By DOREEN NAWATHE Centre for Trade Policy and Development (CTPD) has commended Government for its decision to lift the export ban on maize on the back of this year’s bumper maize harvest.
CTPD executive director, Isabel Mukelabai said Government’s decision
to lift the export ban on maize should be encourage in order to expand
trade in the agricultural sector.
“Despite the good harvest also projected in some neighboring countries, CTPD also understands that the prospects for exporting Zambia’s surplus remain reasonable, given the fall in the exchange rate and available deficit markets in the region,” Ms Mukelabai said.
Currently Zambia’s agriculture sector contributes about 20 percent to Gross Domestic Product (GDP) , 35 percent to Non-traditional exports and 70% to national employment. The agriculture sector is also key for poverty reduction as its potential for reducing poverty has been shown to be 11 times greater than the potential in other sectors.
Ms Mukelabai said Zambia has potential to become a food basket within the region and therefore attention must be paid to ensure that this potential can be unlocked by encouraging private sector participation not just in crop production but in the entire agriculture value chain.
Zambia operates within a liberalized economy and as such an open border policy is highly encouraged and is the way to go and promote growth in the economy through the Agricultural sector.
CTPD sees the case for using export ban on the basis of ensuring food security in Zambia as the last resort.
Ms Mukelabai said the recent practice of using export bans is too ad hoc and lacks transparency because exporters are not given sufficient warning of the conditions under which such bans will be use and this deters investment and inhibits growth in the sector.
“CTPD therefore encourages Government through the Ministry of Agriculture to work towards developing a clear regulatory mechanism for maize exports that is transparent and accountable, one that will be more predictable, based on agreed parameters between Government and key stakeholders, including the private sector,” Ms Mukelabai said.
“Despite the good harvest also projected in some neighboring countries, CTPD also understands that the prospects for exporting Zambia’s surplus remain reasonable, given the fall in the exchange rate and available deficit markets in the region,” Ms Mukelabai said.
Currently Zambia’s agriculture sector contributes about 20 percent to Gross Domestic Product (GDP) , 35 percent to Non-traditional exports and 70% to national employment. The agriculture sector is also key for poverty reduction as its potential for reducing poverty has been shown to be 11 times greater than the potential in other sectors.
Ms Mukelabai said Zambia has potential to become a food basket within the region and therefore attention must be paid to ensure that this potential can be unlocked by encouraging private sector participation not just in crop production but in the entire agriculture value chain.
Zambia operates within a liberalized economy and as such an open border policy is highly encouraged and is the way to go and promote growth in the economy through the Agricultural sector.
CTPD sees the case for using export ban on the basis of ensuring food security in Zambia as the last resort.
Ms Mukelabai said the recent practice of using export bans is too ad hoc and lacks transparency because exporters are not given sufficient warning of the conditions under which such bans will be use and this deters investment and inhibits growth in the sector.
“CTPD therefore encourages Government through the Ministry of Agriculture to work towards developing a clear regulatory mechanism for maize exports that is transparent and accountable, one that will be more predictable, based on agreed parameters between Government and key stakeholders, including the private sector,” Ms Mukelabai said.
No comments:
Post a Comment