SMEs MUST BE TREATED AS STRATEGIC PARTNERS — ECONOMIST

Economist Kelvin Chisanga has called on the Zambian Government to treat Small and Medium Enterprises (SMEs) as strategic partners in national development rather than beneficiaries of government programmes.

Mr Chisanga says government should reduce the regulatory burden on SMEs by addressing the multiplicity of licences required to establish and operate businesses.

Speaking on Thursday’s edition of The Burning Issue, Mr Chisanga said entrepreneurs are often required to obtain several licences and certifications, a process he says can delay business operations and increase costs.

He has therefore proposed the establishment of a single-window system to streamline business registration and licensing.

Mr Chisanga has also called for a more practical approach by the Ministry of Small and Medium Enterprises, saying the Ministry should strengthen coordination among sectors such as finance, agriculture and SMEs to create an ecosystem that supports business growth.

He says SMEs should be supported to transition from informal survival enterprises into productive businesses capable of accessing finance, markets, technology and regional export opportunities.

Mr Chisanga further called for a differentiated tax structure for SMEs, arguing that newly established businesses should be given some form of relief to enable them to grow and become competitive.

He says stronger linkages between emerging, medium-sized and advanced SMEs are also necessary to promote collaboration and expand opportunities within the sector.

On debt sustainability, Mr Chisanga said Zambia must learn from its previous borrowing experience and avoid returning to unsustainable debt levels following the country’s debt restructuring process.

He said future borrowing should be tied to productive investments and clear performance benchmarks rather than being used primarily to finance consumption.

He further urged government to deepen the domestic capital market as an alternative to excessive reliance on external borrowing.

He also called for improved tax collection through better taxpayer education, stronger compliance and more efficient collection systems.

Mr Chisanga said government must strike a balance between revenue collection and expenditure pressures to safeguard Zambia’s economic stability.

He stressed that clear benchmarks should be established before the country contracts new debt, warning that current borrowing decisions will ultimately have implications for future generations.