Govt has stayed the course
Published On September 8, 2014 » 2180 Views» By Moses Kabaila Jr: Online Editor » Opinion
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THE Government has continued to move in the right direction regarding the creation of value chain clusters in all the country’s provincial centres.
Most of the projects under this concept, with some funded by the Citizens Economic Empowerment Commission (CEEC), have gained momentum.
Among the value chain cluster typical examples are the upcoming cooking oil and groundnut processing industries in Kasama, the fish project in Mbala, a rice project in Mongu in Western Province, as well as a cotton ginnery in Mumbwa.
Eastern Province is also ready to enhance these projects following the recent approval of 200 hectares of land by the local authorities there, for the development of value chain clusters.
With the approval of at least 16,500 loan applications from potential local investors, more value chain clusters are expected to be unveiled by CEEC, come November this year.
The recent injection of about K1.3 million by the Government through CEEC will definitely invigorate the rural industrialisation process which is set to create massive employment opportunities for skilled and semi-skilled Zambians.
There are a lot more of the value chain clusters coming up, however, covering almost all sectors of the economy that will add value to the products for the export market.
Among the most promising sectors is the timber industry that has started receiving attention from donors and other cooperating partners.
The local timber industry has not been doing very well because of the lack of processing industries that can add value to the products.
These products include the much-sought-after Mukula, Mukusi, Mukwa and Muombo trees, which have been smuggled out of the country in huge tonnes, causing the Government to lose colossal sums of revenue.
This is the sector that requires attention from the Government and all the stakeholders alike.
The Government should ensure that it restricts unwarranted export of these tree species to sustain the local industry through encouragement of value chain clusters in this sector.
Therefore, the upcoming Lumpuma timber cluster project in Lufwanyama District on the Copperbelt should be encouraged as it will add value to the forestry products.
The Finnish government should be commended for releasing 40,000 euros (K327,000) to enhance development of the Lumpuma cluster project, which is being spearheaded by the Zambia National Association of Saw Millers (ZNAS).
This project will not only help to create 1,400 employment opportunities for the Lufwanyama population, but also assist in the uplifting of living standards of the general citizenry.
The Lumpuma cluster project will, in addition, enhance value-addition and increase non-traditional exports which will, in turn, help to strengthen the value of the Kwacha against other international convertible currencies such as  the United States dollar, for example.
What the Government and all the stakeholders should continue to do is the vigorous development of road and communication infrastructure that also includes connecting all the earmarked clusters to the national electricity power grid.
This will promote industrial development as it will also help to attract massive foreign direct investments in this highly potential sector.

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