One of the key reasons Zambia has continued to import clothes and needlessly lose foreign exchange is due to the challenges that the cotton industry continues to face as well the continued reduction in production of the crop for over seven years now.
Ministry of Agriculture Director Moses Mwale said the production of cotton has been declining over the past years from about 260,000 metric tonnes in 2012 to about 41,000 metric tonnes in 2020, adding that the cotton industry’s performance has been below par when compared to other African countries.
Mwale said the poor performance of the cotton sub-sector can be attributed to gaps in the current legislation such as the lack of oversight over the entire cotton value chain, therefore the need to revise the Cotton Act in order to protect local farmers.
Speaking in an exclusive interview with the Zambian Business Times – ZBT, Mwale said the challenges in the cotton industry can be unlocked by enhancing policy and legislation, which is weak therefore the need to amend the Cotton Act in order to safeguard the industry.
He said the amendment of the Cotton Act is expected to revive the cotton industry and finalising the review of the Act will ensure the legislation responds to the demands of the industry players, most especially the farmers.
He also said the amendment of the Act will lead to the desired increase in production and productivity, exports and foreign earnings as well as job creation. Mwale further said the ministry is yet to have a stakeholders meeting which will address the many issues that are affecting the cotton sector such as how to handle the seed, business linkages and the ginneries.
Mwale said the ministry has set up a task force, which is specifically working on the process of amending the Cotton Act and has set up terms of reference for the task force, which will be discussed in the upcoming stakeholder meeting. He mentioned that government is looking at making a number of reforms in the agriculture sector and has plans of amending a number of Acts.
Zambia is currently a net importer of clothes and apparel when the country has suitable soils and weather conditions to grow Cotton. Cotton can then be processed for both local use and exports cutting off the need for imports.
Analysts say there is a need for the country to re-align its business mindset. The Kwacha is perpetually depreciating due to a default to importing even for items that can be locally produced and processed, and clothing and apparel one basic need that can contribute to import substitution.
