Maravi

ZAM urges govt to protect local industries

ZAM urges govt to protect local industries
By Kabanda Chulu in Kitwe
Sat 13 Feb. 2010, 04:00 CAT

ZAMBIA Association of Manufacturers (ZAM) yesterday challenged the government to urgently address the high cost of doing business so that local industries are not jeopardised through the flooding of cheaper imported products under the free trade regional integration markets.

And ZAM vice-president for the Northern Region Eugene Appel has said there is need for mechanisms to ensure that proposed joint ventures with foreign entities result into meaningful partnerships.

In an interview in Kitwe, Appel said the coming of regional markets would result in mass production of goods that would see Zambian producers disadvantaged due to the high cost of borrowing that hinders their capacity to expand.

“Producers exporting into Zambia borrow funds at lower interest rates in their countries hence whatever they produce will be cheaper so our goods will not compete favourably and this will negatively affect local industries,” Appel said.

“So government should urgently address the high cost of doing business in the country otherwise benefits of regional integrations will bypass us just because we cannot borrow to invest and expand since interest rates are too high.”

He said the Citizens Economic Empowerment Commission’s financing to Kechas General Dealers for Iron sheet manufacturing was a good initiative that would result in a positive impact on the economy.

“But this financing facility should be done on a large scale and we need to see such financing being available to many projects because it shows that economic development is possible when funds are readily available,” Appel said.

He said it was encouraging to see government talking about joint ventures with foreign investors especially those from the Asian block.

“But this has not materialised into actual and meaningful partnership because certain mechanism are not in place hence government should ensure that guidelines are there and should be implemented,” said Appel.

Labels: CEEC, EUGENE APPEL, MANUFACTURING, ZAMBIA ASSOCIATION OF MANUFACTURERS

posted by MrK @ 3:39 AM