By 
The Zambia Association of Manufacturers (ZAM) has emphasized the importance of restoring economic stability to attract investment in the manufacturing sector.
ZAM Chief Executive Officer, Muntanga Lindunda, highlighted key strategies for enhancing the sector’s contribution to the Gross Domestic Product (GDP) during the 2025 National Budget submissions at a Consultative Meeting organized by the Ministry of Finance and National Planning in Lusaka.
Lindunda stated that bringing inflation within the 6-8 percent target band was crucial for addressing rising production costs.
Read More: Manufacturers propose key budget measures to boost Zambia’s manufacturing competitiveness
“There is a need to enhance economy-wide resilience to climate shocks through energy diversification and climate-resilient agriculture,” she suggested.
She further called for fostering a growth rate above 6 percent, aligning with the Vision 2030 baseline scenario.
Lindunda pointed out challenges faced by the sector, including the high corporate income tax (CIT) at 30 percent and value-added tax (VAT) at 16 percent.
“The government needs to address revenue losses due to tax evasion and quality/safety concerns. There is also a need for the government to address issues of delayed VAT refunds because this is essential,” she reiterated.
Additionally, Lindunda called for action on depreciating exchange rates and rising fuel costs. She noted that high licensing costs negatively impacted business operations, with manufacturers potentially facing up to 49 licenses.
“Market challenges arise from porous borders that encourage smuggling, unfair competition, and price undercutting,” Lindunda stated.
She reiterated ZAM’s call to address the issues surrounding excessive council levies, which were hindering investment and negatively impacting value chains.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments