The Zambia Association of Manufacturers (ZAM) held its 34th Annual General Meeting (AGM) on 24th September 2020, under the theme “Exploring Smart Technologies for Value Addition”. The Association has progressively responded to the Corona Virus Disease (COVID-19) pandemic, setting trends to its members to utilize technology and support continued production. Evidently, ZAM has embraced the theme. The AGM was conducted as a hybrid meeting, with members joining in virtually while recipients of Proudly Zambian Campaign (PZC) certificates were physically present at the venue.
In collaboration with the Ministry of Commerce, Trade and Industry (MCTI), ZAM presented nine Proudly Zambian Certificates to manufacturing companies that had been vetted and approved as good representatives of Zambian local brands. Products from these companies were established as environmentally friendly and met international quality standards, two requirements for the use of the Proudly Zambian logo. Eighteen companies had received certification in 2019 and have been championing this campaign, inspiring consumer confidence in local products in the country.
ZAM therefore, wishes to congratulate the following companies for being accredited to the campaign and for their adherence and commitment to quality processes in their production.
- Ascensio Investments Limited
- Travium Supplies
- Manal Investments Limited
- Strongpak Limited
- Unified Chemicals Zambia Limited
- Unity Packages Limited
- Yatu Foods Limited
- Unity Garments Limited
- Sunfoods Trading Limited
ZAM urges all consumers to look out for products with the official PZC logo from accredited companies. Zambian manufacturing has grown to levels where there are now Zambian products in almost every production category. From household goods, to office equipment, to foods and beverages. Your purchase of local produced goods saves a job as employment is created, brings tax revenue into the country and allows for growth in the sector.
Moreover, manufacturing strengthens utilization of local content and Government support remains key in the process. ZAM is ready to overcome the underutilization of local content which has arisen mainly on account of, weak inter-sectoral linkages and lack of integration of local products into domestic value chains. ZAM is playing its role by ensuring that small and medium enterprises are developed into suppliers that can meaningfully contribute into the value chains. Actualisation of linkage development can be achieved through the Government’s enactment of the local content policy into law. Therefore, the local content law should be fast-tracked, to allow for effective development of economic linkages in the country.
During the AGM, dialogue and exchange of ideas was at the heart of the discussion between ZAM and MCTI. The private sector emphasized its role as a vital development partner whose strategic role in policy formulation and implementation was critical for development. ZAM relayed challenges affecting the manufacturing sector such as depreciation of the Zambian Kwacha, high interest rates, the escalating burden of costs, and illicit trade to the Guest of Honour.
High costs of production in the country on account of inconsistent policy decisions such as the Sales Tax proposal, were reported to have led to the subsequent decline in productivity, competitiveness, as well as disrupted willingness to enhance investments in plant expansion and process upgrading in the manufacturing sector. Thus, undertaking continued dialogue between the Government and industry captains was emphasized as essential, before drafting laws necessary to remove ambiguity and unpredictability in the fiscal environment.
ZAM further called on the Government to address the rising cost of doing business and lessen the high cost of borrowing because manufacturing firms could only remain competitive in the region if business costs remained stable. “We take note of the efforts that the Government has put in place especially in response to the pandemic. However, more support is needed with regards domestic industrialization to develop capabilities and make local commodities more competitive” it was said.
Additionally, the Illicit Trade challenge which continued to undermine competitive business practices and reduced the much-needed revenue for the country was brought to the fore. The Guest of Honour was informed that ZAM had instituted an anti-illicit trade task force to clamp on perpetuators and play its part in countering this scourge. “ZAM believes that addressing these challenges will be useful for Zambia’s economic transformation and for putting the economy back on the track of recovery.”
Lastly, it was brought to the Ministry’s attention, the intention for development of the ZAM act. By becoming an act of Parliament, ZAM believes that given a mandate to regulate, monitor and strengthen governance in the manufacturing sector, lack of coordination among manufacturers and illicit trade would be curbed. The enactment of the ZAM legislation would be used as a tool to defend local manufacturers and consumers against unscrupulous manufacturers and traders.
The Ministry’s responses addressed all the raised issues by ZAM members to the satisfaction of the AGM attendees. ZAM was offered an olive branch and open doors by the Ministry. Hence, ZAM wishes to extend its gratitude to MCTI for their continued support and partnership with the Association. Further gratitude is extended to industry captains and all other manufactures for their support to the 34th Annual AGM. Specific mention is made of the sponsors for 2020 who include: Trade Kings Group, Roland Imperial Tobacco Limited, ZAMEFA, Zambia Sugar PLC and Zambia Breweries PLC.
