Low manufacturing industry contribution to GDP worries government

Margaret Mwanakatwe – Commerce, Trade and Industry Minister

Government says it is not pleased with the country’s manufacturing industry’s dwindled contribution towards Gross Domestic Product (GDP).

Commerce Minister Margret Mwanakatwe says government wants to see an increase in its contribution from the current 7 percent to over 10 percent.

In a speech read on her behalf by the Ministry of Commerce, Trade and Industry Permanent Secretary Kayula Siame says government will however come up with proactive systems to help the sector enhance its competitiveness and productivity.

Ms. Kayula says government believes that coming up with the right policies, regulations, and the right legal framework depends on the input that comes from the sector.

She says the ministry has been working to release a standalone industrial policy which is aimed at further guiding development in the value addition arena.

Speaking earlier, Zambia Association of Manufacturers (ZAM) President Rosetta Chabala says the sector has faced challenges in due to high taxation on the imports of raw materials.

She emphasizes that government should reduce taxation on the importation on some of the raw materials if the industry is to flourish.