There is euphoria from all sectors of Zambian society at the overwhelming response by private sector to the fight against Covid 19. Prior to the pandemic and the subsequent deceleration of business activities as evidenced by the low PMI indicator over the last couple of months, private sector was faced the ubiquitous macro-economic challenges that ranged from a runaway exchange rate, the impact of the fiscal deficit which rendered their payable. However, when the Minister of Health made the call to private sector to join it in the fight against the invisible enemy, many notable names in private sector answered the call.
The face of private sector has many variants. In manufacturing, it has Zambia Association of Manufacturers (ZAM). In farming, it has Zambia National Farmers Union (ZNFU). In banking, it has the Bankers Association of Zambia (BAZ). In mining, it has the Zambia Chamber of Mines. There are many more that cater to different sectors of Zambia’s economy. Their sole purpose is to ensure that their members value preposition is protected through the continuous engagement of fiscal for the sole purpose of ensuring that legislation that is passed continues to protect their businesses.
Private sector has for some time made the call for various measures to be put in place from a fiscal point of view to ensure sustainability. Some of their calls have been heard as evidence in the last national budget announcements. However, with macroeconomic fundamentals weighing heavily on fiscal, difficult periods such as the one presented by Covid-19, where financial choices are few and far between, astute management teams are in convergence on the subject of the economics of quid pro quo.
Lobbying has never been a ubiquitous overt culture in our business ecosystem. The challenges of present-day provide a peak season that can not be ignored by those that subscribe to it. A closer look at some of the benefactors during this period signal entities that possess economies of scope. These are companies that can change the modus operandi at the flick of a switch and begin manufacturing a product the addresses an immediate need during a crisis. However, when the period is long past, astute management teams will remind fiscal of the role they played during times of woe. They will make an unignorable case for quid pro quo which will be rational and difficult to deny.