Manufacturers in Zambia have reviewed the 2023 national budget and thrown their weight towards the Government’s plan to revolutionise the agriculture sector and bolster Zambia’s bid to be one of Africa’s main food producers but seek more incentives to accelerate sector growth-one of the country’s lifeblood.
Zambia Association of Manufacturers in its postmortem of the blueprint dubbed: “Stimulating Economic Growth, for Improved Livelihoods.” for the fiscal year, commend the Government for the cross-cutting measures to reform the Farmer Input Support Programme (FISP).
This is planned to assist fulfill the Government’s vision to maximize revenue from growth sectors note the inclusion of the need for value addition.
The reform of FISP, now pursued under a ‘Comprehensive Agriculture Programme’ (CAP) includes the need to encourage storage and logistics as it expands into a much broader and expanding it into a coherent but cost effective programme which will in turn have a greater multiplier effect.
Manufacturers President, Ashu Sagar in a statement accessed by FRA while concerned with the livestock sector, facing outbreaks of some infectious diseases including the Contagious Bovine Pleuropneumonia (CBPP) and African swine fever, welcomes the various decisions taken to enhance surveillance, prevention and control of animal diseases.
This will be done through establishment of an animal vaccine plant, promotion of veterinary public health and food safety, and enhancement of animal health research and diagnosis.
Other interventions planned include construction of bio-security infrastructure on trunk roads, and construction of bio-security infrastructure on trunk roads and completion of laboratories.
Manufacturers envisage the Government in collaboration with its standards agency-ZAB to expedite the development of Standards for Beef, Poultry and Chicken. Government is expected to further spearhead the development of national strategic plans for the livestock sector.
“The initiative to develop a robust animal identification and traceability system is welcome. This will reduce incidences of theft and whilst enhancing the country’s potential to export on the strength of meeting international standards that require the identification and traceability of livestock products from ‘’farm to fork’’.
Mr. Sagar in noting positive interventions in certain sub sectors of the manufacturing sector, highlights challenges and opportunities existing in sub-sectors.
These include the textiles and garments sector, wood processing, beverages, metal fabrication, pharmaceuticals, leather, soap and edible oils which are critical to the growth of the manufacturing sector that need redressed.
There is a need to review various dynamics in these industries being among those worst-hit during the era of COVID-19 pandemic. ZAM commended the Government for proposing in the next year’s budget to extend the local content allowance at the rate of 2%, for income tax purposes to encourage value addition to tomato.
This will be in addition to mango, pineapple and cassava. We look forward to this measure being extended to sectors such as leather and leather products, textiles and garments, pharmaceuticals, and the soya beans value chains.
Manufacturers note the Government’s bold decision to seek to stimulate economic growth and improve people’s livelihoods as evidenced by the placed desire to increase attention and funding in key growth sectors-Agriculture, Tourism, Mining and Manufacturing and whilst continuing to strengthen the enablers of energy and ICT, among others.
Mr. Sagar commends the finance minister Situmbeko Musokotwane’s recognition of the vital role the manufacturers play in the economic dynamism and stimulating growth and driving value addition, noting the insignificant contribution averaging 10% to the Gross Domestic Product, too low to attain real socio-economic transformation.
Efforts are underway to dialogue with the Government on matters of common interest and seek ways of how the sector could play a significant role in economic growth and attain the projected contributions through the 2030 Manufacturing to GDP.
Mr. Sagar commends the Government’s plans to mobilizing resources locally and urged all companies and other business houses and the local people to support locally produced goods and services which are labeled: “Proudly Zambian” logo for easy identification.
It urges players to seek to partner with the Association to secure targeted growth-oriented incentives.
In the medium to long-term ZAM is optimistic the Proudly Zambian ethos of “think local first” and buying Zambian be applied across all key economic sectors including but not limited to; Mining, Tourism, and Construction as the Government seeks to overcome the escalating debt and after effects of COVID 19 that affected economic growth.
Efforts are underway to lobby the Government agencies to procure goods locally and maximize the Domestic Resource Mobilisation (DRM) initiative and realize resources locally unlike borrowing.
“As ZAM we are confident that the measures taken will help in growing the economy and are hopeful that other measures with be considered in the short to medium term to accelerate growth and help us achieve our 2030 targets. We will continue to work with Government in trying to achieve this milestone.” he said.