The Millers Association of Zambia – MAZ president Andrew Chintala has announced that the milling industry is not ready for the African Continental Free Trade Area – AfCFTA as it is lacking proper infrastructure to enable Zambian based millers trade on the regional and continental markets.
Speaking during a presentation on the sidelines of the AfCFTA Consultative meeting organized by the Center for Trade Policy and Development – CTPD, Chintala told ZBT that the cost of production for farmers in the country is too high hence allowing competition of products on the continental market will spell trouble for the local industry.
He added that despite the move being beneficial to traders, there is a lot more to be done by government in areas of infrastructure development and the cost of production stating that the biggest challenge is when the industry tries to control the price of finished products from the producer’s end.
“We welcome the move of Zambia signing on the AfCFTA because it is a good tool for traders but it is not a good tool for producers and from our-end, we are not ready, not until the cost of production for farmers in the country is reduced and government address the need of infrastructure,” he said.
Chintala further said that there is need to establish a robust local manufacturing industry first if traders from Zambia are to favorably compete on the continental market adding that the raw materials for primary production are relatively more expensive in Zambia, hence has urged government to address the constraints the industry is facing before promoting and fully implementing AfCFTA.
And Trade Kings Group Chief Engineer Ernest Mande told the Zambian Business Times – ZBT in separate exclusive interview that the manufacturing sector is equally not ready for the treaty despite the opportunities that it will offer Zambia.
He said that there is need to network and coordinate with the private sector if the country’s productivity is to be realized adding that despite the manufacturing sector being one of Zambia’s large sectors and employers, it is currently grabbling with power supply constraints, hence has urged ZESCO to coordinate the activities of the manufactures in line with its load shedding hours.
CTPD Executive Director Isaac Mwaipopo has also noted the need to do more if the country is to participate on the AfCFTA to ensure the interests of local and the capability of local traders are enhance and are ready by the time it will be operationalized.
