Africa-Press – Zambia. Information and Media Permanent Secretary Thabo Kawana writes;
As per campaign promise and considering the strategic importance of the manufacturing sector in employment creation and economic growth, the UPND New Dawn Government has laid a firm foundation for a steady rise in manufacturing output to at least 15 percent of GDP by 2026 and 25 percent of GDP by 2031.
Government under the leadership of Mr. President, Hakainde Hichilema has introduced targeted policy incentives that attract large capital inflows in this sector as outlined in the 2021 -2024
IMPLEMENTATION STATUS OF THE UPND NEW DAWN GOVERNMENT’S KEY POLICY REFORMS below.
1. Enhance Public-Private Partnerships in Manufacturing
✅ D Compound fertilizer manufacturing plant is operational and exporting within the region.
✅ The Urea Manufacturing plant is under construction.
✅ Increased pace of populating the Lusaka Multi economic facility Zone with manufacturing operations.
✅ Sino-Great Integrated Industrial and Agricultural Phosphates Processing plant.
✅ PDV Metals manufacturing plant.
✅ Marcopolo Tile manufacturing plant in the Lusaka South Multi facility economic zone.
2. Establish Industrial Parks
✅ The Lusaka South Multi-Facility Economic Zone has secured $110 million in investment from 15 companies bringing the cumulative investment to US $1.6 billion.
✅ Currently, the Zone has 30 fully operational companies, which have created about 16,000 jobs for our people. Further, 21 companies are at the construction stage and have created 8,450 jobs.
✅ The Jiangxi Multifacility Economic Zone in Chibombo has attracted investment above US $40 million in the production and recycling of batteries and manufacturing of copper cables, thereby creating more than 400 jobs.
✅ The Ministry of Small and Medium Enterprise Development has operationalized all 8 industrial yards with 109 SMEs and 38 Cooperatives, creating 1,102 jobs.
3. Introduce targeted Policy Incentives that attract Large Capital Inflows
✅ The Zambia Development Agency (ZDA) recorded $9.83 billion of the $58.78 billion in committed investments into actualized projects.
✅ These investments are derived from 497 projects spanning multiple sectors, with committed investments of $18.74 billion.
✅ The projects have generated 40,395 jobs, surpassing the initial target of 38,119 jobs.
4. Measures to Enhance Investment Growth in Manufacturing
✅ Adopted the Pharmaceuticals Manufacturing Strategy to promote domestic production of pharmaceuticals, resulting in the expansion of existing manufacturers, reopening of closed industries and establishment of new ones.
✅ Suspended Customs Duties and surtax on Copper Cathode imports in order to support the local manufacturers of copper products such as cables, transformers etc.
✅ Removed Customs and Excise Remission to support local production of steel, mining equipment, and spare parts.
✅ Extended 2% local content allowance on income earned from value addition to sorghum, alongside existing incentives for cassava, mango, pineapple, and tomato.
✅ Extended the validity period for the customs duty incentives accessible by a developer of a Multi-Facility Economic Zone for 5 years to encourage private sector to setup MFEZs.
✅ Introduced Accelerated depreciation to 100 percent in respect of any new implement, plant or machinery to developers of Multi-Facility Economic Zones.
✅ Increased the level of income tax relief granted on rural businesses from 14.2% to 20%.
✅ Introduced Zero percent Corporate Income Tax for 10 years for corn starch processers in Multi-Facility Economic Zones (MFEZs), industrial parks and rural areas.
✅ Introduced Incentives for Expansion Projects in the Special Economic Zones to encourage re-investment under the Trade & Business Development Act.
✅ Removed Customs duty on importation of motorcycles and tricycles imported in complete knock down form for companies that assemble and source at least 5 percent inputs locally.
✅ Reduced Excise by 50 percent on locally produced clear beer for small and medium manufacturers that produce less than 500,000 liters per annum.
✅ Introduced a 5-year tax holiday on profit for local producers of cotton seed; 5-year tax holiday on profit from ginning of cotton; and Provided a 10-year tax holiday on profit made from spinning of cotton and weaving of thread.
✅ Approved the introduction of Single Licence for Dairy processing the edible oils industry with a view of extending to other industries.
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