1. n
“A NATION OF ECONOMICALLY AND
EQUITABLY EMPOWERED CITIZENS”
TOPIC: ECONOMIC EMPOWERMENT – BEYOND ACCESS TO FINANCE
Thursday, 22nd July, 2010 1

2. Historical Background Cont’d
• In 2005 a Citizens Economic Empowerment
Advisory Committee comprising public and
private stakeholders was appointed .
• Tasked with the responsibility of developing a
comprehensive empowerment policy that would
ensure equity and empowerment of Zambian
citizens as they engage in sustainable economic
activities.
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3. Historical Background Cont’d
The Citizens Economic Empowerment Advisory
Committee, in developing a comprehensive
empowerment policy, took into account:
• The achievements and failures of past policies
aimed at empowering citizens
• Lessons learnt from these past experiences
• Lessons learnt from other countries who have
engaged in a similar programs.
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4. Citizens Economic Empowerment Act
• In 2006 the Citizens Economic Empowerment (CEE) Act
No.9 was passed.
Objectives of the CEE Act
• Establishment of the Citizens Economic Empowerment
Commission (CEEC)
• Establishment of the Citizens Economic Empowerment
Fund (CEEF)
• Promoting the empowerment of targeted citizens
• Promoting investment through fostering joint local and
foreign ownership of companies
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5. What is Citizens Economic Empowerment?
• An integrated broad based and multifaceted strategy
aimed at substantially increasing the meaningful
participation of targeted citizens and companies in
the economy and decrease income inequalities.
• Citizens Empowerment goes beyond participation of
citizens; in addition to participation it includes
psychological sense of ownership and actual control
of economic power.
• Empowerment is a process and we have to continue
building on it.

6. Description of targeted Citizens
Who is a targeted citizen?
• “A person who is historically marginalised or
disadvantaged and whose access to economic
resources and developmental capabilities have been
constrained due to various factors including race,
sex, educational background, status and disability”
Who is eligible to access empowerment?
Broad based economic empowerment,
means economic empowerment of:
• Targeted citizens
• Citizens influenced companies
• Citizens empowered companies
• Citizens owned companies
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7. FUNCTIONS OF CEEC
• To coordinate and implement empowerment
programmes for targeted citizens.
• To substantially increase the meaningful participation
of targeted citizens and companies in the economy in
order to decrease income inequalities.
• Ensure economic empowerment of targeted citizens;
citizens influenced companies, citizens empowered
companies and citizens owned companies.

8. PILLARS OF EMPOWERMENT
1. Equity/Ownership, Management and Control
Citizen Influenced (5 – 25%, Citizen
Empowered (25-50%), Citizen Owned
(50%+1)
2. Preferential Procurement
At least 50% of Government and Private
Sector expenditure [over the next five (5)
years] should go to empowered companies
and that at least 30% of these supplier
companies be controlled by targeted
citizens
3. Skills Development
Improve education and enhance ability to
adopt modern business practice
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9. PILLARS OF EMPOWERMENT
Continued
4. Access to Finance
Establish the Citizens Economic
Empowerment Fund, a special purpose
vehicle to finance CEE.
5. Transformation of Society
To provide supportive
culture, entrepreneurship for sustainable
CEE
6. Corporate and Social Responsibility
Encourage companies and communities to
partner and uplift communities
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10. PILLARS OF EMPOWERMENT
Continued
7. Good Political and Corporate Governance
Creation of predictable legislation and
regulatory framework for transparency and
accountability
8. Greenfield Investments
Promote investments and partnerships
between local and foreign investors
9. Foreign Direct Investment
Encourage a foreign and local partnership
approach to achieving CEE
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11. POLICY INSTRUMENTS
. Land Ownership
30% to be controlled by targeted Citizens by 2017;
Leverage citizens’ participation in joint-ventures
2. Empowering Disadvantaged Groups
Youths, Women, disabled and Citizens living with
HIV/AIDS increased participation in economic
activities and opportunities without discrimination
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12. POLICY INSTRUMENTS Continued..
. Sustainability
The need for the broader economy to
meet the needs of enterprise and
citizens in a sustainable manner
4. Lock in Mechanism
The need to develop a strategy to lock-
in investment funds for a reasonable
period to ensure growth and
sustainability
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13. POLICY INSTRUMENTS Continued..
Rural Economic Development
– Encourage collective enterprises as a way of
facilitating ownership of assets by rural communities
– Introduce incentives to attract firms to operate in
remote areas
– Introduce specific and targeted programmes for rural
areas
6. Supportive Culture
– Need for CEE companies to have champions from
top to bottom as path finders for CEE
– Quick payment to suppliers on the part of Govt.
particularly SMEs
– Need for a mind-set change
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14. POLICY INSTRUMENTS Continued..
7.Regulatory and Institutional Framework
–Alignment of other Acts with CEE Act
–CEEC collaboration with other
organisations
8. Financing
– Establishment of the Empowerment
Fund
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15. The Role of CEEC - General
• Partnerships with Private Sector, Civil
society and all other Stakeholders
• Measurement and monitoring of CEE
Performance
• Harmonization and review of various
Legislation
• Promotion of savings and repayment
culture
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16. Empowerment Fund
• One of the key pillars that has been identified as
crucial to achieving economic empowerment is pillar
that addresses issues of access to finance.
• The CEE Fund is established under Section 29 of the
CEEC Act. The primary purpose of the fund is to
support broad based economic empowerment
programmes.

17. Product Development
• The CEEC will continue developing products that
meet different segments of citizens e.g Chilimba
Market product and Working Capital finance product.
• Some of the products that have been developed
include;
- Creation of value chain and market linkages strategies in agri – business in rural
areas, e.g Cashew Nut project in Western Province and Luwaka in North- Western.
- Dairy farming product
- Rural Service stations
- Chilimba market product
- Graduate Empowerment Programme *

18. THANK YOU
FOR YOUR ATTENTION