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Growth Promotion Through Industrial Strategies – A Study of Zambia.

76 Pages Posted: 15 Jan 2016  

Judith Fessehaie

Centre for Competition, Regulation & Economic Development (CCRED)

Reena Das Nair

Centre for Competition, Regulation & Economic Development (CCRED)

Phumzile Ncube

Centre for Competition, Regulation & Economic Development (CCRED)

Simon Roberts

Centre for Competition, Regulation & Economic Development (CCRED)

Date Written: 2015

Abstract

Zambia has experienced very good GDP growth rates in the last decade, above the SSA average. Growth remains largely based on copper exports, and on the high copper price that prevailed until 2013. The country has not yet achieved structural transformation of its domestic economy, in particular with regard to its ambition for broader based industrialization. There are important changes in demand with urbanization and increasing household incomes, in Zambia as well as in the neighboring DRC. A review of trade patterns and the sectoral performance in Zambia assesses the size and direction of different effects on patterns of industrial development. It particularly considers the impact on agro-processing and engineering sectors and the key factors in development of these activities. The paper considers concerns relating to competition, investment along the value chain, and the ability to build capabilities based on local demand and export opportunities in regional markets, especially in South Africa and via regional supermarket chains. Based on this analysis the paper asks what policies are required to support broad-based industrialization and critically assesses the existing framework and its implementation in this light. It concludes by considering the potential for collaboration in industrial policy across countries.

Keywords: Zambia, growth, industrialization, competition, regional value chains

JEL Classification: L1, L2, L5, L6, O1, F15

Suggested Citation

Fessehaie, Judith and Das Nair, Reena and Ncube, Phumzile and Roberts, Simon, Growth Promotion Through Industrial Strategies – A Study of Zambia. (2015). CCRED Working Paper No. 6/2015. Available at SSRN: https://ssrn.com/abstract=2716044 or http://dx.doi.org/10.2139/ssrn.2716044

Judith Fessehaie (Contact Author)

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

Reena Das Nair

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

Phumzile Ncube

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

Simon Roberts

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

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