The Zambia Association of Manufacturers has called for more dialogue and consultation between policy makers and other stakeholders towards developing joint solutions to waste management in the country. This follows the Cholera Outbreak during the first Quarter of the year, and calls for more stringent management of waste disposal in and around the country. To this effect, the ZAM Secretariat through its Chief Executive Officer Ms. Chipego Zulu issued a statement expressing deep concern regarding the development and possible enactment of a Statutory Instrument (SI) compelling manufacturers of packaging materials like plastics and bottles to remove them from the environment after use by consumers.
In her statement, Ms. Zulu stated the following; “Whereas Zambia Association of Manufacturers (ZAM) supports measures to promote the development of a clean and healthy environment in Zambia, we are strongly against the alleged measure to compel manufacturers to venture into garbage collection and waste management. In this regard, we wish to highlight that the need for HEIGHTENED LEVELS OF CONSULTATION with ZAM and other stakeholders in the development of Statutory Instruments whose intentions may be noble but unworkable and ultimately damaging to Industry in practice.” She further stated that: “Whereas we understand the need to champion a clean and green Zambia, we must equally champion measures that will not destabilize Industry and cause the economy to spiral into a period of accelerated economic downturn.”
In the detailed submission made to Policymakers – The Association highlighted a number of challenges and areas of concern including but not limited;
- Exponential Increase in the Costs of Production: This is due to the fact that manufacturers will need to further invest in expanding their operations to include garage collection and possibly recycling.
- Increased Commodity Prices: An increase in costs arising from compliance to the SI will certainly be passed on to consumers. This in turn will fuel inflation and reduce demand for locally manufactured packaging and products. Ultimately, this means that Zambian products will become more expensive on the market. The knock-on effect of the same is decreased levels of competitiveness of Zambian products. This is directly contrary to the aspirations of the Proudly Zambian Campaign, the Industrial Policy, and the Local Content Strategy which seek to promote increased consumption of quality locally manufactured products and services in addition to promoting local sourcing of inputs in Industry.
- Increased Importation of Packaging Materials and Products: Due to the increased costs of packaging materials and finished products, consumers and manufacturers will switch preferences and begin to opt for cheaper more affordable packaging options and products. This will undoubtedly kill existing packaging industries, as well as hamper business for users of their packaging materials leading to potential downsizing and closure of firms.
- Loss of Employment: Manufacturers of packaging materials will have to adjust their cost structures to cater for an increment in costs of compliance to this SI. This will translate in downsizing and job cuts in order to meet the same, with the dual effect of reducing the workforce, as well as reducing productivity in these firms.
- Reduced Revenue Collections: Job losses arising from higher compliance costs will result in significant loss of revenue for the Government in the form of reduced PAYE and NAPSA collections by the Zambian Revenue Authority (ZRA). This will have direct and dire implications on the Authority’s ability to meet debt servicing requirements amongst other public-sector expenditure obligations, including repaying long outstanding refunds to the business community.
- Reduced Forex Earnings: For companies that are exporting, this will translate into a loss of forex earnings as productivity and capacity to meet export demand will be reduced, as well as the final price of exported commodities increasing.
In closing their submission, the ZAM provided a number of recommendations to address the aforementioned challenge. The recommendations included but were not limited to;
- Immediate Withdrawal of the Draft SI on Packaging Waste
- The Ministry of Water Development undertaking a Regulatory Impact Assessment to establish the broad impact of this measure on Industry and the Zambian economy at large.
- Increased Sensitization on Good Waste Management Practices to All stakeholders.
- Increased Incentives to Promote Recycling Initiatives/Waste Management.
- Enhanced Enforcement of Regulations on Waste Management.
Waste management must be anchored in good waste management practices and thus requires a change in mindset of the Zambian people on how to manage waste products. Picking up after the consumer, with no accountability from them is not a sustainable solution to the problem.
