Zambia manufacturers say reforms lifting industrial growth, urge policy consistency

The Zambia Association of Manufacturers (ZAM) says government economic reforms are beginning to support growth in the industrial sector, citing improved policy measures and a more stable operating environment.

ZAM president, Mohammed Umar, said the manufacturing sector was showing renewed resilience and remained closely aligned with overall economic performance.

Speaking at a town hall meeting in Lusaka on first-quarter budget performance and economic outlook in Lusaka on Wednesday, Umar said the sector was benefiting from policy adjustments and diversification efforts.

He welcomed improvements in electricity supply, noting the sector’s reliance on stable power.

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“We are seeing the benefits of diversification. Our members, including Zambia Sugar and others, are investing heavily in renewable energy, especially solar, to support the national grid,” he said.

Umar, however, cited regulatory delays, including pending resolution of Statutory Instruments 110 and 76 of 2025, which he said were affecting access to raw materials and production costs.

He called for faster approval processes and a single licensing system to reduce administrative burdens on businesses.

Umar also urged policies to support local value addition by limiting the export of raw materials.

On taxation, he said the Smart Invoicing system had improved compliance but raised concern over delayed Value Added Tax refunds, which he said were affecting cash flow.

He also called for clarity on a reported K3.9 billion revenue gap following the removal of excise duty on fuel, warning that unpredictable tax measures could encourage informality.

“While we appreciate lower fuel costs, a predictable tax regime is critical,” he said.

Umar reaffirmed ZAM’s support for the International Monetary Fund-backed reform programme and urged government to maintain an enabling environment for industrial growth.

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