Indiscriminate export of scrap metal worries ZAM

ZAM Chief Executive Officer Chipego Zulu

The Zambia Association of Manufacturers (ZAM) is saddened that by the indiscriminate export of non-ferrous scrap abroad and to neighboring countries which it says is having serious detrimental effects on the local foundry industry.

The association says this is regrettably creating an untenable situation where local foundries must compete with foreign firms and/or individuals to access basic raw materials which are necessary for production.

ZAM Chief Executive Officer, Chipego Zulu says the unscrupulous export of this scrap metal which is the raw material alloy used for over 90% of the billets and castings required for the manufacture of spares is fast reaching the point whereby foundries will soon be forced to produce using virgin materials.

Ms Zulu states that this will substantially increase the price of local manufactured spare parts to a point where it will be more economical for the Mines and other consumers to import, raising Zambia’s import bill and skewing the trade balance further in favour of imported goods.

She says this is in direct contravention with the ‘Proudly Zambian Think Local First Campaign’, as well as the policy direction reiterated by the Government towards accelerating industrialization in Zambia as espoused in the National Industrial Policy, Local Content Strategy, Seventh National Development Plan and ultimately, Zambia’s Vision 2030.