The document is a speech given by Dr. Alvert N Ng'andu, Executive Director of the Zambia Centre for Accountancy Studies (ZCAS). The speech discusses the skills gap in the Zambian workforce and its implications for business. It notes that skills development is critical for economic development but that Zambia faces challenges like poor education outcomes, underinvestment in technical education, and a lack of training strategies from businesses. To address these issues, Zambia can learn from Southeast Asian countries by prioritizing education and increasing funding, taxes, and partnerships between training institutions and businesses.

1. ZAMBIA CENTRE FOR
ACCOUNTANCY STUDIES
BY DR ALVERT N NG’ANDU
EXECUTIVE DIRECTOR, ZCAS
25TH MARCH, 2013

2. • Mr Johan Hattingh, Chief Executive Officer, PMR.africa,
• Senior Government Officials Present,
• Fellow Chief Executive Officers from various Institutions
present,
• Senior Management Team of PMR.africa Present,
• Fellow Invited Guests,
• Ladies and Gentlemen.

3. • Singularly honoured and privileged to have been asked to deliver
the keynote speech on the occasion of the Industry Awards
through the PMR.africa country survey for Zambia conducted
from October to December 2012.
• Appreciate and especially thank the organisers of this function,
PMR.africa, for inviting all of us to witness the outcome of their
2012 industry survey.
• And thanks to the Senior Industry Executives present here for
sparing time from their very busy schedules to grace this
occasion.

4. • I Acknowledge the fact that as busy Business Leaders,
sparing time to be at this event is an indication of the
significance you attach to this occasion where we have
come to celebrate excellence in Zambian Industry.
• I am informed by PMR.africa that these awards set bench
marks for others to aspire to.

5. MY CHOSEN TOPIC:
• “THE SKILLS GAP IN THE ZAMBIAN WORK
PLACE AND ITS IMPLICATIONS ON
BUSINESS”
The need for continuous Skills Development as an
integral part of Organisational Strategic
Management.
Some thoughts on what lessons there might be for
Zambian Businesses and what we should be
focussing on in this regard.

6. In its Five-year Strategic Plan since 2008, the Africa
Development Bank has identified Five Pillars of the
Development Agenda upon which National Economic
Emancipation is anchored:
1. Infrastructure Development
2. Economic Integration
3. Private Sector Development
4. Good Governance and Stronger Governance Institutions
And
5. Technical Higher Education and Skills Development

7. • The Africa Development Bank recognised that Technical Higher
Education and Skills Development is by far still the major challenge
many African Economies are facing because there is a critical
shortage of skills in the work place.
• I believe that Technical Higher Education and Skills Development is
the most critical if these pillars are ranked in their order of
importance because it is key to the implementation of the other
pillars.
• Skills Development must be as part of the organisation’s strategy
and culture and must be understood to be part of organisational
growth and evolution.

8. • Zambia finds itself in the position in which there is a
serious general shortage of the requisite skills
necessary to stir national productivity and
development.
One only has to look at the circulation of a few
individuals around the key jobs in the Financial Services
Sector.
The situation in ZRA as it relates to transfer pricing
issues is very topical.
This is also true for the mining industry as acknowledged
by captains of that industry. Between 2000 and 2011,
only 31% of the staff employed by 12 mining firms were
skilled.

9. 1. Poor Educational Attainment in the Zambian Education
System;
2. Decades of under Investment in Technical Higher
Education by both the Government and the Private
Sector;
3. A lack of Strong In-house Training Strategies by Industry
and Businesses;
4. Decrease in Industry Support to and Rapport with the
Training Institutions;

10. 5. The lack of National Manpower Planning and forecasts
during the absence of National Development Plans;
6. Limitations of both staff and equipment in the Training
Institutions;
7. Limited high level interaction between the Training
Institutions and Industry/Businesses;
8. The Cyclic Nature of the fortunes of various sectors which
lead to fluctuating student enrolment in training institutions.

11. • This situation has led to the production of part skilled labour
in view of the inability by training providers to invest in the
necessary equipment and the environment.
• In Zambia, the private sector has largely stood aloof and left
the task of skills development to the Government and
training providers.
• The absence of national development planning has led to a
mismatch between the numbers being trained and the needs
of industry.

12. The impact of the shortage of skills on any economy is adverse.
1. Inability to align skills development strategies with business strategies.
2. Inability to quantify the return on investment in human capital.
3. Inability to implement quality assurance and achieve customer
satisfaction.
4. Inability to support business priorities by relevant and current skills.
5. Inability to identify and exploit opportunities for business growth.
6. Inability to monitor business performance and take corrective action in a
timely and cost effective manner.

13. • The criticality and importance of Technical Higher
Education and Skills Development recently dramatically
tested and proven by the Southeast Asian Tigers.
• Notable for maintaining exceptionally high growth rates
(in excess of 7% a year) and rapid industrialisation
between the early 1960s and 1990s.
• Notable that “they all pursued education as a way of
ensuring a labour force, as all students were
required to attend primary and secondary school.
They further invested in universities and making
foreign universities accessible to their own
students.” (My experience…)

14. • We can note and learn from the following key
factors relating to education and skills
development from the Tigers:
• Have large labour pools;
• Spend a greater proportion of their
government budgets on Education relative to
Developed Countries (USA – 14%; Tigers –
18%);
• Have highly literate and skilled labour, owing
to past investments by state actors and first
mover foreign investors; and
• Have relatively low-cost and untapped labour
resources.

15. • Zambia’s economy has in the last 4 years been growing
impressively at an average of 7.1% per annum. BUT
 The country remains vulnerable to external shocks, with
the sluggish global economic recovery a concern For its
key mining exports.
 While Zambia does have an unemployment problem, I think
the fundamental issue is that of unemployability.
 The majority of those who should be in employment are
not because they are unemployable due to the lack of
skills.
 Fitch rating: “the labour supply also suffers from skills
shortages and poor educational attainment. The lack of
skills adversely affects the employability of the workforce
with only 10% employed in the formal sector.”

16. • Zambia can learn from the Southeast Asian Tigers
by placing education and skills development at the
centre of the development agenda by:
1. Allocation of a higher portion of the National Budget
to Training and Skills Development
2. Introduction of a Tax Deductable Training Levy if
industry will not willingly contribute to develop the
required skills
3. Revamping of the educational system to improve
the levels of attainment.

17. 4. Implementation of deliberate in-house training strategies
by industry and businesses;
5. The resumption of manpower needs forecasts in
National Development Planning to guide Training
Providers; AND
6. Closer High Level Interaction between Training
Institutions and Industry/Businesses
• These Strategies have potential to turn around and transform
Organisational Performance and to create a growing middle
class with a sustainable purchasing power.
• A rich reserve of highly skilled workers will spur the
Introduction of New and Advanced Technologies for producing
High-Value Goods.

18. • ZCAS has over the last twenty five years heavily
invested its resources (Financial and Human) without
any Government Financial support.
• The Centre has evolved and transformed to become an
Educational Institution with a great reputation of training
excellence in the region.
• ZCAS is currently partnering with more than 12
International and Local Universities and Professional
Bodies in delivering world class Education and Skills
Development in the 21 programmes in Accountancy,
Business and ICT on offer.

19. • I extend an invitation to you all, especially the private sector,
to partner with us at ZCAS for a better tomorrow, a better
Zambia and a good future for the citizens of Zambia.
• If the economic data is correct, the future of the Zambian
Economy is very bright given the interest to invest in Zambia.
• There are four phases of African development. These being
pessimism, cynicism, skepticism and enthusiasm (albeit
initially clouded). Africa has now moved on to real
enthusiasm.
• My message today is that enthusiasm will be
misplaced if Zambia does not place its money
where its mouth is with regard to skills
development.