Fuel increments, Kwacha depreciation adversely affecting manufacturers-ZAM

Zambia Association of Manufacturers (ZAM) says the increments in fuel and depreciation of the kwacha has adversely affected manufacturers in the country.

Speaking in an interview ZAM Chief Executive Officer Maybin Nsupila said manufacturers in the country have already been finding it hard to compete against their counterparts in the region as fuel in the country has always been higher than other countries hence recent fuel increment adds to the already high cost of production of goods and services.

Mr Nsupila explained that adding to the expensive fuel is the depreciation of the kwacha against the dollar and other major foreign currencies which has led to imported raw materials being expensive.

He noted that though there maybe external forces that has pushed the Kwacha government should have mechanisms that should protect manufacturers in the country thereby protecting the public as the effects trickle down to them.

“It is challenging in the sense that the depreciation of the currency has happened in other countries around the region as they are reasons that has led to that,”

“For example; the economist will tell you that the US has adopted a policy of holding on to their dollar which has affected the quantity of the dollar on the market but that is not to say that they’re no domestic dynamics that we haven’t handled properly that are adversely affecting the kwacha and obviously its from the kwacha point of view that we see fuel being adjusted,”. Noted Mr Nsupila.

He further explained that same domestic dynamics have negatively affected manufacturers through the sourcing of raw materials hence the need to come up with measures that will protect manufacturers in the country and ensure that they are competitive.

Last week ERB adjusted fuel prices attributing the increment to the depreciation of the kwacha against major foreign currencies.