Zambian manufacturers concerned over Free Trade Area
By Michael Malakata , IDG News Service , 08/27/2008
The Zambia Association of Manufacturers (ZAM) has expressed concern over the newly launched Free Trade Area in the Southern African Development Community region, which will see the abolition of 85 percent duty on ICT and other products.
The Free Trade Area will allow cheap products to flood the Zambian market, negatively affecting the local manufacturing industry, ZAM President Dev Babbar said.
The removal of tax is aimed at allowing a free flow of products in the Southern Africa Development Community (SADC) region in order to promote regional integration. The Free Trade Area will also attract investment in local ICT equipment manufacturing by regional and foreign companies currently exporting their products to the regional market.
The region's presidents launched the Free Trade Area Aug.17 during the SADC Heads of State and Government Summit. The removal of tax involves 14 countries, including Mozambique, Namibia, the Democratic Republic of Congo, Zambia and South Africa.
"The government has already agreed on the Free Trade Area, but we are engaging them in a debate so that we can find a solution to the problem that will be caused on the manufacturing industry as a result," Babbar said.
The Zambia Association of Manufacturers will defend the manufacturing industry in Zambia by ensuring that the government comes up with measures to cushion the impact of the Free Trade Area on the country's manufacturing industry, he added.
SADC is a regional economic bloc based in Botswana and chartered to accelerate the region's economic development through increased trade.
The Zambia Association of Manufacturers (ZAM) has expressed concern over the newly launched Free Trade Area in the Southern African Development Community region, which will see the abolition of 85 percent duty on ICT and other products.
The Free Trade Area will allow cheap products to flood the Zambian market, negatively affecting the local manufacturing industry, ZAM President Dev Babbar said.
The removal of tax is aimed at allowing a free flow of products in the Southern Africa Development Community (SADC) region in order to promote regional integration. The Free Trade Area will also attract investment in local ICT equipment manufacturing by regional and foreign companies currently exporting their products to the regional market.
The region's presidents launched the Free Trade Area Aug.17 during the SADC Heads of State and Government Summit. The removal of tax involves 14 countries, including Mozambique, Namibia, the Democratic Republic of Congo, Zambia and South Africa.
"The government has already agreed on the Free Trade Area, but we are engaging them in a debate so that we can find a solution to the problem that will be caused on the manufacturing industry as a result," Babbar said.
The Zambia Association of Manufacturers will defend the manufacturing industry in Zambia by ensuring that the government comes up with measures to cushion the impact of the Free Trade Area on the country's manufacturing industry, he added.
SADC is a regional economic bloc based in Botswana and chartered to accelerate the region's economic development through increased trade.
