THE BUSINESS REGULATORY REVIEW AGENCY

1. THE BUSINESS REGULATORY REVIEW AGENCY PRESENTATION ON THE RIA HANDBOOK TO THE REGULATORY IMPACT ASSESSMENT (RIA) CAPACITY BUILDING WORKSHOP 13 – 17 May, 2019 BY David F. Banda, BRRA

2. OUTLINE • Overview of the RIA Handbook; • Chapter one; • Chapter two; • Chapter three; • Chapter four; and • Chapter five.

3. 1. Overview • RIA Hand book is a blue print guide for the Public Bodies and Regulatory Agencies on how to perform a RIA.It provides a step by step guide on how to conduct RIA. • The overriding objective of the RIA handbook is to ensure that any regulatory agency conducting a RIA does so in accordance with the BR Act, 2014 and the Standards and Guidelines issued by BRRA. • The Handbook was launched by Ms. KayulaSiame, Permanent Secretary, MCTI in July 2018.

4. 2. Chapter one • This chapter highlights the following: • The three tier structure governing business regulation in Zambia – Central Govt, Local Govt and Statutory Bodies • The introduction of the RIA system in Zambia - RIA provided for under the Business Regulatory Act. No. 3 • The rationale for introducing RIA and its objectives – to reduce policy and regulatory failure through improved understanding of the impacts of action, improved transparency, and government accountability.

5. 3. Chapter two The Chapter explains and answers the following questions: • What is the RIA? – A RIA is a detailed systematic appraisal of the potential impacts of a proposed regulation in order to assess whether the regulation is likely to achieve the desired objective and the costs of regulation are justified. • why should the RIA be undertaken?- Helps assess and bring out all potential impacts on consumers, businesses and government, helps determine whether benefits justify the costs, ensures that regulations are as effective and efficient as possible, facilitates extensive consultations with stakeholders on proposed regulations and helps asses if the proposed regulation would be burdensome • who should conduct a RIA? - Public Body or Regulatory Agency proposing or amending any business regulations. • When Should the RIA process start? - The RIA process should start as early as possible when considering to introduce, amend, or repeal a regulatory framework.

6. 4. Chapter three Chapter three explains the phases and steps of the RIA as follows; • PHASES: Initial RIA, Partial RIA and Full RIA • STEPS:- • Problem definition and baseline -Describing the problem broadly and clearly identifying a range of choices, determining the extent of the problem, Determining the causes, Outlining the baseline, objectives – objectives must be SMART • Identification of options – Do nothing option, direct government intervention and indirect intervention

7. Cont’ • Comparison of costs and benefits of options -Comparisons can be either qualitative or quantitative. Quantitative comparisons require the use of RIA methodologies (Cost Benefit Analysis, Cost effective analysis & Standard Cost Model). • Stakeholder consultations - Consultation is a critical component of the RIA Process, Stakeholders play an important role than merely validating regulatory proposals, Public consultation procedures with affected interest groups are needed to ensure the widest possible input into regulatory decision-making and to ensure transparency of the process. Section 6(2)(b) a public body that intends to introduce any policy or proposed law for regulating business activity shall: Hold public consultation for thirty days

8. Cont’ • Selecting the best option and making recommendations - This step involves selecting the recommended option which will produce the best result.The best option should be selected on the basis of evidence. • An Implementation, monitoring and evaluation plan - The RIA Report should end with an implementation plan. State which institution(s), Department(s) or person will be responsible for implementation, monitoring and key performance indicators.

9. 5. Chapter four This chapter highlights the following: process • process of mainstreaming RIA in the policy and legislative making – Institution framework for RIA implementation i.e. The cabinet, highest policy making body; Parliament, for passing of relevant legislation; Policy Analysis and coordination Division (PAC); Ministry responsible for legal matters providing legal advise and drafting legislation; BRRA, reviewing and providing feedback on RIA reports and Public Body responsible for performing RIA.

10. CONT’ • Procedure for policy and Regulatory making process • All proposals for policy and legislation are initiated by public body or regulatory Agencies; • The regulatory agency or public body will submit the notice to BRRA two months prior to submission to cabinet; • Following the review of the initial RIA the regulatory agency will be advised whether to undertake a partial or full RIA; • Once finalised the RIA reports should be submitted to BRRA for review and determination; and • BRRA will convey its decision on the RIA report to the regulatory agency or public body and Copy Ministry responsible for justice and PAC.

11. 6. Chapter five This is chapter concludes the RIA handbook. It places emphasis on the benefits of conducting a RIA.

12. THANK YOU