The Zambia Association of Manufacturers (ZAM) has said the intention by the new government to move towards cost reflective tariffs should be well managed to ensure that it does not inadvertently hurt industry and local production in the process.
Speaking in an interview with the Zambian Business Times-ZBT, ZAM board member Chipego Zulu-Chileshe said the association was looking forward to various engagements that will surround the development of the energy sector specifically with the intention to move towards cost reflective tariffs.
Chileshe said this must be a well-managed process that cushions the adverse effects of an exponential increase in the cost of energy for the manufacturing sector.
“With respect to the energy sector we continue to monitor developments around the sector and welcome the measures that have been announced in part by the President Hakainde Hichilema and the commitments that have been made towards delivering affordable and clean energy and powering the nation.
“As manufacturers, we are constantly calling consistent and steady supply of energy that is affordable and we look forward to various engagements that will surround the development of the energy sector specifically with the intention to move towards cost reflective tariffs,” she said.
Chileshe said this would of course require a consultative process that prepares manufacturers for any changes in the tariff regime and ensures that they are able to adjust accordingly.
She said the association welcomes the opportunity to participate in various trade reforms that would be required to strengthen the performance of the private sector in exports to the region.
Chileshe said, “We welcome the measures that have already been announced specifically the intentions to strengthen Zambia Bureau of Standards (ZABS) and the intention to facilitate the flow of trade and investments as well as governments intention to put in place export financing to support various Zambian businesses.
She said when it comes to reducing the cost of doing business in order for Zambian companies to compete and be competitive in regional markets, there is need for concerted and deliberate efforts to reduce the cost of production and the cost of doing business for local manufacturers.
“We do note the intention to streamline and reduce the number of licenses and permits which has been quite tedious and costly for various manufacturers, to also address the issues surrounding processing time and transactions, to encourage e-commerce, e-registration and e-payments which will enhance efficiency as well and to extend affordable credit and finance to players in the manufacturing sector.
“We are cognizance of the fact that the cost of doing business has been hampering the ability of the manufacturing sector to achieve its full potential. As such, we do look forward to not only participate in this process of private sector led growth in manufacturing but to also to contribute to the process through the provision of technical, insight and expertise in the sector with respect to how we can reduce cost of doing business and how we can accelerate the growth of the sector,” she added.
