Abstract
Abstract : Since 2009, the Zambian Government has developed and implemented policies and strategies aimed at enhancing the commercial and industrial sector and ensuring greater participation in the local economy by both foreign and local investors in line with the Vision 2030. The Vision 2030 is Zambia’s long-term plan through which the country aspires to achieve middle-income status. In doing so, a number of policies have been put in place to directly or indirectly promote local content requirements in the production and provision of goods and services in the economy. Zambia has seen an increase in Foreign Direct Investment (FDI) inflows in the form of chain store supermarkets. This type of investment is not only expected to improve Zambia’s economic performance through the competitiveness of its products but to lead to transfer of technology and new skills to the local population. However, it is argued that the domestic private sector has not been integrated with the new investments. There has not been sufficient integration with the domestic market through the utilization of locally sourced products, not resulted in highly skilled employment, nor knowledge and skills transfer to local firms and persons. Indeed, despite the presence of local content policy (LCP), there has been an increase in the importation of foreign agricultural produce, which has adversely affected the local market. The trend had now extended to tomatoes, onions, potatoes, watermelons and pineapples, and is harming the growth of the local agriculture sector. This research conducted interviews with the key stakeholders in these processes, i.e. chain store supermarkets, the Zambia National Farmers’ Union and agro-processors, on how LCP can spur industrialization in the fruit and vegetable sector in Zambia following the expansion of chain store supermarkets. The sector has great potential to tap into Zambia’s agronomic resources to grow a commercial-scale fruit and vegetable sector capable of supplying domestic and regional markets. However, this research concludes that currently, fruit and vegetable production in Zambia is conducted by small-scale farmers, who are unorganized and face many difficulties. In that regard, the study proposes that policy should focus on public support, improving the access to extension support services and infrastructure, including irrigation.
M.Phil. (Industrial Policy)