Economy

Zambian manufacturers identify infrastructure gaps as key hurdle to Africa’s integration (Video)

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The Zambia Association of Manufacturers (ZAM) has identified inadequate infrastructure at entry points, roads and railways as major obstacles to Africa’s economic integration.

ZAM president, Ashu Saga, noted that despite the establishment of numerous free trade areas across the continent, Africa’s integration efforts had faltered.

Speaking at the 2024 Exporters’ Competitiveness Workshop at Protea Tower Hotel in Lusaka on Tuesday, Saga emphasised that Africa conducted the least amount of trade with itself compared to other regions.

He pointed out that intra-African trade remained stubbornly low, at just 15-20 percent, while Europe and Asia consistently report figures of 60 percent and above.

“It is no coincidence that poverty and unemployment remain widespread in our economies,” Saga remarked, adding that Africa’s largest trading partners are outside the continent, a reality that holds true for Zambia and many other African nations.

Saga explained that Africa’s underwhelming trade statistics had been widely researched, with many studies attempting to explain the causes.

He further highlighted that African economies tended to focus on a narrow range of non-specialized products, limiting trade opportunities.

Saga also pointed to non-tariff barriers as significant constraints to trade.

He stressed that now was the time to capitalize on Africa’s growing market, rising consumerism and the economic growth across many African nations.

Read More: Zambia’s manufacturing sector growth slows to 2.3% amid economic pressures (Video)

Canadian Head of Office, Counselor, and Consul Corry Van Gaal also addressed the workshop, underscoring the need to equip businesses with the tools and knowledge required to navigate the complexities of export logistics, standards, and market research.

“The global marketplace offers incredible opportunities, but it also presents its own challenges. Expanding your business beyond domestic borders can lead to increased revenue, greater market diversification, and enhanced competitiveness,” Van Gaal stated.

She pledged Canada’s commitment to strengthening its commercial relations with Zambia through mutually beneficial programs that promote investment and trade.

Meanwhile, Bernadette Mwakacheya, Director of Micro-Small Medium Enterprises at the Ministry of Small and Medium Enterprises, reaffirmed the government’s dedication to creating an enabling environment for SMEs to thrive.

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