ZICA seeks clarity on impact of USAID withdrawal, tariff wars on Zambia

The Zambia Institute of Chartered Accountants (ZICA) has expressed concern over the lack of clarity from government regarding the impact of the recent withdrawal of United States Agency for International Development (USAID) funding.

ZICA president, Yande Mwenye, warned that while the full effects may not yet be apparent, the long-term implications could be significant—particularly in sectors such as public health, education, economic development, and governance reforms that have benefitted from sustained USAID support over the years.

Speaking during a media briefing at the Radisson Blu Hotel in Lusaka on Wednesday, Mwenye urged the government to urgently formulate a strategic and comprehensive plan to sustain these critical programmes.

“This plan could include exploring alternative financing mechanisms such as diversified donor support, concessional financing, and enhanced public-private partnerships to harness local investment and expertise,” she said.

Mwenye also proposed that key programmes previously supported by USAID be integrated into the national budget to ensure their continuity and institutional sustainability.

She added that ZICA was ready to support efforts aimed at preserving the momentum achieved through USAID-funded initiatives.

Turning to global developments, Mwenye noted ZICA’s concern over escalating trade tensions between the United States and its key trading partners.

While Zambia’s direct trade with the U.S. is limited, she said the country could still be indirectly affected through its major trade relationships with countries such as South Africa and China.

“These tensions may result in reduced demand for Zambian exports, increased commodity price volatility, and disruptions to both global and regional supply chains,” she said, warning that such effects could negatively impact Zambia’s trade and industrial performance.

ZICA is urging government and private sector stakeholders to conduct a comprehensive impact assessment and develop proactive mitigation strategies to safeguard the country’s economic resilience and ensure continuity in trade and industrial growth.

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