Manufacturing

The 2008 budget targets the private sector as the driving force for economic development in Zambia. In addition, the Fifth National Development Plan focuses Zambia’s economic growth on private sector investments in Agriculture, Mining, Tourism and Manufacturing.

On Friday February 8^th the Zambia Association of Manufacturers (ZAM) answered the Governments call for increased manufacturing by initially, formally launching the ZAM Secretariat in Lusaka.

The Governments of the Netherlands and Finland have extended their support to ZAM with a K1 Billion grant and other resources to assist in the quest to promote increased manufacturing and the creation of both wealth and new jobs.

After the fun and pomp that accompanies an official launch, ZAM will have to get down to do the serious work of dialoguing with the manufacturing companies around the country and come up with proposals to Government on policy development and other facilities that will lead to enhanced manufacturing in the country.

At the launch ZAM highlighted that it will put much effort in skills development to ensure that the manufacturing sector has the necessary human resources to support manufacturing at various levels.

Furthermore, the ZAM President looked to Government to support the manufacturing sector by the provision of incentives and opportunities for value addition in this sector. In addition, ZAM stressed the need for Government to improve the business environment for manufacturers and to attract new investment.

ZAM seeks Tax policies that should aim at strengthening investment in innovation and new technologies. At the support level, ZAM focuses on the need for the Zambia Development Agency, which is the port-of-first call for any investment coming into Zambia, to operate efficiently, expeditiously, and in harmony with other Government agencies so that investments in manufacturing can be promoted and facilitated at all levels.

Finally, ZAM expressed its desire to work with Government in establishing the Lusaka Multi Facility Economic Zone (MFEZ) which is currently being developed by the Japanese Government.

The obvious challenges for the new ZAM President, his Executive and the Secretariat are many and have to be faced head-on in addressing the issues contained in the President’s launch speech.

ZAM will need to be very decisive about what contribution it makes to the National Fiscal Budget each year to address the demands of its membership. ZAM will need to challenge the ZDA on the ambiguities of the ZDA Act which have resulted in some firms closing down and other would-be investments not taking off. ZAM will need to challenge the Government on the rules and regulations that will govern the Economic Zones which are currently cropping up in Lusaka and the Copperbelt without public awareness of the managing mechanisms. In this respect, the role of ZDA in taking charge of the MFEZ’s is a critical factor as ZDA has a division specifically set up for this purpose.

ZAM will be challenged to broaden its coverage by offering its membership and secretariat to the Small and Medium manufacturers which constitute more than 70% of manufacturing activity in Zambia.

ZAM will need to collaborate and co-operate with the many other business associations out there including the Zambia Chamber of Small and Medium Business Associations to spread its outreach across the country.

The impact of regional Free Trade Areas and Customs Unions as deliberated at SADC and COMESA have a direct impact on the future of manufacturing in Zambia. ZAM will find itself grappling with the demands of its membership and the consequences of regional integration on manufacturing. At the global level ZAM will have to participate in debate and dialogue with WTO issues affecting manufacturers in Zambia.

ZAM should look to the Zambia Bureau of Standards and the Zambia Weights and Measures Agency as allies in the manufacturing sector to ensure quality of products manufactured and compliance with package contents as required by law.

The ribbons have been cut, the doors have been opened, the offices are equipped with desks, chairs and computers, and now the serious work of delivering a service to the membership which must grow to national status, is the job at hand.

Welcome new ZAM, welcome new Secretariat, welcome new spirit, welcome new enthusiasm, and welcome new dialogue, debate, and demand for increased manufacturing in Zambia.

Published 19 February 2008