GB volumes rise 133 pc on import restrictions

Kennedy Chingombe /Enacy Mapakame
GENERAL Beltings reported last week that production volumes rose 133 percent to 238 metric tonnes in 2015 from 102 tonnes a year earlier as Government’s import restrictions helped spur demand for a product that is widely used in the mining sector.
GB group managing director, Mr Wilbroad Tsuroh told The Sunday Mail Business that the production of conveyor belts has improved despite a challenging operating environment.
Through Statutory Instrument 126 of 2014, Government removed conveyor belts from the open general import licence to a special licence.
This intervention naturally provided succour to the local producer.
“This initiative compelled internationally owned firms operating locally to consider General Beltings for some of their conveyor belting supplies, thereby resulting in new customers from the mining sector,” said Mr Tsuroh last week.
GB is currently operating at 20 percent and mainly servicing the local market with negligible quantities being exported to neighbouring Zambia.
The liberalisation of the economy in 2009 made the local producer uncompetitive relative to imported products.
A combination of slowing demand, high utility costs, high import taxes and rigidity in labour laws has also been a major drawback to local efficiencies.
GB, however, requires more than $5 million for retooling, plant upgrades, settling employee liabilities and retiring an existing $1 million debt.
According to Mr Tsuroh, the company, which supplies conveyor belts worth more than $2 million annually to the local market, was prepared to reclaim its market share through a 20 percent discount in order to match regional prices.
It is estimated that the country can save up to $15 million annually through the import substitution of conveyor belts.
“Due to local challenges, all production has been consumed locally with negligible quantities being exported into Zambia. However, in the past years, exports were into the region with the diamond mines being the dominant export market,” he said.