17 February 2004
Expert equips manufacturers with in-depth technical knowledge
A EUROPEAN plastic manufacturing expert says Zambia's plastic industry potential looks attractive with high growth rate.
Dr Marc Donnez said in Lusaka yesterday that the industry, however, called for scrutiny and caution because the growth rate produced could be artificial since the industry was at its infancy.
He was speaking during private sector development programme (PSDP) and Manufacturers Association of Zambia (ZAM)-organised training workshop for Zambian plastic converters.
The training workshop was meant to equip Zambian plastic manufacturers with in-depth technical knowledge on developments and improvements in the sector to contribute to the improved performance of the local plastic industry.
Pre-assumptions of the PSDP diagnosis identified the means to bring together existing plastic manufacturers to present the findings of the survey as well as create an opportunity for local companies to discuss issues of relevance to their businesses.
Dr Donnez said while the industry had an attractive outlook; it remained highly versatile since a fair share lied on equipment goods, which were highly sensitive to the economic climate.
He said the Zambian industry also had a favourable opportunity arising from a gloomy economic situation in Zimbabwe and a further opportunity in the Common Market for Eastern and Southern Africa (Comesa) if properly exploited.
Zimbabwe produced an estimated 80, 000 tonnes of plastic while Zambia produced an estimated 17,700 tonnes though the Zimbabwean levels could be down by between 20 and 30 per cent because of the economic problems the country was going through.
Dr Donnez also said export opportunities existed especially for the Democratic Republic of Congo market, which took about 83 per cent of Zambia's plastic export with a little more going into Malawi.
But he said exports were still marginal representing only about four per cent of the polymers processed in Zambia.
Further export opportunities were available in the two fast growing economies of Mozambique and Tanzania but needed a voluntary approach to overcome all economic hurdles, which included language, business, culture and export practices among others.
Dr Donnez, however, observed that there were too many companies 'chasing the same cake' and producing hardly differentiated finished products, exacerbating competition and giving rise to secretive operations.
He noted that most of these companies were family-owned and made joint ventures, partnerships and mergers more difficult with inexistent marketing components.
Dr Donnez said as a way forward, Zambian plastic manufacturers should become market oriented, giving full priority to marketing and adopt a strong marketing attitude.
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