Banks urged to finance manufacturing revival

Zambia’s mining and banking sectors hold the keys to reviving the country’s manufacturing industry, according to Bank of Zambia (BoZ) governor Michael Gondwe. Speaking at the opening of a new Stanbic branch in Ndola’s Jacaranda Mall in June, Gondwe is quoted by the Times of Zambia as saying “various mining companies require sub-contracting and supplies of various goods and services. It should be the objective of local business houses to ensure that the goods supplied to the mines are largely produced here and I urge the banks to develop products and services for these segments.” While the mines have limited potential for job creation, jobs can be created by enhancing local content through industries supplying the mines, he said. Investment by foreign-owned companies is being encouraged by the Zambian government, which has introduced a range of incentives. According to the Zambian embassy in Sweden, there are opportunities in agro-processing, textiles, motor vehicle and bicycle assembly, as well as leather and wood processing. The message is being heard, judging by the numbers through the gates of the annual Zambia International Trade Fair, which was held in Ndola between June 26 and June 28. According to the organisers, the fair attracted 108 000, which is 21% more than the 85 000 who passed through the gates in 2012.