Zambia: TAZ Bemoans High Cost of Production

Source from:  allAfrica.com 07/04/2012

THE Tobacco Association of Zambia (TAZ) has urged the Government to address the high cost of production in the tobacco industry for it to achieve sustainable growth and effectively contribute to national development. TAZ president Graham Mbozi said the Government should address the high cost of production, electricity tariffs and the lending interest rates. "We are concerned with the cost of production, the issuance of the Statutory Instrument (SI) 33 of 2012 and the rising interest rates among others. "These factors are hurting our sector and we urge the Government to come to our aid to save our sector from collapsing," he said. Speaking in Lusaka during TAZ annual congress, Mr Mbozi said the issues needed to be taken into consideration to enhance the reputation of the sector there by allaying fears and perceptions the public may have. Mr Mbozi said the tobacco sector if well managed could contribute more than three per cent to Gross Domestic Product (GDP). He said there was need for the members to produce more and urged them not to be detracted by the notion that tobacco production in the country was related to the prevalence of high rate of smoking. "We do not manufacture cigarettes, our tobacco is exported to other countries who do not sell cigarettes to Zambia," he said. Mr Mbozi said the countries that import tobacco leaf from Zambia do so for their own domestic consumption. He said tobacco had the potential to contribute to the national treasury through various taxes there by creating employment. "We must do all we can to protect the interests by working with the Government to make sure that what matters most to our nation is protected," he said. Mr Mbozi said that the cost of production in the country was a major concern to the growth of the sector. He told the members to take heed against child labour, deforestation and theuse of rogue chemicals to avoid contributing to the pollution of the environment. Enditem