Saturday, April 20, 2024

Government will ban chain stores from importing chips from South Africa-Sampa

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Commerce, Trade and Industry Deputy Minister Miles Sampa
Miles Sampa

GOVERNMENT will ban chain stores from importing certain processed foodstuffs such as potatoes if they fail to comply with the directive by President Lungu to stock locally produced goods.

Deputy minister of Commerce, Trade and Industry Miles Sampa has since given a two-month ultimatum to international chain stores such as Shoprite, Spar, Pick n Pay and Hungry Lion to start buying potatoes produced by local farmers.

“We are serious to ensure that all supermarkets operating in Zambia stock produce by local farmers and processed by industries that are in Zambia so that we create employment.

“Those chips that are imported from South Africa make Zambia spend about US$12 million per year to bring in those chips stocked in Shoprite, Pick and Pay, Hungry Lion and Spar,” Mr Sampa said.

He was speaking after a conducted tour of Shoprite and a potato processing plant called Colwyn Limited in Ndola on Friday.

Mr Sampa was optimistic that the Kwacha will significantly appreciate once chain stores adhere to the directive.

“We are talking about the exchange rate not improving in Zambia; if we keep that US$12 million [in the country], you will see the exchange rate improving.

So we are serious, we don’t want to regulate, we will pass laws, we want to speak to you, only when you fail, you will force us to start establishing laws and banning importation of processed foodstuffs,” he said.

Mr Sampa also urged consumers to buy locally produced foodstuffs to support the local industries.
He said Government will in two months-time check on the progress that supermarkets will make in adhering to the directive.

Mr Sampa also expressed concern at supermarkets stocking imported samosas and spring rolls made from wheat produced in Zambia.

And Colwyn chairperson Terence Findlay said the plant will commence production in July, with 30 workers expected to be employed at full production.

He said the processing plant will make 20 tonnes of chips a day.

Recently, President Lungu directed supermarkets in Zambia to start stocking locally produced foodstuffs.

16 COMMENTS

  1. So this Ex-PF president stopped eating chips?
    Of all things from xenophobic South Africa, you can only ban chips or commonly known as flies.

    • ok,but this move is long overdue!…actually they can just hike import duty on those products and carelessly lower tax on those produced locally….simple fiscal policy can turn our agro industry into a pregnant elephant…ayway, its blind pf here…so such thinking is for the future inchallah.

    • Zambians just love anything and everything imported no matter the quality.

      Its about time govt stopped this obsession and help promote and grow the local industry

    • Let the consumers have a choice between imported and locally produced products. If the local product is either superior or cheaper then the consumers will buy it. After all, we want to save money. This threat to ban imports is just meant to create a monopoly for the Findlays’ new potatoes chips plant and thus a bad trade policy.

  2. No need to ban imports, let them continue importing them, but hike the import duty to 350% & enforce control & inspections on the floor and see a mad person who will continue to import them.

  3. Quality knows no political boundaries. Quality knows no political boundaries. Quality is sustainable. Please approach foreign goods with greater creativity. Encourage local content and local subsidiaries registered in the country. The timing is also wrong because xenophoci attacks are still in the background picture. Twenty million spent on chips per annum is nothing compared to billions spent by adults on gambling in the cassino and by super-kids on flipper, mini soccer and other electronic games. There is no need for disrupting registered commercial transactions that are paying taxes and creating jobs. Even involving the role of the Central Bank in the National Budget is debatable. The Bank must stick to monetary policies and allow Finance to balance the Budget.

  4. And banning import of frozen chips will enhance competition and trade? It will help local “frozen vegetables” processing industry? By the way, is there local industry which is “processing” frozen chips?

    Another “populist statement” from intellectual non-com.

  5. I dont just like promoting Findlay’s potato processing plant. This is creating a monopoly. How many farmers grow quality irish potatoes in Zambia? Look at areas were these potatoes are grown, Solwezi, Serenje, Chipata etc. They are all inferior quality. There’s only one farmer in Kabwe chisamba area who grows semi quality potatoes. hence, South Africa will continue supplying findlay’s plant. Remember, Kaunda made the same mistake in the 80s. We need our quality French fries. Please concentrate on mega economy of extractive industry. you ve just been defected on increasing mineral royalty tax. Sis.

    • Back in the day, we used to eat locally produced crisps so I don’t see why this should not happen today.
      However, they shouldn’t ban the import of the chips from South Africa, just increase the duty on them to ridiculous levels so that only the mad and super-rich will be buy them.

  6. I wouldn’t be surprised if Miles Sampa is a shareholder in Findlay’s plant. Why not just raise the import duty on processed chips from South Africa and put in place measures for our local farmers to improve the quality of potatoes produced?

  7. Minister you should add charcoal for brai to the list of items to be heavily hit with import duty. Majority of Zambian homes rely on charcoal as a fuel for cooking and it’s available locally in abundance, so why must we import it from SA. Even if it means using &repackaging coal we can still do it. It’s just stupid to see businesses doing this in the name of foreign investment. This should stop. This where govt should be getting extra cash instead of targeting poor home owners on small rental incomes. Bad laws should never be enforced. Repeal the rental act.

  8. Surely, can importing chips strengthen the kwacha? Although it will save some forex but start with things which will bring bigger impact. Say the mines. This is why I believe PF majors in the minors and do not seem to have direction.
    Sampa says “So we are serious, we don’t want to regulate, we will pass laws …….”. I wonder why the law maker does not understand that regulations are put in the laws. Regulations are part of the law.

  9. Chips chips or crisps? Amigo crisps are the best, Zambia is lucky to have such good quality crisps in delicious flavors. Those Lays ones are rubbish, they put artificial sweeteners in them, which leaves a bad aftertaste.

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