2012 ANNUAL PROGRESS REPORT SIXTH NATIONAL DEVELOPMENT PLAN · 2012 Annual Progress Report | Sixth...
Transcript of 2012 ANNUAL PROGRESS REPORT SIXTH NATIONAL DEVELOPMENT PLAN · 2012 Annual Progress Report | Sixth...
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. KEY PERFORMANCE INDICATORS -------------------------------------------------------------------------- 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
4.1.9. KEY PERFORMANCE INDICATORS -------------------------------------------------------------------------- 68
4.1.10. NUTRITION ------------------------------------------------------------------------------------------------------------ 68
4.1.10.1. Nutritional Services ----------------------------------------------------------------------------------------- 68
4.1.11. DISABILITY AND DEVELOPMENT ----------------------------------------------------------------------------- 69
4.1.12. KEY PERFORMANCE INDICATORS -------------------------------------------------------------------------- 69
4.1.13. SOCIAL PROTECTION -------------------------------------------------------------------------------------------- 70
4.1.13.1. Social Assistance to Incapacitated Households ---------------------------------------------------- 70
4.1.14. KEY PERFORMANCE INDICATORS -------------------------------------------------------------------------- 71
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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
4.1.16. KEY PERFORMANCE INDICATORS -------------------------------------------------------------------------- 73
4.1.17. GOVERNANCE ------------------------------------------------------------------------------------------------------- 74
4.1.18. KEY PERFORMANCE INDICATORS -------------------------------------------------------------------------- 76
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
4.1.20. KEY PERFORMANCE INDICATORS -------------------------------------------------------------------------- 78
4.1.21. ENVIRONMENT ------------------------------------------------------------------------------------------------------ 79
4.1.22. LOCAL GOVERNMENT AND DECENTRALISATION ----------------------------------------------------- 80
4.1.22.1. Status of Indicators ----------------------------------------------------------------------------------------- 80
4.1.23. KEY PERFORMANCE INDICATORS -------------------------------------------------------------------------- 81
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
2012 Annual Progress Report | Sixth National Development Plan
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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
2012 Annual Progress Report | Sixth National Development Plan
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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
2012 Annual Progress Report | Sixth National Development Plan
xix
§ 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.
2012 Annual Progress Report | Sixth National Development Plan
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
2012 Annual Progress Report | Sixth National Development Plan
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
2012 Annual Progress Report | Sixth National Development Plan
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
2012 Annual Progress Report | Sixth National Development Plan
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
2012 Annual Progress Report | Sixth National Development Plan
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
2012 Annual Progress Report | Sixth National Development Plan
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).
2012 Annual Progress Report | Sixth National Development Plan
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
Source: Ministry of Finance
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
2012 Annual Progress Report | Sixth National Development Plan
17
Figure 3 Expenditure by Category as Percentage of GDP
Source: Ministry of Finance
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$750.0 million from the international capital. The increase in debt stock was mainly due to the need to
increase resources for infrastructure development in the roads, rail and energy sectors. Despite the
increase in external debt stock, debt remained within the sustainable levels.
2012 Annual Progress Report | Sixth National Development Plan
19
Figure 4 External Debt stock, 2011-2012 (US$ million)
Source: Ministry of Finance
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
2012 Annual Progress Report | Sixth National Development Plan
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
2012 Annual Progress Report | Sixth National Development Plan
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:
2012 Annual Progress Report | Sixth National Development Plan
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.
2012 Annual Progress Report | Sixth National Development Plan
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).
2012 Annual Progress Report | Sixth National Development Plan
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.
2012 Annual Progress Report | Sixth National Development Plan
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
2012 Annual Progress Report | Sixth National Development Plan
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.
2.2.4.2. Infrastructure Development
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
2012 Annual Progress Report | Sixth National Development Plan
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.
2012 Annual Progress Report | Sixth National Development Plan
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
2012 Annual Progress Report | Sixth National Development Plan
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
2012 Annual Progress Report | Sixth National Development Plan
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
2012 Annual Progress Report | Sixth National Development Plan
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
3.1.2.1. Infrastructure Development
(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
2012 Annual Progress Report | Sixth National Development Plan
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
ber o
f Rur
al S
choo
ls R
ehab
ilite
d, C
onst
ruct
ed
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
ber o
f Rur
al H
ealth
Fac
ilitie
s an
d St
aff H
ouse
s C
onst
ruct
ed, R
ehab
iliat
ed
Hospital Support Facilities Constructed
Health Centre Constructed
Health Centre rehabilitated
Medical Staff House Constructed
2012 Annual Progress Report | Sixth National Development Plan
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
2012 Annual Progress Report | Sixth National Development Plan
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.
3.1.4. SUMMARY AND RECOMMENDATIONS
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
2012 Annual Progress Report | Sixth National Development Plan
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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
2012 Annual Progress Report | Sixth National Development Plan
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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:-
2012 Annual Progress Report | Sixth National Development Plan
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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.
4.1.3. KEY PERFORMANCE INDICATORS
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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65
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.
66
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.
4.1.7. KEY PERFORMANCE INDICATORS
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
Pupil/teacher Ratio Grades 8-9
28.2 32 32 Target met
Pupil/teacher Ratio Grades 10-12
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
Gender Parity Index Grade 1-9
0.97 0.98 0.97 Target not met
Gender Parity Index Grade 10-12
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.
68
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.
4.1.9. KEY PERFORMANCE INDICATORS
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
2012 Annual Progress Report | Sixth National Development Plan
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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.
4.1.12. KEY PERFORMANCE INDICATORS
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
2009 2012 Assessment
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.
4.1.14. KEY PERFORMANCE INDICATORS
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.
4.1.16. KEY PERFORMANCE INDICATORS
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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4.1.18. KEY PERFORMANCE INDICATORS
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.
4.1.20. KEY PERFORMANCE INDICATORS
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
2012 2012 Assessment
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.
4.1.23. KEY PERFORMANCE INDICATORS
None of the eight KPIs for monitoring progress in this sector were met.
4.1.24. SUMMARY AND RECOMMENDATIONS
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
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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.
2012 Annual Progress Report | Sixth National Development Plan
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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
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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
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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
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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
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Figure 7 Budget and Releases by GRZ in 2012
Source: Ministry of Finance
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
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2012 Annual Progress Report | Sixth National Development Plan
91
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
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