Manufacturing investment vital
Published On November 10, 2015 » 1697 Views» By Administrator Times » Opinion
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THE loud cry by many Zambians for investment in manufacturing industries as opposed to shopping malls has been heard.
This is because a group of Chinese investors currently in the country from Tianjin, Northern China, has pledged to establish an international procurement center in Livingstone.
The center once completed is earmarked to facilitate the buying and export of Zambian products to China and other possible markets.
The same business delegation has also pledged to invest more than US$20 million in the establishment of manufacturing plants for various machines and products in Zambia.
It is the news about manufacturing plants that answers the question many Zambians have been asking,  especially about  investments  that can create jobs.
As soon as such measures are realised, benefits would start from the moment the investors begin construction works, by offering job opportunities to the local people.
There are also benefits for local suppliers of building materials who would be guaranteed regular supply and business dealings.
On the cards are industries that will manufacture bicycles, water pumps, Automated Teller Machines commonly known as ATMs, bio medic equipment and other machinery.
It is worth noting that among the delegation is chairperson for Tianjin Chamber of Commerce and Industry in China, Liu Vao Gang who said his organisation has more than 30,000 companies as members.
Among these companies, some are ready to establish manufacturing plants here and help facilitate trade between the two countries.
In a clear business sense, the said dealings will mean engaging in import and export transactions between the two countries.
And obviously, the spillover effects would, in turn,  benefit Zambia in terms of earning foreign exchange which this country needs for economic stability.
With manufacturing investments, we will then see a reduction in imported equipment  and products most of which come to Zambia at a huge cost.
A developed local manufacturing industry would further become a base for exports to our neighbouring countries who would rather import machinery from Zambia than overseas.
Zambia would draw on its skilled labour who in some cases, have left to work in other countries where their expertise can be utilised.
We are hopeful that Zambia will grow into a globally competitive manufacturing hub focused on high-value-added categories such as automotive, industrial machinery, equipment and chemicals.
Zambia can grow to become a bigger manufacturing industry and realize this opportunity manufacturers will have to pursue new markets and step up innovation and productivity as promised by the Chinese investors.
The said dream is surely a response to concerns that while we have seen shopping malls built all-over the country, big gaps remained in especially in the areas of electricity and water.
Welcoming Chinese investment in the manufacturing sector could also lead to less dependance on external services even for things like maintenance of infrastructure here by foreign experts.
It is in that belief that even news like the closure of plants like Mansa batteries ear-marked for a shopping mall could be reversed and instead revamps the factory.
In this regard, Zambians must look forward to another level of investment and get inspired to collaborate with our Chinese investors.  OPINION

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