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The Zambia Chamber of Commerce and Industry (ZACCI) has called on the government to clear domestic arrears and maintain policy consistency to boost private sector operations and investment.
Speaking on Tuesday, ZACCI President Anthony Kabaghe said liquidity challenges persisted, with domestic arrears totaling K84.1 billion as of August 2025, constraining businesses across sectors.
“Government should articulate a credible arrears clearance strategy. Timely payments will inject liquidity, boost business confidence, and trigger multiplier effects across sectors,” Kabaghe said.
He also raised concern over high borrowing costs, averaging 29 percent, which continue to hinder private sector investment, despite credit to the sector expanding by more than 20 percent this year.
Kabaghe urged stronger coordination between fiscal and monetary authorities, credit guarantee schemes, and expanded capital markets to ease long-term financing, particularly for manufacturing and infrastructure.
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While welcoming the government’s focus on agriculture, he cautioned that inconsistent policies, such as export bans, undermine competitiveness.
“Predictable, rules-based export policies and investment in logistics and market infrastructure are critical to achieving production targets,” he said.
ZACCI commended the government for maintaining fiscal consolidation and macroeconomic stability in the 2026 National Budget, which totals K253.1 billion, representing 27.4 percent of GDP. With 81.6 percent of expenditure financed from domestic revenues, the budget reduces reliance on external borrowing and strengthens investor confidence.
Kabaghe said the 2026 targets—6.4 percent GDP growth, inflation between six and eight percent, and domestic revenue at 22.3 percent of GDP—are achievable if policies remain aligned.
He welcomed reforms in the mining sector, including mineral marketing centres and a proposed gold management entity, but stressed the need for a consistent fiscal regime and predictable royalty policies.
He also highlighted energy stability, simplified tax procedures for MSMEs, and targeted incentives to encourage formalization and growth.
Highlighting Zambia’s export progress, Kabaghe noted that non-traditional exports grew 37.3 percent over four years to US$3.54 billion in 2024, urging the government to address logistics bottlenecks and leverage regional frameworks like AfCFTA, COMESA, and SADC.
“The 2026 National Budget provides a credible framework for stability and growth. Its success depends on consistent implementation and a policy environment that inspires long-term investment,” Kabaghe said.
“A vibrant private sector remains the primary engine for Zambia’s economic transformation and inclusive prosperity.”
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