MANUFACTURERS Navigating climate LEVERAGING change INDIGENOUSeffects in KNOWLEDGE manufacturing SYSTEMS IN THE BEVERAGES SUBSECTOR

VALUE ADDITION TO WOOD PRODUCTS

ZAMBIA’s FOReons, there land has assets been are debate diverse between encom- passing arable land, scientific knowledge forests, wildlife and systems and indigenous wetlands. The estimated land area knowledge under systems forest cover (IKS), is about as to 44.6 which million is more hectares effecof Zambia’s tive and total applicable land area. in the manufacturing Therefore, Zambia’s sector. abundant forests With have the potential recent to inmake a significant contribution to-

creased contributions that

wards economic growth because

IKS’ have had on manu

these dominant forests cover 60% facturing of the and country’s agriculture total land area, sectors, with including the main vegetation cross type cutting being issues Miombo like climate woodland which change, covers it can 47% be of said the that coun- try’s IKS land are effective area. Theoretically, in enhancthe forest resources in Zambia are

ing production in those

sufficient to satisfy the country’s

sectors, despite lacking re

domestic demand of wood and wood search products, and in most even after cases 20 years scientific of sustained underpinnings. growth in de- hoods mand and According of wood. other to sectors, UNESCO, the effects “Local However, of climate and local indigenous value variation addition

the to knowledge manufacturing wood, which refers among to sector the other have things understandings, often involves gone wood skills unnoticed. processing and

has lagged, despite the surge in

Thus, philosophies the need to developed highlight

the demand of wood and wood

effects by societies of climate with long change his

products. The tree species of the commercial tories manufacturing of interaction value in Zambia sector. with are The mainly their adverse natural used for surroundings. effects timber produc- of cli- mate tion, For change rural as construction and on indigenous electricity material generation and peoples, for making were local furniture outlined knowledge prod- by

Finance ucts. informs Currently, decision-making Minister a large in import the 2021 National demand about fundamental for Budget value added aspects Speech. wood

products exists in Zambia, and

The Electricity of day-to-day deficit life.” became

this can be seen from the imports

more pronounced Today, it can

of particle boards and be in plywood seen 2015– in 2016 2020, that when which scientific reduced stood at methods about rainfall K 58 had million devastating continue and to K 36 recognise million, effects respec- inon river flows tively. digenous Particle in systems Zambia, boards in are leading their usually

historical practices and low even water methlev- in ods the of Kariba research, Dam, especially which stood in at pharmaceuticals, 12% of capacity food in January and 2016. beverages. With The use Zambia of generating about 85% of its IKS’ in scientific methods and research has been successful due to an emphasis on Research and Development (R&D). Embedding

IKS’ into modern science, creates a platform to inmade out of sawdust and wood- utilization of local wood in the report also highlighted high en particles, whilst plywood is a production of products such as lumber transportation costs in wooden electricity panel that from is composed hydro-power particle boards decline and plywood. since 2015. Climate the final Zambia manufactured as a major hindrance prod- of stations, thin cross-bonded lack of veneers water has Firstly, ex- according change to the World has notably affect- ucts expensive, to value addition consequently and local util- glued. acerbated the already existing Bank’s Light Manufacturing ed rainfall in patterns. Floods failing isation. to compete Transportation favourably costs are Locally power produced deficit, wood causing and Zambia ZESCO Report and of 2013, droughts equip- approximately $4.25 per kilo-

corporate diversity, culture which acquired a company IKS have especially become with regards with to imported turers identified goods. a gap in the its by to products effect can be used in ment for wood processing is metre per ton compared with

sustainable severe practices electricity that ra- produces more kombucha pronounced beverages. in Zambia. the and production of particle boards considerably older on average, In light market. $0.28 of in China reduced and even water less in and that tioning plywood, can be applied from which around are in various main- 2015. beverages despite Nonetheless, it being a agriculture re-

in Zambia at 28 years, than in resources the Local other because countries. beverages of such poor as ly products on demand Power in the deficits manufacturhave beverage been in the domestic China at 3–7 which years mains was mainly made rainfed in Zam-

and 7–13 in rainfall ‘Munkoyo’ patterns, Therefore, and how the ‘Chibwantu’, can expensive the market, ing one sector. as of seen the by the major import causes Vietnam. on a small of Older scale bia wood as by processing costs houseof setting up irri- Zambian that landed manufacturing are wood made increases using IKS, the sec- are cost demand. reduction The beverages Particle in subsector boards manufacturing and in machinery holds in the is not gation United as precise States are and of extremely high for

tor grow a of good the whilst value-added representation adapting wood of local prod- and plywood developed production are countries because has seen electrici- America (USA). small According scale to farmers to afford.

used for a number agile as newer machines, there- ucts, compared to imported val-

mitigating content the utilisation adverse in the effects bevof continuous things, ty is such an use as making various component fore cannot produce Manufacturing wood prod-

important of IKS’ in their Fortune Business Insights, subsectors

ue-added wood products.

of climate erage’s change? subsector and a perhome in and the industrial production furniture. process ucts of and modern like standards. agro-processing Most are high- Thus, whilst utilization of lo- They production, can also be with used big to manumake manufacturers the Kombucha of market furniture, in who the Firstly, fect cal inputs despite illustration in the the wood of Govern- products and wood

is needed starting to to run commermechanised USA alone was ly worth dependent almost on the outputs roofing facturers and flooring sheets. are Micro, Small and Medium ment’s that processing significant are Proudly subsector investment Zambian. is import-

plants products and made equipment. using 2 billions Man- of dollars of agriculture in 2020. for their forward

Despite cialise the evidence of high Scale Enterprises (MSME’s), ant These because beverages stations, it creates made employ- there us

ufacturers have had to either and backward linkages. Yet in hydro-power domestic IKS. One demand popular and example abun- therefore Transforming resort to from importing a home is still need ing

ment, IKS because to not diversify only of the have labour-in- sourc- local dant invest raw materials, in alternative the country sources boards from because processed wood agricultural output

is the beverage known as brewed tea, this indigenous demand tensive nature but in have the of the country. the potenwood has of experienced electricity hurdles to in cover the products down- such as has particle not boards efficiently been pro- es of energy

processing industry, the country

Kombucha. Transformed by drink is gradually becoming

time or reduce production duced, the quality and price of Zambia tial needs to penetrate to invest the regionmore different and come yeasts out and at acetic a loss on commercialised both agricultural to a health products remain in climate al market smart and technologies contribute to acid options bacteria, because Kombucha their is drink costs which expensive anyone can acinputs into the which non-traditional are less susceptible exports. to basically increase. a beverage Manufacturing that is cess sec- on a supermarket agro-processing shelf. industry. Ul- climate change Similar to the such case as of Komsolar made tor from growth sweetened has been tea. on However, the limited timately, R&D espemaking the price of or wind bucha power. in the Diversifying USA, limited While its specific origins recially amongst Micro, Small R&D, especially amongst main unknown, the beverage and Medium enterprises MSME’s, has hindered the is known to have originated (MSME’s), has limited conuse of IKS to make beverages in Asia. trol over the production proin Zambia. This means there

Kombucha has in recent cess and affected the quality is no control over the producyears drawn the attention of of Kombucha. tion process which MSME’s big companies like Pepsi Co, Zambia boasts of very rich use, and this increases the

Beverages which were commonly brewed on a small scale have started gaining prominence and are now being produced at a commercial scale because manufacthe sources of the country’s

is not adding much value to its forest energy possibility resources. generation of Value using addition incorwill ensure to a the rect more wood production stable raw materials processes. energy would pool spur will Furthermore, economic reduce growth overdependence setting as the final on up products a hydro-power plant or specifically intermediate generation to products which produce produced gets beverages affected can be made pack- by low aged ter using for levels. export. IKS is expensive, be

In order to boost local util-

cause Secondly, the machinery the Government, has to

isation and value addition to wood needs be tailor products, to made regulate the to suite Zambian the water Government ciently beverage and being should effectively produced. facilitate as for a Additionally, investment key input that there in will are the ensure curmanufac- technology turing rently no transfer sector quality for standards, MSME’s both directly involved and for beverages indirectly. in wood processing made This using is as because well there IKS, as which establish is an manufacturers increasing policy mea- demand sures can to abide enhance by. value addition.

of water by other sectors,

Measures could include loans for capital to IKS, an equipment just ever-increasing as with which any body could popu- be lation. of at knowledge, lower The or free agriculture have of interest limitarates. currently tions Additionally, and perhaps accounts technical these are for as- 73% sistance all criticized water and training more withdrawn than on how sciento from create ter tific sources specialised knowledge. in wood Zambia, However, products making from it the the historical machinery largest value could sector that be ar- is consum- ranged possessed to ensure in these the production systems ing water. The total industrial

of high standard wood products.

water Key should additional demand be leveraged measures in on 2020 and is could mated thoroughly include to be researched reduction 474 million by of transportation metres manufacturers, approximately costs in by order availing to 14.8%. affordable Industry commercialise transport thus beverages infrastruc- require ture, ventions made such using as rail that IKS. lines, will to timber ensure harvest the Partnership needed centres and water wood between is pro- available. cessing academia, hubs. Lastly, research institutions insti

Lastly, the Government

of higher learning with schools of needs tutions natural resources to and invest manufacturcan more develop in short gation ers courses is required, and on product adaptation in order devel- to opment sures strengthen and in design, the R&D for in agriculture producMSME’s involved tor, tion processes as in wood a response processing and improve and to climate value change, the addition. shelf life, so This outlook that will ensure agricultural and that output quality MSME’s of is in beverages not wood affected. processing made Having get from the IKS. much-needed technical expertise considered and increase that their agricultural pro- ductivity. output Furthermore, is an important the lack in of the standards agro-processing in these inindus- try, digenous this then drinks reduces entails costs inputs that the Zambia into Bureau manufacturing of because Standards supply (ZABS) is needs then not fected. to quickly set clear quality standards for beverages made using IKS, because the possibility of exporting these beverages into the region will only be strengthened when quality standards have been in place.

and plywood from China.

Secondly, the same report highlights that MSME’s make up approximately 95% of the registered wood processing companies, and they struggle produce high-quality products suitable for export. Poor product design and development com- pound the problem, as there are

Local beverages

no design schools which focus

such as ‘Munkoyo’

on making intermediate goods from wood. Therefore, most

and ‘Chibwantu’,

Zambian workers in wood pro-

that are made us

cessing plants lack basic skills

ing IKS, are a good

and competence to process wood. Moreover, specific tech-

representation of

nical and managerial expertise is

local content utilisation in

missing therefore affecting their

the beverage’s subsector

productivity.

Lastly, the World Bank’s 2013

and a perfect illustration of products that are Proudly Zambian.