Maravi

Govt gives incentives to steel, pharmaceutical industries

COMMENT - You'd suspect that the MMD knows how unpopular giving endless concessions to foreign 'investors' is at election time.

Govt gives incentives to steel, pharmaceutical industries
By Kabanda chulu and Misheck Wangwe in Ndola
Sun 03 July 2011, 20:40 CAT

GOVERNMENT has with immediate effect introduced incentives aimed at protecting the local steel-iron and pharmaceutical manufacturing industries. Notable measures include the banning of exports of scrap metal in order to create reserves of raw material for local iron and steel manufacturers and preferential government procurement to local pharmaceutical manufacturers.

Announcing the measures at the 47th Zambia International Trade Fair in Ndola, commerce minister Felix Mutati said the growth in the mining sector which is the biggest user of steel and iron products has not translated into a similar growth in the local steel and iron industry because mining companies prefer imported products.

“This situation is resulting in jobs being exported to countries where these products are imported from and mining companies are importing products that are locally available and this is injuring local industry especially that studies have shown that local products generally meet the required standards,” said Mutati.

Exports of scrap metal will not be allowed and government has imposed a 25 per cent duty on importation of grinding mills balls and another 25 per cent import duty on rolling stocks spares for underground mines.

Other measures include a 25 per cent import duty on the railway turn outs, switch blades, crossing frogs, point rods, bolts and nuts, among others.

And President Rupiah Banda said there is need for all business houses in the country to work together with government and ensure that Zambian goods are competitive in both quality and pricing.

Speaking when he officially opened this year’s Zambia International Trade Fair on Saturday, President Banda said government was aware of the challenges faced by the private sector that have constrained innovation and competitiveness.

He said the government has approved and launched a national policy on quality to ensure that Zambian products meet both local and international quality requirements so that quality conscious could be raised among suppliers and consumers in the country.

Labels: FELIX MUTATI

posted by MrK @ 3:32 PM