Manufacturing set for boost

GOVERNMENT has targeted to increase the manufacturing sector’s contribution to Gross Domestic Product (GDP) to 36.12 percent by 2030, says Ministry of Commerce, Trade and Industry Permanent Secretary, Mushuma Mulenga.

Mr Mulenga said Government would also increase manufactures exports as a share of merchandise exports to 71 percent by 2030.

He said Government in consultation with the private sector, continued to put in place policies and measures which are aimed at spurring growth in the manufacturing sector.

He said this recently during the webinar organised by the Zambia Association of Manufactures (ZAM) on the Statutory Instrument (SI) No. 110 of 2020 which allows r suspension of customs duty on imported manufacturing inputs which cannot be sourced locally.

“I am, therefore, happy to see that the Zambia Association of Manufacturers has taken keen interest in encouraging its members to utilize this incentive to spur growth of the manufacturing sector in Zambia and support economic recovery,” Mr Mulenga said.

He said information from the Zambia Statistical Agency reporting that the manufacturing sector recorded a growth of 0.2 percent in the third quarter of 2020 was impressive.

Mr Mulenga said the sector recorded positive growth after being affected by the negative effects of the Covid-19 pandemic.

“According to Zambia Statistical Agency, Zambia imported an average of ZMW 21.6 billion per year worth of manufacturing inputs and intermediate goods in the period 2009 to 2018.

“This huge figure demonstrates that a number of manufacturing inputs cannot be sourced locally,” he said.

Mr Mulenga therefore said the amendment to the suspension on manufacturing input Regulation was to recognise special preferential tariff Agreements.

“Government in consultation with the private sector, continued to put in place policies and measures which are aimed at spurring growth in the manufacturing sector. One such measure is the Customs and Excise Suspension Manufacturing Input Regulation which has been in place as far back as 1994.