“ZAM Remain resilient amidst challenges”
… Zambia’s Manufacturing Sector Shows Innovation Despite facing exchange rate volatility, rising energy costs, and inflation, Zambia’s manufacturing sector remains a vital economic pillar, calling for strategic support to sustain growth and innovation.
By Francis Maingaila
Lusaka, Zambia24 – (28-08-2024) – The Zambian manufacturing sector, despite facing significant challenges, continues to demonstrate resilience and innovation.
According to Chipago Zulu Chileshe of the Zambia Association of Manufacturers (ZAM), the sector is grappling with exchange rate volatility, increased energy costs, and inflation, which have all contributed to a slowdown in growth, yet it remains a vital part of the economy, underscoring the need for strategic support.
Speaking at a media briefing, Chileshe outlined the sector’s current struggles, stating, “Volatile exchange rates have driven up the cost of raw materials and inputs that are not produced locally.
The rising fuel prices and electricity rationing are further straining our operations.”
These challenges, Chileshe explained, have led to a decrease in the sector’s growth rate from 3.7% in the first quarter of 2023 to 2.3% in the same period of 2024, reflecting the broader economic pressures on manufacturers.
Despite these hurdles, Chileshe observed that Zambian manufacturers remain proactive and innovative.
She mentioned the launch of “Manufacturers’ Month,” a new initiative that aims to celebrate sector achievements, highlight investment opportunities, and promote locally produced goods.
“This initiative not only addresses ongoing issues but also focuses on promoting sustainability and competitiveness within the sector,” she explained.
Chileshe emphasized, “Manufacturers’ Month is an opportunity to showcase the strength and potential of our local manufacturing industry while also addressing the challenges we face.”
She noted that the resilience of Zambia’s manufacturing sector is a testament to the innovation and adaptability of local businesses.
“By investing in local production and sustainability practices, manufacturers are navigating economic challenges and laying the groundwork for future growth,” she indicated.
However, Chileshe stressed that addressing the sector’s issues requires a collaborative effort from both the government and the private sector.
She called for “supportive policies to stabilize exchange rates, reduce energy costs, and promote local production,” which she believes are crucial for bolstering manufacturing growth.
At the same media event, Jed Goldstein, Lead-Infrastructure Development at First Quantum Minerals (FQM), announced that the company will be the Diamond Sponsor for this year’s ZAM conference.
Goldstein said, “Our sponsorship underscores FQM’s commitment to supporting Zambia’s Manufacturing Month and advancing the local manufacturing sector.”
He explained that FQM’s sponsorship aligns with its goals of enhancing local procurement and building supplier capacity.
“By working closely with local suppliers, FQM aims to boost economic growth, create jobs, and reduce Zambia’s reliance on imports,” Goldstein added, noting that this strategy is vital for the sustainable development and industrialization of the country.
During the conference, FQM will highlight its partnership with ZAM and the Zambia Bureau of Standards (ZABS) to elevate local manufacturing standards to meet global requirements.
Goldstein introduced a new initiative involving a six-week secondment of a ZAM representative to FQM’s Trident and Kansanshi operations, aimed at providing insights into FQM’s procurement processes and efforts to promote local content.
He stated, “This initiative is part of FQM’s broader strategy to foster productive partnerships with local suppliers.”
The recent visit of ZAM’s Board of Directors to the Trident mine in Kalumbila further demonstrates FQM’s commitment to strengthening these relationships.
Goldstein concluded, “FQM’s involvement in Manufacturing Month reflects our dedication to supporting Zambia’s economic diversification and contributing to the growth of the local manufacturing sector.”