SUGAR SECTOR POISED TO GROW BY 11P.C.

Wed, 13 Dec 2017 12:23:08 +0000

By Mailesi Banda

ZAMBIA has been named as the most competitive exporter of sugar with the industry set to grow by 11 percent to 493 000 tons over the next five years due to favourable weather conditions, improved yields and increased international demand.

 Jacobus Well, who is the head of Absa Agribusiness in Africa said despite suppressing local consumption with higher prices, Zambia remains the most competitive producer of sugar.

In a recent report on the outlook of the Zambian agriculture sector, Mr Well said sugar remains the country’s main agricultural export product, but that a weakened currency and electricity shortages is expected to limit production growth in the short term.

“The purpose of the outlook is to inform producers of changing trends in the short term, so that they can be vigilant of possible changes in the near future and adapt accordingly,“ Mr Well said.

He noted that agriculture is a main contributor to Zambia’s economic growth, though it remains affected by the inefficient rural infrastructure and drought.

He added that the government’s increased budget allocation for agriculture with a large part of the funding going to the Farmer Input Support Programme, would help the sector stabilise.

Mr Well hoped that the increased funding would increase efficiency and infrastructure development.

On wheat, Mr Well said the crop which had suffered a setback in 2015 due to lack of steady electricity supply, is set to remain stable over the next five years due to stabilisation in the supply of electricity.

And as for maize, he said production is expected to grow by 12 percent over the next five years due to favourable weather and high demand, adding that Zambia’s agricultural and food outlook for the next five years remains positive, with the economy set to recover during 2017 and 2018.

The mining and agricultural sectors are the main contributors to Zambia’s gross domestic product (GDP). GDP growth currently stands at 4.1 percent from three percent in 2016, and it is expected to grow at an average of 5.1 percent over the next five years.