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The Zambian government has announced a significant increase in the number of local products placed in chain stores, rising from 42 percent in 2021 to 68 percent this year.
The growth has been attributed to improvements in the standards and quality of locally produced goods.
Commerce, Trade and Industry Minister, Chipoka Mulenga, commended the Zambia Association of Manufacturers (ZAM) for their role in ensuring that local products now meet international standards.
He made the remarks during an agreement signing with ZAM and the launch of the 2024 Proudly Zambia Campaign Catalogue at the Radisson Blu Hotel in Lusaka on Thursday.
“This past year has been challenging due to a devastating drought that affected the productivity of industries, particularly in manufacturing,” Mulenga acknowledged.
However, he highlighted the opportunities that have emerged from the challenges, especially in the energy sector.
Mulenga stressed that the manufacturing sector must play a central role in the country’s economic reorientation, embracing innovation as a tool to increase productivity and raise household incomes.
ZAM President, Ashu Sagar, noted that despite the challenges of 2024, the manufacturing sector recorded a modest 2.3 percent growth in the first quarter, contributing 9.3 percent to Zambia’s Gross Domestic Product (GDP).
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He credited the growth to the resilience of ZAM members and supportive government policies.
However, Sagar pointed out that the energy supply crisis has been a significant challenge for manufacturers, as production is highly energy-intensive.
He welcomed government’s efforts to diversify energy sources and invest in renewable energy infrastructure, emphasizing the importance of stable energy supply to improve productivity and reduce operational costs.
Sagar also highlighted the need to address high production costs, lack of relevant skills, and unfair competition from imports to further strengthen the sector.
“We must leverage our advantages, including abundant natural resources, preferential market access, and a youthful workforce,” he concluded.
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