{"id":2425,"date":"2025-08-15T11:24:30","date_gmt":"2025-08-15T11:24:30","guid":{"rendered":"https:\/\/eandelmagazine.com\/eandelmagazine\/?p=2425"},"modified":"2025-08-15T11:24:35","modified_gmt":"2025-08-15T11:24:35","slug":"three-problems-that-are-worse-than-taxes-and-corruption-for-zambian-businesses","status":"publish","type":"post","link":"https:\/\/eandelmagazine.com\/eandelmagazine\/three-problems-that-are-worse-than-taxes-and-corruption-for-zambian-businesses\/","title":{"rendered":"Three problems that are worse than taxes and corruption for Zambian businesses"},"content":{"rendered":"
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These obstacles topped the World Bank Enterprise Survey rankings in 2007, 2013, and 2019, considerably outweighing other issues, including high taxes, corruption, and skilled labor shortages.<\/p>\n<\/div>\n

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The most current poll, conducted in 2019, indicates a significant increase in the proportion of enterprises reporting finance as their top limitation.<\/p>\n<\/div>\n

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In that year, 28.5% of Zambian firms identified access to credit as their main challenge, up from 18.1% in 2007.<\/p>\n<\/div>\n

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Zambia\u2019s business problems compared to the rest of the continent<\/h2>\n<\/div>\n
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This issue is especially serious when compared to regional and global rivals, with just 23.2% of enterprises in Sub-Saharan Africa and 15.6% in lower-middle-income nations citing money as their top obstacle.<\/p>\n<\/div>\n

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Electricity supply is still the second most significant hurdle, mentioned by 25.8% of Zambian enterprises in 2019.<\/p>\n<\/div>\n

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This marks a resurgence in anxiety following a brief dip in 2013, highlighting persistent concerns with electricity dependability.<\/p>\n<\/div>\n

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The proportion is significantly higher than the Sub-Saharan Africa average of 12.7%, highlighting\u00a0Zambia’s<\/strong>\u00a0ongoing challenges with load shedding, infrastructure maintenance, and capacity limitations.<\/p>\n<\/div>\n

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\n
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\"Zambia<\/picture><\/span><\/p>\n

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Zambia electricity company, Zesco<\/span><\/p>\n

<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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While informal competition has improved since 2013, it continues to have a considerable impact on formal enterprises.<\/p>\n<\/div>\n

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In 2019, 12.8% of Zambian enterprises identified it as their biggest challenge, down from 22.6% in 2013, but still higher than the regional average of 10.4%.<\/p>\n<\/div>\n

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The informal sector’s reduced operational expenses, tax evasion, and flexible labor arrangements make it more difficult for registered enterprises to compete.<\/p>\n<\/div>\n

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The prevalence of these three challenges, particularly at higher levels than regional averages, demonstrates fundamental vulnerabilities in Zambia’s economic environment.<\/p>\n<\/div>\n

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Access to cheap finance is restricted, power outages disrupt operations and increase expenses, and informal competition reduces profitability for conforming businesses.<\/p>\n<\/div>\n

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To address these issues, coordinated policy interventions will be required, including strengthening financial markets to increase credit access for small and medium-sized businesses, investing in power generation and grid reliability, and putting in place fair enforcement mechanisms to reduce unfair competition from the informal sector.<\/p>\n<\/div>\n

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Source:\u00a0IMF<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

These obstacles topped the World Bank Enterprise Survey rankings in 2007, 2013, and 2019, 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