Zambian exports have failed to fully penetrate the lucrative Democratic Republic of Congo (DRC) market due to the high cost of production in Zambia, theÂ Zambia Association of Chambers of Commerce and Industry (ZACCI) has observed.
In an interview with ZANIS in Lusaka today, ZACCI chief executive officer Justin Chisulo said South African products were entering the DRC market more than Zambian products yet Zambia was nearer to that market than South Africa.
Mr Chisulo said the high cost of production in Zambia was hindering Zambian products
from entering both regional and the global export markets because they tended to be
uncompetitive as they turned to be more expensive.
He explained that if well exploited, significant foreign exchange earnings would be
generated from the DRC market alone.
Mr Chisulo called on Zambian exporters to exploit the DRC market despite the hardships they are facing in penetrating that market including other regional and global markets.
And Mr Chisulo said ZACCI was conducting a study on the fuel pricing system with
view toÂ advising on possible remedial measures.
He said the high fuel prices was among the major factors behindÂ the high cost of production in Zambia.
Recently some ZACCI members called on government to scrap the Energy Regulation
Board, ERB, in order to reduce the fuel pump price.
The ZACCI members noted that the ERB was also a cost as it raised funds for its operations through the fuel tax.