Slow Manufacturing Growth Due To PF Excessive Borrowing - ZAM

The Manufacturing Association of Zambia (ZAM) has blamed slow growth in the country’s manufacturing sector on the excessive borrowing of the previous Patriotic Front government.

In an interview in Lusaka on Monday, ZAM President Ezekiel Sakala said the previous regime had limited private sector growth by borrowing unnecessarily from commercial banks. This left private companies unable to secure loans because the rate of competition from the public sector was too high. 

“For the private sector to compete with the government only means you are competing at a higher rate, which you cannot do as a business entity,” he said.

Mr Sakala said the situation had prevented private companies from contributing towards Zambia’s social and economic development. He therefore called on the new government to reduce borrowing as a matter of urgency. 

“World over the private sector are the ones driving economies because their governments have created partnerships and opportunities that are encouraging them to thrive,” he said. 

Meanwhile, Frank Kayula of the Zambia Kaypo Research Institute praised the path towards economic recovery set out by President Hakainde Hichilema and called for businesses to support the president’s plan. He also observed that greater innovation in the manufacturing sector would be key in promoting economic recovery.

In particular, he suggested that farming products should be manufactured and processed locally in order for Zambia to reap greater benefits from agriculture.