“Ndola industries need revival” – these were the noted words of Hon. Christopher Yaluma the Minister of Commerce Trade and Industry at the just ended 54th Zambia International Trade Fair. Indeed, Ndola and the entire mining and supporting industries require renewed focus and strategic interventions to foster sustainable economic growth. The Foundry Industry forms the base of any growing economy and can provide an enabling environment for industries to become more self-sufficient in key both mining and general manufacturing operations. The products of the Zambian Foundry Industry include but are not limited to; quality spare parts such as propellers, valves, pipes & fittings as well as billets and castings which are utilized by both the Mining Industry and by manufacturing firms. Notably, over the years, the number of non-ferrous foundries in Zambia has been increasing and with them the demand for non-ferrous scrap metal.
Unfortunately, today, the indiscriminate export of non-ferrous scrap abroad and to neighbouring countries is having seriously detrimental effects on the local Foundry Industry and is regrettably creating an untenable situation wherein local foundries must compete with foreign firms and/or individuals to access BASIC RAW MATERIALS namely, bronze – which are necessary for production. The unscrupulous export of this scrap metal which is the raw material alloy used for over 90% of the billets and castings required for the manufacture of spares is fast reaching the point whereby foundries will soon be forced to produce using virgin materials. This will substantially increase the price of local manufactured spare parts to a point where it will be more economical for the Mines and other consumers to import direct – raising Zambia’s import bill and skewing the trade balance further in favour of imported goods. This is in direct contravention with the Proudly Zambian Think Local First Campaign, as well as the policy direction iterated by the Government towards accelerating industrialization in Zambia as espoused in the National Industrial Policy, Local Content Strategy, Seventh National Development Plan and ultimately, Zambia’s Vision 2030.
Reviving Ndola’s Industries and the manufacturing sector at large requires the creation of a “level playing field” and the relevant authorities should look into the following; extending the ban on export of scrap metal under Statutory Instrument No. 102 on the Control of Goods (Import and Export) (Commerce) (Protection of Export) Order, 2011 to include BRONZE, in addition to ensuring stringent enforcement of existing regulations governing mines and minerals development. All genuine investors must be subjected to providing adequate documentation and proof of authenticity. I.e., investment licence, physical address, infrastructure, export licence details, proof of export earnings, export selling prices/tax & N.A.P.S.A. payments, permanent employees etc if the Industry is to operate in a manner that ultimately benefits Zambians.
“It is unacceptable that local manufacturers should have to compete for their BASIC RAW MATERIALS– with individuals whose sole intention is to export badly needed metals from Zambia.”
Whereas the Non-Ferrous Foundry Industry is only a fraction in terms of volume of that of the steel industry, it is still of significant importance to the growth of Industries in Zambia, manufacturing spares and replacement parts for the Mines, Cement Industry, Sugar Industry, heavy and light engineering works throughout the country. Local sourcing of products from the Foundry Industry must be encouraged as a cost reduction and competitiveness enhancing measure. However, the current choke hold on a basic raw material is strangling any efforts to revive the sector which has witnessed significant levels of downsizing based on a correctable situation.
In this regard, the Zambia Association of Manufacturers (ZAM) wishes to commend the Zambian Government on recognising the danger that arose form in allowing the indiscriminate export of steel scrap from the country in 2011 and https://viagrageneriquefr24.com/ the subsequent banning of exports of steel. This action saw Kafue transformed into a bustling town providing employment for thousands of Zambians and saving the country billions on imports. The same can and should be done for the Ndola and Kitwe, as it will see these industries and their towns restored to their former glory and contributing more positively to the aspirations of employment and wealth creation in Zambia.
Manufacturers are encouraged to continue engaging the Association and highlighting the challenges they are facing in achieving accelerated growth in their respective industries.
