By HELEN ZULU –

THE Zambia Cooperative Federation (ZCF) says the Government should set up an Industrial Development Fund (IDF) to support key industries in rural areas.

ZCF director general James Chirwa said the Government would provide funds as loans to particular cooperatives for the purchase of equipment or plant needed to start up an industry.

Mr Chirwa said the Government could, however, retain 30 per cent shares in the business to last for the loan period after which Government shares could be handed over to the particular cooperatives.

He said that Government shares shall be used to provide oversight on the project for accountability and transparency by Zambians.

Mr Chirwa said this on Tuesday when he appeared before the Parliamentary Committee on Economic Affairs chaired by Mazabuka Central Member of Parliament Garry Nkombo.

“One example we can give is that of furniture production. The Government can provide funds to buy a set of equipment needed to process and produce furniture and give it on loan to a cooperative in Kaoma, Mulobezi or Senanga where timber is imported from.

“This will make these timber producing districts become specialised in wood production and processing, this will in turn, create jobs for the people in the districts,” Mr Chirwa said.

Mr Chirwa said such initiatives could be replicated in other provinces to enable the country attain regional specialisation in the production of various finished products from agriculture commodities as raw material.

He said this move would promote rural industrialisation and employment creation thereby stopping rural urban migration.

“We need to stop as a country promoting industrial growth for other countries through providing those countries with raw materials. We also have to stop exporting the benefit of added value to other countries.

If we localise all these activities, then only shall we address the issue of high poverty levels, employment and sustain economic growth which is equitably distributed across the country,” Mr Chirwa said.

He said there was need to take bold steps and promote Agro-based industries in all provinces and that a choice of industry to take to which province or district should be inclined to the production capacity of that area for the commodities needed as input stock by the respective industry.

Mr Chirwa said doing this would see the country have a share of industrial and economic development.