Aligning the Manufacturing Sector with the Agenda 2063: A sector we want!

The Agenda 2063 is Africa’s strategic framework that aims to deliver on the goal for inclusive and sustainable development and is a concrete manifestation of the Pan-African drive for unity, self-determination, freedom, progress and collective prosperity pursued under Pan-Africanism and the vision of an African Renaissance. This Agenda stipulates the masterplan for transforming Africa into a global powerhouse of the future and ensuring development driven by investments that are sustainable and beneficial for all. The primary means of achieving this shall be through transforming our economies.

Manufacturing has played a crucial role in the economic development and transformation of nations around the world. With the Agenda 2063 aimed at delivering Development, among other things, the Manufacturing Sector must play a role in the development of each African economy.

This is also true in the case of Zambia where the Manufacturing sector has proved to be an important sector in the development of the economy, as evidenced by the Government’s deliberate efforts to ensure that it contributes at least 20% of GDP by 2030.

How will the Zambian Manufacturing Sector contribute to the attainment of the goal of the Agenda 2063? What kind of sector do we want?

One way the Zambian manufacturing sector can contribute toward the achievement of the Agenda 2063 goal is by pursuing goals that drive Economic Transformation. Collaborative efforts between the Government and the Sector remain vital to work towards the goal.

What will be required to move towards a transformed economy?

Investments in Research and Development
In today’s highly competitive landscape, where success is defined by innovation, firms that prioritize Research and Development (R&D) are more likely to lead the industry, shape the market, and secure long-term success. Therefore, rather than focus production on basic commodities whose production processes are all too often unsustainable, the sector should allocate resources toward research and development to foster the innovation of improved quality products, in the process staying ahead of competition. Collaborating with research institutions, such as the Zambia Institute for Policy Analysis and Research, Policy Monitoring and Research Centre and the National Council for Scientific Research, among others, the sector will be able to share and gain knowledge that will drive technological advancements.

Promote Sustainable Practices
There is need for the sector to strengthen implementation of environmentally friendly manufacturing processes to reduce its carbon footprint. This means embracing circular economic principles by reusing materials and minimizing waste. It is for this reason that the Zambia Association of Manufacturing (ZAM) through partnerships with the United States Agency for International Development is promoting Environmental, Social, and Governance (ESG) practices amongst its members.

Develop a Skilled Workforce
To ensure rapid economic growth, there is need for the Government and the Sector to invest in training programs to upskill the labour force, ensuring they become competent for advanced manufacturing technologies. A skilled workforce can also be achieved by fostering collaborations between the sector and educational institutions to address the skills gap. With the signed memorandum of understanding between ZAM and TEVETA, the sector can partner with educational institutions to resolve the skills gap.

Enhance Supply Chain Resilience
There is a need for the sector to diversify and strengthen the supply chain to minimize disruptions through, leveraging digital technologies for real-time visibility and collaboration across the supply chain. Also, by investing in data analytics and contingency planning, the sector can identify potential disruptions and enable timely responses.

Ensure Regulatory Compliance
A sector that is well-informed and complies with evolving regulations will thrive such as those for; safety, environmental sustainability and Tax. To this effect, ZAM holds an annual ‘Know your Tax’ webinar to ensure tax awareness and compliance among members.

Investments in Infrastructure
Infrastructure development remains a major challenge to growth, economic diversification, and human development in Zambia, Gaps are prevalent with respect to power generation capacity and transportation infrastructure. Whilst the electrification rate remains low, the largely decrepit rail network places substantial burden on road infrastructure. The government should, therefore, upgrade and invest in modern infrastructure to support efficient transportation, communication, and logistics for the sector.

Penetration of External Markets
The Zambian economy is heavily dependent on copper mining and rain-fed agricultural production, which exposes the country to external vulnerabilities such as variances in global copper prices and progressively unpredictable seasonal weather patterns. There remains need for the Manufacturing to explore international markets as a means of diversifying revenue streams and increasing the reach of our manufactured products.

Pursuing the above strategies, the Manufacturing will be capacitated to contribute more effectively toward economic transformation, innovation, and sustainability not to mention gain competitiveness in the global market.

Finally, the sector we want, should go beyond economic success and profitability. It should actively contribute to the well-being of society, environmental conservation, and ethical business practices. Such a sector is more likely to be sustained in the long run and positively drive Economic Transformation, which will ensure the goal of Agenda 2063 is fully realized.

The Author is Assistant Policy Analyst at the Zambia Association of Manufacturers