Indicator One Number of disabled children and youth accessing education at all levels

The number of disabled children and youth who are in institutions of learning

207,437 224,000 120,000 Not Met

Indicator Two Number of PWDs trained in skills development

The number of PWDs who access skill development

150 800 302 Not Met

Indicator Three Number of persons with disabilities by gender accessing micro credit facilities

The number of PWDs who are involved in IGAs and accessing micro-credit

250 500 No data

While a number of activities were implemented during the year under review, it is clear that

the impacts were not maximized to achieve annual KPI targets. Progress towards raising the

number of disabled children accessing basic and secondary school education was

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appreciable at 120,000 but this fell short of the annual target of 224,000. The number of

PWDs accessing skills development in 2012 was 302 against a target of 800 PWDs. Without

appropriate skills, the objective of enabling PWDs participate in all aspects of life becomes

remote. Education and skills development would be a more assured route out of poverty for

PWDs and measures to mainstream disability issues across all tiers of education must

assume more significance.

4.1.13. SOCIAL PROTECTION

The SNDP recognises social protection as a poverty reduction strategy that promotes human

development, social equity and human rights. Under the Plan period, the strategic focus of the Sector is

to promote human development and dignity through provision of skills, financial assistance, agriculture

inputs and access to services for low capacity and incapacitated households and other vulnerable

persons. The key indicators adopted to track progress in this Sector’s contribution to human development

include:

§ Number of low capacity households benefiting from empowerment schemes;

§ Number of incapacitated households benefiting from social assistance;

§ Vulnerable youth and child protection interventions implemented; and

§ Access to justice for vulnerable groups.

During 2012, however, only data relating to beneficiaries under the social assistance programme was

available.

4.1.13.1. Social Assistance to Incapacitated Households

The social assistance programme has three main activity areas: 1) Public Welfare Assistance

Scheme (PWAS), 2) Social Cash Transfer Scheme, and 3) Old Age Pension. The Public

Welfare Assistance Scheme programme was implemented in all the districts of Zambia.

During the period under review, the programme assisted 86,114 incapacitated households

against a targeted of 100,000, representing 86 percent success rate. Of this, 46 percent were

males while 54 percent were females. Disabled beneficiaries constituted about 10 percent of

the total PWAS beneficiaries (8467 i.e. 4063 males and 4404 females).

Under the Social Cash Transfer (SCT) Scheme, the Sector targeted 38,500 beneficiaries in

2012. This target was exceeded as the Sector reached 45,083 beneficiaries. The scheme is

supported by a 10 year financing agreement between the Government and Cooperating


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Partners (CPs). The SCT covered 11 districts. In terms of gender, the female beneficiaries

(82 percent) were more than the males (18 percent). Of the total caseload, 2125 were

households with members who were living with severe disabilities.


The Sector has eight Key Performance Indicators. Of the eight, only two were met during the year under

review, representing a 25 percent success rate. The two met related to the Public Welfare Assistance and

Social Cash Transfers Schemes (See Table 20). The Sector’s performance and thus contribution to the

attainment of the SNDP’s human development objective during the year under review was on the low

side. This must generate concern especially that Social Protection is regarded in the Plan as a poverty

reduction strategy that promotes human development, social equity and human rights. It is clear that the

sector concentrated on social assistance to incapacitated households, mainly through the Public Welfare

Assistance Scheme and the Social Cash transfer. For optimal and sustained impact, however,

appropriate balance need to be struck to ensure attention is paid to all planned activities.

Table 20 Key Performance Indicators: Social Protection, 2012 Key Indicators Definition / calculations Baseline

2010 2012 Targets Assessment

Planned Actual Percentage of Low Capacity Households receiving agricultural support under the FSP programme who graduate within the prescribed period.

The percentage of households receiving agricultural support under the FSP programme who graduate within the prescribed period

30,000 36,400 Met

Percentage of social cash transfer beneficiary households who are judged as severely food insecure

Households on cash transfer scheme judged as severely food insecure (Food and Nutrition Technical AssistanceHousehold Food

38,500 38,500 45,083

Met

Insecurity and Access Scale (HFIAS). Number of Households accessing basic needs

Public Welfare Assistance Scheme 250,000 100,000

86,114

Not Met

Number of Older Persons on Pension Scheme

Old Age Pension 10,000 10,000

6,023 Not Met

No of women clubs receiving grants Women Empowerment 3,000 731 Not Met Number of learners graduating from skills training centres

Functional Literacy and Skills Training 35,000

23,000

Not Met

Number of community projects supported Community Self Help 80 35 Not Met Micro Bankers Trust 13,500 10,307 Not Met

4.1.15. DISASTER RISK MANAGEMENT

The main aim of the Disaster Risk Management sector is to reduce the socio-economic impact of

disasters by enhancing and building strong disaster risk management mechanisms at community, district

and national level as well as building infrastructure that can withstand natural disasters. This is to be

achieved through two main programmes, 1) Disaster management mainstreaming, and 2) Capacity

building. In order to track progress in programme implementation in 2012, the following performance

indicators were adopted:

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§ Number of districts profiled for risk;

§ Number of disaster management plans institutionalised;

§ Number of sectors sensitised and oriented in risk management;

§ Formulation of a disaster risk management framework;

§ Development of an early warning system; and

§ Amount of stocks maintained for disaster response.

4.1.15.1. Disaster Management Mainstreaming

There are five output indicators for tracking disaster management mainstreaming. Progress in

each of these in 2012 was as follows:

(a) District Vulnerability and Risk Profiling

The annual target was to profile 32 districts. However, only 21 districts were

profiled, representing a 65 percent success rate. Resource constraints during

the review period was cited as the main reason for underperformance.

(b) Institutionalisation of Disaster Risk Management Plans

The annual target was to institutionalise 27 Disaster Risk Management (DRM)

plans in Eastern, Western, Southern and Central Provinces. A 100 percent

success rate was achieved during the year under review.

(c) Disaster Risk Management Stakeholder Capacity Building

Under the capacity building programme, the Sector conducted sensitization

campaigns at sub-national levels on their roles and responsibilities in disaster

management. To this effect, the Sector undertook one sensitization workshop for

Members of Parliament (MPs) in November 2012 and spearheaded the opening

of Provincial and District Disaster Trust Fund Accounts.


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(d) Disaster Risk Management Framework Formulation

The Sector commenced the planned development of the Disaster Risk

Management Framework which was scheduled to conclude in the first quarter of

2013. In addition, sector specific DRM plans were developed in line with the

DRM Framework.

(e) Early warning

The Sector developed an SMS Alert system as an early warning mechanism that

interfaced with communities. This enabled a two way communication between

DMMU and the communities at risk. This was consistent with what was planned

for 2012 under the SNDP.

4.1.15.2. Disaster Risk Management Capacity Strengthening

During the period under review, the Sector stockpiled both food and non-food items to

facilitate timely response. The target of stockpiling 4,500 Mt of grain was met during the

year under review. However, the targets for non-food items (4,500 tents, 5,000 boxes of

Chlorine and 4,500 insecticide treated mosquito nets) were not met due to limited

financial allocations.


The Sector has nine KPIs to track progress towards the achievement of the SNDP’s human development.

Five out of nine KPI targets were met, representing a 55 percent success rate. Two KPIs were not

assessed due to unavailability of data. However, the sector performed relatively well in 2012. This

ensured a firm contribution towards sustainable development planning that is necessary for achieving the

SNDP’s over overarching objective on human development. Despite not being able to stock adequate

supplies for disaster response, significant strides were made in the area of disaster management

mainstreaming that laid a firm foundation for update of disaster risk management in agriculture, health

and local government and housing, energy and education.

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Table 21 Key Performance Indicators: Disaster Risk Management, 2012

4.1.17. GOVERNANCE

The SNDP recognizes good governance as the cornerstone for prudent management of public affairs and

ensuring that development outcomes benefit the people of Zambia. The Plan’s focus is on human and

infrastructure development for governance institutions. Infrastructure development has been dealt with

elsewhere in this report. This section calls focus to the human development dimension and assesses

progress made at the outcome level using KPIs since all output indicators for governance are on

infrastructure development. Accordingly, the indicators adopted to assess progress towards

improvements in human development are:

§ Backlog of Cases;

§ Remand / Convict Ratio;

§ Proportion between cases reported and investigated; and

§ Public satisfaction in the delivery of public services.

(a) Backlog of Cases

In terms of the backlog of cases, only the local court met the annual target of 25 percent. The

Small Claims Court registered 52 percent; Subordinate Court, 53 percent; High Court, 38

percent; Supreme Court, 69 percent and Industrial Relations Court, 52 percent. On average,

the Local Courts scored 15 percent, an achievement which can be attributed mostly to

additional new local courts constructed. The low staffing levels of Magistrates at Subordinate

courts and Judges at High Courts and Supreme Courts and poor attendance of witnesses are

some of the key attributes cited for not meeting the indicator on backlog of cases.

Key Indicator Baseline 2012 Assessment

2010 Planned Actual Response Time (Hours) National 72 48 48 Met District 36 24 24 Met Satellite 3 2 2 Met Early Warning Response level (%) 23 23 31 Met Stock Thresholds Food (Maize grain in MT) 4,500 4,500 7,000Mt Met Tents (number) 4,500 4,500 2,500 Not met Chlorine (Number of Boxes) 5,000 5,000 0 Commodity has a short life span and is thus procured upon

demand Insecticide Treated Mosquito Nets(#)

4,500 4,500 2,250 Not met

Drug Kits (Number) 300 300 11 Procured upon request


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(b) Remand Convict Ratio

The total number of remandees in prisons was 4,349 while that of convicts was 11,764

representing 37 percent of remandees. This was against the target of 25 percent. This

indicator was not met because of slow rate of disposal of cases at the Judiciary.

(c) Proportion between Cases Reported and Investigated

Under the Human Rights Commission a total of 180 complaints were reported out of which

118 were investigated and resolved, representing a success rate of 66 percent. However, the

KPI target of 100 percent was not met.

Under the Anti-Corruption Commission a total of 682 cases authorised for investigation were

reported out of which 447 were investigated and concluded, representing 66 percent. The

indicator of 100 percent was not met. The main reason advanced was that the length of time

it took to establish evidence in reported cases4.

The Police Public Complaints Authority (PPCA) received a total of 230 cases and

investigated 190 of them, representing 83 percent. The indicator of 100 percent was not met

mainly on account of the low number of sittings and late funding.

Under the Judicial Complaints Authority (JCA), a total of 182 cases were recorded out of

which 84 were concluded, representing 46 percent. The indicator of 100 percent was not met

due to low number of sittings which was attributed to late funding.

(d) Public Satisfaction in the Delivery of Public Services

This indicator depends on survey data from the State of Governance National Survey which

is supposed to be conducted every 5 years. The last survey which was undertaken in 2009

reported 49 percent of the population as satisfied with the delivery of public service. The

target for 2012 was 75 percent.

4 This indicator has since been revised

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There are 13 KPIs in the SNDP for assessing the annual performance of the Governance Sector, only

one of them was met in the reporting period, representing a 7 percent success rate (See Table 22).

Table 22 Key Performance Indicators: Governance, 2012 Indicators Definition Institution Baseline Annual Target Overall

Target Assessment

2011 Planned Actual KPI: Backlog of Cases.

Cases That have not been resolved within timeframe set for Disposal

Small Claims Court

42% 25% 52% 10% Not met

Local courts 5.7% 25% 15% 10% Met Subordinate Court

48% 25% 53% 10% Not met

High Court 36% 25% 38% 10% Not met Supreme Court 64% 25% 69% 10% Not met Industrial Rel. Court

39% 25% 52% 10% Not met

KPI 2: Remand/convict ratio 1:5

Ratio between total prison population and remand prisoners. = remand/Total X100%

Prison 28 % 20% 37% 20% Not met

KPI 3: Average number of verifiable interactions between MPconstituents

% of MPs participating in quarterly developmental meetings in their constituents in a given year.

National Assembly of Zambia

No data

KPI 4: Proportion between cases reported and investigated

Number of cases investigated compared to cases reported:

HRC 35% 100% 66% 100% Not met ACC 35% 100% 66% 100% Not met PPCA 22% 100% 83% 100% Not met JCA 36% 100% 46% 100% Not met

KPI 5: Public satisfaction in the delivery of public services

Perception of the population on the delivery of public services

GS/All - 75% - 85% No data

Source: Governance Secretariat

4.1.19. GENDER

During the Plan period, the Sector committed to advancing the mainstreaming of gender in the

development process and the empowerment of women. In this regard, major interventions focused on

gender mainstreaming into policies and legislation; and support to the socio-economic empowerment of

women. Further, the Sector undertook to comprehensively integrate, into national policies and

programmes, important international and regional conventions and treaties on gender to which Zambia is

party. During the year under review, the sector implemented two main programmes: Gender

Mainstreaming and Empowerment of Women.


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4.1.19.1.1. Status of Gender Mainstreaming Indicators

In tracking progress towards the attainment of the SNDP’s human development objective in

this area, the following indicators were adopted:

§ Number of institutions trained in gender mainstreaming;

§ Number of Gender audits conducted;

§ Number of Gender Survey carried out; and

§ Number of policies and legislation developed and reviewed.

(a) Training in Gender Mainstreaming

During the year under review, three institutions against a target of five were

trained in Gender mainstreaming, representing a 60 percent success rate.

These institutions comprised planning and accounting officers from the Public

Service, Civil Society Organisations, and the Mpika District Coordinating

Committee.

(b) Gender Audits

The Sector conducted gender audit of the Ministry of Justice, whose report was

finalised and submitted. As a preliminary activity for gender auditing of the Public

Service Management Division PSMD, the Sector held an inception meeting and

literature review of the PSMD. This performance was consistent with the target of

auditing two institutions per year.

(c) Gender Surveys

A Gender Baseline Survey was conducted, which involved training the Mpika

district planning Committee in questionnaire design and conducting a survey.

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(d) Legislative and Policy review

In the area of legislative and policy review, the Sector launched the CEDAW

Legislation Mapping Report during the period under review. In addition, the 2008

SADC Protocol on Gender and Development was ratified in September 2012.

The annual target of developing one policy and reviewing one legislation was

met.

4.1.19.2. Status of Women Empowerment Indicators

Under the women empowerment programme, three activities were undertaken: Training;

Awareness creation; and Establishment of One Stop Centre for GBV survivors whose target

was to have one in each province. Under Training, women groups were trained in

entrepreneurship and income generating skills in Mansa against an annual target of 15

women groups. On awareness creation, the Sector sensitised 15 traditional and 43 religious

leaders in the provision of the Anti-Gender Based Violence.


The sector has four Key Performance Indicators for assessing annual progress. Only one of these was

met in 2012, representing percent 25 percent success rate (See Table 23).

Table 23 Key Performance Indicators: Gender, 2012

Key Performance Indicators Annual Target 2012 Assessment Name Definition Planned actual Change in the number of GBV cases at National Level

Percentage of women experiencing GBV 40% 0.194%* Not Met

Percentage of women in decision making positions

Percentage of women in decision making positions in the Public Sector

20% 27% Met

Percentage of Womenfinanced by CEEC

Percentage of successful projects promoted by women under CEEC

26% 24 % Not Met

Percentage of women in the formal sector employment

Total number of women/total formal sector employment X 100

26% Awaiting Labour Force Survey Report

*Target was not in the SNDP

(a) Change in the number of Gender Based Violence Cases

The number of women that experienced ‘Gender Based Violence’ increased by 8.5 percent

against targeted reduction of 5 percent. In 2012, for instance, the Victim Support Unit (VSU)

received and recorded 12,924 cases of GBV compared to 11,908 recorded in 2011. The

increasing cases in GBV could be a result of increased awareness among members of the

community on the need to report cases of GBV. The baseline data of 47 percent was arrived at

based on the sample survey. In real terms, the percentage of women experiencing GBV out of


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the 6.6 million females of the total population was about 0.179 percent in 2011 and 0.194 percent

in 2012.

(b) Percentage of women in decision making positions

The participation of women in decision making positions in public service remained static at 27

percent, comparing 2011 and 2012. This was attributed to the lack of vacancies in decision

making positions in the Public Service to which women could be promoted.

(c) Percentage of Women’s projects financed by Citizen’s Economic Empowerment Commission

(CEEC)

There was no change in the participation of women in economic empowerment activities in 2012

as there were no projects approved by the CEEC.

(d) Percentage of women in the formal sector employment

Labour Force Survey data was not available for this indicator at the time the report was being

compiled.

4.1.21. ENVIRONMENT

In the year under review, three Key Performance Indicators were used to measure annual performance in

the Environment sector of which two had no data while one was not met (See Table 24)

Table 24 Key Performance indicators: Environment, 2012 Indicator Baseline


Target Actual Level of compliance to environmental regulations & safeguards (% of the total number of facilities )

40 50 43.5 Not met

Total greenhouse inventory of emissions in CO2 (Gg) equivalent

24,000 - - No data

% of solid waste collected and disposed in designated sites in Urban local authorities

35 45 64 Met

Effluent discharge compliance to statutory limit; 38% 45% - No data

The targeted level of compliance to environmental regulations and safeguards (% of the total number of

facilities) was not met. The second indicator relates to the total greenhouse inventory of emissions in CO2

(Gg) equivalent. There was no data available in 2012 and no target was set for the year. With regard to

the targeted percent of solid waste collected and disposed in designated sites in urban local authorities, it

was estimated that 45 percent of solid waste would be collected and disposed in designated sites.

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Between 30 – 64 percent of solid waste was actually collected and appropriately disposed-off in selected

urban local authorities during the year.

4.1.22. LOCAL GOVERNMENT AND DECENTRALISATION

The strategic focus of the Sector is to fully implement the Decentralisation Implementation Plan (DIP) with

special emphasis on devolution of functions, fiscal decentralisation, reforming the local development

planning system, institutional and human capacity development and completion of updating valuation

rolls. The following indicators were monitored to assess the Sector’s progress in 2012.

§ Number of districts/ADCs sensitised on National Decentralisation Policy Implementation;

§ Number of pieces of legislation reviewed;

§ Number of ADCs established and functional;

§ Number of Councils implementing integrated management information systems, and

§ Number of ministries devolved as per Devolution Plan.

4.1.22.1. Status of Indicators

(a) Sensitisation and Civic Education

During the year under review, 24 districts were targeted for sensitization on

decentralisation. To this effect, sensitisation meetings were held in all 72 districts.

The annual target was, therefore, achieved.

(b) Review of Legal and Regulatory Framework

Annual target was to review three pieces of legislation. This target was achieved.

Three pieces of legislation were reviewed, representing a 100 percent success

rate.

(c) Establishment of ADCs

The target was to establish 600 ADCs. This was not done. However, a

framework for the establishment of sub-district structures-Ward Development

Committees (WDCs) reached an advanced stage with the formulation of

Guidelines on the Establishment, Management and Operations of Ward

Development Committees (WDCs) aimed at facilitating community participation.


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(d) Fiscal Decentralisation and Financial Reforms

During the year under review, no activities were implemented in the area of fiscal

decentralization due to the absence of a component manager to execute the

activities planned.

(e) Sector Devolution

The target was to devolve function in four ministries. This was not achieved. A

major achievement in this area was the formation of provincial and district

devolution task forces.


None of the eight KPIs for monitoring progress in this sector were met.


Overall, out of 79 KPI targets across all human development chapters, only 26 KPI targets were met in

2012, representing an aggregate success rate of about 33 percent. A total of 53 Key Performance

Indicators (67 percent) were either not met or there was inadequate data to assess actual progress made.

Otherwise, 41 indicators, representing 52 percent were not met while 12 indicators, representing 15

percent had no sufficient data to assess progress made. On balance, performance towards improvements

in human development in 2012 was generally unsatisfactory. This result need to be appropriately

contextualized. Following the September 2011 elections, several alterations in priorities took place with

significant implications especially for the line ministries. Since the new priorities and partly differing sector

contents were not followed by documented adjustments in the Sixth National Development Plan, its

planned programmes and activities for 2012 were only partially implemented. The focus moved towards

execution of new pronouncements and priorities based on the political mandate and legitimacy of the new

Government.

If the national development plan shall remain the overarching medium-term strategy for Zambia to define

the key policies and programmes to ensure positive socio-economic development of the country, and to

overcome poverty, it is crucial to synchronize its drafting cycle with the electoral cycle. Whereas the

preparation process on local and provincial level and within the line-ministries can commence well in

advance to incorporate the results achieved as well as the remaining needs defined for further

82

interventions, the finalisation of the national development plan can only be conducted by the legitimate

political leadership to include also their specific priorities. This would not only ensure high relevance of

the national development plan, but also safeguards its implementation through the medium-term and

annual budgets, and increase accountability.

The following policy recommendations are made on the basis of key findings of this section to enhance

improvements in the implementation of policies and programmes under the Human Development

thematic area:

4.1.24.1. Health

§ Increase training output in medical schools, Chainama College of Health Sciences,

and nursing schools in order to have the right skills-mix at health care service

delivery level;

§ Develop an integrated referral system at all levels of service delivery that is well

linked to physical infrastructure (transport, storage and communication facilities) and

§ Expedite implementation of Social Health Insurance Scheme.

4.1.24.2. Education and Skills

§ Construct staff houses, especially in rural areas to improve staffing levels;

§ Provide management skills to school managers; and

§ Harmonise SNDP priorities and those of the new administration, including a re-

alignment of sector output indicators.

4.1.24.3. Child, Youth and Sports Development

§ Provide ceilings to Sectors that are realistic for the achievement of SNDP

programmes;

§ Strengthen the coordination mechanism for the youth and sport sector, and develop

and implement a National Youth Mainstream Strategy/Policy;

§ Streamline tendering and accounting procedures and systems to facilitate the timely

and speedy implementation of programmes;

§ Establish a database and website on the youth and sport programmes in order to

promote stakeholder access to information; and

§ Develop a monitoring and evaluation tool to track progress.


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4.1.24.4. Nutrition

§ Review the legislative framework to enable harmonised and formalised institutional

frameworks at national, provincial and district levels; and

§ Ministry of Health and the NFNC should jointly review the NFNC Act of 1967 to align

it to current demands for a multidimensional response to nutrition in Zambia.

4.1.24.5. Social Protection

§ Regularly monitor cash transfers to ensure that beneficiaries receive them on time;

and

§ Broaden the scope of the annual review to include various schemes that form the

Zambia Social Protection Expansion Programme.

4.1.24.6. Disaster Risk Management

§ Streamline funding and expenditure towards disaster risk reduction activities;

§ Strengthen collaboration with key line Ministries to ensure that they become more

aware of their roles in disaster risk reduction; and

§ Fully mainstream disaster risk reduction programmes in the sectors by dedicating

budget lines to these programmes.

4.1.24.7. Governance

§ Periodically monitor the performance of Governance initiatives to inform government

interventions;

§ Institutionalize the concept of Communication Cooperation and Coordination (CCC)

and replicate them to all districts; and

§ Mainstream the APRM activities under the National Program of Action in the activities

of concerned institutions.

4.1.24.8. Gender

§ Establish fast track Courts to deal with cases of GBV;

§ Extend GBV sensitisation programmes to the rural areas where most incidents go

unreported;

§ Translate the Simplified Version of the Anti GBV Act into local languages in order to

reach out to those that do not understand English;

84

§ Implement a Quota System to compel political parties to adopt women candidates;

and

§ Domesticate Gender protocols that have been ratified.

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LINKING THE 2012 BUDGET TO THE SNDP


87

5.1 OVERVIEW

This section discusses the framework to ensure that the Annual National Budget and the budget

preparation process take into account the priorities of the Sixth National Development Plan (SNDP), and

how resources are allocated among the three main thematic areas of accelerating infrastructure

development, economic growth and diversification; promoting rural investment and accelerating poverty

reduction; and enhancing human development. It assesses the extent to which budgetary allocations and

actual releases by the Government of the Republic of Zambia (GRZ) and Cooperating Partners (CPs) are

aligned to the priorities of the SNDP.

Specifically, the section reviews the 2012 budget preparation process; the macroeconomic framework

underlying the Budget and whether it was consistent with the medium-term macroeconomic objectives

and assumptions outlined in the SNDP; alignment of 2012 spending priorities with the SNDP costing

framework; and the functional distribution of discretionary expenditure.

The total amount of GRZ resources that were approved to be spent on the various sectors contributing to

the achievement of SNDP goals amounted to K8,350.3 billion in 2012, of which K8,128.66 billion

representing 97 percent was actually released. The shortfall in budgetary releases was attributed largely

to shortfalls in planned resources to growth sectors, while all the other thematic areas recorded over 90

percent of planned resource allocations. The bulk of the actual release was spent on activities related to

human development, which received 69 percent of Government resources in 2012. Budget performance

and the alignment of GRZ spending priorities within the SNDP were largely successful in 2012.

5.1.1. THE BUDGET PREPARATION PROCESS

The 2012 Budget preparation process begun in June, 2011 with the preparation of the budget guidelines,

and consultations with recognized professional bodies, associations, civil society organizations and

individuals for their inputs. The Ministry of Finance also issued budget preparation guidelines to all

MPSAs to ensure consistency in the submission of all MPSA budgets. This was then followed by the

Budget hearings where the MPSAs’ budget submissions to the Ministry of Finance were reviewed. The

2012 Annual National Budget was presented to Parliament in November, 2011.

5.1.2. THE MACROECONOMIC FRAMEWORK OF THE 2012 BUDGET AND THE SNDP

The macroeconomic objective of the Government during the year was largely based on the Sixth National

Development Plan, which is a comprehensive medium-term strategy for an all-inclusive development

88

agenda expected to be implemented over the period 2011 – 2015. In 2012, the Government projected a

real GDP growth rate of at least 7 percent and a reduction in the end of period inflation from 7.2 percent

in 2011 to 7.3 percent. Reserves were expected to be able to cover at least 4 months of imports, and to

keep the budget deficit below 3.1 percent. The macroeconomic outturn in 2012 was largely consistent

with the SNDP projections (Table 25).

Table 25 Macroeconomic Frame work of the SNDP and the 2012 Budget Statement Indicator SNDP Target 2012 Outturn Real GDP 7.0 7.3 CPI Inflation(end of period) 7.0 7.3 CPI Inflation (annual average) 5.6 6.6 Stock of Reserves (months of Import cover) 4 3.2 Domestic revenue as % of GDP >18 21.7 Source: Ministry of Finance

5.1.3. FUNCTIONAL SPENDING PRIORITIES AND ALLOCATIONS

Planned expenditure according to the 2012 National Budget was K27,698.2 billion or 26.5 percent of GDP

projected at K104,462 billion in 2012. Of this amount, K19,976.0 billion or 72.1 percent was expected to

come from the Government of the Republic of Zambia (GRZ) sources and K1,894.4 or 6.8 percent from

Co-operating Partners (CPs). The balance of K5,827.9 billion was expected to be financed through

domestic borrowing of K1,324.3 billion or 1.3 percent of GDP and gross external financing of K4, 503.6

billion or 4.3 percent of GDP. Most of these resources were expected to be allocated to the General

Public Services function (30 percent), Economic Affairs (29.3 percent), Education (17.5 percent), Health

(9.3 percent) and Defence (6 percent) (See Table 26).

Table 26 Expenditure by Function of Government, 2010-2012 Function 2011 2012

Allocation K % Allocation K % General public services 5,855.5 28.5 8,304.8 30 Defence 1,485.8 7.2 1,648.5 6.0 Public order and safety 919.0 4.5 1,017.4 3.7 Economic affairs 5,252.0 25.6 8,120.0 29.3 Environmental protection 121.3 0.6 31.8 0.1 Housing/amenities 646.6 3.2 352.9 1.3 Health 1,772.9 8.6 2,579.9 9.3 Recreation 108.0 0.5 136.9 0.5 Education 3,828.8 18.6 4,850.5 17.5 Social protection 547.5 2.7 655.6 2.4 Total 20,537.4 100 27,698.2 100 Source: Ministry of Finance, Budget Statement 2011; Budget Statement

In terms of the SNDP overarching objectives, the majority of GRZ resources were allocated to human

development which received K2,915.23 billion, representing 47 percent. The objective which received the

bulk of the remaining resources was Infrastructure development, which received K2,326.79 billion,

representing about 37 percent of GRZ resources, while the bulk of CPs resources were allocated to


89

Infrastructure, which received K4,906.34 billion, representing 92 percent of total planned foreign financing

in 2012.

Table 27 SNDP Planned Expenditures by Thematic Area and Source of Funding, 2012 Thematic Area GRZ Foreign Financing Total Growth Sectors 853.66 221.10 1,074.76 Infrastructure Development5 2,326.79 4,906.34 8,133.26 Rural Development6 119.09 - 119.09 Human Development7 2,915.23 190.61 3,105.84 Total 6,214.89 5,362.55 11,577.45

5.1.4. ALIGNMENT OF 2012 SPENDING PRIORITIES WITHIN THE SNDP FRAMEWORK

5.1.4.1. Actual Releases of GRZ Resources

The total amount of GRZ resources that were approved to be spent on the various sectors

contributing to the achievement of SNDP goals amounted to K8,350.3 billion in 2012, of

which K8,128.66 billion, representing 97 percent was actually released. The shortfall in

budgetary releases was attributed largely to shortfalls in planned resources to growth sectors,

while all the other thematic areas recorded over 90 percent of planned resource allocations.

The bulk of the actual release was spent on activities related to human development, which

received 69 percent of Government resources in 2012 (See Table 28).

Table 28 Approved and Actual Releases billion)' Billion) Billion) Theme SNDP

Planned Budget

2012 Release Variance % Release

Growth Sectors 853.66 205.2 65.41 139.79 31.8 Infrastructure Development 2,326.79 2,272.60 2,308.10 (35.5) 101.5 Rural Development 119.09 154.57 143.12 11.45 92.5 Human Development 2,915.23 5,717.94 5,612.03 105.91 98.1 Total 6,214.89 8,350.31 8,128.66 221.65 97.3 Source: Ministry of Finance, Sector Submissions on Budget Performance in 2012

5 Includes allocations to the following sectors: Transport, Energy, Housing, Science, Technology and Innovations, Information and Communications Technology. 6 Based on regional allocations 7 Includes allocations to the following Sectors: Health, HIV/AIDS, Education and Skills, Child, Youth and Sports Development, Nutrition, Disability and Development, Social Protection, Disaster Risk Management, Gender, Environment, Governance, Local Government and Decentralization

90

Figure 7 Budget and Releases by GRZ in 2012


5.1.4.2. Actual Releases of Co-operating Partner’s Resources

The total amount of donor resources that were approved to be spent on the various thematic

areas amounted to K2762.79 billion in 2012, of which only K827.21 billion (representing 30

percent) was actually released. The shortfall in budgetary releases was attributed largely to

shortfalls in planned resources to infrastructure development, while human development

recorded about 90 percent of planned resource allocation. Consistent with the strategic focus

of the SNDP, the bulk of Co-operating Partners’ support was on activities related to

infrastructure development (See Table 29).

Table 29 Approved and Actual Releases in 2012 Theme SNDP Planned Budget

2012 Release Variance Percent Release

Growth Sectors 221.10 172 24.5 147.5 14.2 Infrastructure Development 4,906.34 2,441.70 668.70 1,773 27.38 Rural Development 0 0 0 0 0 Human Development 190.61 149.09 134.01 15.08 89.8 Total 5,362.55 2,762.79 827.21 1,935.58 29.9 Source: Ministry of Finance, Sector Submissions on Budget Performance in 2012

Growth Sectors Infrastructure Development Rural Dvelopment Human DevelopmentBudget 205.2 2272.6 154.57 5717.94Releases 65.41 2308.1 148.12 5612.03

0

1000

2000

3000

4000

5000

6000

7000K

'Bill

ion


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Figure 8 Budget and Releases in 2012

5.1.5. POLICY RECOMMENDATIONS

It is worth noting that the approval of a National Development Planning and Budgeting Policy as well as

the finalization of the respective Act are critical next steps in strengthening the coordinated approach in

undertaking national development planning processes. The legal framework will further enhance the

implementation of the medium term plans, as they will establish a link between the plans and the Medium

Term Expenditure Frameworks (MTEF) and subsequently the annuals budgets. It is recommended that:

§ The mechanism for capturing releases and actual expenditures by the Ministry of Finance be

improved;

§ A mechanism should be instituted to ensure that releases and actual expenditures are captured

along the three overarching SNDP objective areas; and

§ There is need for constant reconciliation of fiscal figures between the Ministry of Finance and

MPSAs to ensure the credibility of the data.

§ The in-year changes in public expenditure have to be authorized by the Legislature and provided

for in appropriation legislation in response to demands presented by the Executive in the form of

(new) estimates.

Growth Sectors InfrastructureDevelopment Rural Development Human Development

Budget 172 2,441.70 0 149.09Release 24.5 668.70 0 134.01

0

500

1000

1500

2000

2500

3000K

'bill

ion