In the quest to understand it members needs and challenges, ZAM undertakes field visits to its members. In the months of March and April 2022, intensified visits were made to several members manufacturing nutritious foods and beverages, to understand the cost implications of statutory licences and permits, in line with a study that was being undertaken in conjunction with the World Food Programme (WFP) and National Food Nutrition Commission (NFNC). The study
The study investigated the cost impact of statutory licenses and permits with objectives to; undertake a thematic analysis of the statutory instruments for licenses and permits which are applicable to manufacturers of nutritious food and beverages; conduct a cost analysis of the statutory permits and licences that are applicable to manufacturers of nutritious food and beverages; assess the impact of the cost of statutory licenses and permits of the cost of nutritious food and beverages and to conduct a profitability analysis of manufacturers of nutritious food and beverages.
In light of the above, the Association visited several members who manufacture nutritious foods and beverages. Some of the companies visited were: Essential Commodities Limited; Silva Foods Limited; 260 Brands; Umoyo Natural Health; Granny’s Bakery; Rivonia Farms; Zambeef Products PLC; Java Foods and others.
The ZAM team designed a questionnaire where the manufacturers were asked among other things which permits and licenses were applicable to them at initial startup and in 2021? What amounts were associated with obtaining the licenses and permits? What permits, and licenses manufacturers were required to obtain if they export their products? and lastly what they would want the Government to do in relation with the costs?
ZAM’s finding are in line with manufacturers of nutritious foods and beverages complaints of high costs. A review of the Acts and Statutory Instruments show that required annual payments amount to K356,000 for small manufacturers and as high as K36,000,000 for large manufacturers. Manufactures also face between 31 – 56 licenses and permits. Major complaints were recorded from SMEs whose statutory payments exceed their turnover. Manufacturers would like the costs to be rationalised especially on business that are just starting up.
The research visits gave the staff at the Association insights into some of the challenges the members face in relation to their business. The Secretariat deeply thank members that gave them access to their information as this interaction will help ZAM petition the Government with clear evidence and lobby for reduced costs and help reduce the cost of doing business in the manufacturing sector in the country.
