Economic stability should trigger planning - ZAM

THE stability in the economy created an opportunity for manufacturers to plan for their investments and businesses in the second uarter of 2018, the Zambia Association of Manufacturers (ZAM) has said. Z$0 Chief (xecutive 2fficer Chipego Zulu explained that the development had translated into higher levels of Non-Traditional Exports (NTEs) during the period under review. “In quarter two, the increasing level of stability in the economy has translated into a higher level of NTEs so recovery has started to be witnessed. “What it means is that we have to ensure that we are not consistently increasing the cost of doing business and production so that value addition can thrive in the country,” Ms Zulu said. Ms Zulu said in an interview in Lusaka that the economic recovery being recorded in the country had contributed to positive performance for the manufacturing industry. 6he said at the beginning of the year, the first Tuarter was interesting for the sector as the country opened the year with the cholera outbreak which resulted in increased sales for manufacturers of hygienic products while reducing sales for other players. Ms Zulu said a number of issues such as the amendments to the Customs and Excise Act which saw a number of inputs and intermediary products into the manufacturing process begin to be charged at an additional five per cent at the border also affected the sector negatively. “This is still an issue we are trying to resolve now with the Ministry of Finance, this is a measure that when applied wrongly which is a case here is affecting the sector negatively. So we have been calling on the suspension of Surtax of some critical inputs into the manufacturing process. “We hope that they will respond even prior to the budgeting process because this has been an issue that has been affecting the sector over the last six months and increasing the cost of production which is translating to higher costs of products for our consumers,” Ms Zulu said.