Zambia’s external trade has become progressively liberalised since the early 1990s in response to the globalisation phenomenon. Government incentives to develop export industries in favour of import substitution have led to improved foreign exchange earnings. The country’s most successful traditional exports remain its metals and minerals, in particular copper and cobalt. However, there has been steady growth of non-traditional exports (NTEs), which continue to be promoted by government.

The significance of non-traditional exports to Zambia’s economy cannot be overstated. To reduce the economy’s reliance on traditional mineral exports such as raw copper and cobalt, NTE’s are vital in increasing economic diversification and promoting growth.

Zambia’s non traditional exports include sugar, cotton lint, floriculture, soya beans and other primary agricultural produce with textile, engineering products, cement and handcrafts are also proving lucrative. Other significant export products are fertilisers, hydrated lime, coal, tea, maize, skin leather, asbestos pipes/sheets, groundnuts, mushrooms, fresh eggs and day old chicks, paper, aluminium wires and cables, sorghum, clothing and blankets. Manufacturing exports have grown significantly, and there is room for further export production considering the great demand of the country’s products on the international market.

The success of the NTE sector has manifested itself in improved export earnings and increased contributions to total exports. In recent years, NTE earnings increased, accounting for some 35 percent of export earnings, with fresh flowers, gemstones, cotton lint, sugar, copper wire and gold bar exports all contributing to this strong performance.

The South African market continues to be by far the largest for Zambia’s NTEs. Principal export products to the EU, USA and Far East are cut flowers, fresh vegetables and fruits, cotton yarn, coffee, sugar, paprika, game trophies, tobacco, cotton lint and honey products. Markets within the SADC and COMESA region are mostly supplied with sugar, cotton lint, electricity, cement, soya beans, animal feeds, tobacco, meat/poultry/dairy products, paprika, chemicals and petroleum products.

Zambia’s strategic advantages have laid the foundations for the establishment of sector export promotion strategies in order to stimulating further production and facilitate diversification in the export base. Trade agreements such as COMESA have opened up regional markets, with Zambia reaping the financial rewards of the region’s free trade area. In addition, Zambia is expected to realise tremendous benefits from the currently launched COMESA Customs Union’s external common tariff, including increased Foreign Direct Investment flows, export diversification and a stronger negotiation position in multilateral negotiations, among others. 

Further opportunities exist to broaden Zambia’s export markets and products with the Southern Africa Customs Union (SACU) market, in particular South Africa, being seen as having huge potential. To assist the penetration of Zambian products abroad, two trade fairs are organised every year. Held in Lusaka, the internationally recognised Zambia Agriculture and Commercial Show exhibits agricultural equipment, produce and manufactured goods, while Ndola’s Zambia International Trade Fair has an impressive variety of products and draws exhibitors from the region as well as abroad.

From a rich natural resource base covering minerals as well as agricultural resources, Zambia is broadening its export basket to include other important opportunities deriving from export growth. The economic diversification strategy of Zambia includes; diversifying the range of markets into which existing products are exported (geographic diversification); upgrading the quality of existing products; and taking advantage of opportunities to expand exports of services. The emphasis of Zambia’s diversification strategy is tailored to the country’s niche in the global market especially towards emerging large economies, such as Brazil, China and India.

Shifting from the traditional exports of copper and cobalt, the country is utilising available opportunities in several sub-sectors such as the food processing and beverages; clothing and textiles; metal processing; agro-processing – including fertilisers, pesticides and herbicides; wood and wood products, paper products and packaging; and cement and explosives; as well as leather and leather products. Others are processing and polishing of gemstones and jewellery making, engineering products, plastic and glass containers, and many others. Manufacturing industries are cardinal in the diversification of the economy away from raw copper and into NTEs, including the downstream processing of many primary products. A reduction in customs duty rates for some misclassified finished items has been made to boost the manufacturing sector. 

There are a number of advantages to industries engaged in manufacturing in Zambia, including readily available and reasonably priced utilities, such as power and industrial land, with a relatively robust physical infrastructure from transport to modern communications networks. There are ready markets for products both locally and internationally, with investment incentives given to non-traditional manufacturing enterprises involved in processing of primary agricultural, horticultural and mineral products for export.  
 

Attachment: 

Building Materials.pdf

Engineering Products.pdf

Floriculture and Horticulture.pdf

Leather Products.pdf

Primary Agriculture.pdf

Processed and Refined Food.pdf

Wood and Wood Products.pdf

Zambian Handicrafts.pdf

Zambian Textiles and Garments.pdf