CITIZEN ECONOMIC EMPOWERMENT ACT, 2006: SUBSIDIARY LEGISLATION
INDEX TO SUBSIDIARY LEGISLATION
Citizen Economic Empowerment (Preferential Procurement) Regulations
Citizens Economic Empowerment (Reservation Scheme) Regulations
Citizens Economic Empowerment (Reservation Scheme) Regulations
CITIZEN ECONOMIC EMPOWERMENT (PREFERENTIAL PROCUREMENT) REGULATIONS
[Section 19]
[Currency mentioned in this regulation should be re-denominated as stipulated under S 4 of Re-denomination Act, 2012, read with S 29 of Bank of Zambia Act, 1996.]
Arrangement of Regulations
Regulation
3. Application of preferential procurement system
8. Evaluation of bids on functionality
9. Cancellation and re-invitation of bids
Act 9 of 2006,
SI 36 of 2011.
These Regulations may be cited as the Citizen Economic Employment (Preferential Procurement) Regulations, 2011.
In these Regulations, unless the context otherwise requires—
"Authority" means the Zambia Public Procurement Authority provided for under section 5 of the Public Procurement Act, 2008;
"bid" has the meaning assigned to it in the Public Procurement Act, 2008;
"Commission" has the meaning assigned to it in the Act;
"functionality" means the capacity of a service or commodity to provide an acceptable level of performance taking into account, among other things, the quality, reliability, viability and durability of the service or commodity and fitness for purpose; and
"State institution" has the meaning assigned to it in the Act.
3. Application of preferential procurement system
A State institution shall apply a preferential procurement system in accordance with the Act and these Regulations.
A State institution may, in evaluating a bid, adjust the bid price in order to facilitate preferential evaluation of a bid as follows:
(a) for a citizen-influenced company, by four percent;
(b) for a citizen-empowered company, by eight percent;
(c) for a citizen-owned company, by 12 percent; and
(d) for domestically manufactured goods by a citizen-influenced company, citizen-empowered company and citizen-owned company, by 15 per cent.
(1) The Commissioner and the Authority shall reserve a public procurement for a citizen-influenced company, citizen-empowered company or citizen-owned company with estimated values as follows–
(a) with respect to goods, public procurement of goods not exceeding 3 billion kwacha (K3, 000,000,000.00); and
(b) with respect to works–
(i) building construction works not exceeding 20 billion kwacha (K20, 000,000,000.00); and
(ii) civil and road works not exceeding 30 billion kwacha (K30, 000,000,000.00).
(2) A citizen-influenced company, citizen-empowered company or a citizen-owned company participating in a public procurement that exceed the estimated values provided for in sub-regulation (1) shall not be eligible for reservation as specified in sub-regulation (1).
A procurement of a non-consulting service below the value of one billion kwacha (K1, 000,000,000.00) shall, unless it is not possible to acquire the services of a citizen-influenced company, citizen-empowerment company or citizen-owned company, be exclusively reserved for a citizen-influenced company, citizen empowerment company or citizen-owned company.
{mprestriction ids="2,3,5"}
A foreign bidder who is awarded a contract and requires personnel in order to execute the contract shall, where practicable, ensue that at least 40 percent of its key personnel are citizens.
8. Evaluation of bids on functionality
(1) A State institution shall indicate, in the solicitation documents in respect of a particular bid invitation, if the bid may be evaluated on its functionality and the evaluation criteria for the functionality specified in the solicitation documents.
(2) A Procurement Unit shall disqualify a bid where the bid does not meet the minimum functionality requirement specified in the solicitation documents.
(3) A Procurement Unit shall consider, for the next stage of the evaluation process, a bid that meets the minimum functionality requirement specified in the solicitation documents.
9. Cancellation and re-invitation of bids
A Procurement Unit shall cancel a bid for procurement where–
(a) the need for the procurement is not sufficient;
(b) funding for the procurement is not sufficient;
(c) there is a significant change in the required technical details, bidding conditions, conditions of contract or any other details;
(d) the Procurement Unit does not receive responsive bids;
(e) there is evidence of collusion among the bidders;
(f) it is in the public interest to cancel the bid; or
(g) there is evidence of corrupt practices by a public officer or a bidder.
CITIZENS ECONOMIC EMPOWERMENT (RESERVATION SCHEME) REGULATIONS
[Section 21]
Arrangement of Regulations
Regulation
5. General offence and penalty
SI 1 of 2017.
These Regulations may be cited as the Citizens Economic Empowerment (Reservation Scheme) Regulations, 2017.
In these Regulations, unless the context otherwise requires-
"live bird" means a free range chicken, broiler or ex-layer;
"market" has the meaning assigned to it in the Markets and Bus Stations Act, 2007; and
"reservation scheme" means the area of business within the poultry and domestic haulage sectors or sub-sectors that are reserved for targeted citizens, citizen-influenced, citizen-empowered and citizen-owned companies.
The sale of live birds in a market or any other place designated under a written law is reserved for targeted citizens, citizen-influenced companies, citizen-empowered companies and citizen-owned companies.
(1) Domestic haulage for all public procurement works is reserved for targeted citizens and citizen-influenced, citizen-empowered and citizen-owned companies.
(2) Non-targeted citizens and companies may continue to operate for private haulage transactions only.
5. General offence and penalty
A person who operates or carries on business in a sector or sub-sector reserved under these Regulations commits an offence and is liable, upon convection, to a fine not exceeding two thousand five hundred penalty units or to imprisonment for a term not exceeding two years, or to both.
CITIZENS ECONOMIC EMPOWERMENT (RESERVATION SCHEME) REGULATIONS
[Section 21]
Arrangement of Regulations
Regulation
3. Reservation commercial cleaning
SI 22 of 2019.
These Regulations may be cited as the Citizens Economic Empowerment (Reservation Scheme) Regulations, 2019.
In these Regulations, unless the context otherwise requires-
"commercial cleaning" means the provision of a cleaning service on a contractual basis;
"citizen empowered company" has the meaning assigned to the words in the Act;
"citizen influenced company" has the meaning assigned to the words in the Act;
"citizen owned company" has the meaning assigned to the words in the Act; and
"targeted citizen" has the meaning assigned to the words in the Act.
3. Reservation commercial cleaning
(1) Commercial cleaning is reserved for targeted citizens, citizen influenced companies, citizen empowered companies and citizen owned companies.
(2) A non-targeted citizen or company engaged in commercial cleaning under a contract for commercial cleaning entered into before the coming into operation of these Regulations shall continue to operate until expiry of that contract.
(3) A non-targeted company wishing to engage or continue engaging in commercial cleaning shall become a citizen influenced company, citizen empowered company or citizen owned company.
(4) A state institution and non-state institution shall not engage a non-targeted citizen or company in commercial cleaning.
A person who contravenes these Regulations commits an offence and is liable, on conviction, to a fine not exceeding eight thousand penalty units, or to imprisonment for a term not exceeding three years or to both.
CITIZENS ECONOMIC EMPOWERMENT (TRANSPORTATION OF HEAVY AND BULK COMMODITIES BY ROAD) (RESERVATION) REGULATIONS
[Section 21]
Arrangement of Regulations
Regulation
3. Transportation of heavy and bulky commodity by road
SI 35 of 2021.
These Regulations may be cited as the Citizens Economic Empowerment (Transportation of Heavy and Bulk Commodities by Road) (Reservation) Regulations, 2021.
In these Regulations, unless the context otherwise requires-
"Anti-Corruption Commission" means the Anti-Corruption Commission established under the Constitution;
"authorised officer" means-
(a) a police officer;
(b) an officer of customs;
(c) an immigration officer;
(d) an officer from the Drug Enforcement Commission;
(e) an officer from the Anti-Corruption Commission;
(f) an officer from the Road Transport and Safety Agency; or
(g) any person appointed as an authorised officer, in writing, by the Minister;
"commodity" means a heavy and bulky commodity set out in the Schedule;
"documentation" includes a consignment note, waybill or manifest;
"Drug Enforcement Commission" means the Drug Enforcement Commission established under the Constitution;
"local road transporter" means a citizen empowered company, citizen owned company, citizen influenced company and a targeted citizen; and
"Road Transport and Safety Agency" means the Road Transport and Safety Agency established under the Road Traffic Act, 2002.
3. Transportation of heavy and bulky commodity by road
(1) Subject to the Railways (Transportation of Heavy Goods) Regulations, 2018, a person who intends to transport a commodity by road shall give preference to a local road transporter in accordance with these Regulations.
(2) These Regulations apply to-
(a) a producer, manufacturer or user of a raw material of a commodity;
(b) an oil supplier;
(c) the following companies-
(i) a logistics company;
(ii) a clearing and forwarding company; and
(iii) an oil marketing company; and
(d) the transportation by road of a commodity to a person's plant, industry or place of business.
A person who intends to export a commodity referred to in the Schedule, from the Republic to another country, shall ensure that at least 50 per cent of the commodity is transported by a local road transporter.
A person who intends to transport a commodity referred to in the Schedule within the Republic shall ensure that the commodity is transported only by a local road transporter.
A person who intends to import a commodity referred to in the Schedule, into the Republic, shall ensure that at least 50 per cent of the commodity is transported by a local road transporter.
An authorised officer may direct a transporter of a commodity to provide proof of compliance with these Regulations and that transporter shall provide documentation to an authorised officer as proof of compliance.
(1) A person who contravenes these Regulations commits an offence and is liable, on conviction, to a fine not exceeding eight thousand penalty units or to imprisonment for a period not exceeding three years, or to both.
(2) Where an offence under these Regulations is committed by a body corporate or unincorporate body, with the knowledge, consent or connivance of the director, manager, shareholder or partner, that director, manager, shareholder or partner of the body corporate or unincorporate body commits an offence and is liable, on conviction, to the penalty or term of imprisonment specified under sub-regulation (1).
[Regulations 4, 5 and 6]
PREFERENTIAL ROAD FREIGHT COMMODITIES
A. EXPORT COMMODITY
Commodity
Anode Cobalt
Cement
Clinker
Concentrates
Copper
Cotton
Fertiliser
Lime
Maize
Maize Bran
Manganese
Mealie Meal
Molasses
Nickel
Potato
Silicone
Soya Cake
Steel
Sugar
Sulphuric Acid
Tobacco
Wheat
Wood/Timber
Zinc
B. DOMESTIC TRANSPORTATION COMMODITY
Commodity
Anode Cobalt
Cement
Clinker
Concentrates
Copper
Cotton
Coal
Fertiliser
Fuels-Local
Lime
Maize
Maize Bran
Manganese
Mealie Meal
Molasses
Nickel
Potato
Silicone
Soya Cake
Steel
Sugar
Sulphuric Acid
Tobacco
Wheat
Wood/Timber
Zinc
C. IMPORT COMMODITY
Commodity
Fertiliser
Petroleum
Maize
{/mprestriction}