The Industrial Development Corporation (IDC) will play a central role in the Ministry of Industry’s new Industrialisation Master Plan. The plan aims to grow domestic manufacturing, deepen value addition and expand industry in line with the Grow Zambia Agenda.
This emerged when IDC CEO Mr Cornwell Muleya paid a courtesy call on the Minister of Industry Hon. Noel Nkhoma earlier today. Hon. Nkhoma said the Ministry resolved at its inaugural meeting to formulate an Industrialisation Master Plan covering all sectors of the economy, and that IDC would be “very handy” in shaping it. The plan will be anchored on the Industrial Policy that has already been formulated. He said the Government aims to raise manufacturing’s contribution to GDP from about 9% to 30% within five years.
Hon. Nkhoma said value addition was a priority and that the President had directed a review of budget measures that affect the profitability and productivity of manufacturers. The Minister added that local industry must become more competitive, and that any protection given to producers should have a clear cut-off point.
Mr Muleya said IDC welcomed the Cabinet’s direction on industry, saying the Corporation has long worked for alignment among sector players and Government agencies behind one agenda: creating jobs and building a 24-hour economy based on large industries that turn Zambia’s natural resources into finished goods for domestic and export markets.
Mr Muleya said IDC was keen on industrialisation, with the hydrocarbon industry as its foundation, hence IDC’s push for a refinery. Beyond fuels, a refinery yields bitumen for roads, along with liquefied petroleum gas, polyethylene and polypropylene that investors are waiting to process into products such as phones and laptops.
On tax policy, Mr Muleya said IDC already has partners lined up to assemble electric vehicles in Zambia from 2027. However, incentives for completely knocked-down parts do not cover semi-knocked-down parts, which is where assembly begins. He said IDC has lobbied since March for these tax incentives and will continue doing so to make the plan a reality.
He also called for protection of existing investors, citing South Africa’s 132% anti-dumping tariff imposed on products from Zambia. He noted that Zambia imports about US$3.5 billion worth of goods from South Africa but exports only about US$500 million there.
“It will kill our industrialisation agenda,” he said, noting that MFEZ investors have US$700 million ready for expansion.
Mr Muleya added that, to attract new investors, IDC plans to package investment around mining tenements, especially strategic resources such as coal, a source of power, fuels and industrial inputs.
Hon. Nkhoma called for an ongoing coordinating mechanism between the Ministry and IDC.
“Let us work together and hold each other’s hand, and we shall win,” the Minister said.
