• In the first quarter of 2021, the sector’s value-added percentage growth rate was -3.1% compared to -2.8% in the same quarter of 2022.
• The industry’s value-added growth rate in quarter 2 of 2021 was 9.2% compared to 11.7% in quarter 2 of 2022.
• The sector is on a positive trajectory judging by value-added growth.

Zambia Association of Manufacturers (ZAM) has disclosed that the manufacturing sector recorded a 1.3% growth rate in the first half of 2023.

Association Chief Executive Officer Muntanga Lindunda explained in a statement that in the first quarter of 2021, the manufacturing sector’s value-added percentage growth rate was -3.1% compared to -2.8% in the same quarter of 2022.

Ms. Lindunda said this is an indication that there has been an improvement in the performance of the sector in quarter 1 in the past three years.

“The industry’s value-added growth rate in quarter 2 of 2021 was 9.2% compared to 11.7% in quarter 2 of 2022. This once more highlights that in spite of the various headwinds the sector has and continues to grapple with, it is on a positive trajectory judging by value-added growth,” Ms. Lindunda stated.

She added that the sector is on a positive trajectory judging by value-added growth, despite the various challenges it has and continues to grapple with, such as electricity disruptions experienced in the first two quarters of this year.

Ms. Lindunda also noted that instability in the exchange rate between the Kwacha and the United States dollar created unpredictability in the sector as the local unit was characterized by fluctuations in the first two quarters of 2023.

“The Kwacha-dollar exchange rate was characterized by fluctuations in the first two quarters of 2023. This affected manufacturers who are highly dependent on foreign currency when importing raw materials.”

“In quarter 1, the kwacha-dollar exchange rate averaged between K18/US$ and K21/US$. An improvement in the performance of the kwacha was however observed in the second quarter of 2023 with the kwacha trading at K17/US$ as of 23rd June 2023.”

“In quarters 3 and 4, ZAM expects the sector to perform relatively better with Zambia reaching the Debt Agreement with the Official Creditors under the G20 common framework,” she said.