Hichilema Promises Slashed Business Rates to Boost Growth

The Ministry of Commerce, Trade and Industry has been directed to ensure that business license costs are reduced as far as possible.

President Hichilema was speaking to the Zambian Association of Manufacturers when he pledged his commitment to end practices hurting business operations and stifling growth in the economy. To that end he noted business license fees hurt small and medium-sized enterprises as it serves as a drain on funds that could be reinvested.

The meeting with manufacturers in Lusaka focused on “shifting the paradigm towards export-led industrialisation”. With 75% of Zambia’s exports currently coming from the copper industry, diversification is seen as a key goal for sustained economic growth.

Hichilema emphasised the role of the Association in his economic vision: “we are equal partners, equal partners to produce more quality goods, to process more goods”. Continuing, he outlined the multi-stage nature of his administration’s economic policy and the party’s intentions to move from the stabilisation of the economy towards growth. This year, he declared, has been dedicated to “unlock[ing] all the rigidities”.

Those “rigidities” - that is, barriers to growth - have been targeted across the economy by a series of regulatory changes including tax reductions for mining exploration rights licenses, the development of multi-faculty economic zones, and now the removal of business license fees.

The heavyweights of the Zambian economy were urged to help small and medium-sized enterprises to grow. In particular, the sourcing of raw materials was encouraged to take place locally. Cooperation should be fostered between manufacturing of any size and the raw materials industries. “It does not make economic sense for a company such as Zambia Metal Fabricators (ZAMEFA) to buy copper raw materials quoted at London Metal Exchange when it can easily access the raw material locally,” urged Hichilema.

Chipoka Mulenga, Minister of Commerce, Trade and Industry, announced the Ministry and the Association are set to identify individuals as brand ambassadors with the goal of promoting the use of local products and services.

President of the Zambia Association of Manufacturers, Ashu Sagar, praised the government’s work in stabilising the economy and expressed his “strong belief that economic change for Zambia is now.”