Africa-Press – Zambia. Doing business in the New Dawn Government is increasingly becoming HARD for local small, medium businesses and entrepreneurs. The Demand for goods and services has drastically REDUCED.
SMALL and MEDIUM BUSINESSES represent 97% of all businesses in Zambia accounting for 70% of Gross Domestic Product (GDP) and employing more than 80% of the working population in the Country.
MINES and BIG FOREIGN BUSINESSES represent 3% of all businesses in the Country. This category of businesses normally externalize all their PROFITS OUTSIDE the Country. To them, Zambia is just a place to make money and spend it elsewhere.
Thus Zambia’s local market money circulation is REFUELED by four major categories, 1. LOCAL SUPPLIERS 2. LOCAL FARMERS ( Mostly Small) 3. SALARIES (Public and Private) and 4. RETIREES. All these 4 categories keep their money WITHIN the Country and service the local economy.
The New Dawn Government has not paid the local suppliers and with the challenges in the distribution of farming inputs to farmers, agriculture production at household level (Micro) will be reduced in the 2022/23 farming season. 2023 will be a TOUGH year economically.
Amidst IMF prescribed conditions, we urge President Hichilema and his Government to QUICKLY PAY LOCAL SUPPLIERS AND RETIREES to flood the market with DISPOSABLE INCOME to ENTREPRENEURS and avoid further damage to the small and medium businesses. We need more money in the economy.
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