Presented by Musonda Kabinga JCTR Staff

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About JCTR Zambia’s Trade PolicyMajor Provisions for Regional TradeZambia’s Trade Performance Under COMESA (Case of 2011)Micro Small and Medium Enterprises (MSMEs) Participation in Regional TradeAGOA Trade InitiativeMSMEs Participation in Domestic TradeCivil Society Involvement in Trade issuesConclusion

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JCTR – From a Christian inspired perspective , our concern is that there should be social justice in society, in order for individuals to live a fulfilled human life

Some MSMEs and face a lot of challenges as compared to large business enterprises

Our work on trade is centred on promoting a market system that is inclusive and where all participate equally according to their the capacity

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Country's trade policy is clearly defined

Vision: “To become an export- driven and competitive middle-income economy by 2015, and to formalize, monitor and regulate domestic trade activities with a view to promoting a vibrant domestic trading sector.”

The policy stipulates the specific trade regimes with corresponding policy objectives and policy prescriptions under each trade regime

Further, the policy highlights; measures for tariffs and non tariffs, export financing, standards and quality assurance, fair trading, commercial services, export promotion and production infrastructure

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SADC Trade ProtocolProvisions: Preferential Tariff Treatment; goods shall be accepted eligible if they originate in the Member States and should comply with one of the following; Goods produced wholly in a member stateGoods produced in a member state and the Cost Insurance and Freight value of any foreign materials used does not exceed 60% of the total cost of all materials used in the productionSADC Tariffs

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COMESA Trade Protocol

Provisions: Free Trade Area, Eligible goods originating from member countries attract customs duty at 0% in the Free Trade Area

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Source: 2012 COMESA International Trade Statistics

No Exporter Total

exports % Share Importer Imports % Share

Kenya 2,061.5 20.3 Kenya 617.5 7.4Egypt 1,622.5 16.0 Egypt 834.8 10.1Congo DR 1,256.0 12.4 Congo DR 1,172.0 14.1Zambia 1,147.6 11.3 Zambia 1,636.6 19.7Djibouti 1,036.7 10.2 Djibouti 115.0 1.4Uganda 955.7 9.4 Uganda 659.5 7.9Sudan 422.9 4.2 Sudan 617.5 8.0Ethiopia 316.8 3.1 Ethiopia 289.4 3.5Malawi 313.4 3.1 Malawi 225.6 2.7Seychelles 247.2 2.4 Seychelles 51.2 0.6Mauritius 188.7 1.9 Mauritius 152.9 1.8Rwanda 151.4 1.5 Rwanda 368.0 4.4Zimbabwe 150.5 1.5 Zimbabwe 462.0 5.6Swaziland 94.6 0.9 Swaziland 7.0 0.1Libya 70.0 0.7 Libya 609.9 7.4Madagascar 50.1 0.5 Madagascar 174.3 2.1Burundi 37.8 0.4 Burundi 157.7 1.9Eritrea 10.0 0.1 Eritrea 94.6 1.1Comoros 2.8 0.0 Comoros 7.5 0.1Total 10,134.3 100 8,296.8 100

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As far as COMESA export market shares are concerned, Kenya had the largest market share of 20% for intra COMESA exports. Kenya was followed by Egypt, Congo DR and Zambia with shares of 16%, 12% and 11% respectively

Though Zambia has done fairly well in intra COMESA trade, the major export commodity has been ores and metals followed tobacco, cotton and maize exports

There is need for the country to increase exports of other commodities other than ores and metals

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There are certain measures put in place by regional bodies such as COMESA to ensure that small business participate in regional trade through cross border trading

The Simplified Trade Regime (STR), is one intervention intended to enhance trade efficiency in the region especially for MSMEs who fail to meet the complexities of cross border trade

The top ten frequently traded products covered by STR include maize and maize products, beans, peanuts, millet, fruit, vegetable, fish, cooking oil, new clothes and cosmetics

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Number of STRNNNHJDCFSDHJF;HDJKGH Transactions: Imports

Number of STR Transactions: Imports

Source: Cross Border Trade Bulletin, Quarterly Magazine from REFORM, No.3, from July September, 2011, p.3

The number of small scale traders utilizing the STR is still very small as compared to a number of traders in the country

There is need for the government to urgently invest in popularising these available business facilities

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The African Growth and Opportunity Act (AGOA) is a United States (US) Trade Act that significantly enhances U.S. market access for Sub Saharan Africa

AGOA provision allows for duty-free access to the U.S market of approximately 7,000 product tariff lines for preferential market access

Zambia’s exports to the US under AGOA have been growing

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Source: Ministry of Commerce Trade and Industry 2012

Year DIRECTION OF TRADE WITH THE U.S/ EVENTS

Value (USD)

2010 When Zambia took over Chairmanship of AGOA

US$30m

2011 When Zambia Hosted the 10th AGOA Forum

US$ 47 m

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There is need to look at more ways of helping other small emerging businesses to be part of Trade and Investments Promotion missions to the US

MCTI has been inviting different stakeholders(private sector, CSO) to input into the AGOA process

More engagement on the AGOA process when Zambia develops an AGOA Country Strategy (ACS) that will clearly outline how different stakeholders will continuously engage in the process

Extension of AGOA beyond 2015

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There is an increase in a domestic trade activities being dominated by MSMEs

Booming tourism, construction, mining, manufacturing, retail trade are some of the sectors where MSMEs are involved

Very few MSMEs in the sectors mentioned are doing value addition, mostly it’s the supply of raw materials

Growing competition from imported products going at very cheap prices

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Need to harmonize our competition policy with the COMESA competition policy. This will ensure easy and adequate monitoring of competition and fair trade practices within the economy in light of the influx of foreign products from within COMESA region

There are efforts by CCPC to harmonize with the COMESA competition policy, hence there is need to hasten these efforts

Need for a mid-review of the Implementation of MSME policy

Quick implementation of industrial clusters to enable MSMEs have access to value addition facilities

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Government’s commitment to allow various stakeholders including CSOs to be part of the Working committees on trade issues is commendable

Inputs on various trade processes the country is undertaking

CSOs Advocates for an enabling environment for the private sector

Disseminate information on trade issues to small business at grassroots level

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Communicates the challenges faced by businesses to government

Collaborating with government agencies working on trade issues (CSOs members of various committees, e.g. DTS Committee

Advocating for an inclusive trade regime

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Zambia’s trade policy is vigorous to ensure strong undertaking both domestic and external trade Need to speedy up implementation of the policy

Need to revive the Buy Zambia Campaign to enhance production of local products

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THE END

THANKYOU

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