Ease of Doing Business: Key Regulatory and Policy Changes in 2022

In 2022, the Government intends to reduce the number of licenses and permits required to operate a business. This is aimed at reducing the cost of doing business and supporting business growth and expansion. It should be noted that some businesses may still require more licenses and permits than others, depending on their industry. To register and operate a business in Zambia, there are several registration and licensing procedures that must be undertaken with various regulatory agencies before operations can commence. Procedures such as name clearance and incorporation must be undertaken with the Patents and Companies Registry. Post incorporation, social security registration obligations must be done with the National Pension Scheme Authority. Tax registration is also required with the Zambia Revenue Authority. Additional registration with the local authority in district in which operations will be conducted should also be made before commencement of operations. These requirements are in addition to other sector specific permits and licences that must be obtained before commencement of operations.

The Business Regulatory Act of 2014 was intended to provide the legal framework for an efficient and cost-effective business licensing system by stipulating that regulation of business should impose the least burden, administrative or otherwise, for businesses. This, ideally, would be achieved through the establishment of a single licensing system where a single application would cater for all the relevant licences, permits and registrations to operate a business. This does not seem to have been achieved because of how, for example, the concept of a ‘single licensing system’ is defined in the Business Regulatory Act. Under the Act, a single licensing system refers to a single regulatory point or service centre and not a system where a single application can be made for all the necessary licenses and permits. While the idea of having all relevant regulators under one roof is a step forward, it does not reduce the number of permits, licenses or registrations required to operate a business. The Business Regulatory Review Agency, which administers the Act, has cited various challenges to achieving its mandate, including resistance by some regulatory agencies of ideals like regulatory service centres as one-stop-shops.[1]

Policy and regulatory changes to specific pieces of legislation, including the Business Regulatory Act, will be required for this Government objective to be actualized.

The earlier you know about the changes the quicker you can prepare and seize opportunities. We can help you navigate these coming changes and help you identify opportunities.

[1] Britishchamberzambia.org Business Regulatory Review Agency: 2016 to Date (September 13 2018)