THE Private Sector Development Association (PSDA) has welcomed Government's intention to merge the Zambia Development Agency (ZDA) and Public Private Partnership (PPP) Unit to establish an Industrial Development Commission (IDC).

PSDA chairperson Yusuf Dodia said the move would enhance Zambia's economic development.

He said the intention by the Government to merge the two units would enhance the capacity and efficiency of the two entities which would now fall under one ministry.

Mr Dodia said the participation of the private sector in Zambia should be encouraged because it plays a vital role in economic development.

"As the private sector we have welcomed the development because the two units play a very vital role in enhancing the participation of the private sector in the economy, especially where investment is concerned," he said.

He said there was need for the Government to fully fund the two if they were to perform to the expectation of both the private and public sectors.

He said the two should have separate directorates for them to be efficient in carrying out their mandates instead of being under one directorate.

Recently, President Michael Sata said Government was in the process of merging ZDA and the PPP unit to establish an IDC which would enhance capacity for Zambia's economic development.

The President said Zambia had a huge backlog of development arrears which would require persistent efforts from all Zambians to reduce the high levels of poverty estimated at 60 per cent and reaching 80 per cent in the rural areas.

Mr Dodia said his organisation had always advocated the close partnership between the private and public sectors in Zambia to spur development.