Maravi

Scrap metal export is killing local industry, says Mutati

Scrap metal export is killing local industry, says Mutati
By Kabanda Chulu in Kitwe
Wed 20 July 2011, 14:00 CAT

FELIX Mutati says the continued exportation of scrap metal is killing local manufacturing industries, resulting in factories being turned into warehouses. Justifying the imposition of the ban on scrap metal exports, Mutati, who is Minister of Commerce, Trade and Industry, said the government has introduced measures aimed at developing the steel and iron industry in Zambia.

“The ban of scrap metal exports is expected to help mobilise reserves for the production of steel and iron products by the existing and upcoming plants. Mind you Zambia is the only country in the region which is exporting scrap metal, so what will happen is that the industry we are creating will suffocate and it will not matter what other measures we put in place if scrap is being exported,” Mutati said.

“The only way to survive is doing what is sensible like what other countries have done; are we made of different material that we can’t see that we are exporting jobs and killing our industries. then people will complain that what is this government doing? So, as government we have moved and we are going to implement and we are serious because we think if we put these measures, we are creating opportunities in steel sector.”

He explained that it was not easy to arrive at measures aimed at developing the steel and iron industry.

“How do you deal with a reduction of jobs on one hand and creation of jobs within the same industry…so we are dealing with different perspectives of the same people in the same industry. Others are saying minister, if you do this we shall attract this kind of investments. So far US $ 400 million has been invested in the steel sector due to business reforms being implemented,” said Mutati.

“On the other side of the equation, the sun never rises with investments being low, they are booming negatively and saying government must bring solutions through participation but government will not take over the role of business. Of course we don’t have total cure but we shall create level-playing field through application of good policies and regulations.”

Labels: FELIX MUTATI, METALS, NEOLIBERALISM, REGULATION

posted by MrK @ 10:27 PM