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CBU lecturer highlights manufacturing, agriculture as sectors with potential

CBU lecturer highlights manufacturing, agriculture as sectors with potential
Written by Mutuna Chanda in Kitwe
Tuesday, February 17, 2009 6:15:51 AM

COPPERBELT University lecturer in the school of business Mundia Kabinga has highlighted manufacturing and agriculture as sectors with potential to raise Zambia's income in the face of low copper prices.

At a recent Consumer Unity Trust Society (CUTS) Africa Resource Centre meeting on the Enhanced Integrated Framework (EIF) in Kitwe, Kabinga singled out manufacturing and agriculture as some of the sectors that could raise the country's income.

He said the sectors had shown potential for growth and that if focused on could increase the country's fortunes.

"Under manufacturing, the first consideration is pretty much engineering products," Kabinga said.

"In 2007 we basically had engineering products exports increase to US $210 million as opposed to earnings of US $21.3 million in 2001. So there has been over 1000 per cent increase in engineering products. So this sector is one of the areas that Zambia could focus on in the face of the reducing copper prices and focus on producing engineering products. This was a result of manufacturing products such as copper rods, telecommunication cables and related products. This also was a result of the SADC Trade Protocol, which enabled us to access the South African market. The other products that are included are products like textiles, cement and products like sulphuric acid as well biofuels."

Kabinga observed that Zambia seemed to lack the political will to diversify from copper dependency.

"There seems to be a lack of political will to diversify the economy from copper and copper production," he observed.

"The lack of political will in part is because we had favourable copper prices in between. So with the favourable copper prices there is actually no real need to diversify. It's only times like this when copper prices are low that we have the impetus to diversify."

Kabinga also pointed to evidence of rising revenues from the agriculture sector.

"We see that agriculture basically turning US $182 million in 2007 as opposed to US $51.36 million in 2001. That is basically 300 per cent increase over six years. The main products are tobacco, cotton lint and coffee. In addition to this, we have fruits and mixed vegetables that are basically targeted at the UK and European markets. Closely associated with agriculture are the processed and refined foods. This has recorded growth from US $43 million in 2001 to US $115 million in 2007 which is almost 300 per cent increase as well. And this basically is a result of the volumes of sugar that were basically exported to the EU and the SADC region. In agriculture, we have the element of horticulture and floriculture. In 2007 horticulture had exports of US $37 million as opposed to US $23 million in 2006."

Kabinga added that Zambia's export earnings from horticulture and floriculture products could increase this year due to the depreciation of the kwacha against major convertible currencies.

He further said the Copperbelt Province could tap into tourism and use the sector to increase the country's income.

"We can market our culture - the way of life in the Copperbelt and the history of the province - and this could be incorporated into other packages that are being offered like a tour to Livingstone," he suggested.

"The targets could be the Chinese tourists who seem not so much affected by the global economic slowdown. And looking into the future, once the Copperbelt is done with copper and copper production, there is actually need to look at how the way of life on the Copperbelt would be sustained."

Kabinga also said Zambia's entrepreneurs seemed more focused on the local market without looking to opportunities to export.

He said Zambia needed a business class that would also focus on the export market.

Kabinga meanwhile pointed to poor infrastructure and high cost of doing business in the country as some of the challenges that needed to be addressed.

Labels: CBU, ECONOMY, MUNDIA KABINGA

posted by MrK @ 6:15 AM