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(TIMES) ZCC implores state to introduce economic zones in rural areas

ZCC implores state to introduce economic zones in rural areas
By Times Reporter

THE Government should introduce Multi Facility Economic Zones (MFEZ) in rural areas so as to reduce the problem of rural urban drift. Zambia Competition Commission (ZCC) acting executive director, Thula Kaira, said this when he appeared before the parliamentary committee on economic affairs and labour, chaired by Zambezi East MP, Charles Kakoma (UPND).

He said MFEZ should be located in both rural and urban areas as that would entail the country’s economy growing at the same rate.

He said currently, the economic growth was concentrated in urban areas but that the trend would change once MFEZ were introduced in as many rural areas as possible.

“There is need to have a holistic national industrial and commercial development policy that stimulates and creates wealth even in firms outside the MFEZ, more so the micro, small and medium scale enterprises who are the backbone of any economy,” Mr Kaira said.

Much as the commission was in support of the establishment of MFEZ, Mr Kaira said that precautionary measures ought to be undertaken so that these do not act as bottlenecks in the economy.

He said if not handled properly, MFEZ would prevent, restrict or distort the growth and development of the general industry in Zambia.

Mr Kaira said that before establishing the MFEZ in rural areas, Government should take into account the comparative advantage of the particular area.

At the same time, Mr Kaira implored the Government to revitalise industries that were outside the line of rail such as Mansa Batteries, Kawambwa Tea Company, the pineapple canning industry in Mwinilunga and the cashew nut and rice industries in Mongu among others.

He said concentrating the MFEZ in urban areas was a disservice to the economic development of the country.

“Infact some companies operating outside the MFEZ may fail to compete and exit the market. This frustrates the efforts of developing Zambia and, therefore, hinders the creation of seed bed companies that would be corporations tomorrow,” Mr Kaira said.

Mr Kaira said that MFEZ should operate like they did in other countries where they run side by side with what were known as virtual zones.

Labels: CHARLES KAKOMA, MFEZ, ZCC

posted by MrK @ 6:54 AM