By BUUMBA CHIMBULU
THE 30-day fuel pricing cycle has remained a major challenge affecting planning and investment by many manufacturing companies, especially the Small-Medium Enterprises (SMEs).
It is therefore imperative that Government should consider other options for the pricing of fuel to ensure it does not continue to be a challenge on planning, according to the Zambia Association of Manufactures policy analyst, Zondwayo Duma.
“The 30-day fuel pricing cycle remains a major challenge affecting planning and investment by many manufacturing companies especially the Small-Medium Enterprises.
“Henceforth, to effectively improve the business environment, Government should at least implement quarterly fuel price reviews,” Mr Duma said in an interview.
On the 2023 national budget, Mr Duma said it provided a number of measures that were critical for the growth of the manufacturing sector.
However, he stated, the budget did not include some important subsectors such as textiles, leather and other important subsectors.
Mr Duma therefore recommended that the two percent local content allowance be extended to other important sectors such as leather.
“Further, beyond the various measures put in place, it is recommended that Government supports the local content initiative by providing a budgetary allocation towards initiatives such as the Proudly Zambian Campaign which seeks to promote the consumption of locally produced goods in the economy,” he said.
He also observed that the 2023 national budget indicated the tabling of the Zambia Development Agency and the Investment, Trade and Business Development bills to parliament, a measure that was critical to shaping the future of manufacturing in Zambia.
Likewise, he said, the budget seek to enhance an enabling environment for the private sector to grow and reduce the cost of doing business by revising the basis on which Environmental Impact Assessment fees are charged from the value of investment to a graduated pollution based classification charge. “In addition, the budget places a double allocation to K743.6 million towards rural electrification in the year 2023.
The measures are critical for motivating investment in rural areas, which is critical for the transformation of livelihoods in rural areas,” Mr Duma said.
