• Currently, the sector’s contribution to GDP at less than 10% remains low to attain real socio-economic transformation.
• ZAM will engage Government to look for other avenues to reach the 2030 manufacturing GDP target.
• Government must consider widening the investment incentives beyond the multi-facility economic zones.

Zambia Association of Manufacturers (ZAM) says it will engage Government to look for other avenues to reach the 2030 manufacturing to Gross Domestic Product (GDP) target.
Reacting to the 2023 national budget, Association President Ashu Sagar noted that currently, the sector’s contribution to GDP at less than 10% remains low to attain real socio-economic transformation.
Mr. Sagar also said the Association is elated to observe that Government will continue to promote multi-facility economic zones in 2023 as one way of growing the country’s industrial and manufacturing base.
He urged government to consider widening the investment incentives beyond the multi-facility economic zones (MFEZ), going into 2023.
“Zambia is open for business and we need, as a country, to seize the opportunity and extend growth beyond the MFEZ,” Mr. Sagar said.
Meanwhile, Mr. Sagar further welcomed government’s proposal to reduce the overall Budget spend for 2023 from K172.9 billion in 2022 to K167.3 billion.
He said the reduced Government budget gives the Association hope for relief from the burden of high taxes to manage the high budget by the private sector.
“Especially that we are still affected by the Russia-Ukraine conflict, partial lockdowns in China related to COVID-19, and tighter financial conditions in the advanced economies. Notably, Governments expenditure is mainly directed towards general services with an increase in allocation towards social sectors particularly education and the health sectors. This intervention is highly commendable,” he stated.
Mr. Sagar also stated that the adjustments in Pay As You Earn (PAYE) will lead to an increase in disposable income for the nationals, which will then be used to procure commodities in the domestic economy.
He added that increased local procurement is critical for sparking economic growth and creation of employment in the domestic economy.
“Further, Government has in the 2023 National Budget adjusted upwards the Pay As You Earn (PAYE) threshold from K4,500 to K4,800 and has reduced the threshold for the second band which is between K4,801 to K6,800 from 25% to 20%.”