Consequences of policy incoherence: how Zambia’s post-FCTC investment policy stimulated tobacco production

1 August, 2020

Dear HIFA-Zambia colleagues,

This paper looks at the potential consequences of government policy to provide tax incentives to cigarette manufacturers in Zambia. The authors have made the full text available on ResearchGate:

https://www.researchgate.net/publication/332859794_Consequences_of_polic...

CITATION: Consequences of policy incoherence: how Zambia’s post-FCTC investment policy stimulated tobacco production

Ronald Labonté, Raphael Lencucha, Fastone Goma, Richard Zulu & Jeffrey Drope

Journal of Public Health Policy volume 40, pages 286–291(2019)

https://link.springer.com/article/10.1057/s41271-019-00171-8

ABSTRACT

Zambia, a tobacco-growing country, provides manufacturing incentives to attract foreign and domestic investment. In an earlier study, we cautioned that these incentives could lead to local tobacco manufacturing, undermining its domestic tobacco control efforts. In 2018, as part of our continuing research program, we conducted key informant interviews (n = 15) and document analyses. Our early caution proved correct. In 2018, taking advantage of tax incentives, British American Tobacco Zambia and Roland Imperial Tobacco opened new cigarette-manufacturing facilities in the Lusaka Multi-Facility Economic Zone. They report capability of producing 25 million cigarettes daily, between 3 and 5 million of which is intended for the domestic market. Zambia’s tax incentives for cigarette manufacturing are likely to increase domestic consumption. The 170 new jobs created in the two plants pale when considering long-term health impacts and lost economic productivity of an increase in supply of locally produced cigarette brands.

Best wishes, Neil

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HIFA-Zambia profile: Neil Pakenham-Walsh is the coordinator of HIFA-Zambia and the HIFA campaign (Healthcare Information For All - www.hifa.org ). Twitter: @hifa_org FB: facebook.com/HIFAdotORG neil@hifa.org