CITIZENS ECONOMIC EMPOWERMENT ACT

Arrangement of Sections

   Section

PART I
PRELIMINARY

   1.   Short title

   2.   Application

   3.   Interpretation

PART II
THE ECONOMIC EMPOWERMENT COMMISSION

   4.   Establishment of Economic Empowerment Commission

   5.   Seal of Commission

   6.   Functions of Commission

   7.   Composition of Commission

   8.   Disqualification for appointment

   9.   Tenure of office and vacancy

   10.   Filling of casual vacancy

   11.   Allowances

   12.   Director-General and other staff

PART III
ECONOMIC EMPOWERMENT MEASURES

   13.   General economic empowerment measures

   14.   Prohibition of discrimination

   15.   Employment equity plan

   16.   Analysis of employment policies or practices

   17.   Skills development

   18.   Sector education and training

   19.   Preferential procurement

   20.   Promotion of local and foreign investment

   21.   Investment opportunities

   22.   Regional development

   23.   Supportive culture

   24.   Codes of good practices

   25.   Status of code of good practice

   26.   Mechanisms for measuring progress

   27.   Strategy for broad-based economic empowerment

   28.   Sector codes

PART IV
CITIZEN ECONOMIC EMPOWERMENT FUND

   29.   Establishment of Citizen’s Economic Empowerment Fund

   30.   Management of Fund

   31.   Auditing of Fund

   32.   Statement of income and expenditure

PART V
GENERAL PROVISIONS

   33.   Assessment of compliance

   34.   Undertaking by State institutions or company

   35.   Progress reports

   36.   Register and database

   37.   Entry and inspection

   38.   Obstruction, undue influence and false information

   39.   Regulations

      SCHEDULE

AN ACT

to establish the Citizens Economic Empowerment Commission and to define its function and powers; establish the Citizens Economic Empowerment Fund; promote the economic empowerment of targeted citizens, citizen empowered companies, citizen influenced companies and citizen owned companies, promote gender-equality in accessing, owing, managing, controlling and exploiting economic resources; encourage an increase in broad-based and effective ownership and meaningful participation of targeted citizens, citizen empowered companies, citizen influenced companies and citizen owned companies in the economy in order to contribute to sustainable economic growth; remove social customs, statutory provisions or other practices that limit access to any particular gender to skills training that is essential for effective participation in the economic sector; promote the employment of both gender by removing structural and discriminatory constraints that hinder any particular gender from employment opportunities and in so doing ensure equitable income distribution; promote equal opportunity of targeted citizens and citizen empowered companies, citizen influenced companies and citizen owned companies in accessing and being awarded procurement contracts and other services from State institutions; promote Greenfield investment through joint ventures and partnerships between local and foreign investors in order to enhance broad-based economic empowerment; and provide for matters incidental to or connected to the foregoing.

[19th May, 2006]

Act 9 of 2006,

Act 43 of 2010.

PART I
PRELIMINARY

1.   Short title

This Act may be cited as the Citizens Economic Empowerment Act, 2006.

2.   Application

Notwithstanding any other law, this Act shall apply to all sectors of the economy, including the value chain, and to—

      (a)   all State institutions; and

      (b)   any employer that employs at least twenty-five people; in so far as broad-based economic empowerment is concerned, as provided in this Act.

3.   Interpretation

In this Act, unless the context otherwise requires—

“broad-based economic empowerment” means the economic empowerment of—

      (a)   targeted citizens;

      (b)   citizen empowerment companies;

      (c)   citizen influenced companies; and

      (d)   citizen owned companies;

through diverse but integrated socio-economic strategies that include ownership of productive assets and resources, increasing the levels of employment in the formal sector, increasing household incomes, expanding literacy and skills development and ensuring preferential procurement and access to services of State institutions.

“Chairperson” means the person appointed Chairperson of the Commission under section 7;

“citizen” means a citizen of Zambia;

“citizen empowerment company” means a company where twenty-five to fifty percent of its equity is owned by citizens;

“citizen influenced company” means a company where five to twenty-five percent of its equity is owned by citizens and in which citizens have significant control of the management of the company;

“citizen owned company” means a company where at least fifty point one percent of it equity is owned by citizens and in which citizens have significant control of the management of the company;

“code” means a code of good practice issued by the Commission under section 24;

“Commission” means the Citizens Economic Empowerment Commission established under section 4;

“Commissioner” means a member of the Commission;

“company” means a private or public company as defined in the Companies Act;

“cooperative” means a cooperative society established under the Co-operatives Societies Act;

“development services” include advisory services promoting training and financing, facilitating the preparation of business plans, project proposals, loan applications, financial statements, audited statements of expenditure and accounts and other similar services;

“Director-General” means the person appointed Director-General of the Commission under section 12;

“economic resources” include physical, technical, human and financial resources;

“employment policy or practice” includes the following:

      (a)   recruitment procedures, advertising and selection criteria;

      (b)   appointments and the appointment process;

      (c)   job classification and grading;

      (d)   remuneration, employment benefits and terms and conditions of employment;

      (e)   job assignments;

      (f)   the working environment and facilities;

      (g)   training and development;

      (h)   performance evaluation systems;

      (i)   promotion;

      (j)   transfer;

      (k)   demotion;

      (l)   disciplinary measures other than dismissal; and

      (m)   dismissal

“empowerment” means an integrated broad-based and multi-faceted strategy aimed at substantially increasing meaningful participation of targeted citizens, citizen empowered companies, citizen influenced companies and citizen owned companies in the economy and decrease income inequalities;

“financial resources” includes credit, wages, cash and financial guarantees;

“financial institution” means a person who holds a financial institutions licence under the Banking and Financial Services Act;

“gender” means female or male and the role individuals play in society as a result of their sex and status;

“Greenfield investment” means new investment;

“HIV/AIDS” means the Human Immuno Deficiency Virus;

“Human Resources” include labour, educational opportunities, knowledge, knowledge management and information;

“leadership” includes mentorship, structured learning and practical work experience of a specified nature and duration;

“micro enterprise” means any business enterprise whose amount of total investment, excluding land and buildings, and annual turnover does not exceed a numerical value prescribed by the President and which employs up to ten people;

“physical resources” includes land, personal property intellectual property and infrastructure;

“prescribed” means prescribed by statutory instrument by the President;

“reasonable adjustment” means any modification or adjustment to a job or working environment that enables a targeted citizen to have access to, participate or advance in employment;

“regional area” means any area in Zambia that is economically depressed;

“sex” means female or male;

“small enterprise” means any business enterprise whose amount of total investment, excluding land and building and annual turnover does not exceed a numerical value prescribed by the President and which employs up to thirty persons;

“State institution” includes a ministry or department of the Government, a public office or agency or institution, statutory body or company in which the Government has a controlling interest, a local government authority, commission or body established under the Constitution;

“status” includes age HIV/AIDS status or other diseases, disability, social standing, economic standing or rural or urban location;

“supportive culture” includes support from companies to enable a person start up a business, timely payment to suppliers by State institutions and social investments made by companies to encourage social economic growth and development such as housing, transport, health care, sports, HIV/AIDS programmes, skills development programmes, environmental responsibilities and charitable donations;

“targeted citizen” means a citizen who is or has been marginalized or disadvantaged and whose access to economic resources and development capacity has been constrained due to various factor including race, sex, educational background, status and disability;

“technical” includes know how, knowledge and technology;

“TEVETA” means the Technical Education, Vocational and Entrepreneurship Training Authority established by the Technical Education, Vocational and Entrepreneurship Training Act; and

“value chain” means any sector of the economy that may have an impact on the empowerment of targeted citizens and includes the specific value additions at all levels of a process in the different sectors of industry.

PART II
THE CITIZENS ECONOMIC EMPOWERMENT COMMISSION

4.   Establishment of Economic Empowerment Commission

   (1) There is hereby established the Citizens Economic Empowerment Commission which shall be a body corporate with perpetual succession and a common seal, capable of suing and being sued in its corporate name and with power, subject to this Act, to do all such things as a body corporate may by law do or perform.

   (2) The Schedule applies to the Commission.

5.   Seal of Commission

   (1) The seal of the Commission shall be such device as may be determined by the Commission and shall be kept by the Director-General.

   (2) The affixing of the seal shall be authenticated by the Chairperson or any other person authorized in that behalf by a resolution of the Commission.

   (3) Any document purporting to be under the seal of the Commission or issued on behalf of the Commission shall be received in evidence and shall be deemed to be so executed or issued without further proof, unless the contrary is proved.

6.   Functions of Commission

   (1) The functions of the Commission shall be to promote the empowerment of citizens that are or have been marginalized or disadvantaged and whose access to economic resources and development capacity has been constrained due to various factors including race, sex, educational background, status and disability.

   (2) Without limiting sub-section (1), the functions of the Commission shall be to—

      (a)   advise on the necessary changes to various types of legislation for the effective delivery of economic empowerment initiatives;

      (b)   promote gender-equality in accessing, owning, controlling, managing and exploiting economic resources;

      (c)   encourage effective and meaningful participation of targeted citizens in the economy in order to contribute to sustainable economic growth;

      (d)   promote the employment of both gender by recommending to appropriate authorities the removal of structural and discriminatory constraints and practices that hinder any particular gender from employment opportunities;

      (e)   ensure equal opportunities for, and where necessary, ensure preferential treatment to, targeted citizens, citizen empowered companies, citizen influenced companies and citizen owned companies in accessing procurement contracts and other services of any state institutions;

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