zambia

Programme for Country Partnership — PCP

Annual Report 2020

 TABLE OF CONTENTS

1. EXECUTIVE SUMMARY � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 4

2. INTRODUCTION � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 5

3. ALIGNMENT WITH AND CONTRIBUTION TO UNSDCF � � � � � � � � � � � � � � 9

4. PROGRAMME-LEVEL RESULTS � � � � � � � � � � � � � � � � � � � � � � � � 10

4.1. COORDINATION AND GOVERNANCE � � � � � � � � � � � � � � � � � � � 10

4.2. PARTNERSHIPS AND RESOURCE MOBILIZATION � � � � � � � � � � � � � 12

4.3. RESULTS OF PCP ADVISORY SERVICES � � � � � � � � � � � � � � � � � � 13

4.4. TECHNICAL COOPERATION RESULTS � � � � � � � � � � � � � � � � � � � 13

5. RESPONSE TO COVID-19 � � � � � � � � � � � � � � � � � � � � � � � � � � � 22

6. LESSONS LEARNED AND BEST PRACTICES � � � � � � � � � � � � � � � � � � 22

7. COMMUNICATION � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 23

8. UPCOMING MILESTONES AND MAJOR RESULTS EXPECTED IN 2021 � � � � � � 23

9. ANNEX 1: PCP PORTFOLIO OVERVIEW � � � � � � � � � � � � � � � � � � � � 24

PCP Annual Report 2020 ZAMBIA

 PCP ZAMBIA AT A GLANCE

STATUS Date of approval of the development of the PCP by the UNIDO Executive Board: 29 October
2018
Programming: October 2018 – ongoing.
Implementation: Expected to be launched in 2021.
Expected completion date: 2025

Principle national Zambia’s Vision 2030 (2006-2030)

The Seventh National Development Plan (7NDP) 2017-2021
policy/ strategy National Industrial Policy 2018
supported by the PCP United Nations Sustainable Development Partnership Framework (2016-2021)

Value addition
FOCUS Skills development
SECTORS / AREAS Policymaking

main participating National Coordination Body in formation. Expected members: Ministry of Commerce,
ministries Trade and Industry, Ministry of Finance, Ministry of National Development Planning, Min-
istry of Foreign Affairs, Ministry of Agriculture, Ministry of Fisheries and Livestock, Ministry
of Energy, Ministry of Water Development, Sanitation and Environmental Protection, Min-
istry of Transport and Communications, Ministry of Housing and Infrastructure, Ministry
of Mines and Mineral Development, Ministry of Tourism and Arts, Ministry of Lands and
Natural Resources, Ministry of Higher Education, Ministry of Health, Ministry of Gender,
Ministry of Youth, Sports and Child Development

key development Financial institutions: African Development Bank, African Export-Import Bank (Afrexim-
partners bank), Deutsche Investitions und Entwicklungsgesellschaft (DEG), European Investment
Bank, Export-Import Bank of China (China Eximbank), Export-Import Bank of Korea (Korea
(Envisioned) Eximbank), International Finance Corporation (IFC), Kreditanstalt für Wiederaufbau (KfW),
World Bank Group

Bilateral/multilateral partners: China, Common Market for Eastern and Southern Africa
(COMESA), European Union (EU), Finland, Germany (GIZ), Global Environmental Facility
(GEF), Green Climate Fund (GCF), Japan (Japan International Cooperation Agency), South-
ern African Development Community (SADC), Sweden (Swedish International Develop-
ment Cooperation Agency - SIDA)

UN entities: FAO, ILO, ITC, UNCTAD, UNDP, UN Women, UNECA

Business sector: Copperbelt Energy Corporation (CEC), Hitachi Industries, Katopolo Live-
stock Agribusiness Centre, Lunsefwa Electricity Company, Mining Finland, Making Agri-
cultural Markets Work for Zambia (MUSIKA), Volvo Group, Zambia Association of Manu-
facturers (ZAM), Zambia Chamber of Commerce and Industry (ZACCI), Zambia Chamber of
Small and Medium Business Associations (ZCSMBA), Zambia Export Growers Association
(ZEGA), Zambia Federation of Associations of Women in Business (ZFAWIB), Zambia’s Na-
tional Technology Business Council (NTBC), ZESCO

Other partners: African Clean Cities Platform (ACCP), Rural Electrification Agency (REA),
Technical Education, Vocational and Entrepreneurship Training Authority (TEVETA), Zam-
bia’s Citizens’ Economic Empowerment Commission, Zambia Development Agency (ZDA),
Zambia Environmental Management Agency (ZEMA), Zambia Information and Communi-
cations Technology Authority (ZICTA), Zambia Institute of Policy Analysis and Research
(ZIPAR), Zambia SMART Institute, Zambia Statistics Agency (ZamStat)
 PCP ZAMBIA AT A GLANCE

UNIDO projects Total number of projects: 8 national projects (4 ongoing, 4 completed) and participation
with funding secured in 7 regional projects (all ongoing)

(completed and ongoing) Total funding: US$ 5,457,584

Total expenditures to end of current reporting period: US$ 3,174,376

Total balance available: US$ 2,283,208

Total investments Not applicable as the PCP is undergoing programming.

leveraged (cumulative)

Total PCP VOLUME US$ 5,457, 584

 1. EXECUTIVE SUMMARY
In October 2018, the Executive Board of UNIDO approved the development of the Programme for Country Partnership (PCP)
for Zambia. Over the course of 2019, UNIDO and the Government of the Republic of Zambia (GoRZ) held various stakeholder
consultations to develop a common vision for the future PCP Zambia, ensure appropriate support to the planned PCP activ-
ities, and agree on a timeline and working modalities for the PCP programming phase.

The GoRZ, in particular through the Ministry of Commerce, Trade and Industry (MCTI), has shown strong commitment to the
PCP development, inter alia by providing in-kind contributions to the PCP programming phase, such as the office space
and amenities for the UNIDO PCP National Coordinator. The Government also showed readiness to host and organize co-
ordination meetings and donor round tables, as well as designate relevant support staff to facilitate the PCP programming
and collaborate closely with the PCP National coordinator recruited by UNIDO. These contributions were key for the timely
continuation of PCP programming activities, particularly in light of the operational constraints imposed by the COVID-19
outbreak.

In the course of 2020, UNIDO’s PCP Zambia Programming Team worked with national counterparts to design a comprehen-
sive programme with complementary interventions and projects, taking into account national industrial objectives and
existing sector-specific priorities and policies, UNIDO’s expertise and the possibility of leveraging additional finance and
investment from partners. Following the COVID-19 pandemic outbreak, UNIDO developed and regularly updated the PCP
contingency plan in collaboration with the national counterparts, to ensure smooth continuation of PCP programming ac-
tivities despite the newly introduced operational constraints.

The Government and UNIDO worked closely to develop and agree on the Terms of Reference for the PCP National Coordi-
nation body (NCB). The NCB will be chaired by the MCTI and vice-chaired jointly by the Ministry of Finance and the Ministry
of National Development Planning. A number of other line Ministries will participate as NCB members, as well as the UN
Resident Coordinator and selected representatives of the private sector and academia.

As a first step in the programme design, UNIDO conducted the PCP Industrial Diagnostic Study. The study adopted an
innovative format due to COVID-19 related travel constraints. Coordination and contributions from a number of relevant
stakeholders from the public and private sectors, academia, the civil society and UN agencies were collected through vir-
tual meetings and online communication and data sharing platforms. The stakeholders included the MCTI, the Ministry of
National Development Planning (MoNDP), the Zambia Statistics Agency (ZamStats), the Zambia Micro and Small Traders
Foundation (ZAMAST), the Zambia Chamber of Commerce and Industry (ZACCI), the Zambia Association of Manufacturers
(ZAM), the Zambia Institute for Policy Analysis and Research (ZIPAR), the Zambia Development Agency (ZDA) as well as the
UN ECA South Africa Regional Office. The study established a country industrial profile that served as a baseline for the PCP
development. It identified the main opportunities and bottlenecks for advancing inclusive and sustainable industrial devel-
opment (ISID) in Zambia and reviewed the existing relevant industrial policies and strategies. This included selecting indus-
trial sub-sectors and focus areas with the most potential for development impact, and mapping of potential development
partners and interventions with opportunities for synergy, while taking into account social and environmental framework
conditions. The MCTI endorsed the PCP Industrial Diagnostic Study in July 2020.

The completion of the study allowed UNIDO to expedite the design of the PCP programme document, including its envi-
sioned PCP results framework, which has been strongly aligned with the current United Nations Sustainable Development
Partnership Framework (UNSDPF) for Zambia 2016-2021 and the 2030 Agenda for Sustainable Development. In addition,
UNIDO engaged in the preparations led by the UN Resident Coordinator’s Office (RCO) for the Zambia Common Country
Assessment (CCA), the next UN Sustainable Development Country Framework (UNSDCF) programming cycle, as well as the
UN Country Team’s contributions and discussions on the formulation of the Zambian Eighth National Development Plan.

UNIDO also developed a number of new initiatives to expand its technical cooperation portfolio in Zambia, including the
activities under the regional project “Energy efficient lighting and appliances (EELA)”, the EU-funded regional programme
“Supporting business-friendly and inclusive national and regional policies, and strengthening productive capabilities and
value chains”, as well as the ongoing “Zambian Industrial Training Academy” (ZAMITA) Phase II. Initiatives similar to the
latter and based on public-private development partnerships (PPDP) were explored with other bilateral partners and will be
further followed up in 2021. UNIDO also focused on exploring potential cooperation areas with financial institutions such
as the African Development Bank (AfDB), the World Bank Group (WBG) and the European Investment Bank (EIB), among
others. Following UNIDO’s accreditation to the Green Climate Fund (GCF), the PCP is supporting a partnership with the GCF
and the national counterparts in order to develop innovative energy-related initiatives in Zambia.

PCP Zambia - Annual Report 2020 PAGE 4

 The programming phase of PCP Zambia is expected to be finalized within the first half of 2021, paving the way for the start of
implementation. A major part of the PCP Zambia’s efforts in 2021 will focus on mobilizing partners and developing technical
cooperation initiatives, including supporting economic recovery in the post-COVID-19 context.

2. INTRODUCTION
The PCP is UNIDO’s flagship programme to support developing countries in achieving their long-term inclusive and sustain-
able industrial development (ISID) goals. It is founded on a multi-stakeholder partnership to ensure synergy between differ-
ent interventions and maximize impact. PCP interventions aim to unlock public and private investment in selected priority
industrial sectors. The PCP delivers an integrated service package by combining UNIDO’s advisory and normative services,
technical assistance and convening function. Each PCP is tailored to country needs, aligned with the national development
agenda and owned by the host government.

Following the official request for a PCP by the President of the Republic of Zambia, Edgar Lungu, the Executive Board of
UNIDO approved the development of the Programme for Country Partnership (PCP) for Zambia, in October 2018. Throughout
2019 and 2020, UNIDO worked with national counterparts to elaborate the PCP programme document, mobilize partners to
provide support to the PCP, and develop new initiatives that would strengthen the future PCP portfolio.

As outlined in the official letter of request for PCP development, the programme will support the growth of a diversified and
competitive industrial economy and contribute to the strategic objectives of Zambia’s Seventh National Development Plan
(7NDP) and Vision 2030, which aims to transform Zambia into a middle-income nation by 2030. In addition, as part of the
joint UNCT activities in 2021, UNIDO will be involved in the formulation process of the Zambia’s Eighth National Develop-
ment Plan (8NDP) and will align the PCP activities accordingly.

PCP Zambia - Annual Report 2020 PAGE 5

 2.1. POLICY FRAMEWORK
The 7NDP 2017–2021 is an intermediate tool to operationalize Vision 2030 by setting out a unified multisector approach
with the aim of “accelerating development efforts towards Vision 2030 without leaving anyone behind”. The Plan builds
upon Vision 2030 to pursue pivotal strategic objectives such as:

• The creation of a diversified economy

• Environmental and social sustainability
• Competitiveness and innovation
• Strengthening of mechanisms and capacities

The strategic pillars of Vision 2030 and the 7NDP are based on the idea that the country needs to move away from an econ-
omy based on the production and export of primary commodities towards a more diversified economy. An expanded port-
folio of economic activities is crucial for countries to become more resilient, and to reduce vulnerability to the shocks that
often characterize primary commodities markets, with such shocks being particularly evident during the current COVID-19
pandemic. An effective diversification strategy can be facilitated by increasing the competitiveness of firms (their capacity
to develop viable business), by strengthening the production capabilities of the economic system, and by improving the
institutional context. Moreover, Vision 2030 specifies that industrialization cannot happen at the expense of the environ-
ment, nor by excluding segments of society from manufacturing development benefits.

7NDP 10 Strategic Development Outcomes

1. A diversified and export-oriented agriculture sector

2. A diversified and export-oriented mining sector

3. A diversified tourism sector

4. improved energy Production and distribution for sustainable development

5. improved access to domestic, regional and international markets

6. improved transport systems and infrastructures

7. improved water resources development and management

8. enhanced information and communication technology

9. enhanced decent job opportunities in the economy

10. Enhanced research and development

The strategic documents of Zambia recognize manufacturing as a crucial sector for the economic development of the coun-
try. Vision 2030 explicitly recognizes that “as the country approaches the middle-income status, the structure of the econo-
my would change from that of a primary commodity dominated to manufacturing”. The 7NDP acknowledges that “a broad-
based and buoyant manufacturing and industrial base is key to building a strong export-oriented economy that can create
resilience in the economy to both external and domestic shocks”. The importance of the manufacturing sector for national
development is also fully reflected in Zambia’s 2018 National Industrial Policy, which sets the foundations for Zambia’s
industrialization. The Policy sets guidelines for the growth, diversification, upgrading and competitiveness of Zambia’s
manufacturing sector. The document further clarifies the modalities by which the manufacturing sector can contribute to
the full realization of Vision 2030, and how manufacturing can help Zambia climb the ladder of development.

PCP Zambia - Annual Report 2020 PAGE 6

 The National Industrial Policy also identifies the specific manufacturing sub-sectors – the “priority drivers of industrializa-
tion” – that the country needs to prioritize, on the basis of their potential “to stimulate and encourage value addition ac-
tivities on primary commodities as a means of increasing national export earnings and creating employment opportunities
and ultimately transform the Zambian economy into a diversified and competitive industrialized economy”:

Priority sectors identified in the 2018 National Industrial Policy

processed foods textile and garments

leather and leather products wood and wood products

mineral processing and products pharmaceuticals

engineering products blue economy

The development of a solid manufacturing capacity base is an essential condition for boosting a country’s capacity to ac-
cess international markets. As shown by UNIDO’s Industrial Development Report 2020, manufacturing is the predominant
sector in export markets, comprising 60-70% of total exports in least developed and emerging countries, and 80-100% in
industrialized countries and China. Development of the manufacturing sector is therefore necessary if Zambia is to increase
its export potential. Indeed, strengthening the country’s capacity to compete in international markets is an important stra-
tegic direction identified in the country’s Trade Policy (2018), which sets an objective “to contribute towards Zambia’s
economic diversification by promoting and stimulating a competitive trade sector in order to increase the market share in
the global economy”.

The PCP can also be viewed as a practical, country-level tool for implementing the Third Industrial Development Decade for
Africa 2016-2025 (IDDA III). Through this framework, Edgar Lungu, President of the Republic of Zambia – as IDDA III Cham-
pion – is committed to promoting the SDGs and the role of ISID.

Finally, with Zambia’s status as both a Least Developed Country (LDC) and a Landlocked Developing Country (LLDC), the
PCP is also aligned with the priorities of both the Istanbul Programme of Action (IPoA) for LDCs 2011-2020 and the Vienna
Programme of Action (VPoA) for LLDCs 2014-2024.

PCP Zambia - Annual Report 2020 PAGE 7

 2.2. PCP INDUSTRIAL DIAGNOSTIC STUDY
The substantive PCP design process was initiated through the UNIDO PCP Industrial Diagnostic Study, which – in close
consultation with the government counterparts and relevant stakeholders in the country – identified the focus areas,
thematic components and industrial priority sectors that the PCP could most effectively contribute to.

As presented above, the PCP will work across a diverse set of components and sectors. In order to maximize the impact
and build synergies, all PCP-supported activities will work towards a common set of results firmly grounded in – and
aligned with – the Government of Zambia’s own strategic vision and objectives for industrial development:

Strenghtened government capacity for developing and implementing responsive industrial

IMPACT policies and plans

outcome 1 Strenghtened government capacity for developing and implementing responsive industrial poli-
Policy cies and plans
outcome 2 Cleaner, more efficient industrial infrastructure and production
Infrastructure

outcome 3 Modernised, more competitive and more productive industrial processes

Processes

outcome 4 Stronger, more inclusive and more diverse industrial skill base supported by a sustainable indus-
Skills trial skills development infrastructure

outcome 5 Increased investor confidence and willingness to invest in Zambian industrial priorities
Investment

outcome 6 Improved coordination of support for Zambian industrial priorites

Coordination

PCP Zambia - Annual Report 2020 PAGE 8

 In addition, all PCP-supported work – regardless of thematic component or targeted outcomes – will consider and address
women and youth empowerment as cross-cutting issues, as they have been identified as universally relevant and critical
to ISID, and notably SDG5 on gender equality, within the Zambian context. The ongoing COVID-19 pandemic has introduced
another cross-cutting issue that all PCP-supported work will need to address.

3. ALIGNMENT WITH AND CONTRIBUTION TO UNSDCF

As part of the drive towards the SDGs, much of
the development effort in Zambia – and par-
ticularly the work of UN entities – is guided by
the UN’s Sustainable Development Partnership
Framework (UNSDPF). The PCP’s expected re-
sults are aligned to the UNSDPF for 2017-20211
and its Addendum, with high potential for
measurable contributions and collaborations
around four of the Framework’s five strategic
pillars, as briefly presented aside.

The UNSDPF Addendum was elaborated in

December 2018, based on recommendations
stemming from the UNSDPF Mid-Term Review.
The Addendum enhances the results and mon-
itoring framework of the UNSDPF by reorganiz-
ing its Results Matrix and Result Groups, thus
aligning the UNSDPF more closely with the
7NDP governance structure, which is organized
in five pillars. The Addendum also articulates a
Theory of Change in alignment with pathways
for the attainment of the GRZ’s SDGs priorities
and elaborates a gender mainstreaming strategy for the UNSDPF implementation.

The PCP’s expected impact – and the ultimate objective of Zambia’s industrialization drive – is firmly aligned with SDG 9.
Although SDG 9 is the focus, by working towards a stronger, diversified and more inclusive economy, the PCP and ISID will
inherently contribute to most of the SDGs.

Target 9.2: Promote inclusive and sustainable industrialization and, by 2030,

significantly raise industry's share of employment and gross domestic product,
PCP IMPACT in line with national circumstances, and double its share in least developed
countries

outcome 1
Policy

outcome 2
Infrastructure

PCPExtended
1
Zambia - Annual Report 2020
to 2022. PAGE 9
 outcome 3
Processes

outcome 4
Skills

outcome 5
Investment

outcome 6
Coordination

4. PROGRAMME-LEVEL RESULTS
4.1. COORDINATION AND GOVERNANCE
The Government provided in-kind contributions towards the PCP programming phase, which included: office space for the
PCP National Coordinator, hosting and organizing coordination meetings, providing staff to assist the Coordinator as part
of the local coordination team and assisting with office requirements.

Over the course of 2020, UNIDO and the Government of Zambia worked jointly to develop the Terms of Reference for the
national coordination structure of the PCP, the National Coordination Body (NCB). This document was officially approved on
21 December 2020. The NCB will be the highest governing and advisory body on all PCP-related matters. It will provide stra-
tegic guidance (including project prioritization) and oversee the coordination, implementation and resource mobilization
of the PCP, under the leadership of the Government of Zambia, thus ensuring that the programme is implemented effectively
and with adequate funding. The NCB will also monitor alignment of the PCP with national policies and growth targets, to
ensure consistency between Zambian priorities and UNIDO’s support, and that the PCP continuously contributes to the
implementation of the national industrial development agenda.

The NCB membership will include a variety of ministries and Government bodies relevant for industrial development of the
country, as well as development actors, private sector partners and academia. The ministries will be represented by Per-
manent Secretaries, who will be given authority to take decisions while being accountable and reporting on PCP matters to
their respective Ministers.

The Permanent Secretary of the MCTI will function as the Chair of the NCB. The Chairperson will be representing the Minis-
ter of Commerce, Trade and Industry. The MCTI, in its function as the Chair of the National Coordination Body will report to
the President of the Republic, through the Office of the Secretary to the Cabinet, on the progress in the implementation of
the PCP in the country, its contribution to the 7NDP and Vision 2030 and in general the country’s industrialisation agenda.
Furthermore, the NCB will be vice-chaired jointly by the Ministry of Finance (MoF) and the Ministry of National Development
Planning (MoNDP). The NCB membership will also comprise the following Ministries, all of which have mandates that are
highly relevant to the country’s industrialisation process, and hence to the PCP:

PCP Zambia - Annual Report 2020 PAGE 10

 NCB CHAIR
Ministry of Commerce, Trade and Industry

NCB JOint vice chairs

Ministry of
Ministry of Finance
National Development

Ministry of Fisheries Ministry of

Ministry of Finance Ministry of Energy
and Livestock Foreign Affairs

Ministry of Ministry of
Ministry of Gender Ministry of Health
Higher Education Housing and Infrastructure

Ministry of
Ministry of Lands and Ministry of Mines and Ministry of Tourism
Transport and
Natural Resoruces Mineral Development and Arts
Communications

Ministry of Water
Ministry of Youth, Sports
Development, Sanitation &
and Child Development
Environmental Protection

The NCB membership will also include representatives from the following government agencies:

Zambia Development Zambia Statistics

Agency Agency

Non-government NCB members will be appointed by the government, including but not limited to:

PRIVATE SECTOR ACADEMIA

Zambia Chamber of
Zambia Association of Zambia Chamber of Zambia Institute for Policy
Small and Medium
Manufacturers Commerce and Industry Analysis and Research
Business Associations

UNIDO and the UN Resident Coordinator Office will be full members of the NCB, with other agencies to be invited by the
Government to join on a voluntary, ad hoc basis as needs arise:

FULL NCB MEMBERS POSSIBLE AD HOC MEMBERS

(BY INVITATION ONLY)

UN Resident FAO, ILO, IMF, UNDP, UNECA, UNFPA, WFP, World Bank and
UNIDO
Coordinator Office others, as deemed relevant by the NCB

PCP Zambia - Annual Report 2020 PAGE 11

 4.2. PARTNERSHIPS AND RESOURCE MOBILIZATION
As part of the PCP programming phase, UNIDO completed the ‘partner mapping’ exercise, that entailed collecting relevant
contact data and building up a list of traditional and non-traditional partners, their prioritization as per strategic relevance
for the PCP and categorization as per relevance for individual PCP components. Finally, the exercise also included a devel-
opment of a Partner Mobilization Action Plan for 2020 that contained relevant targets, activities, timelines and responsible
entities. The Plan will be revised for 2021 and updated regularly, in line with changing donor priorities.

In line with the "Delivering as One" approach that implies launching joint initiatives, one of UNIDO’s strategic objectives in
the 2020 Action Plan was intensification of collaboration with the United Nations Resident Coordinator Office (UNRCO) and
the UN Country Team (UNCT) in Zambia. The PCP Zambia contributed to several UNCT activities throughout 2020.

UNIDO is currently actively participating in the preparation of the COVID-19 Recovery Needs Assessment (CRNA) and the
Common Country Analysis (CCA) for Zambia. UNIDO is also supporting the preparations of the formulation process for the
next UN Sustainable Development Country Framework (UNSDCF) cycle. More specifically, UNIDO has contributed to the
following exercises in 2020:

• Preparation of the UN Sustainable Development Partnership Framework (UNSDPF) 2016-2021 Addendum that aims to
enhance the UNSDPF (based on the recommendations stemming from its Mid-Term Review), by re-aligning it with the
7NDP, its envisioned results framework and its coordination structures.
• Formulation of the UNSDCF roadmap and development of the new PMT2 Terms of Reference.
• Preparation of the UNSDPF Annual Report 2020 and update of the UN Zambia website.
• Similarly, UNIDO complemented the UNCT’s activities by:
▸ Providing inputs for the UNRCO/UNCT’s meeting with the EU Inspector;
▸ Supporting the UNRC’s collaboration with the Committee for Development Policy (CDP) within the framework of
the Triennial Review of the Least Developed Countries (LDC);
▸ Participating at the UNRC/UNCT interview with the Joint Inspection Unit (JIU) to review the support of the UN sys-
tem to LLDCs for the implementation of the Vienna Programme of Action (VPoA), on 22 September 2020;
▸ Supporting the UNRC’s participation in the High-Level Policy Dialogue, on 15 October 2020.

In addition, as part of its partner mobilization strategy, UNIDO supported joint UN projects and initiatives.

• UNIDO provided support to the inception phase of the joint UNIDO-FAO regional programme titled “Opportunities for
youth in Africa (OYA): Accelerating job creation in agriculture and agribusiness” . The programme focuses on the cre-
ation of quality on- and off-farm employment and self-employment opportunities for African youth in agriculture and
agribusiness. It highlights the central role of agriculture for Africa’s development, while emphasizing the need for con-
tinuous empowerment of African youth to be the engine of this growth.
• UNIDO also maintained regular communication with the United Nations Economic Commission for Africa (UNECA) to
explore synergies between UNECA’s AfCFTA strategies and the PCP model, and to explore potential collaboration on an
innovation-focused project funded under the UNDA 13th tranche. UNIDO also coordinated with the UNECA South Africa
Regional Office on UNIDO’s participation in the virtual “Sensitization Forum” on 12 November 2020, during which the
Organization delivered a presentation on its COVID-19 Industrial Recovery Programme (CIRP) model as one of the post-
COVID-19 industrialization strategies.

Following accreditation to the Green Climate Fund (GCF), UNIDO launched discussions with the MoNDP in its function as
the GCF National Designated Authority (NDA) in Zambia, the Ministry of Energy (MoE) and the Rural Electrification Authority
(REA), to explore potential interventions in the energy sector. Discussions are ongoing with plans to submit a GCF project
proposal in the next funding cycle, in 2021.

Furthermore, the establishment of an industrial park has also been treated as one of the priorities in terms of partner mo-
bilization. This initiative would be addressed under the PCP Component 4 on Value Chain Development. UNIDO and the
African Development Bank (AfDB) already conducted a feasibility study and prepared a business plan for the establishment
of a Staple Crop Processing Zone (SCPZ) in the Zambian Copperbelt province. A virtual meeting was organized between
the PCP team and the AfDB in June 2020 to explore potential collaboration. In addition, UNIDO recruited a local agro-value
chain expert to support the discussions and conduct desk research that would inform future project proposals.

Finally, in 2020, the “Support Business Friendly and Inclusive National and Regional Policies and Strengthen Productive
Capacities and Value Chains” regional programme was launched under the ACP/11th EDF, co-implemented by UNIDO, WBG

PCPUNZambia
2 - Annual
Zambia Programme Report
Management Team.2020 PAGE 12
 and ITC. The initiative will feed into the future PCP and facilitate the dialogue with the EU delegation in Zambia in order to
explore further cooperation opportunities.

4.3. RESULTS OF PCP ADVISORY SERVICES

In March 2020, UNIDO launched the PCP Industrial Diagnostic Study, which aimed to identify bottlenecks and opportuni-
ties for industrialization, and chart a course for strong sustained growth and ISID, that can support the country to achieve
broader development goals. The strategic direction and analyses provided the foundation for the formulation of the PCP
programme.

The study was a consultative process, which involved a number of stakeholders and key institutions in Zambia, including
the MCTI, MoNDP, the ZamStats, ZAMAST3, ZACCI, ZAM, ZIPAR, ZDA, and the UN ECA South Africa Regional Office. As the
PCP’s main counterpart, MCTI endorsed the findings of the study on 27 July 2020 via an official letter.

Furthermore, the MCTI submitted several requests for technical cooperation with UNIDO in terms of policy development and
advice. Notably, the MCTI requested support in revision of its MSME policy, enhancment of its statistical capacities and de-
velopment of a pharmaceutical strategy. Zambia’s ambition to improve the quality of the industrial policy process through
the production of appropriate evidence will be reflected in the PCP’s thematic Component 1 on evidence-based industrial
policymaking. An industrial policy-making process based on evidence and the analysis of statistical data will be crucial
to tackle Zambia’s existing medium and long-term challenges, but also to mitigate the impact of the COVID-19 pandemic,
assist in the country’s economic recovery and resilience building.

As noted in the PCP Industrial Diagnostic Study, Zambia and all developing countries are exposed to the negative economic
consequences of COVID-19. Within this context, UNIDO joined efforts with FAO to conduct a rapid assessment of COVID-19
impacts on agro-processing SMEs in Africa. The Organization also collaborated with AfDB on the conduct of a joint study
analysing the impacts of the COVID-19 pandemic on the industrial sector of selected countries in Africa, including Zambia.
Publication of final reports for both studies is expected in early 2021. These reports will support the Government in planning
and designing its interventions targeting the post-COVID-19 economic recovery of the country, particularly the recovery of
the manufacturing sector.

4.4. TECHNICAL COOPERATION RESULTS

The PCP Zambia is currently still in its programming phase, although it has supported the ongoing projects and technical
activities in the country and has been facilitating the development of new initiatives.

The following table summarizes various levels of PCP Zambia’s achievements throughout 2020, in line with UNIDO’s Inte-
grated Results and Performance Framework:

Key Performance Indicators for 2020

Activities and outputs

Number of analytical and statistical publications produced: 1

• The PCP Industrial Diagnostic Study completed and approved by MCTI (gender responsive)

Number of industrial strategies and policy documents drafted/prepared: 2

• First draft of the PCP Zambia programme document prepared and aligned with UNIDO’s 2019 Policy on Gender
Equality and the Empowerment of Women and the 2020-2023 Strategy for Gender Equality and the Empowerment
of Women
• Terms of Reference for the National Coordination Body prepared and approved by MCTI (gender responsive)

PCPZambia
3Zambia - Annual
Micro and Report
Small Traders 2020
Foundation Cooperative Society Ltd. PAGE 13
 Engagement, involvement of stakeholders

Number of actors reached: 83 (25 women)

• 60 people (25 women) reached through stakeholder meetings and counterpart consultations
• 5 companies reached in relation to COVID-19 related surveys
• 2 interim institutions (ZamStats and ZDA) contacted in relation to country diagnostics
• 6 government bodies (including MCTI, MoNDP, MoA, MoFL, MoE, REA)
• At least 10 global actors reached through discussions and consultative meetings (incl. UNECA, AfDB, FAO, UNRCO,
UNCT)

Number of actors engaged: 42 (10 women)

• 35 people (10 women) engaged for follow-up discussions, provision of feedback to prepared documents, prepara-
tion of project proposals and provision of feedback for relevant UNIDO surveys
• 2 interim institutions engaged (ZamStats and ZDA) in the conduct of the PCP Industrial Diagnostic Study
• 2 government bodies (MCTI, REA) engaged for provision of feedback on the relevant PCP documents and for devel-
opment of new initiatives
• 3 global actors (AfDB, UNECA, FAO) engaged in discussion on development of partnership and joint initiatives

Knowledge, attitude, skills and aspirations

Number of people/firms gaining awareness/knowledge:

• 60 people (25 women) gained awareness of the development of the PCP Zambia, best available technologies,
management practices and international standards
• 4 companies gained awareness of the PCP Zambia and its planned support to MSMEs, as well as international
good practices in value chain operations
• 2 intermediary institutions gained knowledge on industrial intelligence (statistics, data) through their involve-
ment in the PCP Industrial Diagnostic Study
• 3 government bodies gained awareness of the PCP Zambia and the NCB
• 10 global actors gained awareness of the PCP Zambia (incl. UNECA, AfDB, FAO, UNRCO, UNCT)

As mentioned in the introductory section, the PCP Zambia has been structured into three thematic focus areas: Policy-
making, Skills development and Value addition. The PCP programming has also resulted in a tentative results framework
containing five outcomes that should be achieved through technical cooperation activities. Taking this into consideration,
this report structures the technical cooperation results per PCP focus area, but also per tentative PCP outcome, thus already
announcing the initiatives that will contribute to the achievement of the envisioned PCP results once the implementation
of the programme commences.

Furthermore, once the programme is launched, the PCP data collection and monitoring will be a collaborative, ongoing
effort, led by UNIDO but with the close involvement of the Zambian Government and other PCP partners. Technical coopera-
tion results will be measured, evaluated, and reported in line with the approved results framework with relevant indicators
and reporting methodologies.

PCP Zambia - Annual Report 2020 PAGE 14

 4.4.1 FOCUS AREA 1: POLICYMAKING

PCP Outcome 1: Strengthened government capacity for developing and implementing responsive industrial policies and
plans

This outcome responds directly to the Government of Zambia’s request to establish a PCP that contains, among other
elements, overarching inputs that support the country’s industrial policy-making processes, including the revision and
updating of the MSME policy, thus aligning it with existing global, regional and national trends. As part of this focus area,
UNIDO would also facilitate the strengthening of institutional capacity for industrial statistics. The latter is to be seen in
the context of the ongoing establishment of an integrated National Statistical System (NSS) and formulation of the Second
National Strategy for the Development of Statistics (NSDS2) 2020-2024.

In 2020, UNIDO and MCTI discussed the preparation of a strategy for pharmaceutical manufacturing development as a po-
tential collaboration area within the PCP. Further steps are expected in 2021.

Funding and partnership opportunities

The partner mapping conducted during 2020 indicated several relevant actors for the achievement of Outcome 1, including:

• The Zambia Statistics Agency and MCTI, especially the units involved in industrial policy analysis and design of indus-
trial development programmes;
• The Zambia Development Agency (ZDA) as the main national entity responsible for investment promotion;
• The MoNDP that is coordinating on an inter-ministerial level and overseeing the implementation of the 7NDP, i.e., lead-
ing the ongoing preparations for the formulation of the 8NDP;
• other relevant Ministries, depending on the sub-sectors to which policy support will be devised.
• The Zambia Institute of Policy Analysis and Research (ZIPAR), especially in terms of capacity strengthening in policy
analysis;
• The Zambia Chamber of Small and Medium Business Associations (ZCSMBA), the Zambia Association of Manufacturers
(ZAM), the Zambia Federation of Associations of Women in Business (ZFAWIB) and other specific industry and sub-sec-
toral associations as private sector actors relevant for implementation of sub-sectoral strategies and programmes.
Regarding UN coordination, partnerships with ILO, ITC, UNCTAD, FAO, UNDP and UN Women will be sought. For leveraging
of funding into industrial businesses, infrastructure and industrial parks, partnerships and synergies with planned and
ongoing initiatives financed by financial institutions such as AfDB, WBG and EIB shall be explored.

Potential Estimated
ERP ID Pipeline project / sub-programme title
donor funding (US$)
Pharmaceutical strategy formulation TBC 165,000
Establishment of Industrial Statistics and Intelligence System in Zambia TBC TBC
Revision of Micro, Small and Medium Enterprises (MSME) Development
TBC TBC
Policies
Total 165,000

4.4.2 FOCUS AREA 2: SKILLS DEVELOPMENT

PCP Outcome 4: Stronger, more inclusive and more diverse industrial skill base supported by a sustainable industrial skills
development infrastructure

This Outcome focuses on enhancing industrial skills of the Zambian workforce and entrepreneurs for innovation and em-
powerment, particularly of the most vulnerable groups.

In 2020, UNIDO continued with the implementation of phase II of the Zambian Industrial Training Academy (ZAMITA) proj-
ect, following its launch in September 2019. The initiative is funded by SIDA. It is implemented in collaboration with the
Volvo Group Global (AB Volvo) as private and the Zambian Ministry of Higher Education and TEVETA as public partners. The
project focuses on enhancing youth employability in the transport and heavy-duty equipment sector.

PCP Zambia - Annual Report 2020 PAGE 15

 ZAMITA developed two competency-based curricula for automotive and heavy equipment in 2020, which are awaiting val-
idation by relevant national authorities. Through the project, UNIDO also conducted a Labour Market Survey (LMS), which
reached a total of 127 companies, and a Curriculum Input Survey (CIS), which engaged 54 private sector companies. Fur-
thermore, the first pedagogical training was held in Ndola, focusing on the Production of Training Materials (manuals and
handouts). In addition, a 5-day virtual training on management, monitoring and evaluation and 7 Trainings of Trainers (ToTs)
were organized in the Copperbelt region. The project also led and financed refurbishment of learning facilities at the North-
ern Technical College (NORTEC). Finally, ZAMITA ambassadors spearheaded a female campaign radio program at Flava FM
Kitwe to dispel the negative perception of women in TVET, and encourage female participation in the Automotive & Heavy
equipment engineering programs.

A similar intervention is expected to be launched in 2021, with the financial support of the Japanese Government and in
collaboration with the Hitachi Construction Machinery company, focusing on enhancement of construction machinery op-
erational skills.

Funding and partnership opportunities

The partner mapping conducted during 2020 indicated relevant actors for achievement of Outcome 4. These include:

• Government bodies and entities, such as MCTI, MoNDP, Ministry of General Education, Ministry of Higher Education,
Ministry of Youth, Sports and Child Development, Ministry of Gender and Ministry of Community Development and
Social Services;
• Zambia SMART Institute and Zambia Information and Communications Technology Authority;
• Citizens’ Economic Empowerment Commission (CEEC), Zambia Chamber of Small and Medium Business Associations
(ZCSMBA), Zambia Export Growers Association (ZEGA), National Technology Business Council (NTBC) as some of the
relevant private sector actors;
• Katopolo Livestock Agribusiness Centre, Making Agricultural Markets Work for Zambia (MUSIKA), Zambia Bureau of
Standards and Zambia Medicines Regulatory Authority (ZAMRA), FoodKnow Ltd (Finland), Kova PMC Ltd. (Finland) as
relevant partners for initiatives in the food sector;
• Mining Finland is the proposed strategic partner to create a "Zambian-Finnish Vocational Training and Business Devel-
opment Centre";
• Financial institutions such as the International Finance Corporation (IFC), OPEC Fund for International Development
(OFID), World Bank Group (WBG);
• as well as development agencies and bilateral partners, among others the Alliance for Commodity Trade in Eastern
and Southern Africa (ACTESA) as a specialized COMESA agency, the Embassy of Japan and the Japan International Co-
operation Agency (JICA), the Ministry for Foreign Affairs of Finland and SIDA are some of UNIDO’s traditional partners,
particularly in the Zambian context.

UNIDO will continue to foster public-private development partnerships (PPDPs), such as the one under the ZAMITA project.
It will also pursue strong collaboration and partnerships with the academia and R&D institutions including, but not limited
to the University of Zambia, the Copperbelt University and the Northern Technical College. Potential synergies and partner-
ship opportunities will be explored with the Government under the AfDB-financed operations such as Skills Development
and Entrepreneurship Project – Supporting Women and Youth Zambia, Sustainable Livestock Infrastructure Management
Project (SLIMP) and Livestock Infrastructure Support Project (LISP), as well as the WB-financed Girls Education and Wom-
en’s Empowerment and Livelihood (GEWEL) project.

Completed project / sub-programme title

ERP ID Donor Funding (US$)
(since start of the PCP programming phase)
Zambian Industrial Training Academy (ZAMITA) Private-Public
140279 Development Partnership (PPDP) within Zambia’s Mining Skills and Sweden 1,390,218
Training Framework (Phase I)
UNIDO Trust
Economic and social empowerment of young women and men in
150250 Fund for Youth 40,308
western and north-western regions of Zambia (PA phase)
Employment
Sub-total 1,430,526

PCP Zambia - Annual Report 2020 PAGE 16

 ERP ID Ongoing project / sub-programme title Donor Funding (US$)
200080 Zambian Industrial Training Academy (ZAMITA) Phase II Sweden 1,532,003
UNIDO TF for
Increased
Opportunities for youth in Africa: Accelerating job creation in agri-
190143 Food Security TBC
culture and agribusiness (regional programme, PA phase)
through
Agribusiness
Sub-total 1,532,003

Total US$ 2,962,529

Potential Estimated funding

ERP ID Pipeline project / sub-programme title
donor (US$)
Promotion of improved livelihood of Zambian youths through Japan, Hitachi
200069 3,121,132
demand-driven industrial skills training Industries
Finland,
Supporting livelihoods through skills training and capacity build-
Mining TBC
ing in the SADC region (regional programme)
Finland
HP Entrepreneurship project HP Inc. TBC
Total 3,121,132

4.4.3 FOCUS AREA 3: VALUE ADDITION

PCP Outcome 2: Cleaner, more efficient industrial infrastructure and production

This Outcome aims to support Zambia’s efforts in introducing climate neutral circular economy practices into its industrial
value chains. A number of possible interventions under the PCP has been discussed with national counterparts and poten-
tial donors. These include:

• cleaner production processes and eco-industrial parks, in a wide range of industrial sectors;
• support to countries in fulfilling their binding commitments under Multilateral Environmental Agreements (particularly
Montreal Protocol, Basel, Stockholm and Minamata Conventions),
• mercury emission reduction and control in the non-ferrous metals and cement sector
• industrial de-carbonization and de-risking investments in energy efficiency
• inclusive market development for RE & EE products and services
• addressing energy access challenges through innovative local solutions

In 2020, UNIDO continued with the preparation of a Hydrofluorocarbon (HCFC) Phase-Out Management Plan (stage II) and
implementation of the regional initiative promoting BAT and BEP for reduction of POPs releases from waste open burning.
Furthermore, Zambia continued participating actively in UNIDO’s regional Programme on Energy Efficient Lighting and Ap-
pliances in East and Southern Africa (EELA). This regional initiative aims at the development and market introduction of
climate-resilient EE products and services for households and productive uses. The initiative has been strengthening the
local supply of EE products and services and will continue its implementation in Zambia under the PCP umbrella.

Funding and partnership opportunities

The partner mapping conducted during 2020 indicated some of the relevant actors for achievement of Outcome 2. These
include:

• the Ministry of Energy, the Ministry of Lands and Natural Resources, the Ministry of Water Development, Sanitation
and Environmental Protection, the Ministry of Mines and Mineral Development and the Ministry of Health (in terms of
medical waste management);
• the Zambia Environmental Development Agency (ZEMA) and the Rural Electrification Agency (REA);
• the private sector, including but not limited to the Zambia Chamber of Mines, the ZACCI, the ZAM and the ZCSMBA

PCP Zambia - Annual Report 2020 PAGE 17

 (depending on the industrial sector in which future interventions will take place) as well as the three main electricity
companies in Zambia: the state-owned power utility ZESCO, the Copperbelt Energy Corporation (CEC) and the Lunsefwa
Electricity Company;
• the African Clean Cities Platform (ACCP), which might be a relevant partner on a regional level;
• other potential donors and financial partners include the Green Climate Fund (GCF), the Global Environmental Facility
(GEF), the European Union and bilateral donors such as Sweden (Swedish International Development Authority).

In addition, synergies may be sought with the Government’s World Bank-financed operations such as the Electricity Service
Access Project and Transforming Energy Access Matters Project or the Zambia - Mining and Environmental Remediation and
Improvement Project, which aims to reduce environmental health risks to the local population in critically polluted mining
areas. UNIDO would also explore partnerships with some of the other already ongoing initiatives in the country, such as the
GET Fit Zambia and the Africa GreenCo Group’s innovative business model.

Completed project / sub-programme title

ERP ID Donor Funding (US$)
(since start of the PCP programming phase)
Upscaling Small Hydropower Plants (SHP) Mini-Grid Development in UNIDO RB,
120210 645,734
Zambia to Deliver Renewable Energy for Productive Uses Zambia
Sub-total 645,734

ERP ID Ongoing project / sub-programme title Donor Funding (US$)

Montreal
105306 HCFC phase-out management plan (stage I) 139,321
Protocol
Montreal
190207 HCFC phase-out management plan (stage II) 60,000
Protocol
Promotion of BAT and BEP to reduce POPs releases from open waste
150060 burning in the participating African countries of the SADC region GEF 800,000
(regional programme)
Promoting ratification and early implementation of the Minamata
150415 Switzerland 30,000
Convention on Mercury (global programme)
Energy efficient lighting and appliances project in Southern and East-
190108 Sweden TBC
ern Africa (regional programme)
Sub-total 1,029,321

Total US$ 1,675,055

Estimated fund-
ERP ID Pipeline project / sub-programme title Potential donor
ing (US$)
Mercury emission reduction and control in the non-ferrous metals
UNEP, ZEMA 2,000,000
and cement sector
Upscaling Hydropower and Solar Renewable Energy Initiative ZESCO, GCF TBC
Global Clean-tech Innovation Programme (GCIP) GEF TBC
Total 2,000,000

PCP Outcome 3: Modernized, more competitive and more productive industrial processes

This Outcome focuses on value chain development. In 2020, UNIDO conducted several discussions with AfDB about po-
tential collaboration on the establishment of an agro-industrial park in Zambia. These were largely in line with the MCTI’s
request for technical assistance in establishing an industrial park around the Kalahri geo-thermal plant in the Southern
Province of Zambia.

PCP Zambia - Annual Report 2020 PAGE 18

 In addition to the provision of support to the establishment and operationalisation of ago-processing parks, the stakehold-
er discussions indicated interest in the following technical support areas:

• Agriculture value chain development for job creation, food and income security (e.g., dairy, fruits and vegetable)
• Value chain development of non-food agriculture by-products (e.g., leather and leather products, cotton, wood and
wood products) for job creation and income security

Funding and partnership opportunities

The partner mapping conducted during 2020 indicated a number of relevant actors for the achievement of Outcome 3.
These included the MCTI, the Ministry of Agriculture, as well as the ZDA, as the responsible entity (under MCTI) for the imple-
mentation of the Government’s Multi-Facility Economic Zones (MFEZ) programme. Potential synergies and partnership op-
portunities could be explored with the Government under the WB-financed ongoing Zambia Agribusiness and Trade Project,
as well as the planned Zambia Agricultural Growth Clusters for Rural Jobs and Diversified Economic Development Project.
Additionally, cooperation and scale-up opportunities may exist under such AfDB-financed operations as the Zambia Sus-
tainable Livestock Infrastructure Management Project (SLIMP), Cashew Infrastructure Development Project (CIDP), Aquacul-
ture Enterprise Development Project and Livestock Infrastructure Support Project (LISP).

Completed project / sub-programme title Funding

ERP ID Donor
(since start of the PCP programming phase) (US$)
190010 Supporting infant food manufacturing in Zambia (PA phase) UNIDO RPTC 20,000

Estimated
ERP ID Pipeline project / sub-programme title Potential donor
funding (US$)
Development of an industrial park TBC TBC

Increasing Competitiveness and Market Orientation of Innova-

TBC TBC
tion-Driven Goat Processing Value Chains in the Republic of Zambia

PCP Outcome 5: Increased investor confidence and willingness to invest in Zambian industrial priorities

This Outcome focuses on investment promotion for economic diversification. The interventions contributing to the achieve-
ment of Outcome 5 are conceived of as cross-cutting as they will eventually benefit all seven PCP priority sectors. However,
as the PCP Industrial Diagnostic Study has shown, a relative revealed comparative advantage exists for processed foods
and mineral processing & products, with both sectors exhibiting a long-term growth rate in world imports, although there
might be a (temporary) decline due to the COVID-19 pandemic and its negative impact on global demand.

As part of the interventions envisioned under the Outcome 5, UNIDO continued the implementation of the regional project
on “Supporting business friendly and inclusive national and regional policies and strengthen productive capacities and
value chains”. The programme is financed by the EU and co-implemented by WB, ITC and UNIDO. In 2020, the programme
conducted a diagnostic assessment of the investment promotion landscape in Zambia, and engaged with various stake-
holders including ZDA, ZAM, ZACCI, LSMFEZ and IDC to expand collaboration in the implementation of workstreams of the
programme. Furthermore, synergies were explored with a number of relevant partners and programmes, including the Euro-
pean Business Council Zambia and the EU Economic Governance Programme and the Regional Enterprise Competitiveness
and Access to Markets Programme (RECAMP), covering the investment promotion, private sector development and trade
support in line with national economic objectives.

PCP Zambia - Annual Report 2020 PAGE 19

 In Zambia, the programme further plans to support the ZDA in FDI monitoring and investor outreach, particularly through
partnership with other IPIs, as a concrete post-pandemic resilience intervention. The programme also intends to support
the establishment of a national platform bringing together public and private sector stakeholders in the promotion of in-
vestment opportunities in the country. To achieve this, UNIDO and ZDA would work together with other IPIs to establish best
approaches to reach out to SMEs to prioritize the promotion of investment opportunities in the domestic enterprise sector.
Finally, the programme would explore the revitalization of the Subcontracting and Partnership Exchange (SPX) function
within the ZDA and concretize collaboration with the European Business Council in terms of FDI activity assessment, whilst
highlighting the role of EU investors in the Zambian economy.

The discussions with national counterparts and other stakeholders throughout 2020 also indicated the potential for the
PCP Zambia to support the application of UNIDO’s COMFAR software and other investment promotion channels (global fo-
rum activities such as investment road shows, international workshops, study tours, delegate programmes and exhibitions
and trade fairs).

Funding and partnership opportunities

The partner mapping conducted during 2020 showed that the Zambia Development Agency (ZDA) will be the principal coun-
terpart for PCP Outcome 5. It is Zambia’s leading institution in trade development, investment promotion, enterprise re-
structuring, development of greenfield projects, small and enterprise development, trade and industry fund management,
and contributing to skills training development.

The ZAM, as a business association promoting the manufacturing sector through policy advocacy and dialogue, lobbying,
and technology upgrading of the production processes, will play a role in helping to organize investment summits and fo-
rums to foster technology and investment networking among the COMESA member countries and beyond.

Similarly, the ZACCI will be an important counterpart in conveying important findings of the firm-level FDI surveys to key
political decision makers. It is an umbrella organization representing businesses across the country and across all sectors
of the economy with the main objective of promotion and enhancement of a vibrant private sector through effective interest
representation and policy advocacy.

Zambia Chamber of Small and Medium Business Associations (ZCSMBA) is the largest chamber for MSMEs in Zambia with
more than 60% of its members located in rural areas. ZCSMBA’s main objective is to promote the sustainable growth and
profitability of MSMEs through policy advocacy for business environment reforms. As such, it is a stakeholder for PCP Zam-
bia in supporting policy advocacy, events organization and related investment promotion and facilitation activities. Further
stakeholder institutions to be engaged could be the Zambia Federation of Associations of Women in Business (ZFAWIB) or
Zambia’s Citizens’ Economic Empowerment Commission.

Completed project / sub-programme title Funding

ERP ID Donor
(since start of the PCP programming phase) (US$)
Supporting business-friendly and inclusive national and regional
170049 EU 600,000
policies, and strengthening productive capabilities and value chains

Estimated
ERP ID Pipeline project / sub-programme title Potential donor
funding (US$)
Strengthen technical capacities for effective appraisal of projects
TBC TBC
and public investment management

PCP Zambia - Annual Report 2020 PAGE 20

 4.4.4 COORDINATION

PCP Outcome 6: Improved coordination of support for Zambian industrial priorities

This Outcome relates to successful implementation of the PCP, under the NCB leadership and with UNIDO’s support, includ-
ing the successful implementation of the PCP Partner Mobilization and PCP Communication annual action plans. Monitor-
ing against this outcome will be particularly focused on gathering and acting on lessons learned identified during the PCP
implementation, with a view to ensure continuous improvement and strengthening of the PCP’s management.

Funding
The programming phase of the PCP Zambia has been supported financially through the UNIDO Partnership Trust Fund (PTF).
The MCTI’s in-kind contribution to the PCP in 2020 was estimated to over US$ 6.000,00 and it entailed the provision of
relevant office space and equipment as well as availability of support staff for completion of relevant PCP programming
exercises.

Funding
ERP ID Ongoing project / sub-programme title Donor
(US$)
190132 Programme for Country Partnership Zambia (programming phase) PTF - China 200,000

PCP Zambia - Annual Report 2020 PAGE 21

 5. RESPONSE TO COVID-19
IIn order to continue the programming phase of the PCP Zambia despite the challenges posed by the pandemic, UNIDO
prepared and regularly updated the PCP Contingency Plan, in coordination with the MCTI, since March 2020. The PCP pro-
gramming activities were also aligned with UNIDO’s Response framework to the COVID-19 pandemic (Responding to the
crisis: building a better future) and have largely contributed to the third package on recovery and transformation of the
Zambian economy. More specifically, the PCP has provided continued support to the implementation of UNIDO’s surveys
and assessment studies analysing the impact of COVID-19 on the Zambian manufacturing sector and specifically its SMEs.
Such support has been provided to the UNIDO’s joint study with FAO and the joint study with AfDB. As preparation for
potential future health crises, the MCTI and UNIDO have re-launched discussions on a joint elaboration of strategy for the
development of the Zambian pharmaceutical sector.

UNIDO has also engaged in the UNCT’s discussions centred around the pandemic and has provided inputs for the prepara-
tion of the COVID-19 Emergency Appeal launched by the UN system in Zambia, in May 2020 and for the elaboration of the
Socio-Economic Recovery Response (SERP) to COVID-19 in Zambia, that was launched in July 2020. More recently, the PCP
team was involved in the planning process of the UNCT’s COVID-19 Recovery Needs Assessment (CRNA) exercise in Zambia.
The CRNA findings would also inform the currently ongoing CCA and the UNSDCF formulation process.

In the implementation phase, the PCP’s contribution to the COVID-19 response and post-COVID-19 recovery is envisioned
as a cross-cutting issue. In order to facilitate the socio-economic recovery of Zambia, the PCP Zambia will assist in devel-
opment of policies, strategies and specific sectoral programmes for economic recovery and resilience strengthening in
the identified priority sectors, through its Component 1: evidence-based industrial policymaking and statistics. Particular
emphasis will be placed on the strategy for development of the pharmaceutical sector in Zambia.

Furthermore, significant support to MSMEs and their recovery from the COVID-19 related crisis is envisioned through the PCP
Component 4: Value chain development. Potential loss of supply in national and regional value chains due to COVID-19-re-
lated closures and lockdowns could disrupt the production in importing countries. Technical assistance to build capaci-
ties for the management and operationalization of existing special economic zones and support in establishment of new
agro-food parks and associated rural transformation centres (RTCs) would increase the local potential for sustainable and
resilient manufacturing.

Companies can develop the necessary flexibility in crisis situations if they retain production and innovative capabilities,
which result from long-term investments in science, technology and innovation (STI). The PCP will thus support sector-spe-
cific uptake of 4IR technologies as well as introduction of improved energy efficient technologies for primary processing
through its Component 3: Industrial skills for innovation and Component 7: Clean and affordable energy.

Finally, leveraging on its extensive technology and expertise network, including international academia, R&D, foundations
and companies, UNIDO harnesses resources of the private sector and other partners to spur industrial dynamics in relation
to sustainable economic development. The PCP Component 5: Investment promotion for economic diversification will uti-
lize such expertise and developed tools, including the SPX Centres, COMFAR and the regional ACP-Business Friendly Pro-
gramme, to promote investment, particularly in sectors such as ‘textile & garments’ and ‘pharmaceuticals’ that may present
new product diversification opportunities considering the COVID-19 pandemic.

6. LESSONS LEARNED AND BEST PRACTICES

In 2020, the PCP Zambia faced several challenges. The COVID-19 pandemic introduced a health crisis globally, that result-
ed in different operational constraints for business and international organisations alike. Due to COVID-19 related travel
restrictions, all missions and in-person meetings were quickly shifted to virtual working modalities, capable of easily ac-
commodating for the networking of cross-continental representatives without disruption of businesses. This implied the
use of innovative practices as communication tools and platforms for delivery of presentations and sharing of (large-sized)
documents. Thus, the PCP Industrial Diagnostic Study, the design of the PCP programme document and the Terms of Refer-
ence for the PCP National Coordination Body were carried out through online consultations with relevant stakeholders, in
addition to in-depth desk research and analyses.

As travel missions were not possible, local experts were recruited, including the PCP National Coordinator. This reinforced
communication and coordination with local stakeholders, including the UN agencies and national counterparts, facilitated
the partner mobilization efforts as well as the in-country coordination among projects.

PCP Zambia - Annual Report 2020 PAGE 22

 UNIDO maintained regular coordination with the MCTI as the line Ministry and regular updates to the Permanent Mission
of Zambia in Geneva as part of the programme’s development. The PM members were also invited as presenters during
UNIDO events, which ensured dissemination of information through the PM’s channels. This contributed to increased PCP’s
visibility on the national level and is expected to increase the resource mobilization opportunities for the PCP in the future.

7. COMMUNICATION
In 2020, the PCP was mainly promoted through different stakeholder meetings to harness stakeholder support for joining
efforts towards the initiation and development of initiatives envisioned as part of the PCP. The UNIDO PCP Zambia website
served as the main advocacy tool in 2020. UNIDO will expand PCP communication channels in 2021 to feature the PCP
Zambia more strongly on UNIDO’s social media accounts as well as MCTI’s official communication platforms.

A PCP Communication Strategy is in development. PCP communication and promotion will be delivered against two objec-
tives that are focused on two separate communication / information needs:

• Increase awareness of Zambia’s industrial agenda, priorities and initiatives, including the PCP.
• Increase awareness of the role of inclusive and sustainable industrial development as a driver of growth, and as a
means for delivering social, economic and environmental benefits.

Due to the dynamic nature of the PCP (new concepts, activities and investments will continuously evolve throughout the
programme period), the outreach strategy will serve as the basis for more comprehensive and adaptive annual communica-
tion action plans. Guided by the NCB, these plans will be developed jointly by UNIDO and the MCTI.

8. UPCOMING MILESTONES AND MAJOR RESULTS

EXPECTED IN 2021
The first – and most important milestone in 2021 – will be the finalization and approval of the PCP Zambia programme doc-
ument. The programme is expected to be signed in the first half of 2021, launching the implementation phase of the PCP.
The NCB is expected to be formally established, with its first meeting planned at the occasion of the PCP launch, following
the signing ceremony of the PCP Zambia programme document.

UNIDO’s PCP Management Unit will function as the NCB secretariat and support stakeholder coordination and programme
implementation on the ground. In terms of anticipated technical cooperation in 2021, UNIDO will continue the implementa-
tion of the ongoing projects, notably the ZAMITA project and the preparation of the HCFC phase-out management plan, as
well as the relevant activities of regional projects on BAT and BEP promotion, energy efficient lighting and appliances (EELA)
promotion, OYA programme and the support to business-friendly and inclusive national and regional policies.

UNIDO also expects to launch a new initiative based on a PPDP with Japan, Hitachi Construction Machinery and the Minis-
try of Higher Education in Zambia within the PCP Skills Development focus area. Moreover, further progress is anticipated
in stakeholder discussions related to the establishment and operationalization of an agro-industrial park in Zambia and
preparation of a new energy-related initiative in partnership with the GCF.

PCP Zambia - Annual Report 2020 PAGE 23

 9. ANNEX 1: PCP PORTFOLIO OVERVIEW — UNIDO TC

Completed project / sub-programme title Funding

ERP ID PCP Outcome Donor
(since start of the PCP programming phase) (US$)
Upscaling Small Hydropower Plants (SHP) Mini-Grid UNIDO Reg-
120210 Outcome 2 Development in Zambia to Deliver Renewable Energy ular Budget, 645,734
for Productive Uses Zambia
Supporting infant food manufacturing in Zambia (PA
190010 Outcome 3 UNIDO RPTC 20,000
phase)
Zambian Industrial Training Academy (ZAMITA)
Private-Public Development Partnership (PPDP)
140279 Outcome 4 Sweden 1,390,218
within Zambia’s Mining Skills and Training
Framework (Phase I)
Economic and social empowerment of young women UNIDO TF for
150250 Outcome 4 and men in western and north-western regions of Youth Em- 40,308
Zambia (PA phase) ployment
Sub-total 2,096,260

Funding
ERP ID PCP Outcome Ongoing project / sub-programme title Donor
(US$)
Montreal
105306 Outcome 2 HCFC phase-out management plan (stage I) 139,321
Protocol
Montreal
190207 Outcome 2 HCFC phase-out management plan (stage II) 60,000
Protocol
Promotion of BAT and BEP to reduce POPs releases
150060 Outcome 2 from open waste burning in the participating African GEF 800,000
countries of the SADC region (regional programme)
Promoting ratification and early implementation
150415 Outcome 2 of the Minamata Convention on Mercury (global Switzerland 30,000
programme)
Energy efficient lighting and appliances project in
150415 Outcome 2 Sweden TBC
Southern and Eastern Africa (regional programme)
Zambian Industrial Training Academy (ZAMITA) Phase
150415 Outcome 4 Sweden 1,532,003
II
UNIDO TF for
Opportunities for youth in Africa (OYA): Accelerating Increased
150415 Outcome 4 job creation in agriculture and agribusiness (regional Food Security TBC
programme, PA phase) through Agri-
business
Supporting business-friendly and inclusive national
150415 Outcome 5 and regional policies, and strengthening productive EU 600,000
capabilities and value chains
Programme for Country Partnership Zambia
150415 Outcome 6 PTF - China 200,000
(programming phase)
Sub-total 3,361,324

Total US$ 5,457,584

PCP Zambia - Annual Report 2020 PAGE 24

 Estimated
Potential
ERP ID PCP Outcome Pipeline project / sub-programme title funding
donor
(US$)
Outcome 1 Pharmaceutical strategy formulation TBC 165,000
Establishment of Industrial Statistics and
Outcome 1 TBC TBC
Intelligence System in Zambia
Revision of Micro, Small and Medium Enterprises
Outcome 1 TBC TBC
(MSME) Development Policies
Mercury emission reduction and control in the non-
Outcome 2 UNEP, ZEMA 2,000,000
ferrous metals and cement sector
Upscaling Hydropower and Solar Renewable Energy
Outcome 2 ZESCO TBC
Initiative
Outcome 2 Global Clean-tech Innovation Programme (GCIP) GEF TBC
Outcome 3 Development of an industrial park TBC TBC
Increasing Competitiveness and Market Orientation
Outcome 3 of Innovation-Driven Goat Processing Value Chains in TBC TBC
the Republic of Zambia
Promotion of improved livelihood of Zambian youths Japan, Hitachi
Outcome 4 3,121,132
through demand-driven industrial skills training Industries
Supporting livelihoods through skills training and
Finland, Min-
Outcome 4 capacity building in the SADC region (regional TBC
ing Finland
programme)
Outcome 4 HP Entrepreneurship project HP Inc. TBC
Strengthen technical capacities for effective
Outcome 5 appraisal of projects and public investment TBC TBC
management

Total estimated US$ 5,286,132

PCP Zambia - Annual Report 2020 PAGE 25

 For more information, please scan the QR Code to
access the PCP Zambia UNIDO website.

PCP Zambia Programme Manager

MANUEL MATTIAT
Programme Officer, Africa Regional Coordination Division
Email: m.mattiat@unido.org

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