By Cecilia Chiluba 
Small and Medium Enterprises (SMEs) Association of Zambia has urged Government to reduce licensing bottlenecks before seeking to legislate the informal sector through the proposed regulation Bill.
According to Small and Medium Enterprises Minister Elias Mubanga, Government intends to introduce a Bill in Parliament aimed at regulating SMEs and entrepreneurs, to address challenges within the informal sector, particularly in securing loans.
Responding to a press query sent by Money News, SMEs Association Chairman, Daimone Siulapwa proposed that one consolidated document be introduced that covers PACRA and NAPSA registrations, as well as Zambia Revenue Authority (ZRA) tax compliance.
Mr. Siulapwa said doing so will reduce the compliance burden and help bring thousands of informal businesses into the formal economy without coercion.
He emphasized that the path to formalization of the informal sector must be simple, unified, and business-friendly.
“We must remind the government that formalizing SMEs should not be about bureaucratic control.”
“Legislation should not be the default solution. This is a lazy route. What SMEs need is support, simplification, and protection,” Mr. Siulapwa emphasized.
Mr. Siulapwa stated that Zambia cannot continue to be an unregulated playground for foreign interests while its own citizens are buried under mountains of paperwork and red tape.
He further urged Government to investigate and publicly address the root causes behind failure by some SMEs to repay empowerment loans.
“While we welcome any initiative aimed at strengthening and empowering the SME sector, we must raise fundamental concerns that the Minister and his Ministry appear to be ignoring.”
“First, before seeking to legislate, the Minister must investigate and publicly address the root causes behind the failure by many SMEs to repay government-funded empowerment loans. Is the loan disbursement process riddled with political patronage? Are these funds being allocated based on partisan loyalty instead of merit, business viability, and capacity? Until this is resolved, no amount of regulation will fix the mess,” he noted.
Mr. Siulapwa wondered how SMEs can repay loans when their businesses are collapsing owing to persistent load-shedding.
He observed that power blackouts have become the single biggest threat to small enterprises across the country because entrepreneurs cannot build, grow, or sustain a business in the dark.
“Load-shedding has not only crippled productivity but has led to massive losses in perishables, manufacturing delays, and a decrease in customer confidence.”
“If the government is sincere about empowering SMEs, let it start by reducing licensing bottlenecks, curbing load-shedding, and protecting local enterprises from unfair competition by foreign-dominated markets. Anything less is just empty political theatre,” he said.
Joseph Tembo