Finance and National Planning Minister, Dr. Situmbeko Musokotwane has said value addition to Zambia’s resources is essential to cushion the domestic economy’s vulnerability to external shocks such as asymmetrical commodity prices, exchange rates and global trade volumes.

Dr. Musokotwane said the country could derive maximum returns from its great boom of copper reserves if value was added to the commodity before it was exported.

Speaking during the ZDA Business Seminar on Trade and Investment held on February 16, 2010 on the Copperbelt, Dr. Musokotwane said increasing investment into processing would add more value in the mining sector, thus creating a stronger economic base for the country.

He further said investing in sectors like agriculture, tourism and manufacturing could help build economic resilience in the face of external shocks.

Dr. Musokotwane said government would continue focusing on investment strategies that support resource utilisation through value addition, which was an integral part of Zambia’s diversification strategy.

He said the ongoing development of the Chambishi Multi-Facility Economic Zone for metal technologies was an embodiment of the principles of promoting value addition and import substitution.

The minister said the Chambishi Zone, once completed, was expected to have an annual turn over of about US$900 million.

Dr. Musokotwane added that a number of firm-level studies had shown that there was tremendous potential for further manufacturing on the Copperbelt as most inputs were imported from South Africa and other international markets.

“There are ample opportunities for small-scale industries to service the large mines through the manufacture of inputs and grab that market,” he said. “Increased investment in this area will raise the level of trade and commerce as well as reducing dependency on imported goods.”