The Zambian Government has called on the private sector to take a leading role in driving the Grow Zambia Agenda through increased production, job creation and value addition. The Government says a strong partnership between the public and private sectors is essential to building a competitive economy, strengthening local industries and creating more opportunities for Zambians. Minister of Industry, Hon. Noel Nkhoma, has reaffirmed Government’s commitment to creating an enabling business environment where manufacturers and other industry players can expand their operations and contribute meaningfully to national development. He emphasised that businesses must be given the necessary support to grow, invest in production and create employment. The call reflects the Government’s focus on strengthening domestic manufacturing and positioning Zambia as a more competitive player in regional and international markets.
Speaking when a delegation from the Zambia Association of Manufacturers (ZAM), led by its President, Mr Mohammed Umar, paid a courtesy call on him at his office, Hon. Nkhoma said President Hakainde Hichilema had made it clear that bottlenecks and rigidities affecting businesses must be removed. He explained that Government recognises the importance of reducing unnecessary barriers that prevent companies from operating efficiently and expanding their businesses. According to the Minister, the private sector has a central role to play in driving economic growth, while Government must provide policies and conditions that allow businesses to succeed. This includes supporting manufacturers, improving the operating environment and ensuring that local industries can compete effectively. He stressed that economic transformation requires a business environment that encourages investment, innovation and increased productivity.
Hon. Nkhoma also highlighted the importance of the Government’s approach to taxation at growth rather than at source. He explained that the policy direction was intended to give businesses greater room to expand their operations, increase production and create employment opportunities. By allowing businesses to grow before imposing certain tax obligations at the source, Government aims to support enterprise development and strengthen the productive capacity of the economy. The Minister noted that stronger businesses would ultimately contribute to Zambia’s Gross Domestic Product (GDP) through increased economic activity and improved production. This approach is particularly important for manufacturers who require adequate resources to invest in machinery, technology, raw materials and additional workers. A supportive taxation environment can therefore play an important role in encouraging business expansion and strengthening the country’s industrial base.
The Minister further announced that his Ministry would undertake visits to various industries to gain a better understanding of their operations and development plans. These engagements will allow Government officials to interact directly with manufacturers, identify challenges affecting production and assess how businesses intend to utilise available Government support. Such visits can also provide an opportunity for industry players to explain the practical difficulties they face in their daily operations. Understanding these challenges is important when developing policies that respond to the actual needs of businesses rather than relying solely on general economic assessments. Through closer engagement with manufacturers, Government hopes to strengthen cooperation and identify practical ways of improving industrial performance. The initiative also demonstrates the importance of maintaining regular communication between policymakers and the private sector.
Another major issue discussed during the meeting was illicit trade, particularly smuggling, which continues to affect local production. Hon. Nkhoma said Government would work with the Zambia Association of Manufacturers to address these challenges and protect legitimate businesses. Illicit trade can create unfair competition for locally manufactured products, especially when illegally imported goods enter the market without meeting the same regulatory and tax obligations as compliant businesses. This can undermine local investment, affect sales and discourage companies from increasing their production capacity. Addressing smuggling therefore requires cooperation among Government institutions, manufacturers, law enforcement agencies and other relevant stakeholders. Stronger enforcement and effective monitoring of trade activities can help create a fairer operating environment for businesses that manufacture and sell products legally in Zambia.
In response, ZAM President Mr Mohammed Umar reaffirmed the private sector’s commitment to working with Government in advancing the Grow Zambia Agenda. He described the private sector as the engine of economic growth and emphasised that businesses were ready to support Government’s development priorities. Mr Umar stressed the importance of a united approach to national development, saying that Government and the private sector should work together as one team. He stated, “The private sector is the engine of growth and we are here to support Government because we are one team, Team Zambia.” His remarks highlighted the Association’s willingness to strengthen cooperation with Government in areas that directly affect investment, production and employment. The partnership, he indicated, should focus on practical measures that help businesses expand while delivering economic benefits to the country.
Mr Umar also welcomed Government’s approach to taxation at growth rather than at source, describing it as a positive development for business expansion and revenue generation. He indicated that policies which allow companies to reinvest in their operations can help manufacturers increase their productive capacity and improve their competitiveness. When businesses expand, they may employ more workers, purchase additional raw materials and increase the supply of locally manufactured goods. These activities can create wider economic benefits across different sectors, including agriculture, transport, logistics and retail. Stronger domestic industries can also improve the availability of locally produced goods and reduce dependence on imported products in areas where local production can meet market demand. The Association believes that a supportive policy environment will help unlock more investment and strengthen Zambia’s long-term economic prospects.
The ZAM President further observed that Zambia has the potential to become a regional industrial hub because of its strategic position as a land-linked country. He pointed to the opportunities offered by the Tanzania-Zambia Railway Authority (TAZARA) corridor and the Lobito Corridor in expanding regional trade and industrial development. These transport routes offer important opportunities to improve the movement of goods and connect Zambian businesses to regional and international markets. Better transport connectivity can help manufacturers access raw materials, move finished products and reach customers in neighbouring countries and beyond. For Zambia to benefit fully from these opportunities, investment in production capacity must go hand in hand with efficient logistics, reliable infrastructure and competitive manufacturing. Mr Umar emphasised that closer collaboration between Government and the private sector would be necessary to turn these opportunities into increased production, employment and value addition.
The importance of promoting locally manufactured products also featured in Mr Umar’s remarks, particularly through the Proudly Zambian Campaign. He encouraged consumers and businesses to give greater priority to products made in Zambia as a way of strengthening domestic industries. Supporting locally manufactured goods can help create demand for Zambian products and encourage companies to invest in improving their production capacity. It can also support local suppliers, create employment opportunities and retain more economic value within the country. However, the growth of local manufacturing must also be supported by quality standards, competitive pricing, innovation and reliable supply. Promoting the Proudly Zambian Campaign should therefore involve both encouraging consumers to buy local and helping manufacturers produce goods that can compete successfully in domestic and export markets.
Value addition remains another important part of the Grow Zambia Agenda because it allows the country to derive greater economic benefits from its natural and agricultural resources. Instead of relying mainly on exporting raw materials, Zambia can strengthen its economy by expanding industries that process these resources into finished or semi-finished products. This approach can create additional jobs, develop technical skills and encourage investment in manufacturing facilities. It can also support small and medium-sized enterprises that supply larger industries with raw materials, packaging, transport and other services. Greater value addition can strengthen connections between agriculture, mining and manufacturing while creating opportunities for businesses across the country. Achieving these benefits will require consistent policies, private sector investment and effective cooperation between Government and industry players.
The meeting between Hon. Noel Nkhoma and the Zambia Association of Manufacturers highlights the importance of partnership in achieving Zambia’s industrial development ambitions. Government has reiterated its commitment to supporting manufacturers, addressing policy and operational bottlenecks and tackling illicit trade that affects local production. Meanwhile, the private sector has expressed its readiness to contribute through increased investment, production, job creation and the promotion of locally manufactured products. The opportunities presented by the TAZARA and Lobito corridors could further strengthen Zambia’s position in regional trade if supported by competitive industries and efficient transport systems. The success of the Grow Zambia Agenda will ultimately depend on turning policy commitments into practical improvements that businesses and communities can experience. Through sustained cooperation between Government and the private sector, Zambia has an opportunity to build a stronger manufacturing sector, expand employment opportunities and establish itself as a competitive regional industrial hub.