Innovate for Inclusive Growth Project
About the Project
The revised Sixth National Development Plan and the 2013 MDG Report highlights that growing income inequality threatens to reverse Zambia’s recent socio-economic gains and hinders progress towards attaining the MDGs by 2015. During the period of economic expansion, Zambia’s Gini co-efficient, which measures income inequality, worsened from 0.60 in 2006 to 0.65 in 2010. This trend demonstrates that growth alone will not address the challenge of persistent income inequality in Zambia. The results of this project will ultimately contribute to the overall objectives outlined in the Industrialisation and Job creation strategy. In this regard, the growth sectors identified in this project are aligned to those targeted through the Industrialisation and Job creation strategy.
The 2013 MDG Report notes that economic growth must be accompanied by targeted policies that redistribute society’s resources in favour of those who currently lack access to redress these inequalities and ensure that income inequality does not hinder the socio-economic progress of Zambia. Several stakeholders recognize the potential for policies that promote industrialization of the agriculture sector to reduce inequality by creating opportunities through Small and Medium Enterprise (SME) development.
The Government of Zambia, through the MSME Policy and the Commercial, Trade and Industry Policy seeks to implement industrialization strategies and programmes where SMEs can grow and provide opportunities for Zambians. To successfully target inequality, these policies must be designed to both address the key issues facing SMEs (access to resources, poor quality products, unreliable and expensive energy) and to focus on job creation to reduce inequality.
In line with these goals, the UNDP will support MCTI with technical and financial support as they redesign and revise Zambia’s industrialization related policies and strategies to maximize possible impact on the high poverty levels as well as income inequality. Therefore, the goal of this project is to build capacity within Government to design improved policies that will reduce income inequality and assist in taking concrete action for a more equitable Zambia.
Implementing Partner and Executing Agency
Executing Agency: Ministry of Finance
Implementing Partners: Ministry of Commerce, Trade and Industry
- Citizens Economic Empowerment Commission (CEEC)
- Zambia Bureau of Standards (ZABS)
- Zambia Environmental Management Agency (ZEMA)
- Ministry of Labor
- Policy Analysis and Coordination (PAC, Cabinet Office)
- Technology Development Institutes/Centres (e.g. TDAU& NTBC)
- CSOs working on Poverty Reduction, Wealth Creation, Trade and Industry Issues
- Zambia Development Agency (ZDA)
- Ministry of Education, Science, Technology and Vocational Training (TEVETA)