VNc#2426: The Fourth Indispensable Action – Build Indigenous Value Chains, Not Just Indigenous Traders
By Comm. VPM Nyasulu
aka @shikulu-LUBUTO
For the past three weeks, I have argued that Zambia’s next Government must intentionally build an ecosystem in which indigenous Micro, Small and Medium Enterprises (i-MSMEs) can genuinely thrive. First, Government must adopt a National Indigenous Enterprise Development Strategy. Second, it must fundamentally reform access to finance. Third, Government procurement must become the country’s largest market development tool for indigenous businesses.
The fourth indispensable action is equally critical:
Zambia must deliberately localise and deepen indigenous value chains.
One of the greatest weaknesses of our economy is that too many indigenous enterprises remain trapped in buying and selling imported finished products while participating very little in actual production. Trading has its place, but no nation has ever become prosperous merely by importing what others manufacture.
True wealth is created through production, processing, innovation and value addition.
Our farmers should not simply sell maize; they should produce breakfast cereals, stock feed, starch and ethanol. Our timber should become furniture. Our cotton should become garments. Our copper should increasingly feed downstream manufacturing. Our gemstones should be cut, polished, branded and marketed from Zambia instead of exported largely in raw form.
Every major economic sector presents similar opportunities.
Agriculture requires stronger agro-processing industries. Mining requires supplier development programmes that deliberately integrate indigenous manufacturers into mining value chains. Tourism requires local enterprises supplying food, crafts, transport, accommodation and digital services. Construction requires locally manufactured building materials. The green economy presents opportunities in recycling, renewable energy technologies, climate-smart agriculture and environmental services.
Government policy should therefore move beyond supporting isolated enterprises towards developing complete indigenous business ecosystems.
This requires coordinated interventions.
Industrial clusters should be established around comparative advantages in each province. Universities and research institutions should work closely with industry to commercialise innovation. Technical colleges should produce skills demanded by local industries. Financial institutions should develop specialised products that finance value addition rather than merely trading activities.
Equally important is market linkage.
Large corporations, mining houses, supermarkets, Government institutions and multinational investors should progressively increase procurement from indigenous suppliers that meet agreed quality standards. Supplier development should become part of corporate citizenship rather than an optional public relations exercise.
Technology must also become central to value chain development. Digital platforms can connect producers with processors, processors with distributors, and distributors with consumers more efficiently than ever before. Modern logistics, warehousing and quality certification systems will further enhance competitiveness both locally and internationally.
Ultimately, Zambia’s development challenge is not merely producing more businesses.
It is producing businesses that produce.
That distinction matters.
An economy dominated by traders remains vulnerable to external shocks, exchange rate volatility and imported inflation. An economy built upon productive indigenous enterprises creates jobs, exports more, imports less, generates tax revenue and strengthens national resilience.
The next Government therefore has an historic opportunity to transform indigenous MSMEs from participants at the margins of the economy into the very backbone of Zambia’s productive capacity.
When indigenous businesses become integral parts of strong domestic value chains, economic growth becomes broader, more inclusive and more sustainable.
That is how nations industrialise.
That is how citizens prosper.
That is how Zambia will finally unlock the enormous productive potential of its own people.
