• This can be done by allocating a significant portion of the K25 billion in the national budget towards the supply of goods and services.
• This has potential to stimulate 63,045 Zambian businesses that can create 189,135 jobs.
• Pre-retirement beneficiaries need to create more businesses to tap into government construction and supply opportunities.

A Senior Economist has advised Government to play a critical role in stimulating local businesses in view of the on-going payment of pre-retirement lump sum benefits by National Pension Scheme Authority (NAPSA).
Andrew Nsunge Nsunge told Money FM News that this can be done by allocating a significant portion of the K25 billion in the national budget towards the supply of goods and services, as this has potential to stimulate 63,045 Zambian businesses that can create 189,135 jobs.
Mr. Nsunge Nsunge noted that according to NAPSA, partial payments will pump a potential K11 billion into the economy through 600,000 beneficiaries, hence the impact is increased liquidity and economic activity.
He also encouraged beneficiaries of the pre-retirement lump sum benefits to create more businesses to tap into government construction and supply opportunities and other businesses using funds received from NAPSA.
“What we need to encourage for this country is to have as many people getting into businesses. If we have a lot of people getting into businesses especially Zambian owned, it’s when we are really going to drive the agenda of making sure that we have economic development that is driven by local businesses.”
“If you look at the 2023 national budget, there is about K25 billion allocated by government towards construction as well as purchase of various goods and services and Government needs to play that role by deliberately stimulating these Zambian owned businesses by allocating the supply of goods and services to these potential businesses in smaller notes,” Mr. Nsunge Nsunge stated.
He noted that increasing the number and economic activity of Zambian owned businesses, will reduce poverty, create employment, promote equity, high economic growth and sustainable economic development.
“As these Zambian businesses grow, they will begin to diversify in high productivity and manufacturing to drive exports which will also assist to have a strong and stable exchange rate that has been a challenge for this country in addition to the benefits above.”
“Government can execute assignment of payment receivables and honor them to enable this sector access financial products such as advance payment guarantees, performance guarantees and short term loans without collateral which is a challenge or channel advance payments to client dual controlled accounts,” he suggested.
He stressed the need for a control mechanism through appointed consultants to enhance performance and utilisation of advanced payment loans or funds for the intended purpose.
NAPSA has so far paid out K3.9 billion to over 128,000 members since commencement of payment of the pre-retirement lumpsum benefits on 19th April 2023, from the estimated eligible 600,000 members.
On 17th, April, 2023 President Hakainde Hichilema assented into law the National Pension Scheme Amendment Bill 2023 to allow 20% partial withdrawal of pensions.