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Zambia’s manufacturing sector growth has slowed to 2.3 percent in the first quarter of 2024, down from 3.7 percent recorded in the same period in 2023, according to the Zambia Association of Manufacturers (ZAM).
ZAM Vice President-South, Chipego Chileshe, attributed the decline to several challenges hindering operations for the sector’s members.
Speaking at a media briefing in Lusaka on Wednesday, Chileshe said the sector had been impacted by global and domestic disruptions, inflationary pressures and currency volatility.
“These factors have led to an increase in the cost of doing business for most ZAM members,” Chileshe explained.
He added that: “Exchange rate volatility has adversely impacted the cost of procuring raw materials and inputs required for production, especially where these are not locally available.”
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Chileshe also cited rising fuel pump prices and electricity rationing, stemming from the national disaster the country was currently grappling with, as additional contributors to the sector’s slowed growth.
Despite these challenges, Chileshe highlighted the resilience of Zambian manufacturers, noting their commitment to confronting the issues, finding solutions and navigating through the difficulties.
“Over the course of the month, we will showcase our industry’s potential for sustainable growth, highlight opportunities for continued investment and celebrate manufacturers producing locally renowned products,” Chileshe stated.
She assured the public that ZAM would continue to support Zambian manufacturers through ongoing collaboration with the government.
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