Government has suspended customs and excise duty on the importation of wheat affective 1st April 2024 until 30 August 2024. Wheat and bread product prices have been on a steep rise with the Bakeries Association of Zambia calling for action from authorities to arrest the trend.
According to a statutory instrument – SI signed by Finance Minister Dr. Situmbeko Musokotwane and made available to the Zambian Business Times – ZBT, a total of 21 companies have been allocated specified quantities and will require an import permit to bring in the wheat. The 21 companies have been allocated a total of 100,000 tons to import within the five months period.
Pemba flour mills received the lions share of the allocation to import 15,000 tons, followed by National Million corporation – a seaboard subsidiary which has been allocated an import quota of 13,950 tons. The third highest allocation was granted to Royal milling for the import of 13,900 tons
Other notable companies that received bigger shares of the 100,000 import quotas and suspended import duties were Queen millers with 7,950 tons, while Nyimba Milling and Africa Milling were granted 7,500 apiece.
Zambia has the necessary soils, water bodies and a reasonable winter period that can deliver a number harvest for wheat. However, challenges about especially for local farmers in terms of lack of affordable financing to grow the number and hectarage under wheat cultivation. Moreover, the recorded drought in the 2023/2024 agro season has also affected the water levels available for winter wheat cropping.
