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The Zambia Chamber of Commerce and Industry (ZACCI) has expressed concern over a growing trend among local authorities of raising council fees, levies and charges without broad consultation with stakeholders.
ZACCI president, Anthony Kabaghe, said while the central government has been implementing policies to create a favourable macroeconomic and business environment, uncoordinated adjustments at the local level risk undermining private sector confidence, investment and operational sustainability.
In a statement issued in Lusaka on Tuesday, Kabaghe noted that businesses, particularly Small and Medium-sized Enterprises (SMEs), which contribute significantly to Zambia’s GDP and employment, were already grappling with rising operational costs and load management challenges.
He stressed that additional fees imposed without prior consultation exacerbate these challenges, raising the cost of doing business, constraining liquidity, and potentially discouraging both domestic and foreign investment.
“ZACCI emphasizes that predictable and transparent regulatory and fiscal measures are critical to economic growth,” Kabaghe said.
He acknowledged the important role of local authorities in revenue mobilisation but warned that arbitrary increases in fees and levies distort the business environment, reduce competitiveness and create inefficiencies in the private sector.
According to Kabaghe, such practices could also negatively affect job creation, enterprise sustainability and innovation — key pillars for Zambia’s industrialisation and economic diversification agenda.
As the apex organisation representing the private sector, ZACCI urged all local authorities to adopt a consultative, evidence-based and transparent approach when reviewing and implementing council fees and levies.
“Engagement with the business community is essential to ensure that local revenue collection does not inadvertently stifle entrepreneurship, innovation and investment, but rather complements national efforts to create a conducive environment for economic growth,” he said.
Kabaghe further assured of ZACCI’s commitment to collaborating with both central and local authorities to ensure fiscal policies and regulatory measures strike a balance between revenue mobilisation and private sector sustainability, investment promotion and inclusive development.
He emphasised that a predictable and transparent business environment was critical for fostering long-term growth, attracting investment and strengthening Zambia’s position as a competitive regional economy.
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