ZAM Hosts Successful 2024 Post-Budget Meeting in Lusaka
The Zambia Association of Manufacturers (ZAM), in collaboration with the USAID Revenue for Growth Project, hosted its highly anticipated 2024 Post-Budget meeting at the Radisson Blu Hotel. The event brought together key industry stakeholders and government representatives to discuss Zambia’s 2025 National Budget and its implications for the manufacturing sector.
The meeting was graced by Mrs. Mwaka C. Mukubesa, Acting Permanent Secretary for Budget and Economic Affairs, who represented the Minister of Finance and National Planning.
ZAM President Mr. Ashu Sagar presented a comprehensive analysis of the budget, highlighting critical areas affecting the manufacturing industry and offering key recommendations.
During his address, Mr. Sagar shared that Zambia’s manufacturing sector recorded modest growth of 4.7% in 2022, contributing 0.4% to the national GDP. However, the sector faces significant challenges, including high energy costs, delayed VAT refunds, licensing burdens, volatile exchange rates, and barriers to regional exports.
The budget introduced several positive measures aimed at boosting local production, including increased funding for the Zambia Credit Guarantee Scheme and the introduction of surtaxes on selected imports to support local manufacturers.
Additionally, plans to enhance road infrastructure through public-private partnerships (PPPs) were welcomed as a means to improve logistics and trade.
Despite these gains, the absence of new tax concessions in the 2025 budget raised concerns among manufacturers, who fear it could limit industrial growth. The increased excise duties on non-alcoholic beverages and tobacco are also expected to drive up production costs, impacting profitability.
Mr. Sagar put forth several key recommendations, including adjusting Corporate Income Tax rates for value-added exports, reforming the VAT system to address refund delays, and implementing cost-reflective electricity tariffs to reduce energy costs while ensuring affordability.
The event was made possible with the support of sponsors New Horizon Printing Press and Coca-Cola Beverages Zambia, whose contributions were crucial to its success.
