Lungu directs IDC to reconstitute all boards

Republican President Edgar Lungu

President Edgar Lungu has directed the Industrial Development Corporation (IDC) to immediately  review and  reconstitute  all the  Boards of  its  subsidiary companies  to  realign  them with  the industrialisation  and  job  creation  agenda  as  set out  in the  ruling  party’s  manifesto.

The  President,  who  is  the  IDC  Board  Chairperson,  says the  key  objectives  of  the  IDC as  approved  by  the  Board Meeting  held  today  10th  September,  2015  are to  improve and realize  value  of  Government  investments  in  state-owned enterprises  (SOEs)  through  improved  management  and strategic  orientation; to  undertake  industrialization  and diversification  of  the  economy  including rural  development through  creation  of  new  industries; and to partner  with private  enterprises  with  high  growth  potential  thereby creating  opportunities  and  capacity  development;Other key objectives are to mitigate  the  financial  burden  of supporting  State Owned Enterprises  away  from  the  treasury through  improved  viability  and  sustainability; to contribute towards  accelerating  job  and  wealth  creation,  alleviation of poverty  among  the people  and  economic  growth  by investment  in  areas  and sectors  where  the  private  sector may  have  challenges; and to  promote  the  participation  of women  and  youths  in  viable green  projects through strategic partnership  and  projects.

The  Head  of  State  says  the  IDC  must  engage  its subsidiaries  to  align  their  strategic thrust  and  direction to  Government’s  Industrialization  and  Job  Creation  Agenda, monitor conformance  and  performance  in  pursuance  of growth, profitability,  and sustainability.

He says this  will  be  in  addition  to  the  need  to  promote sound  corporate governance.

President Lungu says the IDC’s  priorities  and  interventions will  target  sectors  that have  a comparative  advantage  and in  which  labour  intensive  activities  can  be  most effectively used  to  expand  output.

He adds that the IDC Board has  prioritized  its  interventions in the  four  growth  sectors namely  Agriculture, infrastructure,  Manufacturing  and  Tourism.

President Lungu states that following  the  share  transfer, all line  ministries  will  now  focus on  policy  making thereby giving  IDC  direct  mandate  and  authorization  on  behalf of Government to  oversee performance  and  accountability  of these  SOEs.

This is contained in a statement issued to QFM News by the President’s special assistant for press and public relations Amos Chanda.