ZAM CALLS FOR URGENT REFORMS TO BOOST LOCAL MANUFACTURING

By Alain Kabinda

LUSAKA – The Zambia Association of Manufacturers (ZAM) has urged Government to urgently implement economic reforms aimed at reducing the cost of doing business, strengthening local production and expanding markets for Zambian-made goods.

ZAM President Mohammed Umar said the manufacturing sector was ready to support President Hakainde Hichilema’s Grow Zambia Agenda by creating jobs, adding value to locally available raw materials and increasing exports.

                                                        Mr. Mohammed Umar

In a statement welcoming the President’s address at the official opening of the First Session of the Fourteenth National Assembly on October 9, 2026, Mr Umar said economic stability must now translate into increased industrial investment, higher production and improved living standards.

He said manufacturing’s contribution to Gross Domestic Product (GDP) rose to 8.75 percent in 2025, the highest level in 30 years, but remained below the 36.1 percent target set under Vision 2030.

Mr Umar said Zambia needed to significantly increase manufacturing’s contribution to the economy by strengthening value addition and producing more goods for domestic and regional markets.

He welcomed the Government’s focus on manufacturing alongside agriculture, mining, tourism, energy and transport infrastructure as key drivers of economic transformation.

Mr Umar said reliable and competitively priced electricity remained critical to factory operations, noting that the 2024–2025 energy crisis had severely disrupted production across the sector.

He said the President’s target of generating 10,000 megawatts of electricity, together with increased private sector participation in transmission and distribution, was important for improving industrial competitiveness.

Mr Umar also welcomed plans to reduce the cost of doing business, promote exports of finished products under the African Continental Free Trade Area, COMESA and SADC, and invest in industrial parks and economic zones.

He said digitising border processes, improving transport corridors and introducing non-stop border operations could reduce delays and logistics costs for manufacturers.

The association further called for increased local processing of agricultural and mineral products to ensure that Zambia exports more finished goods instead of relying heavily on raw materials.

Mr Umar said production targets for maize, soya beans, wheat, sugar and beef presented opportunities for agro-processing and the growth of industries linked to agriculture.

He also welcomed the proposed establishment of a skills training centre in every district and a public university in every province that did not yet have one.

Mr Umar said manufacturers continued to face shortages of skilled technical workers, including welders, machinists, food technologists and quality controllers, which constrained business expansion.

He said ZAM was ready to work with Government and training institutions to align technical and vocational education with industry requirements.

The association also welcomed the recognition given to the Proudly Zambian Campaign, which it administers jointly with the Ministry of Commerce, Trade and Industry.

Mr Umar called for the campaign to be integrated into public and private sector procurement to increase demand for locally manufactured goods and support domestic industries.

He urged consumers, businesses and public institutions to prioritise quality Zambian products, saying increased local purchasing could sustain factories and support employment.

Looking ahead to the 2027 National Budget, ZAM said it would engage Government through the Public-Private Dialogue Forum and other platforms to propose measures that support local production, fair competition and export growth.

Mr Umar said manufacturers were ready to support bold and lawful economic measures but called for the announced reforms to be implemented with urgency.

He said the success of the Grow Zambia Agenda would ultimately be reflected in more factories, increased employment and a greater presence of Zambian-made products on local and regional markets.