To evaluate effects of free trade on the development of local industries in Zambia

ZILOMBO, MICHELO (2025) To evaluate effects of free trade on the development of local industries in Zambia. World Journal of Advanced Research and Reviews, 27 (1). pp. 2407-2420. ISSN 2581-9615

The study investigated the effects of free trade protocols on the development of local industries in Zambia focusing on the three categories of manufacturing industry namely: fabric and garment products (Tailoring), wood products (Carpentry) Iron and Steel products (Metal and Fabrication) in Lusaka district of Zambia. The study was conducted by the following specific objectives; to evaluate the effect of free trade on the competitiveness, sustainability and development of local industries in Zambia. And also to investigate the role of government on enhancing the competitiveness, sustainability and development of local industries. This study was guided by trade protectionism, liberalism and dependency theoretical perspectives. In this study qualitative and quantitative method using descriptive research design were used to collect data from sampled respondents. The targeted population were urban manufacturing companies in Lusaka District. A sample of 50 respondents was used which consisted of (5) participants from (10) local manufacturing companies. A sample of 50 was arrived at by using stratification and purposive sampling. Data was collected using self-administered questionnaires. The study findings established that, there was a negative effect of free trade protocols on the development of local firms in Zambia. Further, the respondents indicated that the government had a role of providing better laws and regulation to enhance competitiveness, sustainability and development of local industries. The study recommended that, there is need for political will on the part of government to assist the manufacturing industry to enjoy lower production costs, economies of scale and greater capacity utilization through the provision of subsidy or direct cash incentive payments for exporters to boost the industry and make them competitive at both local and international level. In addition, government should be involved in all trade protocols on behalf of the country to put in place some safeguarding measures to compensate for unfair trade practices and make agreements in the best interest of the local manufacturing industries.