GROWTH of Zambia’s Non-Traditional Exports (NTEs) over the last five years has been very impressive as this sector continues to post significant growth at the rate of 20 per cent per annum.
The sector has recorded encouraging results in products such as cement, lime, gemstones, tobacco, maize and cotton.
With cement recording the highest figure in terms of foreign exchange earnings in 2013, Zambia is assured of increased cement revenue in the next two years.
This can be assured through the coming on stream of Dangote Cement factory in Masaiti District on the Copperbelt in August this year, as well as the anticipated increased production at Lafarge and Zambezi Portland Cement plants.
Ndola Lime Company is also expected to set up a cement factory probably in the next two to three years depending on how quickly the firm can organise resources to procure plant equipment.
Apart from that, there is another lime plant by Handyman’s Paradise currently being constructed in Mpongwe District.
Latest figures for 2013 show that, cement and lime both raked in a total of $234 million and the figure is expected to grow in the coming year.
Apart from cement, the scaling up of production in sugar by Zambia Sugar and Kalungwishi sugar estate in Kasama, and Kafue sugar, will lay a strong foundation for Zambia’s NTEs.
Other upcoming products such as maize, tobacco, cotton and gemstones all need significant investments as they will be major industries in the much anticipated industrial clusters to be set up in the country’s provincial centres.
Gemstones have also continued to perform well every year attracting more international buyers through local auctions.
The four products have between them, rounded more than $1 billion in the last one year alone.
Although maize appeared not to have done much, raking in $ 151.9 million, the country’s bumper harvest of 3.3 million tonnes in the 2013/2014 harvest season will help to increase the rate of NTEs especially if all the grain is secured.
Government should ensure attractive producer prices for crops that have the potential to do well on the export market to maximise production to earn more foreign exchange for the country.
The increase in the production and export of these major items will have positive results on the Zambian economy beginning with massive creation of employment to the rural population especially in agriculture which will definitely develop value addition.
In addition, the increase in the rate of NTEs will have a positive bearing on the value of the local currency against other convertible international currencies.
The development and subsequent growth of the NTEs sector, is Zambia’s tramp card for the strengthening of both the economy and the local currency and its contribution to the nation’s Gross Domestic Product (GDP) will be more significant.