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Zambia must focus on producing vehicle spares and the production of Mining Equipment, Technology and Services (METS) to benefit from Africa’s car manufacturing industry.
Vehicle manufacturing industry raises hope for Africa’s industrialisation so Zambia must be part of it by producing vehicle spares and METS, according to a Policy Analyst Zondwayo Duma.
Duma observed that Zambia may need to explore other ventures in its pursuit to benefit from the growing interest in supporting locally made goods.
Unfortunately, he said, vehicle making was not one of them in the short term, due to its small population and high competition from early producers.
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“Hence, it is recommended that Zambia focuses on developing high earning, and fast consuming sectors such as the production of car spares and the METS.
“The production of Mining Equipment will be able to supply the fast-growing engineering sector in the region,” he said in his write up on positioning Zambia as a Regional Hub for Mining on Monday.
While making this suggestion, Duma said players would still be subject to high competition from early comers in the industry such as South Africa who had been able to develop their industries and produce more sophisticated goods of higher quality and were able to meet demand required.
He stated that in the development of mining strategies, Government would need to be deliberate about value addition of mineral resources and the role Zambia would play in the developing regional value chains.
“Owing to the fact the metal fabrication industry in underdeveloped in Zambia, the government will need to identify the best performing companies in the mining value chain, especially those investing in the production of spares and mining equipment and technology.
“The identified companies should be subjected to the necessary training and exposure necessary for them to be able to produce goods of high quality,” Duma said.
Government, he said, would have to provide the companies with the necessary tax incentives such as duty waivers, as well as restructure the Development Bank of Zambia (DBZ) to finance the companies’ investments in quality as well as plant expansion.
He pointed out that government would further need to undertake more joint activities beyond the Zambia-DRC lithium battery production and the Zambia-Zimbabwe industrial parks.
“The changing patterns of production and trade provides Zambia with an opportunity to be regional hub for mining activity.
Zambia is strategically positioned to be an important player in the regions efforts towards employing regional value chains,” Duma said.
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