SCOTT

THE Zambian production sector has for a long time been grappling with the challenge of value addition which has seen the country becoming a major importer of finished products.
Zambia exports large quantities of raw materials such as copper, gemstones, timber and agro products like maize and cassava for example, whose value is added elsewhere.
This has not only relegated the country to the position of major importers but has also helped countries where raw materials go, with massive job creation.
These recipients of our raw materials largely depend on Zambia for the supply that translates into the creation of thousands of employment for their local people which has also helped to boost those countries’ economies.
How possible is it that, Zambia has over the last 50 years of independence failed to set up value addition projects and thus giving chance to foreign finished products to take centre stage?
Is it the problem of both the Government and the Private Sector who have failed to come up with a strategy towards ensuring value addition to the country’s raw materials?
These are among but a few leading questions that need immediate answers otherwise, Zambia will remain a major importer and the least exporter of value added goods to the global market.
Even Republican Vice-President Guy Scott who officiated at this year’s Zambia International Trade Fair (ZITF) in Ndola observed this and urged local entrepreneurs to use the trade show window as catalyst for growing their business ventures.
This year’s theme “Showcasing 50 years of business transformation development” could have been more appropriate only if the country has evidence of breaking through the barrier of value addition.
Dr Scott, who was not amused by the state of affairs in the local manufacturing sector, also noted that in its current form, the ZITF only served as platform for foreign products which have dominated the week-long fair.
Most Zambian entrepreneurs now act as lead agents for foreign manufacturers of various goods and services which can also be obtained and perfected within the country.
Government is right to express such concern because the trend is defeating this country’s economic diversification drive which was mooted at an economic forum in Kitwe more than a decade ago.
Now that the Government is implementing a reform agenda that will support value addition to the locally produced raw materials, the onus is both on the state and the Private sector who should work hand in hand in ensuring that such a programme succeeds.
It won’t auger well on stakeholders to see that the same issue on value addition keeps on recurring even in the upcoming ZITF events.
Government on the other hand, should draw closer to the local manufacturing sector to sort out some of the challenging issues that has stalled the sector’s prospects on value addition.
It will be important for both parties to undertake an autopsy that will bring a long lasting solution on the country’s inability to embark on large scale value addition programmes.
Zambia being among the top four fast growing economies in the sub Saharan Africa, will do well if it concentrates on value addition programmes that will guarantee sustainable economic diversification, job creation and poverty alleviation.
The issue of value addition should not only emerge when there are events such as the ZITF, Zambia Agriculture and Commercial Show (ZACS), or the Copperbelt Agriculture, Mining and Commercial Show (CAMCS) but should be tackled from both sides to ensure its success.
Zambia’s potential to add value to the locally produced goods, will help to boost Non Traditional Exports(NTEs) which will in turn, strengthen the fluctuating Kwacha against other convertible international currencies as well as the economy.