Transcript Document
AN ASSESSMENT OF THE STRUCTURAL AND
POLITICAL ECONOMY ISSUES IN THE ZAMBIA SUGAR
INDUSTRY
By: MUSONDA MSETEKA
Assistant Programs Officer
CUTS International
About CUTS International
CUTS Lusaka was established in Zambia in 2000.
Functions as a centre of excellence for policy research, advocacy and
networking
“CUTS has distinguished itself through its stress on consumer – producer
synergies for sustainable increase in consumer welfare, given that the
ordinary consumer is not just a functional unit but an actual human being
whose welfare and growth depends significantly on their association with
economic production and the income generating opportunities arising
from such association”.
ROLE OF CUTS
Our role is to conduct evidence based research mainly to feed into our
advocacy work through a process we call (RAN)
More importantly, we have over the years been providing services to
consumers – despite our limited financial resources.
1.
Lusaka Water Case
2.
Power Interruption
3.
The issue of No Refund No Return (resulting in it being
incorporated in the CCPA)
4.
The Cement case
5.
The Internet – Zamtel Case
6.
The Zambeef Case
All these cases are can be accessed on the our website
http://www.cuts-international.org/ARC/Lusaka/interventions.html
PROJECT BACKGROUND
The sugar sub-sector is very important in Zambia, contributing
about 1% to GDP.
About 4% to total merchandise exports and employing over
8,000 permanent and seasonal workers
There have been several concerns about the market structure as
well as the prices of sugar in the market
This led to the sector being the subject of discussion and research
over the past years.
However, the question which still sands is whether the exiting
literature have covered enough ground on the sector
CUTS, under the ZEAP programme, identified the sugar sector as a
sector for detailed analysis.
PROJECT OBJECTIVES
To review the existing literature on the Zambia sugar sector to identify
research gaps where in information where
To collect general statistics in the sugar industry in Zambia, which were
used to confirm the existing market shares held by different production
companies; domestic sales and export figures; the divisions between
commercial and small scale farming contributors to production;
contemporary costs of sugar production; as well as the current retail and
wholesale prices;
To review the current policy context on import and export tariffs on sugar,
competition law, the position with respect to new investments in the sector
and the key policies in neighbouring countries towards additives
METHODOLOGY
A simple methodological approach of literature review, basic data
collection on wholesale and retail prices and in depth interviews with
key stakeholders was employed.
Literature review was undertaken for a general understanding of the
market structure of the sugar industry in Zambia.
Literature review was mostly previous research into the issue by various
researchers as well as company specific information, mostly through the
websites of the sugar producing companies.
METHODOLOGY cont.
The identified stakeholders were interviewed to get their views
regarding the sugar prices.
The information gathered was then used in the assessment, which is
mostly an attempt to give an understanding about the production
process, which includes the costs incurred at the various stages in the
production chain.
Areas of possible intervention were then flagged out based on the
assessment.
Expected outcomes
An informed overview of what been covered in the sector and the
gaps which exist
Key immediate issues of consumer concerns identified
CONCLUSION
This is an open process/project and we encourage interested
stakeholders to seize the opportunity and participate in the process
Ends