By Peter Taila, the independent observer
The Zambian government is steadily reshaping the country’s economic environment, making it easier to start and operate a business. Recent reforms demonstrate a commitment to fostering growth, attracting investors, and creating a sustainable economic future. These developments paint a hopeful picture, showcasing the potential for prosperity.
Empowering Entrepreneurs Through Economic Zones
The establishment of Multi-Facility Economic Zones (MFEZ) and industrial parks is another cornerstone of the government’s strategy. These zones offer attractive incentives, such as tax holidays, streamlined permits, and improved infrastructure, making Zambia a hub for manufacturing and industrial growth. This forward-thinking approach not only boosts foreign direct investment but also encourages local entrepreneurs to pursue their ambitions.
Strengthening Public-Private Partnerships
In 2022, the government launched the Public-Private Dialogue Forum (PPDF), a platform designed to foster collaboration between government and businesses. This initiative addresses the private sector’s challenges, ensuring businesses have a voice in shaping policies that impact them. By prioritizing dialogue, Zambia is creating an inclusive framework that supports both established industries and emerging startups.
Economic Stability and Debt Restructuring
Economic stability is critical for any nation’s growth. Zambia’s progress on debt restructuring, including the refinancing of Eurobonds and engagement with the International Monetary Fund (IMF), reflects strong leadership. The resulting exchange rate stability is a boon for businesses, allowing them to plan long-term investments without the fear of currency fluctuations undermining their efforts.
Investing in the Future, an incentive for manufacturing
The government’s commitment to industrialization is evident in its targeted tax breaks for manufacturing companies. Organizations operating within MFEZs can enjoy a 0% corporate income tax rate for their first 10 years, significantly reducing the cost of doing business. These incentives empower local businesses to scale and compete on the global stage, positioning Zambia as a manufacturing powerhouse in the region.
Favorable Tax Adjustments
One of the key reforms spearheaded by the government is the reintroduction of tax deductibility for mineral royalty taxes from corporate income tax. This policy change has already sparked renewed interest in the mining sector, the backbone of Zambia’s economy. Investors are regaining confidence, assured of a fair and predictable taxation regime. At first glance, this looks unfavourable to the locals, but more benefits are assured in broadening the tax base, increased employment opportunities, new business opportunities, increased stability on foreign currency rates, among other benefits.
Rising Above Challenges
While challenges remain, including the impact of climate change on agriculture and concerns over certain proposed mining laws, the government’s reforms signify a strong intent to build a resilient economy. The focus on attracting investment, improving infrastructure, and supporting entrepreneurial initiatives reflects Zambia’s readiness to unlock its untapped potential.
By implementing policies that encourage investment, foster innovation, and strengthen public-private partnerships, the country is charting a course towards economic resurgence. Entrepreneurs, investors, and citizens alike have every reason to be optimistic about the future of business in Zambia.
With such bold reforms and initiatives, Zambia stands poised to not only recover but to thrive in the competitive global economy. The groundwork being laid today will reap dividends for generations to come. The business environment in Zambia is undoubtedly on an upward trajectory, and it’s a journey worth applauding.
This is all on paper. Ever tried to register a company? Ever dealt with a public sector offical? Ever had to deal with the official who tells you “come tomorrow”, “the file cant be found just attach you letter and everything that should be on that file was scanned to form and electronic copy of the file?” This public official telling you this is thinks you dont have a brain right? Then what efforts that are being done in this entire article are a joke right?
Maybe we need another TIZ report to tell us the work culture that workers in our offices are just corrupt, lazy incompentent and how they are hired is abouf who you know and gives them the notion that they cant be replaced; so bribe me or your file will get lost.
So any efforts that this article alludes to is just a joke or an effort to suggest to those that pay for circus to play; things are happening. In all unless our attitude changes the “hamster will keep turn, to suggest things will change; when its just the same old same old”. Just a different hamster on the on the tread mill.
That’s the results of 10 years of PF rule…..
Zambian workers were beginning to think corruption and stealing was part of the job description..,,,,
It will take at least another 10 years to put thing right
FED2031
The UPND government has made tremendous strides to improve white collar crime because they’re the main beneficiaries. What do you call the sale of Mopani to a dubious company without money getting into the treasury?
Is the author on drugs or was drunk when writing this article indeed praise singers lack a clear mind,only thinking of the belly
Where do such people come from? And how do they see things differently. Or is it because they have three proper meals per day accompanied with that special wine?
I remember the late Alexander Kamalondo telling our beloved KK that he (KK) was going to sweep the 1991 elections when even even babies in their mothers backs knew that the was going to lose terribly.
Yesterday ZACC were complaining about the hostile business climate but here’s this dancer saying the opposite.
once the economy comes back on track with all the initiatives the UPND is putting in place Zambia will be a good country to do business from, I like this article