Zambia needs a strong national trade policy
Ruling PF Bwana Mkubwa Member of Parliament in Ndola Dr. Jonas Chanda says Zambia needs a strong National Trade Policy which protects Zambia’s interests first centred around free and fair trade with other countries.Dr Chanda said this will enable the country to be competitive with its trading partners.
Speaking in Parliament on Wednesday evening in support of the 2018 budget vote for the Ministry of Commerce, Dr Chanda said it was high time Zambia developed a very assertive National Trade Policy so that the country is not turned into a dumping ground for cheap imports from its main trading partners like South Africa, China and others.
Dr Chanda reminded the House that President Edgar Lungu when he opened Parliament in September 2017, announced that Government should continue to place emphasis on an Export-Oriented Economy and urgently develop a National Trade Policy.
Dr Chanda said globally, the two main shapers of domestic politics were Trade and Immigration issues, with political parties that adopted more conservative policies tending to perform better than those with more liberal policies as has been seen in the USA, UK, Germany, Austria, and other countries.
Dr Chanda cited the United States of America as one country with a very aggressive national trade policy as reflected in President Donald Trump’s 2017 Trade Policy Agenda which has led to the USA pulling out of the Trans-Pacific Trade Partnership (TPP) as they feel disadvantaged, and forced urgent revisions to the North American Free Trade Agreement (NAFTA) between the USA and its neighbours Canada and Mexico whom they think benefit more from NAFTA.
He called on the Government of Zambia to urgently re-examine and revise its trade imbalances with two of its biggest trading partners, South Africa and China.
Dr Chanda stated that the Total Bilateral Trade between Zambia and South Africa in 2016 was US $3.8 Billion, with the balance tilted in favour of South Africa with a trade imbalance of over US $2 Billion.
“Zambia is actually the second largest destination of South Africa’s exports, as reflected in South Africa’s dominance in the retail sector in the numerous shops like Pick n Pay, Shoprite, Spar and others in shopping malls dotted around the country and stocked mostly with “MADE IN SOUTH AFRICA” or “MADE IN CHINA” products,” he said.
“This situation actually means Zambia is “exporting jobs” to South Africa while “Importing Poverty” since the current arrangement creates employment for South African farmers, manufacturers and retailers, including for the South African commercial banks which dominate the banking sector,” Dr Chanda said.
“In fact, when South African President Mr Jacob Zuma visited Zambia over a month ago, His Excellency President Edgar Lungu raised these concerns with his counterpart and called on South Africa to redress this huge and unfair trade imbalance which has made Zambia a dumping ground for all sorts of South African manufactured goods which should be manufactured locally by both local or foreign investors. South Africa should remove its over-stringent restrictions on Zambia’s exports as a way of redressing this trade imbalance.”
Dr Chanda said the current situation where 95% of Zambia’s exports to China was unfinished Copper products was not good for the economy since the country was not exporting value added goods to China.
“In fact China has created an industry of Copper refineries, smelters and other value-adding industry around Copper and other minerals, exporting back finished products to Zambia at a much higher price.”
Dr Chanda also said the imports of basic items like “Toothpicks Made in China” and other such products which should be manufactured locally was totally unacceptable and detrimental to Zambia’s economy.
Dr Chanda appealed to Government at the highest levels to aggressively launch a “Made in Zambia, Buy Zambian” Campaign which should promote locally manufactured goods and sensitize the citizens to prioritise buying of local products. Lack of sensitization had led to Zambians preferring foreign goods over locally made goods.
Dr Chanda cited examples of different countries who have launched such national campaigns at head of state or ministerial level including India’s Prime Minister Nerandra Modi who launched a “Make in India” Campaign with its own national logo to promote local manufacture of goods and exports, while discouraging imports.
He also cited Nigeria through its Commerce Minister as another country that launched a “Made in Nigeria, Buy Nigerian” Campaign.
And there is absolutely nothing you can do about it.
How long have we said we are exporting jobs to other countries? This retail thing is not helping, what we need is manufacturing. Real manufacturing, this strategy of going to stand at Mulungushi textile in Kabwe each time there is a campaign for Presidency must come to an end.
Its no secret that the South African manufacturing industry is benefiting from countries like Zambia.It may look great to see malls with south african goods but just know you are slowly killing your economy and the futures of your children.Meanwhile South africa will NOT allow Zambia to sell its products on a large scale in south africa.As much as Dr.Chanda’s statement is great I’m tired of so much talk and no action.What he said is meaningless if it is not enacted into LAW and enforced.
This Dr Chanda guy has brains and I support him 100%.
Zambians need to be empowered and SA must accept a 50-50 trade balance with Zambia.
Why is Dr.Chanda on the PF back and airheads like Lusambo in Cabinet. I have always argued that Edgar Lungu is threatened by educated and intelligent people. Dr.Martin Malama (former IG), Sebastian Kopulande, Oxford trained…and many more in PF with impeccable credentials yet our Eddy prefers, Kampyongo, Jean Kapata etc
meant back bench in post above
busy creating TPINs for marketeers .
year in year out we sing the same plans with no action, I think we are mad
Why do we have Kampyongo, Chitotela as cabinet Minister when someone called “Dr Jonas Chanda” is shunted at the back bench. I find it rather odd.
Lungu needs thugs to carry out oppressive manoeuvres against precived threats to his leadership……
@2The Chosen…IT IS BCOZ of the type of leadership we have! So, as he spoke SOME OF THE MPs ARE ALREADY CALLING HIM A “REBEL”! Any one who SPEAKS SENSE CONTRARY TO HOOLIGANISM IN BOTH RULING AND OPPOSITION PARTIES is labelled a REBEL, FIT FOR EXCLUSION! That is why this Chanda, despite what looks like sound academic credentials (Dr) and reasoning has no place in the cabinet of the Kampyongos, Sumailis, Kampambas and the ilk!!
Why is this man not a Minister of Commerce and Industry? We have tired brains in Cabinet. There’s an urgent need for a reshuffle. People like Nkandu Luo these people are tired. We have a lot of fresh brains in the country and in diaspora that can add impetus to the development programs through policy creation. 5 years no reshuffle in Cabinet that’s not good.
Come on @ Lombe, one good statement and he qualifies as minister of commerce?-thats why we can’t improve. I think we need people will brains as law makers not as boot licking ministers.Ministers come and go but the law that is enacted remains for years. What we need is that clause that MP’s should always vote along party lines abolished.MP’s should represent their constituents regardless of the party’s whims.We can see in America ,some republicans are against some of Trumps policy’s.In Zambia such acts are frowned upon but thats how progress is made and it ensures good policies make it to law.
His Excellency President Edgar Lungu raised these concerns with his counterpart and called on South Africa to redress this huge and unfair trade imbalance which has made Zambia a dumping ground for all sorts of South African manufactured goods which should be manufactured locally by both local or foreign investors.“
Why would SA want to address the situation when they are benefitting ? For your own information these retailers are heavy contributors to lungus and PF campaign funds so can not be touched, Zambians will just have accept the situation until a truly free GRZ of campaign contributors have no more strangle hold on the leadership…..
@Lindiwe, you do not need 45 minuted of watching football to discover talent.This guy is well read.Look out for this guy with brains
I have not read such excellent material on social media in the past two years. As a farmer am so delighted that we have such men and women in our own parliament. Hope such debates would be the order of the day. Unfortunately our media is biased towards ” who is leading who”. 90% of our media houses are wrestling referees.
HH has been telling you people all these years and you want to sound like a genius!
PF kuya bebele 2021
There you go again with your imitation of a politician Hugh!
Exporting of job…this is not news. It has been said over and over again since Chiluba’s days. Trouble is our leaders talk about it but policies and actions don’t seem to support the talks with action. JC good analysis (though not new) yes but action we need as a matter of urgency both from government in terms of policy formulation and religiously implement them and private sector to mobilise investment and do it. We need more Trade Kings type of investments.
The economics of migration are complex. On one hand, green cards attract brainpower from developing countries to developed countries. In this way, issues of labor scarcity are mitigated. Labor scarcity in developed countries arise from aging population and low fertility. Immigrants are generally mores resourceful than their local counterparts for them to succeed. Make no mistake, the playing field could be far from level. The argument that labor exporting countries became poorer and poorer is problematic in absence of economic figures and graphs. Globally, remittances could provide space for growth at individual, family or national level. This is achievable by providing start capital or technical expertise appropriately. Attracting diaspora calls for incentives.
Too much consumption in Zambia. Production almost zero
It high time for Zambia to learn Basic Economics and how to apply it in Trade and Commerce for the benefit of our people and the country as a whole.
When I was in the USA, I formed up an Import-Export Company. One of the Inquiries I received from a South African Company was to dispatch to South Africa used American Computers that were to be refurbished in South Africa and then Exported , as brand new, to Zambia, were the South African claimed to have a big . The South African Company didn’t know that I was a Zambian domiciled in the USA. I didn’t send used computers to South Africa.
When President Kaunda was in power, he was advised to start Steel industries in Zambia. But he was dissuaded and ill advised not to- steel was abundantly available in neighboring countries, he was told…
You are the ruling party and in the driving seat.Inprement the polices you are talking about.
If this is not common knowledge then we are in trouble. Everyone with basic literacy should know two basic facts about trade. If you import more than you sell in value terms you are losing out in that arrangement. Two: if you sell raw materials and import processed goods you lose out. This is module ONE in any Development Studies course at Secondary school level! Come on!
You forgot how many Zambians are employed by this foreign supermarkets, don’t see many zambians opening chain stores even Choppies of Bots now opening through out Zambia. even during the KK days many factories were losing money because its not viable and Zambians want more money but are very lazy compared to say the chinese that work making tooth picks. all things from china are cheap because of the low wages. the foreign chain stores don’t make goods they just sell goods from all over the world, but employ Zambians.