AS a rider to last week’s article on the need for government to demarcate the country into agriculture zones and according to the suitability of the soils as well as climatic conditions, we focus on the industrial clusters.
I submit that modelling the allocation of the government-sponsored Farmer Input Support Programme (FISP) around the industrial cluster concept would make much more economic sense.
Farmers in given areas should receive for the growth of the crops identified for the particular areas according to the comparativeadvantage.
The industrial clusters’ model by the Citizens Economic Empowerment
Commission (CEEC) exemplifies that.The CEEC has embarked on the setting up of industrial clusters
throughout the country’s 10 provinces.
For the past few years, industrial cluster has been on the lips of many government officials, especially those in the ministry ofCommerce, Trade and Industry, who are the architects of the concept.
For instance the immediate past Commerce, Trade and Industry minister Bob Sichinga rarely concluded his speech without mentioning industrial
clusters.
But what are the industrial clusters?
According to the Harvard Business Review of November-December 1998, industrial clusters are geographic concentrations of interconnected companies and institutions in a particular field.
They comprise an array of linked industries and other entities cardinal to the given industry, for example, suppliers of specialised inputs such as components, machinery, and services, and providers of specialised facilities.
Furthermore, clusters often extend downstream to channels and customers and laterally to manufacturers of complementary products and to companies in industries related by skills, technologies, or common
inputs.
The Harvard Business Review states that many clusters include governmental and other institutions like universities, standards-setting agencies, think-tanks, vocational training
providers, and trade associations.
Increasingly, the competitiveness of developed regions relies on the development of industrial clusters, or geographic concentrations of businesses and institutions in related economic sectors. The physical proximity of the players encourages interaction thereby
promoting the exchange of ideas and expertise.
A look at successful economies also highlights the importance of developing innovative industrial clusters characterised by a high level of interaction among firms, thus enabling them, as a group, to learn about changing economic conditions, adapt to them and benefit from them.
The interactive nature of clusters stimulates innovation and economic learning.
The Zambian government, through CEEC has identified priority industries in at least 30 districts, three from each of the 10 provinces.
If well implemented the clusters, which takes advantage of the existing comparative advantages in given localities, will spur
evelopment in these regions.
For instance due to the suitability of soils and the climatic conditions,
Mansa has been earmarked for soya beans and rice, while Mwense whose conditions favour the growth of palms will lead in palm oil entities as Nchelenge, naturally, takes up the fish industry.
One envisages that the soya beans and rice clusters in Mansa will lead to the formation of interconnected firms in that field while similarly the palm oil and fish clusters in Mwense and Nchelenge respectively will trigger establishment of related industries.
They should attract an array of other linked industries and entities key to the sustainability of these industries, like suppliers of bags for rice and soya beans, processing factories and others.
For Northern Province, Kasama has been earmarked for soya beans, Mungwi for groundnuts while Mpulungu will team-up with Nchelenge in the fish industry.
Soya which seems to be a common product has been earmarked for Chinsali and Isoka in Muchinga Province while Mpika will take up the dairy cluster.
Additionally, Chinsali has room for a rice cluster.
In Eastern Province, Mambwe District has been identified for rice, Chipata for dairy and Petauke for groundnuts.
Similarly, Lusaka, Chilanga and Rufunsa in Lusaka Province have been earmarked for poultry, dairy and fish clusters respectively while in Central Province, Kabwe takes up the dairy cluster, Mumbwa for cotton and Chisamba in soya production.
In Southern Province, Choma takes up a dairy cluster, Namwala beef and Siavonga fish while Mongu, Kaoma and Sesheke in Western Province will
have mango, cassava and timber clusters respectively. Ikelenge in North-western Province will cater for the sole pineapple cluster in the country, so will be Kabompo for honey while Solwezi like many other districts outside that province will house dairy.
For the Copperbelt Province, Lufwanyama caters for timber, Luanshya for dairy and fish while Ndola and Kitwe will also house the fish
cluster. How I wish that the support being given under FISP could be harmonised with whatever resource is allocated to CEEC for clusters and combine the two programmes instead of thinly spreading the funds.
For comments call: 0977 245099, 0955 431442 or e-mail: jmuyanwa@gmail.com