The Zambia Development Agency (ZDA) 2020 Export Audit has revealed that Zambia recorded a 14.9 percent reduction in Non-Traditional Exports (NTEs).

The NTEs dropped from 2.2 billion recorded in 2019 to $1.9 billion last year representing a 14.9 reduction in trade.

The reduction in the NTEs has been attributed to the economic recession induced by the Covid-19 pandemic at global level that reduced demand, disruptions of the supply chain and closure of markets due to lockdowns and movement restrictions in both the local and international markets.

According to the survey, the country witnessed a high cost of production, particularly high energy prices and load shedding in 2020.

The  audit  also  revealed that  port export incentives such as Value  Added Tax (VAT) rule 18 refunds were not paid on time  which  caused  companies to  complain of delays in the receipt of refunds and the inability to offset the refunds with other liabilities owed to the government.

And the Democratic Republic of Congo (DRC) market survey has revealed that the DRC was still Zambia’s major market with 30 percent of goods exported to the country.

Speaking during the official opening of the 2020 Export Audit and DRC Market Survey, ZDA board chairperson David Masupa   assured the private sector that the findings of both activities would be squarely implemented.

Bishop Masupa assured the private sector that the ZDA had the N8 + 1 strategy that will make it possible to implement the findings of the two activities in a systematic and accountable manner.

He said the N8+ 1 export plan aimed to maximise the exports on NTEs into the eight neighbouring countries plus South Africa.

“ The  N8 + 1 export plan is based on scientific data which shows that close to 70 percent of Zambia ‘s NTEs  destination markets are the eight neighbouring countries plus South Africa,” explained Bishop Masupa.

Bishop Masupa said in an effort to put the export agenda at the developmental helm, ZDA was taking the lead in collaborating with the private sector to form the National Exporters Association and Sector level export promotion councils that will help to lobby for the improvement of policies in the export space.

Meanwhile, Ministry of Commerce, Trade and Industry (MCTI) permanent secretary Mushuma Mulenga said the audit provided government with a clear map of opportunities in each sector and further built on policy consideration to be undertaken.

Mr.  Mulenga said   government would ensure that it is builds the capacity of the private sector in order to increase export of NTEs to both regional and international markets.