Assessing inter-sectoral linkages in the Zambian economy: The case of the agro-processing subsector
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- Although the diversification of the economy has been on the national policy agenda for a long time, Zambia has continued to remain overly dependent on the export of copper for foreign currency earnings and public revenue
- This study examines the way different sectors in the economy interact to identify policy interventions that can promote the diversification of the economy in Zambia.
- The findings suggest that there are stronger backward linkages between the agriculture and industrial sectors and weaker backward and forward linkages between the services sector and the rest of the economy.
- The research shows the agro-processing subsector is a dynamic component of the Zambian economy, with significant backward linkages with agriculture and forward linkages with the services sector.
- Policy responses should focus on key interventions like developing an effective local content strategy that can bolster horizontal sectoral interlinkages and promote competitiveness among local firms.
- For the agro-processing subsector to thrive, Zambia must address various economic constraints like streamlining export and import processes, facilitating access to the domestic and regional markets for producers, consistent and predictable macroeconomics, exchange rate and energy, tax and trade policy.