In Zambia, 3 out of 4 economically active people work in the informal sector because large-scale Foreign Direct Investments (FDI) have not created needed jobs. Domestic Small and Medium Enterprises (SMEs) and small-scale FDI, which have created relatively more jobs and are a seedbed for inclusive wealth creation are not adequately supported by policy measures. Education and vocational skills training is largely supply-driven, reinforcing a mismatch between job vacancies and skills of available candidates.

There is a lack of national HR policy to ensure demand-driven and effective job skills match analysis to meet the short, medium and long-term human resource needs of the country. This bolsters the case for Government to undertake conscious, aligned and reasonably sequenced policy and regulatory initiatives with realistic targets to create jobs.

A policy mix should create a right mix between FDI and SME incentives, tailor FDI incentives to direct quality jobs created, and combine business and poverty objectives. Training and skills needs to respond to current and future industry needs, Says Augustine Mkandawire – PMRC Head of Research.

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How can Government through the Zambia Development Agency foster linkages between domestic SME’s and large business to create decent jobs?