Government’s commitment on the success of value-chain clusters throughout the country is commendable and its anticipated benefits to the citizenry are immense.
The programme, which is already underway, is being spearheaded by the Ministry of Commerce, Trade and Industry through the Citizens Economic Empowerment Commission (CEEC).
CEEC has from last year, funded a number of projects which have since been flagged off in various parts of the country under the value chain cluster programme.
With the announced creation of industrial clusters in all provincial centres of Zambia now on cards, implementation of value chain clusters will supplement those efforts to invigorate rural industrialisation.
There is abundant investment opportunities in rural areas which boasts of raw materials that could see the promotion of industries engaged in value addition.
For example, Western Province has potential to attract massive investments in the production and processing of fish, cashew nuts, rice and related agro products.
Others such as Luapula can do well in palm oil production, Aquaculture, with more investments in cold room facilities, fish canning, manufacturing of fishing vessels and fishing nets.
The same can be done in Northern, Eastern, Central and Southern provinces, all which have potential in coffee, cotton, tobacco and maize production respectively.
Already, the value chain clusters have triggered enthusiasm among the rural population as they have created hundreds of employment opportunities, improving income generation and contributing significantly to the alleviation of poverty.
Once this gathers momentum, it will attract Foreign Direct Investments (FDIs) in mostly value addition industries that will increase Zambia’s Non Traditional Exports (NTEs) and foreign exchange earnings.
The recent flagging off exercise by Commerce Minister Robert Sichinga in Northern Province, has shown how important value chain clusters are to economic growth.
It is also important for the Government on the other hand, to ensure that it extends incentives and protection to emerging industries that are seen to be disadvantaged by cheap imported products.
Some of these examples in the value chain clusters are small-scale firms engaged in the production of edible oils like the Kasama based Regitech Soya processing industry which is crying for Government protection.
Apart from that, these small entities are also calling for a waiver in import duty on certain types of processing equipment and other operating machinery.
Government needs to avail more funds to value chain clusters whose main constraints are the high cost of financing projects.
Another area Government should come in is capacity building as there is lack of skills in the handling and implementation of some of the projects.
It is also important for CEEC recipients to account for the funds being extended to them and ensure that they undertake to pay back the loans without any problems.
Value chain clusters if well harnessed can guarantee massive job creation countrywide, help improve the welfare of citizens and place the country on a positive economic path.