The cries by scrap metal dealers restraining government from burning exports of disused metals fell through after authorities maintained the ban to save the emerging steel and iron industry in the country that has failed to compete because unleveled playing field among players.

Recently scrap metal dealers cried at the government’s decision to ban scrap metal dealing arguing that it was killing the spirit of entrepreneurship. However, Mr Mutati commerce minister of Zambia has put his foot down and stated that the decision was in the interest of protect the steel and iron industry that has had no fair trade deal hence failing to compete.

Mr Mutati recently contended that the continued exportation of scrap metal is killing local manufacturing industries, resulting in factories being turned into warehouses. In a move to Justify the imposition of the ban on scrap metal exports. Government has introduced measures aimed at developing the steel and iron industry in Zambia.

He said that the ban of scrap metal exports is expected to help mobilize reserves for the production of steel and iron products by the existing and upcoming plants. Mind you Zambia is the only country in the region which is exporting scrap metal, so what will happen is that the industry we are creating will suffocate and it will not matter what other measures we put in place if scrap is being exported.

According to government the only sure way of surviving is doing what is sensible like what other countries have done by ensuring competitive measures were applied and ensure the protection of the industries concerned. As government we have moved and we are going to implement and we are serious because we think if we put these measures, we are creating opportunities in steel sector.

Mr Mutati said that government admitted it was a difficult decision to protect the steel and iron industry. How do you deal with a reduction of jobs on one hand and creation of jobs within the same industry so we are dealing with different perspectives of the same people in the same industry? So far USD 400 million has been invested in the steel sector due to business reforms being implemented and hence we need to protect it. We don’t have total cure but we shall create level playing field through application of good policies and regulations.

(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)