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Zambia’s Non-Traditional Exports to SA, USA constitute over 90% – ZAM

• Zambia’s trade deficit remains very huge, accounting for close to US$2 billion with South Africa and US$260 million with USA.
• Zambia has huge potential to expand non-traditional exports to South Africa and USA.
• Exporting companies are at the centre of employment, and play a key role in poverty alleviation.

Zambia Association of Manufacturers (ZAM) says Zambia’s Non-Traditional Exports to South Africa and United States of America (USA) constitute more than 90 percent of the trade.
Addressing journalists in Lusaka on the upcoming Zambia Exporters Awards, Association Chief Executive Officer Florence Muleya said Zambia has huge potential to expand Non-Traditional Exports to South Africa and USA, although its export is still dominated by Copper.
Ms. Muleya stated that apart from bringing in foreign exchange, exporting companies are at the centre of employment, and play a key role in poverty alleviation, therefore the Association wants to enhance exports of more non-traditional exports that have to be value added or manufactured products.
She further said Zambia has been trading with South Africa under the Southern Africa Development Community (SADC) for about 31 years, and with the United States of America under the African Growth and Opportunity Act (AGOA) for about 22 years.
Ms. Muleya noted that despite the high export volumes to the two countries, Zambia’s trade deficit remains very huge, accounting for close to US$2 billion with South Africa and US$260 million with USA.
“The country has been observed to record negative trade balance. In 2021 alone, Zambia recorded trade deficits of about US$1,955,305,000 when trading with South Africa and US$261,132,000 when trading with United States of America.”
“It is for this reason that ZAM in collaboration with the USAID Trade Hub is hosting the 2nd Zambia Exporter Awards on the 8th July 2022 after successfully hosting the inaugural exporter awards in 2021. The 2022 Zambia Exporters Awards’ targets to award manufacturers that are currently exporting to South Africa and the United States of America just as it was the case last year,” Ms. Muleya revealed.
She further explained that the awards seek to recognize manufacturers, who are currently exporting to South Africa and the United States of America and also to celebrate their ability to overcome the export market entry challenges, as they have achieved successful and consistent trade.
“The awards will also recognize and not leave out the export ready companies, which have the potential to become big exporters,” she stated.
And Ms. Muleya noted that lack of market information on products required by the two export markets is a hindrance that most exporters are facing, hence the Association will play a key role in providing manufacturing companies with the much needed information.
“Moreover, some companies require technical assistance in aspects such as quality standards, packaging and labeling in order to be able to export to these market destinations, which they are not currently available. This is because the quality, packaging and labeling standards for a market like the United States, are very high and require training in order to be followed.”
She called for enhanced interventions to encourage more local manufacturers to export Zambian products in order for the country to fully utilize South Africa and United States of America as export destinations.
Speaking at the same event, Zambia Development Agency (ZDA) representative Obby Banda said the Agency wants to see more non-traditional exports of above US$5 billion competing favorably with metal exports.
“If we export primary products like copper and non-traditional exports, we are actually exporting jobs. Wherever the products are going to, someone is processing them and creating jobs and our main aim is also to create jobs here in the country.”
“We have the metal exports doing far much better than the non-traditional exports which are way below US$3 billion and this is a scenario we want to see change, we would like a situation where Non-Tradition Exports are actually US$5 billion competing favorably with metal exports because we see that for a long time the value of Non-Traditional Exports remains very low,” Mr. Banda noted.

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