THE Zambia Association of Manufacturers (ZAM) is calling for a collaborative effort to implement policy reforms aimed at strengthening the country’s manufacturing sector.
The appeal was made during the launch of the 15th Manufacturers’ Month of August, where ZAM emphasised that a unified approach is essential for fostering a conducive environment for industrial growth.
ZAM president, Ashu Sagar, highlighted the manufacturing sector’s current contribution of just nine percent to the country’s Gross Domestic Product (GDP), a figure he described as “alarmingly low” when compared to the 36.1 percent target set in Zambia’s Vision 2030.
Sagar pointed to several key challenges hindering the sector’s expansion, including inconsistent tax policies, illicit trade, energy shortages and exchange rate fluctuations.
He also noted that Small and Medium Enterprises (SMEs) are particularly burdened by complicated licensing procedures and a lack of access to affordable, long-term financing.
“These obstacles pose significant barriers to the growth and success of the manufacturing industry,” he stated.
He stated that during the recent ZAM pre-budget consultations, participants expressed significant concerns about the 2025 supplementary budget and 2026 proposals, particularly regarding their implications for industrial competitiveness.
While ZAM endorses the increase in excise duty on imported soft drinks, Sagar denounced the sharp tax hikes on alcohol and tobacco, cautioning that these changes could negatively affect compliant manufacturers.
However, to address these issues and promote economic growth, Sagar proposed a number of reforms including retention of SI 110 relief, revision of minimum alternative tax and incentives for reinvestment.
Sagar further called on all stakeholders to seize the opportunity presented by Manufacturers’ month, urging them to use this occasion as a platform for industrial integration and collaboration in order to foster stronger ties and partnerships within the region.
This year’s Manufacturers’ month will be commemorated under the theme “40 Years of Excellence: Driving Industrial Growth Through Regional Integration and Resilience.”
By Sharon Zulu
Kalemba August 3, 2025
