Analyzing the Effects of Trade Incentives in Promoting Revenue and Business Growth in Manufacturing Firms in Kabwe, Zambia
Year: 2026
Type: article
Abstract: This study examined the effect of trade incentives on revenue and growth of manufacturing firms in Kabwe. Despite the government being generous with trade incentives, there seems to be slower-than-expected growth of the manufacturing sector. A mixed-methods approach was used, involving surveys, interviews, and desk reviews; stratified sampling was used on a sample size of 32 firms. The results showed that 60% of firms indicated that trade incentives had a positive effect, while 40% indicated that they had no effect on firms’ revenue. Trade incentives had an impact on revenue, although they varied with the size of firms; larger firms benefited more from trade incentives than smaller firms (ANOVA: F = 10.34, p = 0.0031). Regression showed a significant positive effect on revenue for firms that received trade incentives (coefficient = 0.5297, p = 0.0031, R2 = 0.256). Results on the effect of trade incentives on growth showed that 56% of firms indicated that trade incentives had a positive effect, while 44% indicated that they had no effect on firms’ growth. Trade incentives had an impact on growth (ANOVA: F = 5.44, p = 0.0265). Regression showed a slightly significant positive effect on firms’ growth for firms that received trade incentives (coefficient = 0.4076, p = 0.0265, R2 = 0.154). The study concluded that while these trade incentives help manufacturing firms perform, there is a challenge arising from policy inefficiencies. The study recommends that the Government should expand, simplify, and streamline the process of accessing and utilizing these incentives.
Authors: Magreta Paxon Ngoma, Peter Silwimba
Institution: Information and Communications University
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7224588136